i More Info AAA is a manufacturer of kitchen appliances. AAA markets its products via retail stores that are operated as franchises. As a AAA franchisee, All Around Appliance Manele Bay will receive many benefits, including having the exclusive right to sell AAA brand appliances in Manele Bay. AAA appliances have an excellent reputation and the AAA name and logo are readily recognized by consumers. AAA also manages national television advertising campaigns that benefit the franchisees. In exchange for these benefits, All Around Appliance-Manele Bay will pay an annual franchise fee to AAA based on a percentage of sales. The annual franchise fee is a separate cost and in addition to the purchase of the franchise. In addition to purchasing the franchise, All Around ApplianceManele Bay will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from AAA and resell them in its store, primarily to local building contractors for installation in new homes All Around Appliance_Manele Bay Chart of Accounts Cash Bain Capital Petty Cash Bain Withdrawals Accounts Receivable Sales Revenue Allowance for Bad Debts Interest Revenue Merchandise Inventory Cost of Goods Sold Office Supplies Franchise Fee Expense Prepaid Insurance Salaries Expense Interest Receivable Utilities Expense Notes Receivable Insurance Expense Land Supplies Expense Building Bad Debt Expense Accumulated Depreciation Building Bank Expense Store Fixtures Credit Card Expense Accumulated Depreciation Store Fixtures Depreciation Expense-Building Office Equipment Depreciation Expense-Store Fixtures Accumulated Depreciation - Office Equipment Depreciation Expense-Office Equipment Franchise Amortization Expense-Franchise Accounts Payable Interest Expense Interest Payable Cash Short and Over Notes Payable Print Done a. C. e. 9. Received $600,000 cash from owner, F. Bain, in exchange for capital. Opened a new checking account at Manele Bay National Bank and deposited the cash received from the owner. b. Paid $54,000 cash for a AAA franchise. Paid $430,000 cash and issued a $200.000, 10-year, 12% notes payable for land with an existing building. The assets had the following market values: Land, 580.000 Building, $550,000 d. Paid $60,000 for store foctures. Paid $50,000 for office equipment f. Paid $1,500 for office supplies. Paid $3,000 for a two-year insurance policy. h. Purchased appliances from AAA (merchandise inventory) on account for $430,000 i. Established a petty cash fund for $220. i. Sold appliances on account to QRS Contractors for $200,000, terms n/30 (cost $80,000) k. Sold appliances to Ferris Contracting for $110,000 (cost, $49.000) receiving a 6-month. 14% note. 1. Recorded credit card sales of $65,000 (cost. $29.000). net of processor fee of 2% Received payment in full from QRS Contractors. Purchased appliances from AAA on account for 5690.000. Made payment on account to AAA, $290,000. P. Sold appliances for cash to GB Home Builders for $380,000 (cost $187.000). 9. Received payment in full on the maturity date from Ferris Contracting for the note Sold appliances to Neard Contracting for $210.000 (cost. 5108.000), receiving a 9 month, 14% note. Made payment on account to AAA $520,000 t. Sold appliances on account to various businesses for $970,000 terms n/30 (cost $388,000) Collected $740,000 cash on account Paid cash for expenses: Salaries, $150,000; Utilities, $12,500 W. Replenished the petty cash fund when the fund had 584 in cash and petty cash tickets for $134 for office supplies Bain withdrew $15,000 y. Paid the franchise fee to AAA of 7% of total sales of $1,935,000 m. n. 0. S. u. V. Print Done - Requirements wing ng no 1. Record the transactions in the general journal. Omit explanations 2. Post to the general ledger 3. It is a common business practice to reconcile the bank accounts on a monthly basis However, in this problem, the reconciliation of the company's checking account will be done at the end of the year, based on an annual summary Reconcile the bank account by comparing the following annual summary statement from Manele Bay National Bank to the Cash account in the general ledger. Record journal entries as needed and post to the general ledger. Use transaction z as the posting reference er Hlude posited $ 0 Beginning Balance, January 1, 2018 Deposits and other credits: $ 600,000 63,700 200,000 380 000 740,000 1.450 Interest Revenue Checks and other debits: 1.985,150 $ 90 EFT to Bank Checks Checks: 54 000 430,000 50,000 60,000 220 3,000 1,500 290,000 520,000 162,500 Bank service charge 1,700 (1,573,010) Ending balance, December 31, 2018 $ 412,140 "Bank Checks is a company that prints business checks (considered a bank expense) for All Around Appliance-Manele Bay 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2018 a. Building, straight-line, 30 years, 570,000 residual value. C. e. depreciable plant assets, assuming the assets were purchased January 2, 2018 a. Building, straight-line, 30 years, $70,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. C. Office Equipment, double-declining-balance. 5 years. $3,000 residual value. 5. Record adjusting entries for the year ended December 31, 2018 a. One year of the prepaid insurance has expired. b. Management estimates that 7% of Accounts Receivable will be uncollectible, An inventory of office supplies indicates $1.414 of supplies have been used d. Calculate the interest earned on the outstanding Neard Contracting note receivable Assume the note was received on October 31. Round to the nearest dollar Record depreciation expense for the year. f. Record amortization expense for the year on the franchise, which has a 10-year life 9. Calculate the interest owed on the note payable. Assume the note was issued on January 1 6. Post adjusting entries and prepare an adjusted trial balance 7. Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results a. Liquidity i. Current ratio ii. Acid-test ratio iii. Cash ratio Efficiency: i. Accounts receivable turnover ii. Day's sales in receivables ii. Asset turnover iv. Rate of return on total assets b. All Around Appliance Manele lay completed the following transactions during 2018, its first year of operation (Click the icon to view the transactions) Around Appliance Marvel Bay has purchased a tranchise from Al Nound Appliance Click the icon to view the additional Information Following is the chart of accounts for All Around Appliance Manolo Blay Asaw business all beginning balances $0 (Click the icon to view the chart of accounts Read the Requirement 1. Record the transactions in the general joumal wieplanations (Record debits first the credits Exclude explanation from any jumal entries) a. Received 5600 000 cash from owner F.Bain Opened a new checking account Manule Bay National Bank and deposited the cash received from the owner Date Accounts Debit Credit TO mer Accounts Payable is Accounts Receivable ab Accumulated DepreciationBuilding kth Accumulated Depreciation Office Equipment Accumulated DepreciationStore Fixtures Allowance for Bad Debts tions Amortization Expense Franchise Bad Debt Expense ived Bain, Capital Bain, Withdrawals Bank Expense 3 h red Appliance Manele Bay has just purchased a Building # Cash S Cash Short and Over A Cost of Goods Sold Credit Card Expense Depreciation Expense Building Depreciation Expense-Office Equipment nel Depreciation Expense-Store Fixtures Franchise ved Franchise Fee Expense Insurance Expense Interest Expense Interact Danzablo ong b: Appliance Manele Bay has just purch To Interest Receivable th Interest Revenue is Land Merchandise Inventory Notes Payable Notes Receivable Office Equipment Office Supplies tong Petty Cash ved Prepaid Insurance Salaries Expense Sales Revenue nel | rec Prepaid Insurance Salaries Expense ng Sales Revenue ed Store Fixtures Supplies Expense Utilities Expense Homework: CP #1 Save Score: 0.13 of 1 pt 1 of 1 (1 complete) HW Score: 12.58%, 0.13 of 1 pt Comp10-1 (similar to) Question Help All Around Appliance Manele Bay has just purchased a franchise from All Around Appliance (AMA) (Click the loon to view the additional information) Folowing is the chart of accounts for All Around Appliance-Manele Bay. As a new business, all beginning balances are 50 (Click the icon to view the chart of accounts.) All Around Appliance-Manole Bay completed the following transactions during 2018 its first year of operations i (Click the icon to view the transactions) Read the requirements Requirement 1. Record the transactions in the general journal Omit explanations. (Record debits first, then credits Exclude explanations from any oumal entries) a. Received $600,000 cash from owner, F. Bain Opened a new checking account at Manele Bay National Bank and deposited the cash received from the owner Accounts Date (a) Debit Credit Cash Bain, Capital 600,000 600.000 b. Pald 554,000 cash for a AAA franchise Date Accounts Debit Credit (b) Franchise Cash 54,000 54000 c. Pald 5430,000 cash and issued a $200.000, 10-year 12% mots payable for land with an existing building The assets had the following market values: Land 500.000 Building. 5550.000 (Prepare a single compound jumal try to records transaction Date Accounts Debit Credit (c) Land 80.000 Building 550.000 Cash 430,000 Notes Payable 200.000 d. Paid $60,000 for store fixtures Date Accounts Store Fatures Credit Debit 60.000 60.000 .. Pald 550,000 for office equipment Date Accounts Debit Credit Choose from any stor enter any number in the input fields and then click Check Answer parts 25 remaining Clear All Check Answer F o o BI 3:18 PM 10/10/2020 the CIU View uit e. Paid $50,000 for office equipment. Accounts Debit Date Credit 50,000 (e) Office Equipment Cash 50,000 f. Paid $1,500 for office supplies. Date Accounts Debit Credit (0) 1,500 Office Supplies Cash 1,500 g. Paid $3,000 for a two-year insurance policy Date Accounts Debit Credit (9) 3,000 Prepaid Insurance Cash 3.000 h. Purchased appliances from AAA (merchandise inventory) on account for $430,000 Date Accounts Debit Credit 430,000 Merchandise Inventory Accounts Payable 430,000 i. Established a petty cash fund for $220 Date Accounts Debit Credit 0) Petty Cash 220 Cash 220 Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear All Check Answer o Bt 5:18 PM 10/10/2020 the icon to view the chart 1. Sold appliances on account to QRS Contractors for $200,000, terms n/30 (cost, $80,000). Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step Date Accounts Debit Credit 0 Accounts Receivable 200,000 Sales Revenue 200.000 Now journalize the expense related to the transaction () sale. Date Debit Credit Accounts Cost of Goods Sold Merchandise Inventory 80,000 80,000 k. Sold appliances to Ferris Contracting for $110,000 (cost, 549.000), receiving a 6-month, 14% note. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit Notes Receivable Sales Revenue 110,000 110.000 Now journalize the expense related to the transaction (k) sale Date Accounts (k) Cost of Goods Sold Merchandise Inventory Debit Credit 49.000 49,000 L Recorded credit card sales of $65.000 (cost. $29,000) net of processor fee of 2% Begin by preparing the compound entry needed to journalize the sale portion of the transaction. Do not record the cost of Choose from any list or enter any number in the input helds and then click Check Answer 25 parts remaining Clear All Check Answer TI 5:19 PM 10/10/2020 1. Recorded credit card sales of $65,000 (cost, $29,000), net of processor fee of 2% Begin by preparing the compound entry needed to journalize the sale portion of the transaction. Do not record the cost of goods sold related to the sale. We will do that in the following step Date Accounts Debit Credit 0 Cash 63.700 Credit Card Expense 1.300 Sales Revenue 65,000 Now journalize the cost of goods sold related to the transaction (1) sale, Date Accounts 0 Cost of Goods Sold Merchandise Inventory Debit Credit 29,000 29.000 m. Received payment in full from QRS Contractors Date Accounts Debit Credit (m) Cash Accounts Receivable 200.000 200.000 n. Purchased appliances from AAA on account for $690,000 Date Accounts Debit Credit (n) Merchandise Inventory Accounts Payable 690.000 690.000 o. Made payment on account to AM $290,000 Date Accounts Credit (0) Accounts Payable Cash Debit 290,000 290 000 Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear All Check Answer p. Son appliances Tur CST GD nome punues Tor JOU,UUU CUSC STOT,000). Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step. Date Accounts Debit Credit (P) Cash 380,000 Sales Revenue 380,000 Now journalize the expense related to the transaction (p) sale Date Accounts Debit Credit (P) 187,000 Cost of Goods Sold Merchandise Inventory 187000 q. Received payment in full on the maturity date from Ferris Contracting for the note. (Prepare a compound joumal entry showing the total cash received upon maturity) Date Accounts Debit Credit Cash 117.700 Notes Receivable 110,000 Interest Revenue 7.700 1. Sold appliances to Neard Contracting for $210,000 (cost, $108,000), receiving a 9-month, 14% note. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit (0) Notes Receivable Sales Revenue 210,000 210,000 Now journalize the expense related to the transaction (1) sale. Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then click Check Answer Click the icon to view the chart of accounts.) Now journalize the expense related to the transaction (1) sale. Date Accounts Debit Credit 108,000 Cost of Goods Sold Merchandise Inventory 108,000 s. Made payment on account to AAA, 5520,000 Date Accounts Debit Credit Accounts Payable Cash 520.000 520.000 t. Sold appliances on account to various businesses for $970,000, terms n/30 (cost. 5388.000) Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit (1) Accounts Receivable 970.000 Sales Revenue 970,000 Now joumalize the expense related to the transaction (t) sale Date Accounts (1) Cost of Goods Sold Merchandise Inventory Credit Debit 388 000 388,000 u. Collected $740.000 cash on account Date Accounts Cash Accounts Receivable Credit Debit 740.000 740.000 Choose from any list or enter a number in the input fields and then cack Check Answer 25 parts Clear All Check Answer RI 5:19 PM 10/10/2020 (Click the icon to view the chart of accounts.) v. Paid cash for expenses: Salaries, $150,000; Utilities, $12,500. (Prepare a compound journal entry to record the payr of these expenses.) Date Accounts Debit Credit (v) Salaries Expense Utilities Expense Cash 150,000 12,500 162,500 w. Replenished the petty ca fund when the fund had $84 in cash and petty cash tickets for $134 for office supplies Date Accounts Debit Credit (w) 134 Office Supplies Cash Short and Over Cash 136 X. Bain withdrew $15,000 Date Accounts Debit Credit (x) Bain, Withdrawals 15,000 Cash 15,000 y. Paid the franchise fee to AAA of 7% of total sales of $1,935,000 Date Accounts (y) Franchise Fee Expense Cash Debit Credit 135.450 135,450 Requirement 2. Post to the general ledene Requirement 2. Post to the general ledger. Post the transactions using the transaction letters (a), (b)(c), etc.) as posting references Compute each account balance after posting all of the transactions, and denote the balance as Bal (For any accounts with a zero balance after posting the transactions, select a "Bal" reference and enter a "0" on the normal side of the T-account Abbreviations used. Accum= Accumulated, Depr. = Depreciation) (Click the icon to view the journal entries from Requirement 1.) Cash Accounts Payable Sales Revenue Interest Payable Interest Revenue Note Payable Petty Cash Bain, Capital Cost of Goods Sold Accounts Receivable Bain, Withdrawals Franchise Fee Expense Allowance for Bad Debts Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear As Check Answer o 5:20 PM 10/10/2020 All Around Appliance Manele Bay has just purchased a franchise from All Around Appliance (AAA) (Click the icon to view the additional information) Following is the chart of accounts for All Around Appliance-Manele Bay. As a new business, all beginning balances are $0 (Click the icon to view the chart of accounts.) All Around Appliance-Manele Bay completed the following transactions during 2018, its first year of operations Click the icon to view the transactions) Read the requirements Franchise Fee Expense Allowance for Bad Debts Salaries Expense Merchandise Inventory Utilities Expense Office Supplies Insurance Expense Prepaid Insurance Supplies Expense Interest Receivable Bad Debes Expense Notes Receivable Bank Expense Choose from any list of enter any number in the input Delds and then chok Check An 25 remaining CAR Check Answer O BI 520 PM 16/10/2020 be franchise from All Around Appliance (AAA). i (Click the icon to view the additional information.) Following is the chart of accounts for All Around Appliance - Manele Bay. As a new business, all beginning balances are 50 (Click the icon to view the chart of accounts.) transactions during 2018, its first year of operations: (Click the icon to view the transactions.) Read the requirements Notes Receivable Bank Expense Land Credit Card Expense Building Depr. Expense Building Accum. Depr.-Building Depr. Expense-Store Fixtures Store Fixtures Depr. Expense-Office Equipment Accum. Depr.- Store Fixtures Amortization Expense-Franchise Office Equipment Interest Expense Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Office Equipment Interest Expense Accurn. Depr.-Office Equipment Cash Short and Over Franchise Choose from any list or enter any number in the input fields and then click Check Answer How would you like me to upload your referring to ? ? Tom i More Info AAA is a manufacturer of kitchen appliances. AAA markets its products via retail stores that are operated as franchises. As a AAA franchisee, All Around Appliance Manele Bay will receive many benefits, including having the exclusive right to sell AAA brand appliances in Manele Bay. AAA appliances have an excellent reputation and the AAA name and logo are readily recognized by consumers. AAA also manages national television advertising campaigns that benefit the franchisees. In exchange for these benefits, All Around Appliance-Manele Bay will pay an annual franchise fee to AAA based on a percentage of sales. The annual franchise fee is a separate cost and in addition to the purchase of the franchise. In addition to purchasing the franchise, All Around ApplianceManele Bay will also purchase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from AAA and resell them in its store, primarily to local building contractors for installation in new homes All Around Appliance_Manele Bay Chart of Accounts Cash Bain Capital Petty Cash Bain Withdrawals Accounts Receivable Sales Revenue Allowance for Bad Debts Interest Revenue Merchandise Inventory Cost of Goods Sold Office Supplies Franchise Fee Expense Prepaid Insurance Salaries Expense Interest Receivable Utilities Expense Notes Receivable Insurance Expense Land Supplies Expense Building Bad Debt Expense Accumulated Depreciation Building Bank Expense Store Fixtures Credit Card Expense Accumulated Depreciation Store Fixtures Depreciation Expense-Building Office Equipment Depreciation Expense-Store Fixtures Accumulated Depreciation - Office Equipment Depreciation Expense-Office Equipment Franchise Amortization Expense-Franchise Accounts Payable Interest Expense Interest Payable Cash Short and Over Notes Payable Print Done a. C. e. 9. Received $600,000 cash from owner, F. Bain, in exchange for capital. Opened a new checking account at Manele Bay National Bank and deposited the cash received from the owner. b. Paid $54,000 cash for a AAA franchise. Paid $430,000 cash and issued a $200.000, 10-year, 12% notes payable for land with an existing building. The assets had the following market values: Land, 580.000 Building, $550,000 d. Paid $60,000 for store foctures. Paid $50,000 for office equipment f. Paid $1,500 for office supplies. Paid $3,000 for a two-year insurance policy. h. Purchased appliances from AAA (merchandise inventory) on account for $430,000 i. Established a petty cash fund for $220. i. Sold appliances on account to QRS Contractors for $200,000, terms n/30 (cost $80,000) k. Sold appliances to Ferris Contracting for $110,000 (cost, $49.000) receiving a 6-month. 14% note. 1. Recorded credit card sales of $65,000 (cost. $29.000). net of processor fee of 2% Received payment in full from QRS Contractors. Purchased appliances from AAA on account for 5690.000. Made payment on account to AAA, $290,000. P. Sold appliances for cash to GB Home Builders for $380,000 (cost $187.000). 9. Received payment in full on the maturity date from Ferris Contracting for the note Sold appliances to Neard Contracting for $210.000 (cost. 5108.000), receiving a 9 month, 14% note. Made payment on account to AAA $520,000 t. Sold appliances on account to various businesses for $970,000 terms n/30 (cost $388,000) Collected $740,000 cash on account Paid cash for expenses: Salaries, $150,000; Utilities, $12,500 W. Replenished the petty cash fund when the fund had 584 in cash and petty cash tickets for $134 for office supplies Bain withdrew $15,000 y. Paid the franchise fee to AAA of 7% of total sales of $1,935,000 m. n. 0. S. u. V. Print Done - Requirements wing ng no 1. Record the transactions in the general journal. Omit explanations 2. Post to the general ledger 3. It is a common business practice to reconcile the bank accounts on a monthly basis However, in this problem, the reconciliation of the company's checking account will be done at the end of the year, based on an annual summary Reconcile the bank account by comparing the following annual summary statement from Manele Bay National Bank to the Cash account in the general ledger. Record journal entries as needed and post to the general ledger. Use transaction z as the posting reference er Hlude posited $ 0 Beginning Balance, January 1, 2018 Deposits and other credits: $ 600,000 63,700 200,000 380 000 740,000 1.450 Interest Revenue Checks and other debits: 1.985,150 $ 90 EFT to Bank Checks Checks: 54 000 430,000 50,000 60,000 220 3,000 1,500 290,000 520,000 162,500 Bank service charge 1,700 (1,573,010) Ending balance, December 31, 2018 $ 412,140 "Bank Checks is a company that prints business checks (considered a bank expense) for All Around Appliance-Manele Bay 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2018 a. Building, straight-line, 30 years, 570,000 residual value. C. e. depreciable plant assets, assuming the assets were purchased January 2, 2018 a. Building, straight-line, 30 years, $70,000 residual value. b. Store Fixtures, straight-line, 15 years, no residual value. C. Office Equipment, double-declining-balance. 5 years. $3,000 residual value. 5. Record adjusting entries for the year ended December 31, 2018 a. One year of the prepaid insurance has expired. b. Management estimates that 7% of Accounts Receivable will be uncollectible, An inventory of office supplies indicates $1.414 of supplies have been used d. Calculate the interest earned on the outstanding Neard Contracting note receivable Assume the note was received on October 31. Round to the nearest dollar Record depreciation expense for the year. f. Record amortization expense for the year on the franchise, which has a 10-year life 9. Calculate the interest owed on the note payable. Assume the note was issued on January 1 6. Post adjusting entries and prepare an adjusted trial balance 7. Prepare a multi-step income statement and statement of owner's equity for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018. Assume Interest Receivable is a current asset and Interest Payable is a current liability 8. Evaluate the company's success for the first year of operations by calculating the following ratios. Round to two decimal places. Comment on the results a. Liquidity i. Current ratio ii. Acid-test ratio iii. Cash ratio Efficiency: i. Accounts receivable turnover ii. Day's sales in receivables ii. Asset turnover iv. Rate of return on total assets b. All Around Appliance Manele lay completed the following transactions during 2018, its first year of operation (Click the icon to view the transactions) Around Appliance Marvel Bay has purchased a tranchise from Al Nound Appliance Click the icon to view the additional Information Following is the chart of accounts for All Around Appliance Manolo Blay Asaw business all beginning balances $0 (Click the icon to view the chart of accounts Read the Requirement 1. Record the transactions in the general joumal wieplanations (Record debits first the credits Exclude explanation from any jumal entries) a. Received 5600 000 cash from owner F.Bain Opened a new checking account Manule Bay National Bank and deposited the cash received from the owner Date Accounts Debit Credit TO mer Accounts Payable is Accounts Receivable ab Accumulated DepreciationBuilding kth Accumulated Depreciation Office Equipment Accumulated DepreciationStore Fixtures Allowance for Bad Debts tions Amortization Expense Franchise Bad Debt Expense ived Bain, Capital Bain, Withdrawals Bank Expense 3 h red Appliance Manele Bay has just purchased a Building # Cash S Cash Short and Over A Cost of Goods Sold Credit Card Expense Depreciation Expense Building Depreciation Expense-Office Equipment nel Depreciation Expense-Store Fixtures Franchise ved Franchise Fee Expense Insurance Expense Interest Expense Interact Danzablo ong b: Appliance Manele Bay has just purch To Interest Receivable th Interest Revenue is Land Merchandise Inventory Notes Payable Notes Receivable Office Equipment Office Supplies tong Petty Cash ved Prepaid Insurance Salaries Expense Sales Revenue nel | rec Prepaid Insurance Salaries Expense ng Sales Revenue ed Store Fixtures Supplies Expense Utilities Expense Homework: CP #1 Save Score: 0.13 of 1 pt 1 of 1 (1 complete) HW Score: 12.58%, 0.13 of 1 pt Comp10-1 (similar to) Question Help All Around Appliance Manele Bay has just purchased a franchise from All Around Appliance (AMA) (Click the loon to view the additional information) Folowing is the chart of accounts for All Around Appliance-Manele Bay. As a new business, all beginning balances are 50 (Click the icon to view the chart of accounts.) All Around Appliance-Manole Bay completed the following transactions during 2018 its first year of operations i (Click the icon to view the transactions) Read the requirements Requirement 1. Record the transactions in the general journal Omit explanations. (Record debits first, then credits Exclude explanations from any oumal entries) a. Received $600,000 cash from owner, F. Bain Opened a new checking account at Manele Bay National Bank and deposited the cash received from the owner Accounts Date (a) Debit Credit Cash Bain, Capital 600,000 600.000 b. Pald 554,000 cash for a AAA franchise Date Accounts Debit Credit (b) Franchise Cash 54,000 54000 c. Pald 5430,000 cash and issued a $200.000, 10-year 12% mots payable for land with an existing building The assets had the following market values: Land 500.000 Building. 5550.000 (Prepare a single compound jumal try to records transaction Date Accounts Debit Credit (c) Land 80.000 Building 550.000 Cash 430,000 Notes Payable 200.000 d. Paid $60,000 for store fixtures Date Accounts Store Fatures Credit Debit 60.000 60.000 .. Pald 550,000 for office equipment Date Accounts Debit Credit Choose from any stor enter any number in the input fields and then click Check Answer parts 25 remaining Clear All Check Answer F o o BI 3:18 PM 10/10/2020 the CIU View uit e. Paid $50,000 for office equipment. Accounts Debit Date Credit 50,000 (e) Office Equipment Cash 50,000 f. Paid $1,500 for office supplies. Date Accounts Debit Credit (0) 1,500 Office Supplies Cash 1,500 g. Paid $3,000 for a two-year insurance policy Date Accounts Debit Credit (9) 3,000 Prepaid Insurance Cash 3.000 h. Purchased appliances from AAA (merchandise inventory) on account for $430,000 Date Accounts Debit Credit 430,000 Merchandise Inventory Accounts Payable 430,000 i. Established a petty cash fund for $220 Date Accounts Debit Credit 0) Petty Cash 220 Cash 220 Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear All Check Answer o Bt 5:18 PM 10/10/2020 the icon to view the chart 1. Sold appliances on account to QRS Contractors for $200,000, terms n/30 (cost, $80,000). Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step Date Accounts Debit Credit 0 Accounts Receivable 200,000 Sales Revenue 200.000 Now journalize the expense related to the transaction () sale. Date Debit Credit Accounts Cost of Goods Sold Merchandise Inventory 80,000 80,000 k. Sold appliances to Ferris Contracting for $110,000 (cost, 549.000), receiving a 6-month, 14% note. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit Notes Receivable Sales Revenue 110,000 110.000 Now journalize the expense related to the transaction (k) sale Date Accounts (k) Cost of Goods Sold Merchandise Inventory Debit Credit 49.000 49,000 L Recorded credit card sales of $65.000 (cost. $29,000) net of processor fee of 2% Begin by preparing the compound entry needed to journalize the sale portion of the transaction. Do not record the cost of Choose from any list or enter any number in the input helds and then click Check Answer 25 parts remaining Clear All Check Answer TI 5:19 PM 10/10/2020 1. Recorded credit card sales of $65,000 (cost, $29,000), net of processor fee of 2% Begin by preparing the compound entry needed to journalize the sale portion of the transaction. Do not record the cost of goods sold related to the sale. We will do that in the following step Date Accounts Debit Credit 0 Cash 63.700 Credit Card Expense 1.300 Sales Revenue 65,000 Now journalize the cost of goods sold related to the transaction (1) sale, Date Accounts 0 Cost of Goods Sold Merchandise Inventory Debit Credit 29,000 29.000 m. Received payment in full from QRS Contractors Date Accounts Debit Credit (m) Cash Accounts Receivable 200.000 200.000 n. Purchased appliances from AAA on account for $690,000 Date Accounts Debit Credit (n) Merchandise Inventory Accounts Payable 690.000 690.000 o. Made payment on account to AM $290,000 Date Accounts Credit (0) Accounts Payable Cash Debit 290,000 290 000 Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear All Check Answer p. Son appliances Tur CST GD nome punues Tor JOU,UUU CUSC STOT,000). Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step. Date Accounts Debit Credit (P) Cash 380,000 Sales Revenue 380,000 Now journalize the expense related to the transaction (p) sale Date Accounts Debit Credit (P) 187,000 Cost of Goods Sold Merchandise Inventory 187000 q. Received payment in full on the maturity date from Ferris Contracting for the note. (Prepare a compound joumal entry showing the total cash received upon maturity) Date Accounts Debit Credit Cash 117.700 Notes Receivable 110,000 Interest Revenue 7.700 1. Sold appliances to Neard Contracting for $210,000 (cost, $108,000), receiving a 9-month, 14% note. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit (0) Notes Receivable Sales Revenue 210,000 210,000 Now journalize the expense related to the transaction (1) sale. Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then click Check Answer Click the icon to view the chart of accounts.) Now journalize the expense related to the transaction (1) sale. Date Accounts Debit Credit 108,000 Cost of Goods Sold Merchandise Inventory 108,000 s. Made payment on account to AAA, 5520,000 Date Accounts Debit Credit Accounts Payable Cash 520.000 520.000 t. Sold appliances on account to various businesses for $970,000, terms n/30 (cost. 5388.000) Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale We will do that in the following step Date Accounts Debit Credit (1) Accounts Receivable 970.000 Sales Revenue 970,000 Now joumalize the expense related to the transaction (t) sale Date Accounts (1) Cost of Goods Sold Merchandise Inventory Credit Debit 388 000 388,000 u. Collected $740.000 cash on account Date Accounts Cash Accounts Receivable Credit Debit 740.000 740.000 Choose from any list or enter a number in the input fields and then cack Check Answer 25 parts Clear All Check Answer RI 5:19 PM 10/10/2020 (Click the icon to view the chart of accounts.) v. Paid cash for expenses: Salaries, $150,000; Utilities, $12,500. (Prepare a compound journal entry to record the payr of these expenses.) Date Accounts Debit Credit (v) Salaries Expense Utilities Expense Cash 150,000 12,500 162,500 w. Replenished the petty ca fund when the fund had $84 in cash and petty cash tickets for $134 for office supplies Date Accounts Debit Credit (w) 134 Office Supplies Cash Short and Over Cash 136 X. Bain withdrew $15,000 Date Accounts Debit Credit (x) Bain, Withdrawals 15,000 Cash 15,000 y. Paid the franchise fee to AAA of 7% of total sales of $1,935,000 Date Accounts (y) Franchise Fee Expense Cash Debit Credit 135.450 135,450 Requirement 2. Post to the general ledene Requirement 2. Post to the general ledger. Post the transactions using the transaction letters (a), (b)(c), etc.) as posting references Compute each account balance after posting all of the transactions, and denote the balance as Bal (For any accounts with a zero balance after posting the transactions, select a "Bal" reference and enter a "0" on the normal side of the T-account Abbreviations used. Accum= Accumulated, Depr. = Depreciation) (Click the icon to view the journal entries from Requirement 1.) Cash Accounts Payable Sales Revenue Interest Payable Interest Revenue Note Payable Petty Cash Bain, Capital Cost of Goods Sold Accounts Receivable Bain, Withdrawals Franchise Fee Expense Allowance for Bad Debts Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Clear As Check Answer o 5:20 PM 10/10/2020 All Around Appliance Manele Bay has just purchased a franchise from All Around Appliance (AAA) (Click the icon to view the additional information) Following is the chart of accounts for All Around Appliance-Manele Bay. As a new business, all beginning balances are $0 (Click the icon to view the chart of accounts.) All Around Appliance-Manele Bay completed the following transactions during 2018, its first year of operations Click the icon to view the transactions) Read the requirements Franchise Fee Expense Allowance for Bad Debts Salaries Expense Merchandise Inventory Utilities Expense Office Supplies Insurance Expense Prepaid Insurance Supplies Expense Interest Receivable Bad Debes Expense Notes Receivable Bank Expense Choose from any list of enter any number in the input Delds and then chok Check An 25 remaining CAR Check Answer O BI 520 PM 16/10/2020 be franchise from All Around Appliance (AAA). i (Click the icon to view the additional information.) Following is the chart of accounts for All Around Appliance - Manele Bay. As a new business, all beginning balances are 50 (Click the icon to view the chart of accounts.) transactions during 2018, its first year of operations: (Click the icon to view the transactions.) Read the requirements Notes Receivable Bank Expense Land Credit Card Expense Building Depr. Expense Building Accum. Depr.-Building Depr. Expense-Store Fixtures Store Fixtures Depr. Expense-Office Equipment Accum. Depr.- Store Fixtures Amortization Expense-Franchise Office Equipment Interest Expense Choose from any list or enter any number in the input fields and then click Check Answer 25 parts remaining Office Equipment Interest Expense Accurn. Depr.-Office Equipment Cash Short and Over Franchise Choose from any list or enter any number in the input fields and then click Check Answer How would you like me to upload your referring to ? ? Tom