general journal

specialized journal

Transactions for May: May 01 Charles contirbutes the following assets to begin business as Charlie's Fencing Emporium Cash $50,000.00 Truck...fair market value 18.000.00 Tools...fair market value 12.000.00 Shop Equipment fair market value 30,000.00 NOTE #1 Be careful because cash is included in this transaction, it doesn't belong in the general journal The fixed assets contributed above are assigned the following information for the purpose of calculating depreciation. Using this information and the depreciation schedules provided below, complete a schedule for each of the three assets. This information will be necessary when preparing the adjustments at quarter end (1) Each asset is to be recorded at its fair market value (2) All three assets groups are to be depreciated using the double-declining balance method (3) The salvage values and useful lives of each group are as follows (4) Round all depreciation calculations to the neaest whole dollar Asset Salvage Life years 53,000 Tools 1.000 Shop Equipment 3.000 Asset Truck Truck Current Depreciation 0 Accum. Depreciation 0 Book Value 18.000 Year 0 1 2 3 4 Asset Tools Current Depreciation 0 Accum. Depreciation 0 Book Value 12.000 Year 0 1 2 3 4 5 page 4 Transactions for May: continued Asset Shop Equipment Year Current Depreciation 0 0 1 2. 3 4 5 Accum Depreciation 0 Book Value 30,000 May 01 Charles paid the rent on his business location $ 1.000.00, check no. 1001, paid to Hysell Realty After this transaction, any payments by check will not refer to the check number. The accountanti to record the transaction using the next available check number (All payments by this business will be by check) 3 4 5 May 01 Charles paid the rent on his business location....S 1.000.00, check no. 1001, paid to Hysell Realty After this transaction, any payments by check will not refer to the check number. The accountanti to record the transaction using the next available check number. (All payments by this business will be by check.) May 02 Charles contributed all remaining fencing materials from his prior business to "Charlie's Fence Emporium". The value of this inventory is calculated to be $ 14,000.00 Hint...Record this beginning inventory transaction into the account "Merchandise Inventory". May 02 Charles purchased office supplies on account from "Front Street Office Supply", for $ 395.00 May 02 A business liability insurance policy was contracted with "Mullin Insurance" for a payment of $ 900.00. This is a six month policy and is paid today, May 02 WAMO Radio provided a "Grand Opening" remote broadcast at Charlie's to announce and advertise his new business. The cost is $ 525.00 and is billed for later payment May 02 Charlie's" purchased a truckload of fencing materials on account for $ 18,375.00 terms 2-10, net 30, from Atlantic Fence, Invoice # 5461Z. May 02 Cash sales for the day totaled $ 980.00 plus sales tax. Sales tax in the county that "Charlie's" is located is 7.0%. May 03 Ed Chester, owner of "Ed's Pools", reached an agreement with Charies to purchase fencing exclusively from "Charlie's Fence Emporium" for pools he installs. Since Charles will not be collecting from the final retail customer, he will be selling both materials and installations to Ed's" wholesale (no sales tax). Charles shipped and billed "Ed's" $ 1.720 for fencing materials delivered, terms.....1-10, net 30, Invoice # 1001. May 03 Paid for repairs to the truck...$425.00 May 03 Charlie's" accepts "Visa" bank cards for payment from customers. Today, a customer charged $ 825.00 plus tax. Visa charges a 3% clearing fee. May 04 Welding materials were purchased from Carl's Industrial Supply for $ 310.00...cash. May 05 Cash sales for the day totaled $ 1,750.00 plus sales tax May 06 Charlie decides to sponsor a girl's softball team to promote his business. In order to sponsor a team in Willaby's City League, you must purchases the team T-shirts and hats with your business name and contribute $ 300 to the city. Charlie wrote two checks....one to the City of Willaby for the $300 entry fee, and another to Al's Sports Supply for $ 295 for the shirts and hats. page 5 Transactions for May: continued May 07 Ivan Cowen, the Shop Foreman, is paid. He worked 43.5 hours this pay period Payroll Instructions: Payroll Registers Included in this simulation are payroll registers, one for each week, to be used to determine all payroll data per pay. For each pay period, calculate the regular earnings, overtime earnings, and current gross earnings. Also, using the tables provided, calculate the Federal Income Tax to be withheld. Since Ivan will not cross the OASDI (Social Security) ceiling, an OADI taxable column is not included in the payroll register. The Social Secunty tax rate is 6.2% and the Medicare tax rate is 1.45% of gross earnings each pay. Since Ivan will be paid with a general checking account check, the entire payroll entry MUST be recorded in the Cash Payments Journal The Wage Bracket Tables for federal income tax withholding is presented as "Supplement E". (Ivan's federal withholding status is....Married with 2 withholding allowances) Employee Earnings Records The purpose of the employee's earnings record is to keep a running total of year-to-date amounts After preparing the payroll register for each pay period, copy that information to the employee's earnings record on the appropriate line. Total each month after all entries are posted for that month. Later instructions will follow for month end-requirements. May 09 Cash sales for the day totaled $ 2.375.00 plus sales tax. May 11 A fence is installed for a customer, Will Spencer, on account. The contract amount is $ 3.820.00 plus tax torms net 30 days. Invoice # 1002 May 11 Charlie's" pays for the purchase from Atlantic Fence from May 02 in full May 12 Homer's Construction presents Charlie's with an invoice for the installation fee on Will Spencer's fence in the amount $ 725,00. Charlie's records this entry at the time of the invoicing as a payable to be paid with any other amounts due Homer's once each week May 12 Received payment in full from "Ed's Pools" for Invoice # 1001 May 13 A customer purchases fencing materials and gates and charges them on her Visa Card. $948.00 plus tax (Seo May 03). May 14 Ivan Cowen, the Shop Foreman's paid. He worked 44.75 hours this pay period. May 15 Charlie's purchased decorative fencing materials on account for $ 43500, terms 1-10 net 30, from Mabie's Ornamental Fencing, Inc., Invoice # 44413 May 17 A shipment of fencing materials was shipped to Ed's Pools (see May 03) totaling $ 2,110.00, Invoice # 1003 (See May 03 for credit terms extended to "Eds") May 19 Homer's Construction is paid in full for the invoice on May 12. May 20 A fence is installed for a customer, Jane Wise, on account. The contract amount is $2.570.00 plus tax, terms net 30 days, Invoice # 1004 May 21 Ivan Cowen, the Shop Foreman, is paid. He worked 41.50 hours this pay period May 23 Cash sales for the day totaled $2.135.00 plus sales tax May 24 Charlie's purchased plastic coated fencing materials on account for $ 1,365.00 for a special order customer terms 2-10 net 30, from Atlantic Fencing, Invoice 546872 May 24 Charle's pays for the purchase from Mable's Fencing from May 15 in full Charlie's" returns $ 62.00 of materials to Atlantic from the order on May 24. page 6 May 25 Transactions for May: continued May 26 Charlie's" opened a charge account at a local gas station at the beginning of May to be payed at the end of each month by check. May's charges totaled $ 80.00 and are paid. May 26 May's electric bill of $325.00 was paid May 26 May's water bill of $45.00 was paid May 26 May's telephone bill of $125.00 was paid, May 27 Received payment in full from "Ed's Pools" for Invoice # 1003 May 27 Cash sales for the day totaled $ 4.770.00 plus sales tax May 28 Ivan Cowen, the Shop Foreman, is paid. He worked 61.50 hours this pay period. Since this is the last payday of May, it is necessary to calculate the employer's payroll taxes and record the entry Instructions to perform this task is as follows: Determine the employer's Social Security and Medicare taxes by simply matching what was withheld for the month for both taxes. In other wordt the employer must duplicate what was withheld from the employees for each of these two taxes Also, the employee must recognize both the federal and state unemployment liabilities in this entry. The state rate is 3.1% and the federal rate is 0.8%. While both of these taxes are based on taxable ceilings of year-to-date gross wages, neither tax (ferderal or state) ceiling will be exceed- ed during the first three months of payroll , therefore consider all wages as unemployment taxable. After determing the tax amounts, record all four employer taxes as individual liabilities, and show the total sum of all four amounts as "Payroll Tax Expenso" May 29 A customer purchases fencing materials and charges them on his Visa Card, $ 1379.00 plus tax (See May 03) May 30 A fence is installed for a customer, Jeff Tills, on account. The contract amount is $ 3.518.00 plus tax, terms net 30 days, Invoice # 1005 May 31 Mr. Tillis from the May 30 sale is dissatisfied with part of the installation Charlie convinces him that due to the lay of his property, there was no other reasonable way for the fence to be installed But to keep the customer happy. Charlie makes a "sales allowance in the amount of $ 250 May 31 Atrial balance is prepared. page 7 Transactions for May: May 01 Charles contirbutes the following assets to begin business as Charlie's Fencing Emporium Cash $50,000.00 Truck...fair market value 18.000.00 Tools...fair market value 12.000.00 Shop Equipment fair market value 30,000.00 NOTE #1 Be careful because cash is included in this transaction, it doesn't belong in the general journal The fixed assets contributed above are assigned the following information for the purpose of calculating depreciation. Using this information and the depreciation schedules provided below, complete a schedule for each of the three assets. This information will be necessary when preparing the adjustments at quarter end (1) Each asset is to be recorded at its fair market value (2) All three assets groups are to be depreciated using the double-declining balance method (3) The salvage values and useful lives of each group are as follows (4) Round all depreciation calculations to the neaest whole dollar Asset Salvage Life years 53,000 Tools 1.000 Shop Equipment 3.000 Asset Truck Truck Current Depreciation 0 Accum. Depreciation 0 Book Value 18.000 Year 0 1 2 3 4 Asset Tools Current Depreciation 0 Accum. Depreciation 0 Book Value 12.000 Year 0 1 2 3 4 5 page 4 Transactions for May: continued Asset Shop Equipment Year Current Depreciation 0 0 1 2. 3 4 5 Accum Depreciation 0 Book Value 30,000 May 01 Charles paid the rent on his business location $ 1.000.00, check no. 1001, paid to Hysell Realty After this transaction, any payments by check will not refer to the check number. The accountanti to record the transaction using the next available check number (All payments by this business will be by check) 3 4 5 May 01 Charles paid the rent on his business location....S 1.000.00, check no. 1001, paid to Hysell Realty After this transaction, any payments by check will not refer to the check number. The accountanti to record the transaction using the next available check number. (All payments by this business will be by check.) May 02 Charles contributed all remaining fencing materials from his prior business to "Charlie's Fence Emporium". The value of this inventory is calculated to be $ 14,000.00 Hint...Record this beginning inventory transaction into the account "Merchandise Inventory". May 02 Charles purchased office supplies on account from "Front Street Office Supply", for $ 395.00 May 02 A business liability insurance policy was contracted with "Mullin Insurance" for a payment of $ 900.00. This is a six month policy and is paid today, May 02 WAMO Radio provided a "Grand Opening" remote broadcast at Charlie's to announce and advertise his new business. The cost is $ 525.00 and is billed for later payment May 02 Charlie's" purchased a truckload of fencing materials on account for $ 18,375.00 terms 2-10, net 30, from Atlantic Fence, Invoice # 5461Z. May 02 Cash sales for the day totaled $ 980.00 plus sales tax. Sales tax in the county that "Charlie's" is located is 7.0%. May 03 Ed Chester, owner of "Ed's Pools", reached an agreement with Charies to purchase fencing exclusively from "Charlie's Fence Emporium" for pools he installs. Since Charles will not be collecting from the final retail customer, he will be selling both materials and installations to Ed's" wholesale (no sales tax). Charles shipped and billed "Ed's" $ 1.720 for fencing materials delivered, terms.....1-10, net 30, Invoice # 1001. May 03 Paid for repairs to the truck...$425.00 May 03 Charlie's" accepts "Visa" bank cards for payment from customers. Today, a customer charged $ 825.00 plus tax. Visa charges a 3% clearing fee. May 04 Welding materials were purchased from Carl's Industrial Supply for $ 310.00...cash. May 05 Cash sales for the day totaled $ 1,750.00 plus sales tax May 06 Charlie decides to sponsor a girl's softball team to promote his business. In order to sponsor a team in Willaby's City League, you must purchases the team T-shirts and hats with your business name and contribute $ 300 to the city. Charlie wrote two checks....one to the City of Willaby for the $300 entry fee, and another to Al's Sports Supply for $ 295 for the shirts and hats. page 5 Transactions for May: continued May 07 Ivan Cowen, the Shop Foreman, is paid. He worked 43.5 hours this pay period Payroll Instructions: Payroll Registers Included in this simulation are payroll registers, one for each week, to be used to determine all payroll data per pay. For each pay period, calculate the regular earnings, overtime earnings, and current gross earnings. Also, using the tables provided, calculate the Federal Income Tax to be withheld. Since Ivan will not cross the OASDI (Social Security) ceiling, an OADI taxable column is not included in the payroll register. The Social Secunty tax rate is 6.2% and the Medicare tax rate is 1.45% of gross earnings each pay. Since Ivan will be paid with a general checking account check, the entire payroll entry MUST be recorded in the Cash Payments Journal The Wage Bracket Tables for federal income tax withholding is presented as "Supplement E". (Ivan's federal withholding status is....Married with 2 withholding allowances) Employee Earnings Records The purpose of the employee's earnings record is to keep a running total of year-to-date amounts After preparing the payroll register for each pay period, copy that information to the employee's earnings record on the appropriate line. Total each month after all entries are posted for that month. Later instructions will follow for month end-requirements. May 09 Cash sales for the day totaled $ 2.375.00 plus sales tax. May 11 A fence is installed for a customer, Will Spencer, on account. The contract amount is $ 3.820.00 plus tax torms net 30 days. Invoice # 1002 May 11 Charlie's" pays for the purchase from Atlantic Fence from May 02 in full May 12 Homer's Construction presents Charlie's with an invoice for the installation fee on Will Spencer's fence in the amount $ 725,00. Charlie's records this entry at the time of the invoicing as a payable to be paid with any other amounts due Homer's once each week May 12 Received payment in full from "Ed's Pools" for Invoice # 1001 May 13 A customer purchases fencing materials and gates and charges them on her Visa Card. $948.00 plus tax (Seo May 03). May 14 Ivan Cowen, the Shop Foreman's paid. He worked 44.75 hours this pay period. May 15 Charlie's purchased decorative fencing materials on account for $ 43500, terms 1-10 net 30, from Mabie's Ornamental Fencing, Inc., Invoice # 44413 May 17 A shipment of fencing materials was shipped to Ed's Pools (see May 03) totaling $ 2,110.00, Invoice # 1003 (See May 03 for credit terms extended to "Eds") May 19 Homer's Construction is paid in full for the invoice on May 12. May 20 A fence is installed for a customer, Jane Wise, on account. The contract amount is $2.570.00 plus tax, terms net 30 days, Invoice # 1004 May 21 Ivan Cowen, the Shop Foreman, is paid. He worked 41.50 hours this pay period May 23 Cash sales for the day totaled $2.135.00 plus sales tax May 24 Charlie's purchased plastic coated fencing materials on account for $ 1,365.00 for a special order customer terms 2-10 net 30, from Atlantic Fencing, Invoice 546872 May 24 Charle's pays for the purchase from Mable's Fencing from May 15 in full Charlie's" returns $ 62.00 of materials to Atlantic from the order on May 24. page 6 May 25 Transactions for May: continued May 26 Charlie's" opened a charge account at a local gas station at the beginning of May to be payed at the end of each month by check. May's charges totaled $ 80.00 and are paid. May 26 May's electric bill of $325.00 was paid May 26 May's water bill of $45.00 was paid May 26 May's telephone bill of $125.00 was paid, May 27 Received payment in full from "Ed's Pools" for Invoice # 1003 May 27 Cash sales for the day totaled $ 4.770.00 plus sales tax May 28 Ivan Cowen, the Shop Foreman, is paid. He worked 61.50 hours this pay period. Since this is the last payday of May, it is necessary to calculate the employer's payroll taxes and record the entry Instructions to perform this task is as follows: Determine the employer's Social Security and Medicare taxes by simply matching what was withheld for the month for both taxes. In other wordt the employer must duplicate what was withheld from the employees for each of these two taxes Also, the employee must recognize both the federal and state unemployment liabilities in this entry. The state rate is 3.1% and the federal rate is 0.8%. While both of these taxes are based on taxable ceilings of year-to-date gross wages, neither tax (ferderal or state) ceiling will be exceed- ed during the first three months of payroll , therefore consider all wages as unemployment taxable. After determing the tax amounts, record all four employer taxes as individual liabilities, and show the total sum of all four amounts as "Payroll Tax Expenso" May 29 A customer purchases fencing materials and charges them on his Visa Card, $ 1379.00 plus tax (See May 03) May 30 A fence is installed for a customer, Jeff Tills, on account. The contract amount is $ 3.518.00 plus tax, terms net 30 days, Invoice # 1005 May 31 Mr. Tillis from the May 30 sale is dissatisfied with part of the installation Charlie convinces him that due to the lay of his property, there was no other reasonable way for the fence to be installed But to keep the customer happy. Charlie makes a "sales allowance in the amount of $ 250 May 31 Atrial balance is prepared. page 7