| For the past several years, Cletus Scruggs has operated a part-time merchandising company from his garage. Cletus decided to buy Fixed Assets | |
| and to operate the business, which is known as Scruggs Merchandising Inc. on a full-time basis. Scruggs Merchandising opening balance sheet is shown below: |
STILL NEED: GENERAL LEDGER, 10 COLUMN WRKSHEET (template last 3 pictures), 
| 1 | Purchased merchandise on account from Kilness Co., FOB destination | | 2% | /10 | n/30 Units | 25,000 | 125,000 |
| 1 | Rented a small shed next to the manufacturing facility, paid one year in advance | | | | | 2,400 |
| 1 | Rented the small shed to Paulsen Co. who paid one year in advance | | | | | | 3,600 |
| 2 | Sold merchandise for cash | | | | | | Units | 2,400 | 24,000 |
| 4 | Purchased merchandise on account from Guthrie Co., FOB destination | | 2% | /10 | n/30 Units | 1,300 | 7,410 |
| 5 | Sold merchandise to Franklin Inc. FOB destination, 2/10, n/30, Invoice # 1 | | 2% | /10 | n/30 Units | 4,500 | 46,000 |
| 6 | Sold merchandise to Dolly Inc. FOB destination, 2/10, n/30, Invoice # 2 | | 2% | /10 | n/30 Units | 6,500 | 66,000 |
| | The cost of the merchandise sold was | | | | | | | | |
| 10 | Purchased newspaper advertising on account from the Meeteetse Daily News | | | | | | 1,000 |
| 10 | Paid Kilness for the purchase of January 1 Check # 2 | | | | | | | |
| 11 | Purchased office equipment from Blankenhagen Office Supplies on account | | | | | | 9,500 |
| 12 | Purchased merchandise on account from Kilness Co., FOB destination | | 2% | /10 | n/30 Units | 7,500 | 40,000 |
| 14 | Purchased merchandise on account from Guthrie Co., FOB destination | | 2% | /10 | n/30 Units | 7,500 | 42,000 |
| 14 | Paid receptionist for two weeks' salary Check # 3 | | | | | | | 800 |
| 14 | Paid wages for the shipping personnel Check # 4 | | | | | | | 3,000 |
| 15 | Received cash from Franklin for sale of January 5th | | | | | | | |
| 17 | Sold merchandise for cash | | | | | | Units | 1,500 | 16,000 |
| 18 | Paid cash for supplies Check # 5 | | | | | | | | 1,100 |
| 20 | Paid Guthrie for the purchase of January 4th Check # 6 | | | | | | | |
| 22 | Sold merchandise to Franklin Inc. FOB destination, 2/10, n/30, Invoice # 3 | | 2% | /10 | n/30 Units | 2,750 | 30,000 |
| 27 | Paid part-time receptionist for two weeks' salary Check # 7 | | | | | | | 800 |
| 27 | Paid wages for the shipping personnel Check # 8 | | | | | | | 3,000 |
| 28 | Sold merchandise for cash | | | | | | Units | 8,250 | 85,000 |
| 29 | Paid telephone bill for January Check # 9 | | | | | | | 700 |
| 30 | Paid electricity bill for January Check # 10 | | | | | | | 400 |
| 31 | Paid Thompson Shipping Co. for January freight out Check # 11 | | | | | | | 2,600 |
| 31 | Paid sales commissions for the month of January Check #12 | | | | | | | 4,800 |
| 31 | Declare a cash dividend on common stock | | | | | Per Share | $ 0.40 | |
Scruggs Merchandising Inc. Balance Sheet January 1, 2019 Cash Accounts Receivable IMerchandise Inventory Supplies Prepaid Insurance Prepaid Rent 18,000 Accounts payable Accrued expenses Unearned rent Current portion of Notes Payable 10,000 4,800 3,500 Total Current Liabilities 3,500 Total Current Assets 32,800 Notes Payable 35,700 39,200 Total Liabilities Property, Plant and Equipment Land Building Accumulated Depreciation Office Equipment Accumulated Depreciation Net Property, Plant and Equipment $1 Par Common St. APICS Retained Earnings 14,000 1,000 114,600 37,000 100,000 (21,000) 25,000 5,000) 79,000 20,000 136,000 Total Stockholders Equity Total Liabilities and Stockholders Equity 129,600 168,800 Total Assets 168,800 Adjusting entries 150 1,350 585 278 120 1,250 200 3,300 233 900 Insurance expired during January Supplies on hand on January 31 Depreciation of office equipment for January-office expense Depreciation expense on the building for January-selling expense Accrued receptionist salary on January 31 Accrued shipping wages Rent expense expired during January Unearned rent on January 31 Accrued interest Accrued payroll tax expense Other information for Scruggs Merchandising Inc. Federal and State tax bracket FIFO method of inventory costing Perpetual inventory is used Gross method of recording merchandising transactions 30% Required Complete the full accounting cycle for Scruggs Merchandising Inc. Complete a vertical analysis, horizontal analysis (balance sheet only) and ratio analysis (those from the pink sheet plus gross profit margin and profit margin) Purchases CoGS Inventoryy ost/ Unit Total Cost 25,000 5.00 125,000.00 7,410.00 2 2,400 10.0024,000.00 1,300.00 5.70 5.0022,500.00 45,000 5.0032,500.00 6,500 12 12-Jan 7,500.00 533.0040,000.00 15 14-Jan 7,500.00 5.60 42,000.00 19 17-Jan 7,500.00 5 2,750 5.00 13,750.00 7,350.00 900.00 5.00 36,750.00 5.70 3 5,130.00 7 4 3 Revenue Journal R1 Accts Rec Dr.Cogs Dr. Date Sales Cr MI Cr Invoice # Account Debited A/R Franklin Co A/R Dolly Inc A/R Franklin Co PR 46,000 66,000 30,000 142,000 5-Jan 6-Jan 22-Jan 46,000 66,000 30,000 142,000 2 hases Accounts Payable Merchandise Inv Other Accounts Amount Date Account Credited PR 1-Jan 4-Jan Killness Co Guthrie Co 10-Jan Meetesstse Daily News 125,000 7,410 1,000 9,500 40,000 42,000 224,910 125,000 7,410 1,000 9,500 Advertising Expense Office Supplies 11-Jan Blankenhagen Office Supplies 12-Jan 14-Jan 40,000 42,000 214,410 Killness Co Guthrie Co 10,500 Accounts Payable DR. Shipping Salaries DR. Cash Other Accts DR Office Salaries DR. Merchandise Inv CR Date Check Number Account Debited PR 2,400 2 Merchandise Inventory 122,500 122,500 800 4 Shipping Salaries 3,000 18-Jan 20-Jan 27-Jan 27-Jan 29-Jan 30-Jan 1,100 6 Merchandise Inventory 7 Office Salaries 7,410 800 3,000 8 Shipping Salaries 9 Telephone Expense 10 Electricity Expense 11 Shipping Expense 12 Sales Commissions 12,000 129,910 31 4,600 3,000 Scruggs Merchandising Inc. Balance Sheet January 1, 2019 Cash Accounts Receivable IMerchandise Inventory Supplies Prepaid Insurance Prepaid Rent 18,000 Accounts payable Accrued expenses Unearned rent Current portion of Notes Payable 10,000 4,800 3,500 Total Current Liabilities 3,500 Total Current Assets 32,800 Notes Payable 35,700 39,200 Total Liabilities Property, Plant and Equipment Land Building Accumulated Depreciation Office Equipment Accumulated Depreciation Net Property, Plant and Equipment $1 Par Common St. APICS Retained Earnings 14,000 1,000 114,600 37,000 100,000 (21,000) 25,000 5,000) 79,000 20,000 136,000 Total Stockholders Equity Total Liabilities and Stockholders Equity 129,600 168,800 Total Assets 168,800 Adjusting entries 150 1,350 585 278 120 1,250 200 3,300 233 900 Insurance expired during January Supplies on hand on January 31 Depreciation of office equipment for January-office expense Depreciation expense on the building for January-selling expense Accrued receptionist salary on January 31 Accrued shipping wages Rent expense expired during January Unearned rent on January 31 Accrued interest Accrued payroll tax expense Other information for Scruggs Merchandising Inc. Federal and State tax bracket FIFO method of inventory costing Perpetual inventory is used Gross method of recording merchandising transactions 30% Required Complete the full accounting cycle for Scruggs Merchandising Inc. Complete a vertical analysis, horizontal analysis (balance sheet only) and ratio analysis (those from the pink sheet plus gross profit margin and profit margin) Purchases CoGS Inventoryy ost/ Unit Total Cost 25,000 5.00 125,000.00 7,410.00 2 2,400 10.0024,000.00 1,300.00 5.70 5.0022,500.00 45,000 5.0032,500.00 6,500 12 12-Jan 7,500.00 533.0040,000.00 15 14-Jan 7,500.00 5.60 42,000.00 19 17-Jan 7,500.00 5 2,750 5.00 13,750.00 7,350.00 900.00 5.00 36,750.00 5.70 3 5,130.00 7 4 3 Revenue Journal R1 Accts Rec Dr.Cogs Dr. Date Sales Cr MI Cr Invoice # Account Debited A/R Franklin Co A/R Dolly Inc A/R Franklin Co PR 46,000 66,000 30,000 142,000 5-Jan 6-Jan 22-Jan 46,000 66,000 30,000 142,000 2 hases Accounts Payable Merchandise Inv Other Accounts Amount Date Account Credited PR 1-Jan 4-Jan Killness Co Guthrie Co 10-Jan Meetesstse Daily News 125,000 7,410 1,000 9,500 40,000 42,000 224,910 125,000 7,410 1,000 9,500 Advertising Expense Office Supplies 11-Jan Blankenhagen Office Supplies 12-Jan 14-Jan 40,000 42,000 214,410 Killness Co Guthrie Co 10,500 Accounts Payable DR. Shipping Salaries DR. Cash Other Accts DR Office Salaries DR. Merchandise Inv CR Date Check Number Account Debited PR 2,400 2 Merchandise Inventory 122,500 122,500 800 4 Shipping Salaries 3,000 18-Jan 20-Jan 27-Jan 27-Jan 29-Jan 30-Jan 1,100 6 Merchandise Inventory 7 Office Salaries 7,410 800 3,000 8 Shipping Salaries 9 Telephone Expense 10 Electricity Expense 11 Shipping Expense 12 Sales Commissions 12,000 129,910 31 4,600 3,000
