how is part four of this set done?
how is part four done?
The Business This practice set is designed in five parts. In the first part, the student will complete the journal entries for the month in a manual accounting system for Maverick's Boards. In the second part, the student will record the adjusting journal entries. Here, the necessary adjusting month-end entries are entered. Part three consists of preparing the balances in a T-Account for each account. Part four consists of preparing a bank reconciliation. Additionally, journal entries related to the reconciliation are entered into the system. Lastly the trial balance, Income Statement, Statement of Stockholders' Equity and Balance Sheet are prepared. Background Maverick's Boards is a surf shop started in January of 2020 by Blaise Maverick. He has saved over $70,000 to invest in the business. He has had a meeting with his lawyer and his Certified Public Accountant (CPA) and they have determined that the business should be organized as a corporation. The CPA has agreed to help Mr. Maverick set up his accounting system. He provided to Mr. Maverick a chart of accounts. He will be using a Perpetual Inventory System. Chart of Accounts Numbering System 1XXXX 15xxx 17xxx 2XXXX 27xxx 39xxx 4XXXX 5xxxx 6xxxx Current Asset Property, Plant & Equipment Accumulated Depreciation Current Liabilities Long-term Liabilities Stockholders' Equity Revenues Cost of Goods Sold Operating Expenses 23100 13100 Below is the Chart of Accounts that will be used in the journal entries. Use the account numbers listed below. Chart of Accounts Current Assets Current Liabilities 10000 Cash 20000 Accounts Payable 11000 Accounts Receivable 21100 Note Payable - Wells Fargo 12000 Inventory - Surfboards 21200 Note Payable - Computer Equip. 12100 Inventory - Wakeboards Wages Payable Office Supplies 23200 Interest Payable 13200 Shipping Supplies 23300 Sales Tax Payable 14000 Prepaid Rent 23400 Utility Payable 14100 Prepaid Insurance Stockholders' Equity 39003 Common Stock Long-Term Assets 39005 Retained Earnings 15000 Furniture and Fixtures 39007 Dividends 17000 Accumulated Depreciation - Furniture and Fixtures Revenue 15100 Computer Equipment 40000 Sales 17100 Accumulated Depreciation - Computer Equipment 60850 Registration les Expenses 50000 60100 60150 60200 60300 60350 60400 60450 60500 60550 60600 60650 60700 60750 60800 Cost of Goods Sold Legal Expense Office Supplies Expense Shipping Supply Expense Insurance Expense Wage Expense Credit Card Expense Delivery Expense Advertising and Promotion Expense Utility Expense Rent Expense Depreciation Expense Interest Expense Bank Service Fee Gasoline Expense 29. 1/30/2020 Deposit #6 Recorded sales made for the last week of the month. Sales tax is $248. Total cash sales were $3,000. The cost of the merchandise sold was $1,800 (surfboards $1,100; wakeboards $700). Paid the sales tax to the proper taxing authority Declared and paid a cash dividend of $650 to Mr. Maverick. 30. 1/31/2020 Ck #1014 31. 1/31/2020 Ck #1015 Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Word or Excel and use the ending balance in your cash account for the cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account before starting the Bank Reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank reconciliation is located at the back of this practice set. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation Part Five Instructions Prepare Financial Statements listed below. Once you complete the Financial Statements and answer the questions on Blackboard, you should print the financial statements and turn them in for grading: a. Trial Balance b. Income Statement C. Statement of Retained Earnings d. Balance sheet ank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79998-2345 Maverick's Boards 23 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Maverick's Boards" Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2020 January January 01/31/2020 $0 $106,522 $37,145 $69,377 Deposits Added 1/2/2020 Deposit 1 $70,000 1/5/2020 Deposit 2 $10,000 1/20/2020 Deposit 3 $7.794 1/23/2020 Deposit 4 $8.985 1/28/2020 Deposit 5 $9,743 Wells Fargo Bank Statement - Checks Paid and other Debts 1001 $9,000 1007 $490 1002 $4,000 1008 $250 1003 $1,100 1009 $200 1004 $14,600 1011 $6,000 1005 $750 DM $70 Check Printing Fee 1006 $450 DM $235 Debit Memo *Assume any errors are made by the bank. Bank Statement Part 4: Prepare a Bank Reconciliation using the Bank Statement and the template below. Wells Fargo Bank Balance Ending Cash Balance Deposits in Transit Outstanding Checks Adjustments or Errors +/- Reconciled Balance Template for Bank Reconciliation "Maverick's Boards" Ending Cash Balance Adjustments or errors +/- Reconciled Balance Part Two Instructions Once all journal entries are recorded in the practice set, record the eight adjusting journal entries below and round to the nearest cent if necessary. The following are the adjusting journal entries for the month of January. Record all adjusting entries on January 31, 2020. Record Adjusting Entries: Record the following month end adjusting entries for the month of January. Write the journal entries in the practice set after the original journal entries. Round all answers to the nearest cent. a. $70 of office supplies remained on hand. b. $200 of shipping supplies remained on hand. c. $1,300 of wages for the part-time help from Irene's Temp Services for January should be accrued. Do not worry about payroll taxes: Temp Services Inc. will handle these. d. Make the necessary adjusting entries for one month's depreciation for the Computer Equipment using Straight Line Depreciation. e. Make the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. f. One month of the prepaid insurance has expired. g. One month of the prepaid rent has expired. h. Record the interest for the loan from Wells Fargo for one month. Make sure you prepare the journal entries and the adjusting entries and write them in the practice set. Part Three Instructions All T-accounts with the correct balances should be prepared. (There is an example of how to set up the T-Accounts in Excel at the end of the practice set. Make sure all accounts that were used in the Chart of Accounts are included and if they have a zero balance that you place the zero on the normal balance side. Blackboard Instructions: When entering in the journal entries into Blackboard please follow the examine below exactly 1. There will be a box where you will enter each transaction on one line. Fir: debit and then the credit. Do NOT enter any account names only accou numbers, Use Dr for Debit and Cr for Credit with no period. Also please put the cents even if it is zero. See example below: Dr 10000 $50,000.00 Cr 39003 $50,000.00 Notice that the account numbers do NOT have commas and the dollar amounts have commas and dollar signs and all dollar amounts have the cents even if it is zero. 2. If there is more than one debit or credit enter the debits first with the smallest account number(s) listed first and then the credits with the smallest account number listed first. Make sure that you enter Dr or Cr before each account number. See example below: Dr 12000 $8.000.00 Cr 10000 $1,000.00 C 20000 $7000.00 3. For all sales, list the Sale entry first then the cost of Goods Sold entry second. The entire entry for both should be on one line. First the sale, as shown below, then the cost of the inventory. Again, put the smallest account number first, Dr 10000 $30,000.00 Cr 23300 $500.00 Cr 40000 $29,000.00 Dr 50000 $15,000.00 Cr 12000 $8,000.00 Cr 12100 $7,000.00. Both entries should all be on one line. 4. If there is no journal entry and you only need to put in a number, please enter the amount as the dollar amount or as a number as the example below. $15,000.00 or 15,000 5. When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below. Dr $10,000.00 or Cr $10,000.00 6. If there is no journal entry to be written, please write No JE for no journal entry. See below for example, NO JE Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Word or Excel and use the ending balance in your cash account for the cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account before starting the Bank Reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank reconciliation is located at the back of this practice set. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation. Part Five Instructions Prepare Financial Statements listed below. Once you complete the Financial Statements and answer the questions on Blackboard, you should print the financial statements and turn them in for grading: a. Trial Balance b. Income Statement C. Statement of Retained Earnings d. Balance sheet Tran DE . Date General Journal See how to enter information in Example #1 sample 2 shows you how to cater a Sale and the COGS and Inventory amount."Notice how the smaller coat number is first when there is more than one debitor credit Example 3 No Journal Entry. All examples are in the instructions in the Barkhoan tractions on page 7 ALI Na. Ace No. Am Amet Transaction Dolar A NO Atom No Am 395.000 FO Bampe 120 $10.50000 *23300 5500.00 1.000.00 52,500.00 $2.500.00 30000 S. O *12000 12100 Not
