i got a 90 but i attached a sheet that will show the right balances so i need that fixed before starting this. session id 7007 i need someone willing to go into software and help complete it for me i have one piece of personal info needed and for that i can be emailed at (ag123422 at yahoo dot com) basically entires and ledgers have been done i just need them fixed to the correct balances(in the sstb sheet) in the subsidiary and general ledgers and then i need someone to put in the adjusting and closing entries in for me. it also involves makig income statement and balance sheet but will post that question tomm. basically do steps 5-7 in workbook.

Trial balance of Seaside for the month of June Upto 27th June Account No. Particulars 101 Cash 111 Accounts Receivable 125 Prepaid Rent 127 Prepaid Insurance 129 Prepaid Advertising 130 Office Supplies 132 Stores Supplies 155 Office Equipment 165 Stores Equipment 201 Accounts Payable 205 Notes payable 211 Employees Income Tax payable 213 FICA Tax Payable 301 Common Stock 401 Sales 405 Sales Return & Allowance 410 Sales Discount 501 Purchases 505 Purchase return & Allowance 510 Transportation In 515 Purchase Discount 614 Delivery Expenses 701 Salaries & Wages expense Total Debit $ 26,268.20 10,640 800 900 400 810 1,248 1,200 3,400 Credit $ 12,734 10,000 210 140 20,000 35,335 318 168.5 31,934 1,250 112 47.7 118 1,400 79,716.70 79,716.70 (Sea-side) General Journal Date Account and Explanation 28-Jun 1 Store Supplies Office Supplies (Error made in recording the entry to store supplies) F Debit Credit 132 130 270 101 401 110 3 Accounts Recievable Sales ( Merchandise sold on credit to Sail 111 401 2,000 4 Cash 101 111 240 5 Cash Sales Discount Accounts Receivable (Check recived from Laker Marine Supply) 101 410 111 790.55 24.45 6 Accounts Payable Cash (Cash paid to Avis Boat Builders) 201 101 250 7 Accounts Payable Cash (Cash paid to Catamaran Corp.) 201 101 4210 8 Purchases Accounts Payable ( Purchased Merchandise from Tackle Box) 501 201 1,200 9 Purchases Accounts Payable ( Purchased Merchandise from Nautical Indust.) 501 201 1,400 10 Warehouse Land 16% Notes payable (purchased land and warehouse and issue short term notes payable) 175 186 205 40,000 10,000 11 Prepaid Advertising Cash (Cash paid for advertisement to be used in Aug.) 129 101 150 101 401 514 2 Accounts Recievable Sales ( Merchandise sold on credit to Waterfront Marina) 111 401 2,100 3 Cash 101 111 900 4 Cash Sales Discount Accounts Receivable (Check recived from Waterfront Marina) 101 410 111 1901.2 58.8 5 Accounts Payable Stores Equipment (Stores Equipment returned to office equipment Company) 201 165 1,030 5 Accounts Payable Cash (Cash paid to office equipment company) 201 101 2,370 6 Purchases 501 270 2 Cash Sales ( To record the Cash sales) Accounts Receivable (Check recived from Bill hankins) 29-Jun 1 Cash Sales ( To record the Cash sales) Accounts Receivable (Check recived fromBass-A-Rama) 270 110 2,000 240 815 250 4210 1,200 1,400 50,000 150 514 2,100 900 1,960 1,030 2,370 Accounts Payable ( Purchased Merchandise from Catamaran Corp.) 201 270 7 Purchases Accounts Payable ( Purchased Merchandise from Danforth Tool) 501 201 335 8 Purchases Accounts Payable ( Purchased Merchandise from Tackle Box) 501 201 1,110 9 Sales Return Accounts Receivable (Returned Merchandise purchased to Sail Board City) 405 111 840 10 Accounts Payable Purchase Return (Merchandise returned to Nautical Industries) 201 501 205 11 12% Notes Receivable Accounts Receivable ( Notes Recivable recived from Marlinspike) 115 111 4,315 12 Cash 101 801 500 801 240 500 132 101 810 2 Accounts Payable Cash (Cash paid to Beach Office supply) 201 101 810 3 Accounts Payable Cash (Cash paid to Beach Local supply) 201 101 370 4 Accounts Payable Cash Purchase Discount (Cash paid to Nautical Industries) 201 101 515 1,195 5 Accounts Payable Cash (Cash paid to Tackle Box) 201 101 1,185 6 Stores Equipment Accounts Payable ( By mistake returned equipment was shown more now corrected) 165 201 100 Accounts Payable Cash (Cash paid to Stores Equipment Company) 201 101 100 7 Accounts Recievable Sales ( Merchandise sold on credit to Carl Jenkins) 111 401 200 8 Accounts Recievable Sales ( Merchandise sold on credit to Pope's Charters) 111 401 2,210 9 Cash 101 401 700 10 Transportation Inward Cash ( Cash paid for the purchases made) 510 101 214 11 Utilities Expense 723 310 Rent Revenue (Rent received in advance to be used for july and August) Rent Revenue Unearned Rent ( Rent recived in advance in June) 30-Jun 1 Store Supplies Cash (Purchased store supplies for cash) Sales ( To record the Cash sales) 335 1,110 840 205 4,315 500 500 810 810 370 1,171 23.9 1,185 100 100 200 2,210 700 214 Cash ( Cash paid for theUtilities Expenses) 101 310 12 Cash Sales Discount Accounts Receivable (Check recived from Sail Board City in full Payment) 101 410 111 3300 60 13 Retained Earnings Dividend Payable ( Dividend declared to be paid in July) 311 230 850 3,360 850 Sales Journal Date Sales Invoice No. June1-24 1to16 28-Jun 29-Jun 30-Jun 30-Jun 30-Jun Account Debited Balance B/d 17 Sail Board City 18 Water front Marina 19 Carl Jenkins 20 Pope's Charters Total Terms 3/30,n/30 3/30,n/30 n/30 2/10,n/30 F * * * * Amount $ 23,405 2,000 2,100 200 2,210 29,915 Purchases Journal Date Account Credited June1-24 Balance B/d 28-Jun Tackle Box 28-Jun Nautical industries 29-Jun Catamaran corp. 29-Jun Danforth tool 29-Jun Tackle Box 30-Jun Total Terms 2/10,n/30 2/10,n/30 n/30 2/10,n/30 2/10,n/30 F * * * * * Amount $ 31,934 1,200 1,400 270 335 1,110 36,249 June Explanation 1to 26 Balance B/d 28 Cash sales 28 Collected from Bill Hankins 28 Collected from laker Marine Supply Cash Receipts Journal Debits Post ref. F Cash Sales Discount 101 401 * 101 111 * 34,208.50 110 168.5 Other Credits Accounts Sales Receivable 12,447 Other 11,930 10,000 110 240 240 101 410 111 * 790.55 101 401 * 514 29 Collected from Bass - A - Rama 101 111 * 900 29 Collected from Water Front Marina 101 410 111 * 1901.2 100 801 * 500 101 401 * 700 101 410 111 * 3,300 29 Cash sales 29 Rent Revenue 30 Cash sales 30 Collected from Sail Board city Total 24.45 815 514 900 58.8 1,960 500 700 60 3,360 43,164.25 311.75 19,722.00 13254 10500 June Explanation 1to 26 Balance B/d 28 Paid to Avis Boat 28 Paid for Advertising 28 Paid to Catamaran Cash Receipts Journal Debits Post ref. F Accounts Purchase Other Payable 201 101 * 610 101 * 23,210.00 250 Credits Cash 5,128 Purchase Discount 27,940.30 47.70 Other 350 250 150 150 201 101 * 4,210 29 Paid to office equipment Comp. 201 101 * 2,370 30 Store Supplies 132 101 * 4,210 2,370 810 810 30 Paid to Beach office Supply 201 101 * 810 30 Paid to Local Supply 201 101 * 370 30 Paid to Nautical Industries 201 101 515 * 1,195 201 101 * 1,185 30 Paid to office equipment Comp. 201 101 * 100 30 Transportation Inward 510 101 * 30 Paid to tackle Box 810 370 1,171 24 1,185 100 214 214 30 Utilities expense 310 101 * Total 33,700.00 6,612.00 310 39,890.30 71.70 350.00 General Ledger Date Cash A/c F Explanation 1-Jun Initial investment by Jack Hobie 30-Jun Cash receipts 30-Jun Cash payments Date -318 -840 -4315 29,915 19,722.00 4315 120 Balance Credit Explanation Explanation Explanation Explanation 2-Jun Accounts Payable 2-Jun Cash payment journal 28-Jun Office Supplies 30-Jun Cash payment journal 30-Jun Store Supplies Expense 4994 125 Balance Credit Prepaid insurance A/c F Debit Credit 37.5 Prepaid advertising A/c F Debit 400 150 200 400 550 350 130 Balance Credit 810 270 425 Store supplies A/c F Debit 900 862.5 129 Balance Credit Office supplies A/c F Debit 800 400 127 Balance 900 2-Jun Accounts Payable 28-Jun Store Supplies 30-Jun office Supplies Expense Date 14.38 400 9-Jun Cash payment journal 28-Jun Cash payment journal 30-Jun Advertising expense Date Credit 800 2-Jun Cash payment journal 30-Jun Insurance expense Date 118 Balance 14.38 1-Jun Cash payment journal 30-Jun Rent expense Date 4315 4994 Explanation -318 -1158 -5473 24,442 4,720.00 115 Balance Credit Prepaid store rent A/c F Debit 20,000 63,164.25 23,273.95 111 Balance Credit Merchandise inventory A/c Explanation F Debit 30-Jun Purchases Date 39,890.30 Interest receivables A/c Explanation F Debit 30-Jun Interest revenue Date 20,000 43,164.25 Notes receivables A/c Explanation F Debit 29-Jun Accounts receivables Date Credit Accounts receivables A/c Explanation F Debit 11-Jun Sales return 29-Jun Sales return 29-Jun Notes receivables 30-Jun Sales journal 30-Jun Cash receipts journal Date Debit 101 Balance Credit 1050 198 270 810 1898 810 540 115 132 Balance 1050 1248 1518 2328 430 Date Explanation Office equipment A/c F Debit 1-Jun Cash payment journal Date Credit 1200 1200 Accumulated depreciation -Office equipment A/c Explanation F Debit Credit 30-Jun Depreciation expense Date Explanation Store equipment A/c F Debit 3400 1030 100 Accumulated depreciation -Store equipment A/c Explanation F Debit Credit Explanation 28-Jun Notes payable Date Debit 40000 40000 Accumulated depreciation -Warehouse A/c Explanation F Debit 176 Balance Credit 150 Land A/c F Explanation 28-Jun Notes payable Date Explanation Explanation Debit Accounts payable A/c F Debit Explanation 10000 Credit 3400 1030 205 33,700.00 36,249 100 10000 50000 Interest payable A/c F Debit Employee income tax payable A/c Explanation F Debit 11-Jun Cash payment journal 26-Jun Cash payment journal 30-Jun Salaries expense 1050 1860 610 4010 2980 2775 -30,925.00 5,324.00 5,424.00 205 Balance Credit 10000 60000 210 Balance Credit 30-Jun Interest expense Date 201 Balance 1250 8-Jun Cash receipt journal 28-Jun Warehouse and land Date Credit 1050 810 Notes payable A/c F Debit 150 186 Balance 10000 2-Jun Store supplies 2-Jun Office supplies 15-Jun Purchase return & allowances 16-Jun Store equipment 29-Jun Return of stores equipment 29-Jun Purchase return & allowances 30-Jun Cash payment journal 30-Jun Purchase journal 30-Jun Wrong entry of stores equipment Date 19 175 Balance Credit 30-Jun Depreciation expense Date 3400 2370 2470 166 Balance 19 Warehouse A/c F 10 165 Balance Credit 30-Jun Depreciation expense Date 156 Balance 10 16-Jun Accounts payable 29-Jun Accounts payable 30-Jun Accounts payable Date 155 Balance 86 86 211 Balance Credit 90 120 36 90 210 246 Date Explanation FICA tax payable A/c F Debit Credit 11-Jun Cash payment journal 26-Jun Cash payment journal 30-Jun Salaries expense 30-Jun Payroll tax expense Date Explanation 60 80 24 164 Salaries payable A/c F Debit Explanation 180 Dividends payable A/c F Debit Date Explanation 850 Unearned rent A/c F Debit Date Explanation 500 Common Stock A/c F Debit Credit 1-Jun Initial Investment Date Explanation 20,000 Retained earnings A/c F Debit 30-Jun Dividend payable 30-Jun Net income Date Explanation Credit 850 5804.81 Sales A/c F Debit Credit 30-Jun Sales journal 30-Jun Cash receipt journal Date 29,915 13254 Sales return & allowances A/c Explanation F Debit 11-Jun Return by Rex Hopkins 29-Jun Return by Sales board city Date Explanation 30-Jun Cash receipt journal Date Explanation 30-Jun Purchase journal 30-Jun Inventory Date 318 840 Purchases A/c F Debit Credit Transportation In A/c Explanation F Debit 301 Balance 20,000 311 Balance -950 4854.81 401 Balance 29,915 43,169 405 Balance 410 Balance 311.75 Credit 36,249 Purchase return & allowances A/c Explanation F Debit 500 318 1158 311.75 15-Jun Accounts payable 29-Jun Accounts payable Date Credit Sales discounts A/c F Debit 850 240 Balance Credit 29-Jun Rent Revenue 180 230 Balance Credit 30-Jun Retained earnings 30-Jun Net income 60 140 164 328 215 Balance Credit 30-Jun Salaries expense Date 213 Balance 4994 Credit 1250 205 Credit 501 Balance 36,249 31,255 505 Balance 1250 1455 510 Balance 15-Jun Cash payment journal 30-Jun Cash payment journal Date Explanation 112 192 Purchases discounts A/c F Debit 30-Jun Cash payment journal Date Explanation Explanation Advertising expense A/c F Debit Delivery expense A/c F Debit Date 425 30-Jun Prepaid rent Date Utilities expense A/c Explanation F 400 30-Jun Cash payment journal Date 30-Jun FICA tax payable Date 30-Jun Prepaid insurance Date Credit 164 Credit 37.5 10 19 720 Balance 723 Balance 725 Balance 164 Depreciation expense- Store equipment A/c Explanation F Debit Credit 30-Jun Accumulated depreciation 712 Balance 330 Depreciation expense- Office equipment A/c Explanation F Debit Credit 30-Jun Accumulated depreciation Date 330 Insurance expense A/c Explanation F Debit 710 Balance 400 Credit Payroll tax expense A/c Explanation F Debit 701 Balance 425 Credit Debit 614 Balance 1898 Credit Debit 610 Balance 600 1400 1640 1898 30-Jun Office supplies Rent expense A/c Explanation F Credit Credit Office supplies expense A/c Explanation F Debit 71.70 118 600 800 240 Stores supplies expense A/c Explanation F Debit 30-Jun Store supplies Date Credit Salaries & wages expense A/c Explanation F Debit 515 Balance 200 118 11-Jun Cash payment journal 16-Jun Cash payment journal 30-Jun Salaries, Employees income tax payable, FICA tax payable Date Credit 200 19-Jun Cash payment journal Date Credit 71.70 30-Jun Prepaid advertising Date 112 304 735 Balance 37.5 756 Balance 10 766 Balance 19 Date Depreciation expense- Warehouse A/c Explanation F Debit 30-Jun Accumulated depreciation Date Rent revenue A/c Explanation F Debit 801 Balance 500 500 Interest revenue A/c Explanation F Debit Credit 14.38 Interest expense A/c Explanation F Debit 30-Jun Interest payable 150 Credit 30-Jun Interest receivable Date Credit 150 29-Jun Cash receipt journal 29-Jun Unearned rent Date 776 Balance Credit 86 500 0 803 Balance 14.38 851 Balance 86 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Date Explanation BASS-A-RAMA RENTALS F Debit 15-Jun Sales journal 24-Jun Sales journal 24-Jun Cash receipt journal 29-Jun Cash receipt journal Date Explanation Explanation 900 900 BILL HANKINS F Debit 240 Debit 210 200 4-Jun Sales journal 9-Jun Sales journal 18-Jun Cash receipt journal 30-Jun Sales journal Date 400 815 Explanation 22-Jun Sales journal 23-Jun Sales journal 29-Jun Cash receipt journal 29-Jun Sales journal Credit 3150 1565 3150 3750 1000 4315 Credit 1900 3700 5600 2210 SAIL BOARD CITY Explanation F Debit 17-Jun Sales journal 28-Jun Sales journal 29-Jun Sales return 30-Jun Cash receipt journal Date 675 540 POPE'S CHARTERS Explanation F Debit Credit 2200 2000 840 3360 WATERFRONT MARINA F Debit Credit 840 1120 1,960 2100 210 0 200 Terms: 3/10, n/30 Balance Credit MARLINSPIKE MARINE Explanation F Debit 1-Jun Sales journal 10-Jun Sales journal 10-Jun Cash receipt journal 19-Jun Sales journal 19-Jun Cash receipt journal 29-Jun Notes receivables Date Credit LAKER MARINE SUPPLY Explanation F Debit 1505 1187 0 Terms: n/30 Balance 210 8-Jun Sales journal 17-Jun Sales journal 17-Jun Cash receipt journal 28-Jun Cash receipt journal Date Credit 318 1187 Carl Jenkins Explanation F 350 450 210 Terms: n/30 Balance 1505 3-Jun Sales journal 15-Jun Cash receipt journal 30-Jun Sales journal Date Credit REX HOPKINS F Debit 900 1800 900 0 Terms: n/30 Balance 350 100 2-Jun Sales journal 11-Jun Sales return 12-Jun Cash receipt journal Date Credit 900 900 11-Jun Sales journal 18-Jun Sales journal 28-Jun Cash receipt journal Date Terms: n/30 Balance 675 1215 815 0 Terms: 3/10, n/30 Balance 3150 4715 1565 5315 4315 0 Terms: 2/10, n/30 Balance 1900 5600 0 2210 Terms: 3/10, N/30 Balance 2200 4200 3360 0 Terms: 3/10, n/30 Balance 840 1960 0 2,100 ACCOUNTS PAYABLE SUBSIDIARY LEDGER Date Explanation AVIS BOAT BUILDERS F Debit 3-Jun Purchases journal 10-Jun Cash payment journal 15-Jun Purchase return 28-Jun Cash payment journal Date Credit 2500 1000 1250 250 BEACH OFFICE SUPPLY Explanation F Debit 2-Jun Office supplies 30-Jun Cash payment journal Date Explanation Date Explanation 2-Jun Store Supplies 30-Jun Cash payment journal Date Explanation 1-Jun Purchases journal 1-Jun Cash payment journal 16-Jun Purchases journal 17-Jun Cash payment journal Date Explanation 10-Jun Purchases journal 16-Jun Cash payment journal 28-Jun Purchases journal 29-Jun Return 30-Jun Cash payment journal Date Explanation 16-Jun Office Equipment 29-Jun Return 30-Jun Wrong Entry 30-Jun Cash payment journal 29-Jun Cash payment journal Date Explanation 15-Jun Purchases journal 18-Jun Cash payment journal 23-Jun Cash payment journal Credit 810 CATAMARAN CORP. F Debit 4250 4250 4210 4210 270 2000 LOCAL SUPPLY F Debit 370 MURKREY OUTBOARD F Debit 6000 3375 NAUTICAL INDUSTRIES F Debit 385 205 1195 OFFICE EQUIPMENT CO. F Debit 1030 100 2370 PETROLEUM SUPPLY F Debit 3000 3200 TACKLE BOX SUPPLY 810 0 Terms: n/30 Balance Credit DANFORTH TOOL F Debit 2500 1500 250 0 Terms: n/30 Balance 810 5-Jun Purchases journal 11-Jun Cash payment journal 19-Jun Purchases journal 28-Jun Cash payment journal 29-Jun Purchases journal Date Explanation 1-Jun Purchases journal 8-Jun Cash payment journal 22-Jun Purchases journal 29-Jun Purchases journal Terms: n/30 Balance 4250 0 4210 0 270 Terms: 2/10, n/30 Credit Balance 2000 2000 0 614 614 335 949 Terms: n/30 Credit Balance 1050 1050 680 Terms: n/30 Credit Balance 6000 6000 0 3375 3375 0 Terms: 2/10, n/30 Credit Balance 385 385 0 1400 1400 1195 0 Terms: n/30 Credit Balance 3400 3400 2370 100 2470 2370 0 Terms: 3/10, n/30 Credit Balance 6200 6200 3200 0 Terms: 2/10, n/30 Date Explanation 26-Jun Purchases journal 29-Jun Purchases journal 29-Jun Purchases journal 30-Jun Cash payment journal F Debit 1185 Credit 2400 1200 1110 Balance 2400 3600 4710 3525 OPERATING INSTRUCTIONS Introduction After you register for Seaside Marina, you will receive an email from Ivy Software containing three items: 1) instructions 2) a link to the Seaside Marina program 3) your product code You will need your Product Code and your Session ID number to initialize the program and to log in for each subsequent session. Please keep your Product Code and Session ID number in a safe place. Your Session ID number is not your order number, it is given to you by your instructor. To complete your work, you need a list of information called a transaction set. Your transaction set can be printed out via our website at http://www.ivysoftware.com. From the main page, click on Products and then Seaside Transaction Set under Online Testing. When prompted, please enter your Product Code and your Session ID number and click Continue. On the next page, your transaction set will appear. To print out the transaction set, use the Print icon within your browser. To begin working with Seaside Marina open the program under Ivy Software in the start menu. The first screen that comes up will ask you for your product code. The second screen asks for your session ID#. The session ID# is given to you by your instructor. The next two screens ask for your name, last name before first name. Once you have completed these screens, you will be sent a student data set over the internet from our server to your PC. This data set is then located in your PC's memory. At this juncture, you can disconnect from the internet. You will not need to reconnect until you save your work. Although you can wait until the end of your session to save your work, we recommend you save your work periodically as you go through Seaside Marina. To save your work, follow the prompts on the \"Save\" screen. The next screen shows you a picture of Seaside Marina. Your toolbar choices are FILE which leads to QUIT or WHERE TO. WHERE TO lists Seaside's journals, ledgers and reports. Seaside has a general journal and four special journals: (1) cash receipts, (2) cash payments, (3) purchases and (4) sales. In addition, Seaside has a general ledger and two subsidiary ledgers, accounts receivable and accounts payable. Seaside has a reports section showing the financial statements, trial balances and schedules of accounts receivable and accounts payable. Documentation, payroll and bank reconciliation are under \"Ivy Software\" in your start menu. 1 Split Entries Seaside will not allow you to make a split entry (partial entry on one page and the other part of the entry on another page. If you attempt to start a partial entry at the last line of a journal, Seaside will warn you not to do this (YOU MAY NOT BEGIN AN ENTRY AT THE BOTTOM OF A PAGE). At this point, go to the next page and start the entry. On the other hand, if you do need the last line of the journal to complete an entry, you may enter the information in all columns except the date column. As you can see from the screen shot, we are on page 2 of the general journal. At the bottom of the page, your choices are shown and are self explanatory. If you click randomly on the screen, a white field appears, press ENTER and it disappears. We have given you lots of room in the general journal (5 pages), but if you need more, the software will automatically create another page for you. 2 The Cash Receipts Journal Any transaction that involves a cash inflow is recorded in the cash receipts journal. The posting reference is CR. As you can see in the screen shot, we are on page 2 of the cash receipts journal. The transaction on the 18th is typical of the transactions found in the cash receipts journal. Seaside collected $5,526.00 in cash from Pope's Charters because Seaside gave Pope's Charters a $74.00 Sales Discount. The transaction shows a debit to cash of $5,526.00, a debit to sales discount of $74.00 and a credit to accounts receivable of $5,600.00. In other words, Pope's Charters owed Seaside Marina $5,600.00, but only paid Seaside $5,526.00 because of the $74.00 sales discount. The asterisk in the folio column indicates that the credit of $5,600.00 was posted to Pope's Charters in the accounts receivable subsidiary ledger, but not to the accounts receivable controlling account. Look at the next transaction concerning Marlinspike Marine. Here we see a cash collection that does not involve a sales discount. Once again, the asterisk in the folio column indicates that Marlinspike Marine in the accounts receivable subsidiary ledger has been posted. You may wish to go to the accounts receivable subsidiary ledger and look at these postings. The next transaction is a summary transaction showing cash sales from June 15-19. Cash is debited for $5,420.00 and Sales (Acct #401) is credited for $5,420.00. At the end of the period, the cash receipts journal accounts are totaled and there is a cumulative posting made to cash, sales discounts, the accounts receivable controlling account, and sales. That's the reason the folio column is left blank for these accounts (the only exception being the accounts receivable subsidiary ledger postings). At the bottom of the screen you see a running total for each of the accounts as well as the totals for debits and credits. These totals will assist you at the end of the accounting period. 3 Cash Payments Journal The cash payments journal is used for any transaction that involves cash outflow. The posting symbol for cash payments is CP. As you can see in the screen shot above, we are on page 1 of the Cash Payments Journal. The first transaction is the purchase of office equipment with cash. Office Equipment (Acct #155) is debited and cash is credited. The asterisk in the folio column shows that the Office Equipment account has been posted. You may wish to go to the General Ledger, account #155 and check the posting. The second transaction involves Murkrey Outboard. Seaside pays Murkrey Outboard $6,000 and cash is credited for $6,000. There is an asterisk in the folio column. This asterisk indicates that the $6,000 has been posted to the Accounts Payable Subsidiary Ledger- Murkrey Outboard. You may wish to check this posting. The posting pertains to the Accounts Payable Subdiary Ledger, not the Accounts Payable controlling account in the General Journal. Once again, at the end of the accounting period, the totals for accounts payable, purchases, cash and purchase discounts will be posted to these accounts in the general ledger. The selections at the bottom of the screen are self explanatory. The Purchases Journal All merchandise purchases on account are recorded in the purchases journal. These purchases are merchandise for resale only. They do not include items such as office supplies. As stated, the puchases are on account, i.e., they will be posted to accounts payable. Cash puchases are shown in the Cash Payments Journal. The posting symbol for the Purchases Journal is P. The screen shot above shows the Purchases Journal. As you can see, the Purchases Journal shows the date, the account, the credit terms and the amount. The first transaction shows a purchase from Danforth Tool for $2,000. The asterisk in the folio column indicates the posting has been made to the Accounts Payable Subsidiary LedgerDanforth Tool. The options at the bottom of the screen are self explanatory. 4 Sales Journal The Sales Journal is used for all sales on account. The posting reference for the Sales Journal is S. As you can see in the above screen shot, the Sales Journal shows the date, the invoice number, the account debited, the terms of the account and the amount. The asterisk in the folio column indicates that the transaction has been posted to the Accounts Receivable Subsidiary Ledger. The choices at the bottom of the page are self explanatory. General Ledger The general ledger contains the accounts listed in the chart of accounts. Transactions are posted from the general journal and the special journals to the general ledger accounts. As you can see, the screen shot is of the general ledger account number 127- Prepaid Insurance. The transaction on June 2nd is posted to this account. When posting, you transfer the date, an explanation, the posting references (in this case the cash payments journal), the amount and the balances in the account. Once the general ledger account is posted, you return to the cash payments journal and indicate the postings by entering an asterisk in the folio column. Notice that you are in the regular entry mode. The entry mode option in the toolbar allows you to select the regular, adjusting or closing entry mode. The options at the bottom of the screen are self explanatory. 5 General information for completing the practice set. 1. It is important to note that Seaside Marina employs a periodic inventory method. All merchandise purchases should be initially recorded in the purchases account. Purchases will then be closed out to inventory and income summary at the end of the month. 2. Journalize the transactions for June 28, 29, and 30 in the order they are written. Transactions recorded in the general journal (J) should be posted to the appropriate general ledger and subsidiary ledger accounts when the entry is written. Transactions recorded in the sales journal (S), purchases journal (P), cash receipts journal (CR), and cash payments journal (CP) should not be posted to a general ledger account until the end of the month. However, any transaction that affects a subsidiary ledger account or an \"other\" account should be posted immediately. You may wish to record the transactions by hand in the workbook before entering them on the computer. Doing so will minimize the time you are actually at the keyboard. When you are at the computer preparing to post your regular entries to the general ledger, be sure to use the regular entry mode. The entry mode option is in the tool bar of the general ledger. 3. After you have journalized the transactions for June 28, 29, and 30, you will need the total the \"special\" journals (S, P, CR, and CP) to make the month-end closing debits and credits to the general ledger. As stated previously all the journals keep a running total of debits, credits and individual accounts. Each of the four special journals must be totaled and posted. The cash receipts and cash payments journals have six columns to total. Do not post the total of the \"other\" columns from the cash receipts, or cash payments journals. Each of the entries in the other columns should be posted individually to the appropriate general ledger account when the entry is made. 4. After you have totaled and posted all special journals, you are ready to verify the accuracy of your work by generating the trial balance. Select WHERE TO from the tool bar and then click on trial balance. There are four things to look for in the trial balance First of all, do the debits equal the credits? Secondly, is the sum of the balances in the accounts receivable subsidiary ledger equal to the balance in the accounts receivable account? Similarly, is the sum of the balances in the accounts payable subsidiary ledger equal to the balance in the accounts payable account? Finally, do the accounts that normally have debit balances actually have debit balances? Conversely, do the accounts that normally have credit balances actually have credit balances? While an affirmative response to each of these questions does not guarantee that your trial balance is correct, it does provide you with a certain degree of confidence that you are in the \"ballpark\". Bear in mind, the single most frequent error that students make is forgetting to post an entry. 5. The next step will be to journalize and post the adjusting entries. All adjusting entries are recorded in the general journal. The information for the adjusting entries is on the list of transactions. In contrast to the regular entry postings, the adjusting entries are posted using the adjusting entry mode. Once again, the entry mode option is in the tool bar of the general ledger. 6 After you have journalized and posted the adjusting entries, you should generate the adjusted trial balance by selecting this item from the where to menu. There are two things to look for on the adjusted trial balance. First, do the debits equal the credits? If not, you made a posting error or one of your journal entries does not balance. Secondly, do your adjusting entries appear in the adjustments column? If they do not, you probably posted them using the regular entry mode instead of the adjust ing entry mode. In order to correct your adjustments you will have to reverse the entries you made from the general ledger using the regular entry mode then re-enter them using the adjusting entry mode. At this point you must print out an income statement for Seaside Marina (if your instructor has selected this option). 6. Your final action in the accounting cycle is to journalize and post the closing entries. All closing entries are recorded in the general journal. To post the closing entries to the appropriate general ledger accounts, use the closing entry mode. After you have journalized and posted the closing entries, go back to the main menu and select WHERE TO then post closing trial balance. There are two things to look for on the post closing trial balance. Do the debit equal the credits? If not, you made a posting error or one of your journal entries does not balance. Do any income or expense accounts appear? If so, you have left out a journal entry or made a posting error. 7. At this point you can print out a balance sheet for Seaside Marina for the fiscal year ended June 30 (if your instructor has selected this option). Completing the practice set- systems students For those students that wish to pursue the documentation aspect of Seaside Marina, we have added additional information to the transaction sets. This information directs the student to a flow chart that indicates the flow of information as well as those documents that need to be prepared. The student consults the appropriate flow chart, determines which documents are required, assumes the role of the preparer and prepares the documents. In addition, we have exercises in bank reconciliation and payroll. The additional information required for these exercises is also added to the transaction sets. 7 Seaside Marina Jack Hobie had spent his entire life on the water. Born the son of a sea merchant, Hobie soon took to the seas as a cook's assistant on one of his father's merchant ships. Being the adept seaman that he was, Hobie soon found himself promoted to captain of his own ship. One saturday morning in the early spring, Hobie was deep-sea fishing off the Florida Keys. It had been a slow day and Hobie was growing bored when suddenly his line jerked. He struggled with the huge fish for twenty minutes before reeling it in. But alas, when he reached over the side of the boat to pull the fish in, a large set of teeth with a proportionately large shark attached encased his right arm, and with one bite, both the shark and Hobie's arm were gone. No longer capable of captaining his ship, Hobie decided to open a nautical supplies store. Seaside Marina was incorporated on June 1, 20XX by Jack Hobie for the purpose of selling boat equipment and other nautical supplies. Hobie rented space in a converted warehouse on the local pier and commenced operations on June 1, in time for the summer recreation crowd. Business was brisk in the first month, and Hobie (primarily focused on selling boat equipment) quickly found himself overwhelmed by the daily rituals of managing the store, selling, ordering merchandise, and keeping the books. Consequently, late in June, Hobie hired you as accountant for the corporation, responsible for daily transaction posting, maintenance of ledgers, and periodic preparation of the financial statements. You (Janet Lynn) begin work on Monday, June 28, 20XX and discover the following set of journals and ledgers, completely up to date through Saturday, June 26, 20XX. 1. 2. 3. 4. 5. Journals General Journal Sales Journal Purchases Journal Cash Receipts Journal Cash Payments Journal Ledgers 1. General Ledger 2. Accounts Receivable Subsidiary Ledger 3. Accounts Payable Subsidiary Ledger In addition, you find that Hobie has established a chart of accounts. Seaside Marina has three part-time employees. Two work at the counter for sales of nautical supplies. The two who work counter sales are Jess Nathan, who has the most experience, and Ron Holt. Both of them are very important because they need considerable knowledge about nautical items to make certain the customer gets what they actually need, rather than what they think they need. Their responsibilities are: 1. To make counter sales to walk-in customers. 2. To balance their sales terminal at the time they leave for the day. 3. To find any errors when balancing if the accounting assistant cannot verify their balance. 4. To take inventory on Saturday and fill out purchase orders to replenish inventory. 5. Pack merchandise to be returned (including boat equipment), and call shipper to send the merchandise. 6. To approve credit returns for counter merchandise, fill out credit memo forms, and give customer cash refunds. The only other employee is another part-timer, Anne Bolin. She is your assistant and is responsible for: 1. Verifying the balance of the sales terminal done by the counter sales persons. (Jess Nathan and Ron Holt cannot leave for the day until Anne verifies their sales terminal balance). 2. Preparing all purchase return forms. 3. Filling out duplicate deposit slips, making deposits, and returning deposit receipts to the accountant. 4. Complete all filing. 5. Make out checks for accountant or Jack Hobie to sign. 6. Other responsibilities as assigned by accountant. 8 Chart of Accounts Account Number 101 111 115 118 120 125 127 129 130 132 155 156 165 166 175 176 186 201 205 210 211 213 215 230 240 301 311 401 405 410 501 505 510 515 610 614 701 710 712 720 723 725 735 756 766 776 801 803 851 999 Account Title Cash Accounts Receivable Notes Receivable Interest Receivable Merchandise Inventory Prepaid Store Rent Prepaid Insurance Prepaid Advertising Office Supplies Store Supplies Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Warehouse Accumulated Depreciation- Warehouse Land Accounts Payable Notes Payable Interest Payable Employee Income Tax Payable FICA Tax Payable Salaries Payable Dividends Payable Unearned Rent Common Stock Retained Earnings Sales Sales Returns and Allowances Sales Discounts Purchases Purchase Returns and Allowances Transportation In Purchase Discounts Advertising Expense Delivery Expense Salaries and Wages Expense Store Supplies Expense Office Supplies Expense Rent Expense Utilities Expense Payroll Tax Expense Insurance Expense Depreciation Expense- Office Equipment Depreciation Expense- Store Equpiment Depreciation Expense- Warehouse Rent Revenue Interest Revenue Interest Expense Income Summary 9 Instructions: 1. 2. 3. 4. 5. Your assignment as accountant for SeaSide Marina is to complete the following: Journalize all transactions for June 28, 29, and 30. You will also make the necessary posting to the general ledger and subsidiary ledgers. Total the sales journal, purchases journal, cash receipts journal, and cash payments journal. Post these totals to the correct general ledger accounts. Prepare a trial balance, accounts receivable subsidiary schedule, and an accounts payable subsidiary schedule. Complete the adjusting entries, post them to the general ledger, and prepare an adjusted trial balance. At this juncture, you should print out your income statement. Complete the closing entries, post them to the general ledger, and complete a post closing trial balance. A calendar for the month of June, 20XX is shown below: June 20XX S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The transactions for June 28, 29, and 30 are available at http://www.ivysoftware.com. Your transaction set can be printed out via our website at http://www.ivysoftware.com. From the main page, click on Products and then Seaside Transaction Set under Online Testing. When prompted, please enter your Product Code and your Session ID number and click Continue. On the next page, your transaction set will appear. To print out the transaction set, use the Print icon within your browser. 10 GENERAL JOURNAL Date Jun. 1 Account and Explanation 2 Debit Credit SeaSide Marina was incorporated today by Jack Hobie. The business was organized to sell boats and nautical supplies. 20,000 shares of $1 par common stock were authorized and issued to Jack Hobie. Jack then gave 10 shares each to Joseph Draco, his lawyer, and Earnest Cleancut, his accountant, and asked them to join him on his newly formed Board of Directors. Cash 2 F 101 301 Store Supplies Accounts Payable Purchased store supplies on account, terms n/30, from: Local Supply Office Supplies Accounts Payable Purchased office supplies on account, terms n/30, from: Beach Office Supply 11 Sales Returns and Allowances Accounts Receivable Part of June 2 purchase returned by Rex Hopkins 2 0 0 0 0 00 132 201 Common Stock 1 0 5 0 00 $1050.00 2 0 0 0 0 00 1 0 5 0 00 * 130 201 $810.00 8 1 0 00 8 1 0 00 * 405 111 $318.00 201 505 16 Store Equipment Accounts Payable Purchased store counters from: Office Equipment Company 165 201 3 1 8 00 * 15 Accounts Payable Purchase Returns & Allowances Returned damaged merchandise received in June 3 purchase from: Avis Boat Builders $1250.00 3 1 8 00 1 2 5 0 00 1 2 5 0 00 * $3,400.00 * 11 3 4 0 0 00 3 4 0 0 00 GENERAL JOURNAL Date Account and Explanation F 12 Debit Credit GENERAL JOURNAL Date Account and Explanation F 13 Debit Credit GENERAL JOURNAL Date Account and Explanation F 14 Debit Credit GENERAL JOURNAL Date Account and Explanation F 15 Debit Credit SALES JOURNAL Date Jun. 1 2 3 4 8 9 10 11 15 17 17 18 19 22 23 24 Sales Invoice Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Terms F Amount Marlinspike Marine Rex Hopkins Carl Jenkins Pope's Charters Laker Marine Supply Pope's Charters Marlinspike Marine Bill Hankins Bass-A-Rama Sail Board City 3/10, n/30 n/30 n/30 2/10, n/30 3/10, n/30 2/10, n/30 3/10, n/30 n/30 n/30 3/10, n/30 * * * * * * * * * * 3 1 5 1 5 0 2 1 1 9 0 6 7 3 7 0 1 5 6 3 5 9 0 2 2 0 0 5 0 0 5 0 5 0 0 0 00 00 00 00 00 00 00 00 00 00 Laker Marine Supply Bill Hankins Marlinspike Marine Waterfront Marina Waterfront Marina Bass-A-Rama 3/10, n/30 n/30 3/10, n/30 3/10, n/30 3/10, n/30 n/30 * * * * * * 5 1 3 7 8 1 1 9 0 0 0 0 0 0 00 00 00 00 00 00 Account Debited 16 4 0 5 4 2 0 PURCHASES JOURNAL Date Jun. 1 1 3 5 10 15 16 19 22 26 Terms Danforth Tool Murkrey Outboard Avis Boat Builders Catamaran Corp. Nautical Industries Petroleum Supply Murkrey Outboard Catamaran Corp. Danforth Tool Tackle Box Supply 17 F 2/10, n/30 n/30 n/30 n/30 2/10, n/30 3/10, n/30 n/30 n/30 2/10, n/30 2/10, n/30 Account Credited * * * * * * * * * * Amount 2 6 2 4 6 3 4 2 0 0 5 2 3 2 3 2 6 4 0 0 0 5 8 0 7 1 1 0 0 0 0 0 5 0 5 0 4 0 00 00 00 00 00 00 00 00 00 00 CASH RECEIPTS JOURNAL Jun. Explanation Post Ref. Cash Sales 101 June 1-5 5 10 Borrowed from Safe 205 Collected from Collected from 111 Cash sales Collected from Laker Marine Supply 18 Collected from Pope's Charters Collected from Marlinspike Marine 19 Cash sales June 15-19 111 26 3 1 5 0 00 1 1 8 7 00 * 1 1 8 7 00 3 2 5 0 00 3 2 5 0 00 2 1 0 00 * 101 111 * 5 5 2 6 00 7 4 00 * 101 111 5 6 0 0 00 1 0 0 0 00 * 101 1 0 0 0 00 5 4 2 0 00 401 111 5 4 2 0 00 101 June 22-26 4 0 0 00 410 Collected from Cash sales 2 1 0 00 4 0 0 00 101 Bass-A-Rama 24 * 101 111 19 9 4 50 401 Carl Jenkins 101 Other 1 0 0 0 0 00 3 0 5 5 50 101 Collected from Sales 1 0 0 0 0 00 101 June 8-12 17 Other * 410 Rex Hopkins 15 Sales Disc. 6 0 0 00 101 111 12 Cash CREDITS Accounts Rec. 6 0 0 00 101 Marlinspike Marine 12 DEBITS 401 Bank 15%, 90-day 8 F 9 0 0 00 * 9 0 0 00 2 6 6 0 00 401 2 6 6 0 00 18 CASH RECEIPTS JOURNAL Jun. Explanation Post Ref. F DEBITS Cash Sales Disc. CREDITS Other 19 Accounts Rec. Sales Other CASH PAYMENTS JOURNAL Jun. Explanation 1 Purchased office equipment 1 Paid in full Murkrey Outboard 1 Paid 2-months' Post Ref. F 155 DEBITS * Accounts Payable Purchase CREDITS Other rent for store * 6 0 0 0 00 127 6 0 0 0 00 * 8 0 0 00 101 2 Purchased 2-year Other 1 2 0 0 00 101 720 Pur. Disc. 1 2 0 0 00 101 201 Cash 8 0 0 00 * 9 0 0 00 insurance policy 9 0 0 00 effective 6/1/XX 2 Purchased store supplies 8 Paid in full Danforth Tool 132 * 1 9 8 00 101 201 1 9 8 00 * 2 0 0 0 00 101 1 9 6 0 00 515 9 Paid ad agency for June & July 610 4 0 00 * 4 0 0 00 101 4 0 0 00 advertising 10 Paid on account Avis Boat Builders 11 Paid in full Catamaran Corp. 11 Paid employees 201 * 1 0 0 0 00 101 201 1 0 0 0 00 * 4 2 5 0 00 101 701 4 2 5 0 00 * 6 0 0 00 101 4 5 0 00 211 * 9 0 00 213 * 6 0 00 15 Paid Transportation 510 * cost for Jun. 5 101 1 1 2 00 1 1 2 00 purchase 16 Paid in full Nautical Industries 201 * 3 8 5 00 101 3 7 7 30 515 7 70 20 CASH PAYMENTS JOURNAL Jun. Explanation 17 Paid in full Murkrey Outboard 18 Paid on account Post Ref. F 201 * DEBITS Accounts Payable Purchase CREDITS Other 201 614 cost for sale to Other 3 3 7 5 00 * 3 0 0 0 00 101 19 Paid transportation Pur. Disc. 3 3 7 5 00 101 Petroleum Supply Cash 3 0 0 0 00 * 1 1 8 00 101 1 1 8 00 Marlinspike 23 Paid in full Petroleum Supply 25 Paid employees 201 * 3 2 0 0 00 101 701 3 2 0 0 00 * 8 0 0 00 101 6 0 0 00 211 * 1 2 0 00 213 * 8 0 00 21 CASH PAYMENTS JOURNAL Jun. Explanation Post Ref. F DEBITS Accounts Payable Purchase 22 CREDITS Other Cash Pur. Disc. Other GENERAL LEDGER CASH DATE Jun. Explanation 1 Initial investment by Jack Hobie F J1 Debit Acct. No. 101 Credit 2 0 0 0 0 00 2 0 0 0 0 00 ACCOUNTS RECEIVABLE DATE Jun. Explanation 11 F Debit Acct. No. 111 Credit J2 3 1 8 00 NOTES RECEIVABLE DATE Explanation F Debit Explanation F Debit Credit Explanation F Debit 23 ( 3 1 8 00 ) Balance Acct. No. 118 Credit MERCHANDISE INVENTORY DATE Balance Acct. No. 115 INTEREST RECEIVABLE DATE Balance Credit Balance Acct. No. 120 Balance GENERAL LEDGER PREPAID STORE RENT DATE Explanation F Debit Acct. No. 125 Credit PREPAID INSURANCE DATE Jun. Explanation 2 2-year policy effective 6/1/XX F Debit CP1 Acct. No. 127 Credit 9 0 0 00 Explanation F Debit Acct. No. 129 Credit OFFICE SUPPLIES DATE Jun. Explanation 2 F Debit J2 Jun. Explanation Balance Acct. No. 130 Credit 8 1 0 00 Balance 8 1 0 00 STORE SUPPLIES DATE Balance 9 0 0 00 PREPAID ADVERTISING DATE Balance Acct. No. 132 F Debit 2 J1 1 0 5 0 00 1 0 5 0 00 2 CP1 1 9 8 00 1 2 4 8 00 24 Credit Balance GENERAL LEDGER OFFICE EQUIPMENT DATE Jun. Explanation 1 F Debit CP1 Acct. No. 155 Credit 1 2 0 0 00 1 2 0 0 00 ACCUMULATED DEPRECIATION- OFFICE EQUIPMENT DATE Explanation F Debit Credit STORE EQUIPMENT DATE Jun. Explanation Debit J2 16 F Explanation 3 4 0 0 00 F Debit Credit Explanation F Debit 25 Balance Balance 3 4 0 0 00 Credit WAREHOUSE DATE Acct. No. 156 Acct. No. 165 ACCUMULATED DEPRECIATION- STORE EQUIPMENT DATE Balance Acct. No. 166 Balance Acct. No. 175 Credit Balance GENERAL LEDGER ACCUMULATED DEPRECIATION- WAREHOUSE DATE Explanation F Debit Credit LAND DATE Explanation F Jun. Explanation Debit F Balance Acct. No. 186 Credit ACCOUNTS PAYABLE DATE Acct. No. 176 Debit Balance Acct. No. 201 Credit Balance 2 J1 1 0 5 0 00 1 0 5 0 00 2 J2 8 1 0 00 1 8 6 0 00 15 J2 16 J2 1 2 5 0 00 6 1 0 00 3 4 0 0 00 NOTES PAYABLE DATE Jun. Explanation 8 15%, 90-day bank loan F Debit CR1 Acct. No. 205 Credit 1 0 0 0 0 00 26 4 0 1 0 00 Balance 1 0 0 0 0 00 GENERAL LEDGER INTEREST PAYABLE DATE Explanation F Debit Acct. No. 210 Credit EMPLOYEE INCOME TAX PAYABLE DATE Jun. Explanation F Debit Balance Acct. No.211 Credit Balance 11 CP3 9 0 00 9 0 00 26 CP4 1 2 0 00 2 1 0 00 FICA TAX PAYABLE DATE Jun. Explanation F Debit Acct. No. 213 Credit Balance 11 CP3 6 0 00 6 0 00 26 CP4 8 0 00 1 4 0 00 SALARIES PAYABLE DATE Explanation F Debit 27 Acct. No. 215 Credit Balance GENERAL LEDGER DIVIDENDS PAYABLE DATE Explanation F Debit Acct. No. 230 Credit UNEARNED RENT DATE Explanation F Debit Acct. No. 240 Credit COMMON STOCK DATE Jun. Explanation F 1 Initial investment 20,000 shares, $1 par Debit J1 Explanation F Credit 2 0 0 0 0 00 Debit Explanation F Debit 28 Balance 2 0 0 0 0 00 Acct. No. 311 Credit SALES DATE Balance Acct. No. 301 RETAINED EARNINGS DATE Balance Balance Acct. No. 401 Credit Balance GENERAL LEDGER SALES RETURNS AND ALLOWANCES DATE Jun. Explanation 11 Return by Rex Hopkins F Debit J2 Acct. No. 405 Credit 3 1 8 00 3 1 8 00 SALES DISCOUNTS DATE Explanation F Debit Acct. No. 410 Credit PURCHASES DATE Explanation F Debit Jun. Explanation 15 F Debit J2 Credit Credit 1 2 5 0 00 TRANSPORTATION IN DATE Jun. 15 Explanation F Debit CP2 1 1 2 00 29 Balance Acct. No. 501 PURCHASE RETURNS AND ALLOWANCES DATE Balance Balance Acct. No. 505 Balance 1 2 5 0 00 Acct. No. 510 Credit Balance 1 1 2 00 GENERAL LEDGER PURCHASE DISCOUNTS DATE Explanation F Debit Acct. No. 515 Credit ADVERTISING EXPENSE DATE Jun. Explanation F 9 For June and July advertising Debit CP2 Acct. No. 610 Credit 4 0 0 00 Jun. Explanation F 19 For Marlinspike Marine Debit CP4 Acct. No. 614 Credit 1 1 8 00 Jun. Explanation F Debit Balance 1 1 8 00 SALARIES AND WAGES EXPENSE DATE Balance 4 0 0 00 DELIVERY EXPENSE DATE Balance Acct. No. 701 Credit Balance 11 CP3 6 0 0 00 6 0 0 00 26 CP4 8 0 0 00 1 4 0 0 00 STORE SUPPLIES EXPENSE DATE Explanation F Debit 30 Acct. No. 710 Credit Balance GENERAL LEDGER OFFICE SUPPLIES EXPENSE DATE Explanation F Debit Acct. No. 712 Credit RENT EXPENSE DATE Jun. Explanation 1 For June and July store rent F Debit CP1 Acct. No. 720 Credit 8 0 0 00 Explanation F Debit Acct. No. 723 Credit PAYROLL TAX EXPENSE DATE Explanation F Debit Explanation F Debit 31 Balance Acct. No. 725 Credit INSURANCE EXPENSE DATE Balance 8 0 0 00 UTILITIES EXPENSE DATE Balance Balance Acct. No. 735 Credit Balance GENERAL LEDGER DEPRECIATION EXPENSE- OFFICE EQUIPMENT DATE Explanation F Debit Credit DEPRECIATION EXPENSE- STORE EQUIPMENT DATE Explanation F Debit Credit DEPRECIATION EXPENSE- WAREHOUSE DATE Explanation F Debit Credit RENT REVENUE DATE Explanation F Debit Explanation F Debit 32 Balance Acct. No. 766 Balance Acct. No. 776 Balance Acct. No. 801 Credit INTEREST REVENUE DATE Acct. No. 756 Balance Acct. No. 803 Credit Balance GENERAL LEDGER INTEREST EXPENSE DATE Explanation F Debit Acct. No. 851 Credit INCOME SUMMARY DATE Explanation F Debit 33 Balance Acct. No. 999 Credit Balance ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER BASS-A-RAMA RENTALS DATE Jun. Explanation F Debit Credit Terms: n/30 Balance 15 S1 9 0 0 00 9 0 0 00 24 S1 9 0 0 00 1 8 0 0 00 24 CR3 9 0 0 00 BILL HANKINS DATE Jun. Explanation F Debit 9 0 0 00 Terms: n/30 Credit Balance 11 S1 3 5 0 00 3 5 0 00 18 S1 1 0 0 00 4 5 0 00 REX HOPKINS DATE Jun. Explanation 12 Debit S1 2 11 Partial return of 6/2 purchase F Terms: n/30 1 5 0 5 00 J2 Credit 1 5 0 5 00 3 1 8 00 1 1 8 7 00 CR1 1 1 8 7 00 00 CARL JENKINS DATE Jun. Explanation F 3 Debit S1 15 Balance CR2 Terms: n/30 Credit 2 1 0 00 2 1 0 00 2 1 0 00 34 Balance 00 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER LAKER MARINE SUPPLY DATE Jun. Explanation F Debit Terms: 3/10, n/30 Credit Balance 8 S1 6 7 5 00 6 7 5 00 17 S1 5 4 0 00 1 2 1 5 00 17 CR2 4 0 0 00 MARLINSPIKE MARINE DATE Jun. Explanation F Debit 8 1 5 00 Terms: 3/10, n/30 Credit Balance 1 S1 3 1 5 0 00 3 1 5 0 00 10 S1 1 5 6 5 00 4 7 1 5 00 10 CR1 19 S1 19 3 1 5 0 00 CR2 3 7 5 0 00 5 3 1 5 00 1 0 0 0 00 POPE'S CHARTERS DATE 4 3 1 5 00 Terms: 2/10, n/30 F Debit 4 S1 1 9 0 0 00 1 9 0 0 00 9 S1 3 7 0 0 00 5 6 0 0 00 18 Jun. Explanation 1 5 6 5 00 Credit CR2 5 6 0 0 00 SAIL BOARD CITY DATE Jun. 17 Explanation Balance F Debit S1 2 2 0 0 00 35 00 Terms: 3/10, N/30 Credit Balance 2 2 0 0 00 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER WATERFRONT MARINA Terms: 3/10, n/30 DATE Jun. Explanation F Debit Credit Balance 22 S1 8 4 0 00 8 4 0 00 23 S1 1 1 2 0 00 1 9 6 0 00 ACCOUNTS PAYABLE SUBSIDIARY LEDGER AVIS BOAT BUILDERS DATE Jun. Explanation F Debit Terms: n/30 Credit Balance 3 P1 10 CP2 1 0 0 0 00 1 5 0 0 00 J2 1 2 5 0 00 2 5 0 00 15 Partial return of 6/3 purchase 2 5 0 0 00 BEACH OFFICE SUPPLY DATE Jun. Explanation 2 F Debit J2 Terms: n/30 Credit Jun. Explanation F 5 11 CP2 Debit P1 19 Balance 8 1 0 00 CATAMARAN CORP. DATE P1 2 5 0 0 00 8 1 0 00 Terms: n/30 Credit Balance 4 2 5 0 00 4 2 5 0 00 4 2 1 0 00 4 2 1 0 00 4 2 5 0 00 36 00 ACCOUNTS PAYABLE SUBSIDIARY LEDGER DANFORTH TOOL DATE Jun. Explanation F 1 P1 8 CP2 22 Debit P1 Terms: 2/10, n/30 Credit 2 0 0 0 00 Jun. Explanation 2 Store supplies 00 6 1 4 00 F Debit J1 Jun. Explanation Credit 1 Debit P1 1 Terms: n/30 Credit CP3 6 0 0 0 00 3 3 7 5 00 6 0 0 0 00 00 3 3 7 5 00 00 NAUTICAL INDUSTRIES DATE Jun. Explanation F 10 Debit P1 16 Balance 3 3 7 5 00 P1 17 1 0 5 0 00 6 0 0 0 00 CP1 16 Balance 1 0 5 0 00 F 6 1 4 00 Terms: n/30 MURKREY OUTBOARD DATE 2 0 0 0 00 2 0 0 0 00 LOCAL SUPPLY DATE Balance CP3 Terms: 2/10, n/30 Credit 3 8 5 00 3 8 5 00 37 Balance 3 8 5 00 00 ACCOUNTS PAYABLE SUBSIDIARY LEDGER OFFICE EQUIPMENT CO. DATE Jun. Explanation 16 F Debit J2 Terms: n/30 Credit 3 4 0 0 00 PETROLEUM SUPPLY DATE Jun. Explanation F Balance Debit 3 4 0 0 00 Terms: 3/10, n/30 Credit Balance 15 P1 6 2 0 0 00 18 CP4 3 0 0 0 00 3 2 0 0 00 23 CP4 3 2 0 0 00 00 TACKLE BOX SUPPLY DATE Jun. 26 Explanation F Debit P1 Terms: 2/10, n/30 Credit 2 4 0 0 00 38 6 2 0 0 00 Balance 2 4 0 0 00 NOTES Acct. Unadjusted Trial Balance No. Account Title 101 Cash WORKSHEET-------PLEASE TAPE THIS PAGE AND THE NEXT PAGE TO MAKE THE WORKSHEET FOR SEASIDE------- 111 Accounts Receivable 115 Notes Receivable 118 Interest Receivable 120 Merchandise Inventory 125 Prepaid Store Rent 127 Prepaid Insurance 129 Prepaid Advertising 130 Office Supplies 132 Store Supplies 155 Office Equipment 156 Acc. Dep.- Office Equip. 165 Store Equipment 166 Acc. Dep.- Store Equip. 175 Warehouse 176 Acc. Dep.- Warehouse 186 Land 201 Accounts Payable 205 Notes Payable 210 Interest Payable 211 Employee Inc. Tax Payable 213 FICA Tax Payable 215 Salaries Payable 230 Dividends Payable 240 Unearned Rent 301 Common Stock 311 Retained Earnings 401 Sales 405 Sales Returns & Allowances 410 Sales Discounts 501 Purchases 505 Purchase Ret. & Allow. 510 Transportation In 515 Puchase Discounts 610 Advertising Expense 614 Delivery Expense 701 Salaries & Wages Expense 710 Store Supplies Expense 712 Office Supplies Expense 720 Rent Expense 723 Utilities Expense 725 Payroll Tax Expense 735 Insurance Expense 756 Dep. Exp.- Office Equip. 766 Dep. Exp.- Store Equip. 776 Dep. Exp.- Warehouse 801 Rent Revenue 803 Interest Revenue 851 Interest Expense 999 Income Summary Totals Net Income Totals Debit Credit Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Acct # Account 101 111 115 118 120 125 127 129 130 132 155 Cash Accounts Receivable Notes Receivable Interest Receivable Merchandise Inventory Prepaid Store Rent Prepaid Insurance Prepaid Advertising Office Supplies Store Supplies Office Equipment 156 Acc. Dep. - Office Equipment 165 166 175 176 186 201 205 210 Store Equipment Acc. Dep. - Store Equipment Warehouse Acc. Dep. - Warehouse Land Accounts Payable Notes Payable Interest Payable 211 Employee Income Tax Payable 213 215 230 240 301 311 401 405 410 501 FICA Tax Payable Salaries Payable Dividends Payable Unearned Rent Common Stock Retained Earnings Sales Sales Returns & Allowances Sales Discounts Purchases 505 Purchase Returns & Allowances 510 515 610 614 701 710 712 720 Transportation In Purchase Discounts Advertising Expense Delivery Expense Salaries and Wages Expense Store Supplies Expense Office Supplies Expense Rent Expense Student Balance Debit Credit 23273.85 4720 4315 0 0 0 900 400 540 2328 1200 0 0 0 0 0 0 0 0 0 0 0 0 0 2470 0 40000 0 10000 0 0 0 Correct Balance Debit Credit 23478.3 4720 4315 0 0 0 900 0 540 2328 1200 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 0 0 2 0 0 0 0 0 5424 60000 0 2470 0 40000 0 10000 0 0 0 0 0 0 0 0 5424 60000 0 2 2 2 2 2 2 2 2 0 210 0 210 2 0 0 0 0 0 850 0 1158 311.75 36249 140 0 850 0 20000 0 43169 0 0 0 0 0 0 0 0 850 0 1158 287.3 36249 140 0 850 0 20000 0 43349 0 0 0 2 2 2 2 2 2 2 2 2 2 0 1455 0 1455 2 326 0 400 118 1400 0 0 800 0 71.6 0 0 0 0 0 0 326 0 550 118 1400 0 0 800 0 71.6 0 0 0 0 0 0 2 2 2 2 2 2 2 2 9/17/2015 Transactions for SeaSide Marina Transactions for SeaSide Marina 5BZL28 Set 0 June 28 (Monday) 1. Discovered error made by Jack Hobie. Onethird ($270.00) of the supplies purchased from Beach Office Supply on June 2 were actually store supplies rather than office supplies. 2. Sold merchandise over the counter to Bill Hankins for $110 cash. 3. Sold $2,000 of merchandise to Sail Board City on account terms 3/10, n/30 invoice #17. 4. Received a check from Bill Hankins in the amount of $240 to be applied to invoice #8. 5. Received a check from Laker Marine Supply in full payment of the balance of their account. You must determine if a discount was taken, and if so, how much it was. Seaside Marina only grants discounts on the basis of full payment of an invoice within the discount period. 6. Paid Avis Boat Builders the balance due on Seaside's June 3 merchandise purchase. 7. Sent a check to Catamaran Corp. in full payment of Seaside's June 19 merchandise purchase. 8. Purchased $1200 of merchandise for resale from Tackle Box Supply on account terms 2/10, n/30. 9. Purchased $1,400 of merchandise for resale from Nautical Industries on account terms 2/10, n/30. 10. Seaside needed additional space and purchased a warehouse to remodel and the land around it. Prior to arranging permanent financing, Seaside signed a short term construction note payable. The terms of the note are $50,000, 90 days at 16%. The building value was determined to be $40,000. 11. Seaside's ad agency offered Mr. Hobie a special deal. If he purchased an additional $150 of advertising to be used in August, Seaside would receive free layout services. Mr. Hobie paid the agency $150 to be recorded as advertising expense. June 29 (Tuesday) 1. Sold $400 of merchandise to BassARama Rentals and $114 of merchandise to Carl Jenkins. Both customers paid cash. 2. Sold $2100 of merchandise to Waterfront Marina on account terms 3/10, n/30 invoice #18. 3. Received a check from BassARama Rentals in full payment of invoice #16. 4. Received a check from Waterfront Marina in full payment of invoices #14 and #15. You must determine the amount of discount allowed, if any. 5. Certain unusable store equipment costing $1,030 was returned by Mr. Hobie and a credit was received from Office Equipment Company. The remaining balance due on the store equipment was paid in full. http://www.ivysoftware.com/cgibin/seaside.pl?code=5BZL28&sessionid=7007&func=gen 1/9 9/17/2015 Transactions for SeaSide Marina 6. Purchased $270 of merchandise for resale from Catamaran Corp. on account terms n/30. 7. Purchased $335 of merchandise for resale from Danforth Tool on account terms 2/10,n/30. 8. Purchased $1110 of merchandise for resale from Tackle Box Supply on account terms 2/10, n/30. 9. Sail Board City returned $840 of merchandise purchased on June 17 and requested that their account be credited. 10. Requested & Returned $205 of merchandise purchased from Nautical Industries and was given a credit on the account. 11. Marlinspike Marine signed a 12%, 60day note dated June 20 to pay the balance of its account. The note has not been recorded yet. Sale date was June 19. 12. Mr. Hobie leased some extra space in the new warehouse to Wayward Fishers. Seaside collected $500 for July and August rent. Use the Rent Revenue account. June 30 (Wednesday) 1. Purchased store supplies costing $810 from Local Supply. Paid cash. 2. Paid Beach Office Supply the balance due on Seaside's account. 3. Sent a check for $370 to Local Supply to be applied to Seaside's June 2 purchase. 4. Paid Nautical Industries the balance due on Seaside's June 28 purchase. You must determine the discount to be taken, if any. Seaside's creditors only grant discounts on the basis of full payment of a purchase within the discount period. 5. Sent a check for $1185 to Tackle Box Supply to be applied to Seaside's account. 6. Seaside Marina was informed that the store equipment returned to Office Equipment Company had actually cost Seaside Marina $930 rather than $1,030. Office Equipment Company requested that Mr. Hobie remit a check for $100. Mr. Hobie sent the check. 7. Sold $200 of merchandise to Carl Jenkins on account terms n/30 invoice #19. 8. Sold $2210 of merchandise to Pope's Charters on account terms 2/10, n/30 invoice #20. 9. Sold merchandise to Sail Board City for $880 cash. 10. Paid freight of $214 on incoming purchases. These purchases were all FOB shipping point. 11. Paid $310 for June utilities. 12. Received payment for the balance due from Sail Board City, less discount. 13. The board of directors declared a $850 dividend to be paid on July 2. http://www.ivysoftware.com/cgibin/seaside.pl?code=5BZL28&sessionid=7007&func=gen 2/9 9/17/2015 Transactions for SeaSide Marina Adjustment Information: Summarize and post the appropriate columns of the special journals and prepare the trial balance section of the worksheet to prove that the general ledger is in balance. Next, prepare the subsidiary ledger schedules to verify that the subsidiary ledgers balance with their control accounts. Then, journalize and post the adjusting entries using the following information and the journals and ledgers. Assume 360 days for any interest calculations and follow the traditional rules for rounding. For example, $5.415 rounds to $5.42 and $5.414 rounds to $5.41. 1. Physical inventories as of June 30, 20XX are as follows: Office Supplies Store Supplies $115 $430 2. Depreciation is based on the endofmonth balance in the asset account, regardless of the date purchased. Seaside elects to use the straightline method for calculating depreciation. Based on the balances in the following depreciable asset accounts, using the salvage value and useful life given, calculate the depreciation for each asset for the month of June. Depreciable Asset Office Equipment Store Equipment Warehouse Salvage Value $240 $200 $4000 Useful Life 96 months 120 months 240 months 3. Seaside must accrue salaries of $240 for the last three days of June. Employee income taxes are withheld at a rate of 15% and FICA taxes are withheld at a rate of 10%. The policy regarding the employer's matching 10% FICA liability is to accrue the amount for the full month's payroll at the end of the month. 4. Unused advertising amounts to $350. Closing Information: Prepare the adjusted trial balance section of the worksheet to verify that the general ledger is still in balance. Then, journalize and post the closing entries using the following information, the worksheet and the general ledger. 1. The ending merchandise inventory as of June 30, 20XX is $4,994. Seaside uses a periodic inventory system and uses the closing entry format for handling cost of goods sold therefore, it does not have a Cost of Goods Sold account. Prepare a postclosing trial balance to prove that the general ledger is still in balance and prepare the financial statements. http://www.ivysoftware.com/cgibin/seaside.pl?code=5BZL28&sessionid=7007&func=gen 3/9 9/17/2015 Transactions for SeaSide Marina Additional information needed by those students that wish to pursue the documentation aspect of Seaside Marina. Transaction Set 0 June 28 (Monday) 3. Sold $2,000 of merchandise to Sail Board City on account terms 3/10, n/30 invoice #17. Sail Board City's address is: 116 Nautical Road Travis Wharf, VA 23421 ATTN: Archie Bradford Purchase order number is 0061, dated June 26 and signed by L. Sanford. Shipment date is June 28, shipped by Yellow Freight Bill of Lading No. 007. The product ordered was 200 units of item 7960 oarlocks at $10 each for a price of $2,000. Customer account number is 006. Assume the role of Jack Hobie. Go to Figure 1.2 Seaside Marina Boat Equipment Sales flow chart. Complete the Sales Invoice (Figure 2.1) and print. Also, if you have not already done this, enter the transaction in the Sales Journal and Accounts Receivable subsidiary ledger. June 28 (Monday) 9. Purchased $1,400 of merchandise for resale from Nautical Industries on account terms 2/10, n/30. The purchase order number is 0106, the purchase order date is June 28, 20XX. Nautical Industries address is: 206 Water Street West Point, VA 23106 The phone # is 8047697111, fax is 8047697119, contact name is Brad Smith. The part # is 176437, the item is personal floatation device (PFD). The quantity is 280 and the unit price is $5. Ignore taxes for http://www.ivysoftware.com/cgibin/seaside.pl?code=5BZL28&sessionid=7007&func=gen 4/9 9/17/2015 Transactions for SeaSide Marina purposes of this exercise and assume shipping is free for orders above $1000. Assume the role of Jess Nathan. Go to figure 1.6 Seaside Marina Purchase Orders flow chart. Complete the Purchase Order (Figure 2.2) and print. Also, if you have not already done this enter the transaction in the Purchases Journal and Accounts Payable Subsidiary Ledger. 10. The Baytown Bank loaned the money to Seaside Marina. The note shown is a generic note and is Figure 2.7 Promissory Note. You do not have to do anything other than observe the format of the note and make the appropriate entry if you have not done so already. June 29 (Tuesday) 10. Sail Board City returned $840 of merchandise purchased on June 17 and requested that their account be credited. The invoice date is June 17, the invoice number is 10, the return number is 43, and the credit number is 006. The product is 10 gallons of metallic paint at $84/gallon. Assume the role of Jess Nathan. Go to figure 1.4, Seaside Marina Sales Returns flow chart. Complete the Credit Memo (Figure 2.3) and print. Also, if you have not already done this, enter the transaction in the General Journal and Accounts Receivable Subsidiary Ledger. 11. Requested and returned $205 of merchandise purchased from Nautical Industries and was given a credit on the account. The return request number is 003, the date of the request is June 29, 20XX. The reason is damaged goods. Seaside requested and received a credit on their account, account number 1611. Seaside's phone number is 18003426000. The dept. is 11. The invoice number is 7436. There were 41 units returned from an original order of 280 units. The product number is 176437 the list price is $10. It was authorized by Ely Jones of Nautical Industries on the date it was received (June 29). Assume the role of Anne Bolin. Go to Figure 1.7 Seaside Marina Purchase Returns. Complete the Request to Return (Figure 2.6) and print. Also, if you have not already done so, enter the transaction in the General Journal and Accounts Payable Subsidiary Ledger. June 30 (Wednesday) 7. Sold $200 of merchandise to Carl Jenkins on account terms n/30 invoice #19 Carl Jenkins address is: 619 Bay Street Oshkosh, WI 54901 The shipment is by Yellow Freight. The document number is 0179, the shipper number is 116 and the carrier number is 1016. The merchandise is 10 paddles at $20 each. The weight is 20lbs and the rate is $1.00/lb. The freight charges are billed to shipper. Eliot Wire represented Yellow Freight. Assume the role of Jess Nathan. Go to Figure 1.8 Seaside Marina's shipping to customers. Complete the Uniform Bill of Lading Domestic (Figure 2.4) and print. Also, if you have not already done so, enter the transaction in the sales journal and Accounts Receivable Subsidiary Ledger. http://www.ivysoftware.com/cgibin/seaside.pl?code=5BZL28&sessionid=7007&func=gen 5/9 9/17/2015 Transactions for SeaSide Marina Additional informa