I want the Midterm assessment answers and entries for June 17-30

I need this ASAP! Please

Zacks Bike Hut Level II 1st Web-Based Edition Transactions For June 10-16 1 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 10-16 Student Analysis June 10 Received notice from Miles Collection Agency that states they have been unable to locate customerSally Bridges ( 10200 ) and initiate any collection of the $565.00 balance owed since April 5 of this year. Write off the accounts receivable account balance as uncollectible. Remember that the allowance method is used to account for bad debts. At the invoice prompt enterWROFFfor bad debt write off. ****************************************************** June 10 Received a check from Western National Credit Card Company for $2,064.08 as payment in full on credit card invoices that had been received through June 2. The invoices, for sales made in late April and May, totaled$2,144.50 and Western National charges a 3.75% fee for use of their system. The summary number for these invoices is CC411 . ****************************************************** June 11 Returned store supplies with a total cost of $20.50 to Bingham Supply (20500 ). The store supplies were purchased on credit from Bingham on June 3 (invoice numberB5787 ). ****************************************************** June 12 Issued check 02614 for $435.00 as payment in full of the June 2 invoice (ZB538 ) from Zebra Bikes, Inc. 2 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 10-16 Student Analysis June 14 Sold sixWiki Peak bikes. Sales invoice Z1608 lists the total selling price including sales tax at $2,985.30. The customer used a the invoice total by 1.07 to Western National CreditDivide Card. determine the retail selling price of the merchandise. Review Bank Credit Card and Company Credit Card in the Sales Introduction Module, Page 2. Merchandise listed on the sales invoice: Stock Number A0026 Item WIKE PEAK Quantity 6 Net Cost Per Unit $310.00 ****************************************************** June 14 Issued check 02615 as payment in full of American Cycles ( 20150 ) invoice A3499 totaling $385.00. ****************************************************** June 15 While examining the Crater Bikes, Incorporated account, it is discovered that another invoice (C5914 ) for $1,960.00 dated June 4 was filed incorrectly and today is the 11th day rather than the 10th day. Two entries are required . Record the $40.00 discount . lost Then issue check number 02616 in payment of the full amount now due. ****************************************************** June 15 Sold all of the common shares held as a short-term investment. The 500common shares sold for 10 1/2 , less a commission of $75.00. The entire block of stock was purchased earlier in the year at a total cost (including commission) of$4,125.00. Be sure to account for the gain or loss on this transaction. At the invoice prompt enter STINVfor short-term investment. 3 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 10-16 Student Analysis June 16 Issued check number 02617 to Louis Manich, the part-time repair and sales person for the business. Louis is paid $15.75 per hour and worked 37.0 hours during the past two-week period ended June 15. At the invoice prompt enter PAYRL for payroll. ****************************************************** This is the last transaction for June 10 to June 16. Now that you have completed entering the transactions for the second week of the internship program, June 10-16, it is time to check the accuracy of your work. In the \"Check It Out\" block on the next page are the correct balances of key accounts that you have been working with this week. Click on Journals/Ledgers/Statements and select General Ledger. The Trial Balance for June 16 will appear on the screen.Printthe Trial Balance . Click on Journals/Ledgers/Statements then click on Subsidiary Ledgers and select Inventory. The Inventory Analysis will appear on the screen. The value of the perpetual inventory at the close of business on June 16 should total$26,477.00. Print the Inventory Analysis. Check your account balances and the inventory balance against the correct totals shown in the \"Check It Out\" box on the next page. Please note that the\"Check It Out\" box is a check list and is NOTa Trial Balance. 4 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 \"CHECK IT OUT\" 101 Cash $44,750.50 102 Petty Cash 50.00 105 Accounts Receivable 5,790.00 106 Allowance for Doubtful Accounts 256.30 115 Merchandise Inventory 26,477.00 127 Store and Shop Supplies 1,390.75 132 Accumulated Depreciation, Store Equip. 11,250.00 201 Accounts Payable 2,947.00 205 Sales Taxes Payable 3,215.01 207 Dividends Payable 6,500.00 221 Unearned Lesson Fees 5,525.00 401 Sales 149,787.50 411 Service Fees Earned 11,588.50 501 Cost of Goods Sold 86,477.00 604 Advertising Expense 1,093.00 607 Credit Card Expense 139.82 633 Discounts Lost 67.00 TRIAL BALANCE TOTAL $357,848.24 If any of your account balances DO NOT MATCH THE CHECK FIGURES in the \"Che It Out\" box, you must correct the unmatched balances before continuing to Modu most efficient method of locating the error/s is to print copy of the Trial Balance of the General Journal. See ERROR CORRECTION PROCEDURES at the end Module 1. When your totals match the check figures, print the following documents: 1. Trial Balance for June 16 Move the pointer toJournals/Ledgers/Statements, then select General Ledger. Trial Balance. the Print and print the Cash account ). (101 2. Click on Ledger Cards From the ledger account selection box select theCashledger card, then click on Show Ledger Card,and print the document. Print a copy of each of the general ledger cards on the that follows. 5 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 105 115 201 401 501 505 606 633 Accounts Receivable Merchandise Inventory Accounts Payable Sales Cost of Goods Sold Transportation-In Delivery Expense Discounts Lost 3. The Schedule of Accounts Receivable Move the pointer to Journals/Ledgers/Statements, select Subsidiary Ledgers, and then Accounts Receivable Ledger. Print the Schedule of Accounts Receivable. 4. The Individual account information for ALL customers Click on the All Customers button and print the Accounts Receivable Subsidiary Ledger. 5. The Schedule of Accounts Payable Move the pointer to Journals/Ledgers/Statements, select Subsidiary Ledgers, and then Accounts Payable Ledger. Print the Schedule of Accounts Payable. 6. The Individual account information for ALL vendors. Click on the All Vendors button and print the Accounts Payable Subsidiary Ledger. 7. The Inventory Analysis Form Move the pointer to Journals/Ledgers/Statements, select Subsidiary Ledgers, and then Inventory. 8. Print Individual Inventory Items Click on Inventory Item button and select A0008. Click on Show Inventory Item and then Printthe listed documents. Print A0008, A0026, A0100, and B1120. 6 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 COMPLETE THE MID-PROJECT EVALUATION 1. Have your required printed documents at hand 2. Click on Evaluations on the Menu Bar -Project Evaluation 3. Select Mid 4. Using the required printed documents, carefully answer the -Project questions on the Evaluation. Follow your professor's instructions as to how to complete and-Project submit your Mid Evaluation. When you have printed all required documents and completed -Project Evaluation, the Mid you have items listed below to check before you begin the data entry fo Transactions for June 17-23. Be sure to back up your data files. See \"BACKUP YO DATA FILES\" below. BACKUP YOUR DATA FILES Go to Administration on the Menu Bar, scroll down to Files: Reset and Backup, a Backup Data Files. You now have a copy of all of your work to the end of Modul file will allow you to return to the end of Module 2, even after entering transact Module 2. PRINTED DOCUMENTS - A REMINDER If you wish any printed documents dated June 16, they must be printed now before entries for the third accounting period of June 17-23 are Additional recorded. entries will change the account balances. Your instructor may ask for specific documents. CONTINUING TO MODULE 3 If you have printed all the required documents, you are ready to begin the data Module 3. To begin, you must first print a copy of the Module 3 Transactions for 23, manuscript. Move the pointer to Support on the Menu Bar and selec Student Manual. Select Module 3: Transactions for June 17-23 and print a copy. EXITING THE SYSTEM If you have completed your work for this session, go to Administration, scroll do click on Return To Home Page. Then click on Close and exit the program. You ca program at any point and return to that point at a later time. 7 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 MID-PROJECT EVALUATION ZACKS BIKE HUT NAME_______________________________________ CLASS DAY AND TIME__________DATE________ 1. What was the correct balance of the Cash account at the close of $_____________ business on June 4? 2. What invoice was paid in full (check02613 ) on June 6? _____________ Invoice Number Carefully examine the Accounts Payable Subsidiary Ledger for the information to answer several of the following : questions 3. What was the balance of the Bingham Supply account before the $_____________ return of supplies on June 11? 4. What was the balance of the Crater Bikes account after the purchase of merchandise on June 4? $_____________ 5. If a $20,000 invoice from Zebra Bikes, Inc., was recorded net, and$_____________ then not paid within the 10-day discount period, what would be the dollar cost to the business for this oversight? 6. Since June 2, the balance of the accounts payable has: A. Increased B. Decreased C. Not Changed _____________ the vendor's account that is over five days past 7. Identify by number due. _____________ Number Carefully examine the Accounts Receivable Subsidiary Ledger for the information to answer several of the following questions: 8. Does the balance of the Schedule of Accounts Receivable match the balance of the Accounts Receivable account? Answer only Y for Yes or N for No. _____________ 9. Identify by customer number, which customer paid invoice number _____________ in full? Z1531 Customer Number 10. By number (0, 1, 2, 3), how many customers have balances owed that are partially or fully past due (Zacks Bike Hut extends net 30 credit terms to all customers)? _____________ 8 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 MID-PROJECT EVALUATION ZACKS BIKE HUT 11. If a freight invoice is received, and charges listed are for shipments of merchandise to Zacks Bike Hut customers, this invoice will be recorded as a debit to which account? A. Merchandise Inventory B. Delivery Expense C. Transportation-In D. Accounts Payable _____________ Carefully examine the Inventory documents for the information to answer several of the followingAnswers questions. must be in a numeric (1, 2, 3, etc.) format. 12. How many inventory items are currently \"out of stock\"? _____________ 13. How many A0100 Novara bicycles are currently on hand? _____________ 14. Is there a need to order custom seats or protection combos? Answer only Y for Yes or N for No. _____________ 15. What is the inventory stock number for a Custom Helmet? _____________ Stock Number have been sold since June 2? 16. How many units of stock number A0026 _____________ bicycles were purchased on June 6? 17. How many A0026 _____________ Answer questions 18-20 using the balances at the close of business activity, June 16. 18. What is the total for NetSales? $_____________ 19. Excluding Accounts Receivable - Credit Card Company, what is the Netvalue of Accounts Receivable? $_____________ 20. What has been the recorded cost totodate Zacks Bike Hut, Inc., for customers who have purchased merchandise using bank and company credit cards? $_____________ 9 Page II - Module 2 Zacks Bike Hut, Level 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 Zacks Bike Hut Level II 1st Web-Based Edition Transactions For June 17-23 Page 1 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 3-9 Student Analysis June 17 Upon receiving a late notice from Bingham Supply, issued check number 02618 or $516.50 to Bingham Supply as payment in full of the invoice number B8455 of May 8. ****************************************************** June 18 On April 19 of this year, Zacks Bike Hut borrowed $6,000.00 cash by issuing a 60-day, 12%, note payable. The proceeds from the note were received and deposited in the Cash account. This note is due today and is paid in full (face value plus accrued interest) with check number 02619 . Use a 360-day year when computing interest. At the invoice prompt enterNTPAY for note payable. ****************************************************** June 18 Received a check for $749.00 from a local bike club (Mountaineers Bike Club) for group lessons to be organized and presented for the club members over the first three weekends of July. Sales tax of $49.00 is charged on the $700.00 of lesson fees. The sales invoice number is Z1609. ****************************************************** June 19 Purchased bicycles from Jurassic Bikes (22600). Credit terms offered by Jurassic are net 10 and the merchandise is shipped FOB Factory (purchase invoice numberJ9888 ). A separate billing for freight charges will be received later from the freight company delivering the merchandise. Merchandise listed on the purchase invoice: Stock Number A0008 B1010 A0016 Item ZIPP 900 T-5 FRAME SPEEDSTER R1 Quantity 4 2 3 Net Cost Per Unit $2,085.00 $1,000.00 $300.00 Page 2 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 17-23 Student Analysis June 21 Sold accessory items to a local bike club. The sales invoice number for this transaction is Z1610 , merchandise sold totals $480.00, and sales tax is $33.60. The payment is made with a certified check. Merchandise listed on the sales invoice: Stock Number B1300 C2300 Item PROTECTION COMBO CUSTOM HELMET Quantity 4 Net Cost Per Unit $50.00 4 $30.00 ****************************************************** June 21 Received invoice N4201 from Noreen's Freight Lines for$277.00 in delivery charges on the Jurassic Bikes inventory purchase of June 19. Credit terms extended by Noreen's Freight Lines are net 15. ****************************************************** June 21 Received a certified check for $565.00 from customer Sally Bridges as payment in full on her account that was written off as uncollectible on June 10. Two journal entries are required. First, reinstate the account entering REINS for reinstate at the invoice prompt. Then record the receipt of the certified check as payment of invoice Z1449 . ****************************************************** June 21 Issued check 02620 and purchased additional store equipment for better display and security of merchandise. The equipment lists for $3,200.00, with a trade discount of 40%and sales tax on the net The invoice number for this purchase is23111 . amount. Page 3 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 17-23 Student Analysis June 21 Returned one(1) B1010 T-5 Frame (net cost $1,000.00) to Jurassic Bikes. The bike was severely damaged upon delivery. The invoice number is J9888.The debit memorandum number isDM014. ****************************************************** June 22 Wrote check 02621 to the cash customer of June 21 who returned one Custom Helmet ( C2300) for a cash refund. The helmet had a flaw in the chin strap. The invoice number Z1610 is . The credit memorandum number is CM012.Be sure to include the sales tax on the return. The selling price of the helmet was $45.00, which included the mark up on cost of 150%. ****************************************************** June23 Received notice from the bank that the $749.00 check received from the Mountaineers Bike Club ( 10440 ) on June 18 had not cleared due to lack of funds. The check is charged back to Accounts Receivable and the club's account. At the check number prompt enter NSFCK for non-sufficient funds check, and at the invoice prompt enter Z1609 as the original invoice number. ****************************************************** June 23 Issued check number 02622 for $3,264.01 to the State Board of Equalization for the sales taxes collected to theclose of the business on June .20 At the invoice prompt enter SLTAX. ****************************************************** This concludes the transactions for the period of June 17-23. Page 4 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 When all of the transactions for the week have been entered, move the pointer to and select General Ledger. The June 23 Trial Balance will appear Journals/Ledgers/Statements on the screen. Carefully compare your totals to those in the \"Check It Out\" block below. \"CHECK IT OUT\" 101 Cash $33,826.04 105 Accounts Receivable 6,539.00 106 Allowance for Doubtful Accounts 821.30 127 Store and Shop Supplies 1,390.75 131 Store Equipment 45,250.40 201 Accounts Payable 12,947.50 205 Sales Taxes Payable 30.45 221 Unearned Lesson Fees 6,225.00 401 Sales 150,267.50 501 Cost of Goods Sold 86,767.00 608 Tools Expense 33.00 813 Interest Expense 321.00 TRIAL BALANCE TOTAL $360.409.18 When your Trial Balance totals match the check figures, move the pointer to Journals/Ledgers/Statements, select Subsidiary Ledgers , and then Inventory . The total value of the perpetual inventory at the close of business is $36,427.00 . This total should also match the Merchandise Inventory account balance on the June 23 Trial Balance. If all of your totals match the check figures, and you have printed all documents by your instructor, you are ready to begin the data entry for Module 4, which inc transactions for June 24-30. See \"BACKUP YOUR DATA FILES\" at the end manual. If any of your account balances DO NOT MATCH THE CHECK FIGURES in the \"Che It Out\" box, you must correct the unmatched balances before continuing to Mod most efficient method of locating the error/s is to a print copy of the Trial Balan copy of the General Journal. For accuracy, efficiency, and a clear audit trail, use ONLY the correction system designed for the Zacks Bike Hut accounting system. Read ERROR CORRECTION PROCEDURES at the end of Module. 1 Page 5 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 PRINTED DOCUMENTS--A REMINDER Although no printed documents are required at the end of this Module, if you wish any printed documents for June 23, they must be printed now before entries for the fourth accoun Additional entries will change the account balances. Your period of June 24-30 are recorded. instructor may ask for a printed Trial Balance or specific documents. BACKUP YOUR DATA FILES Go to Administration on the Menu Bar, scroll down Files: Reset and Backup, and Backup Data Files. You now have a copy of all of your work to the end of Modul file will allow you to return to the end of Module 3, even after entering transact Module 3. CONTINUING TO MODULE 4 If you have printed all the required documents, you are ready to begin the data Module 4, which includes the transactions for June 24-30. To begin, you must fi copy of the Module 4 Transactions for June 24-30. Move the pointer to Menu Bar and select Download Student Manual. Select Module 4: Transactions 24-30, and print a copy. EXITING THE SYSTEM If you have completed your work for this session, move the pointer to A scroll down to Return to Home Page and click on Home Page. You can exit the p any point and return to that point at a later time. Page 6 Zacks Bike Hut, Level II - Module 3 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 Zacks Bike Hut Level II 1st Web-Based Edition Transactions For June 24-30 and the Bank Reconciliation Page 1 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 24-30 Student Analysis June 24 Zacks Bike Hut has a policy of maintaining a $25,000.00 cash balance. Preparing for the vendor account balances, dividends payable, and a long-term note of $12,000.00 that are coming due on the first of the subsequent quarter, Zacks Bike Hut borrowed cash on the business credit line by issuing a 9%, 90-day, $15,000.00 short-term note payable to a private lender. At the invoice prompt enter NTPAY for note payable. ****************************************************** June 26 Sold accessory items on account to customer Sugar Folley (invoice ). All accessory items carry a markup of 50% on cost Z1611 (33.1/3% on selling price). Calculate the total selling price and be sure to include the 7%sales tax (rounded to the nearest cent if necessary). Merchandise listed on the sales invoice: Stock Number A0300 B1180 C2355 Item CASCADE PEAK LEATHER SEAT HELMET DELUXE Quantity 1 1 1 Net Cost Per Unit $900.00 $41.50 $65.00 ****************************************************** June 28 A customer paid $99.51 (sales tax included) for 1.5 hours of straightening and adjustment work on her bicycle, at $62.00 per hour. The customer paid in full with Bank a . The Credit Card sales invoice for this transaction isZ1612 . ****************************************************** June 29 Issued check number 02623 to Jurassic Bikes for the purchase invoice J9888of June 19, less the purchase return of June 21. Page 2 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 24-30 Student Analysis June 29 Shipped merchandise under FOB destination shipping terms to customer Sugar Folley. Charged the$173.00 freight costs to our account with Noreen's Freight Lines (N5380 ). ****************************************************** June 29 Issued check 02624 for $6,500.00 to the California State Bank. This check is for the dividends declared by the corporation board of directors on June 9. California Bank will issue the cash dividends to the June 20 stockholders of record. At the invoice prompt enter DIVPDfor dividends paid. ****************************************************** June 30 Issued check number02625 to Louis Manich, part-time repairman and salesman for the business. Louis is paid $15.25 per hour and worked 31.00 hours during the past two-week period ending June 28. At the invoice prompt enter PAYRL. ****************************************************** June 30 Issued check 02626 for $48.00 to replenish the $50.00 Petty Cash Fund. A total of $2.00 in change is all that remains in the petty cash box at this time. Be sure to account for the cash overage or shortage. At the invoice prompt enter PCASH. All of the receipts have been accounted for and the summary below shows the following expenditures made from the fund: Store & Shop Supplies$32.50 Tools Expense 14.50 Page 3 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 TRANSACTIONS FOR JUNE 24-30 Student Analysis June 30 Issued the following checks as payment in full for miscellaneous billings: Check 02627 for $412.54 to the Dobbins Electric and Gas Company for the June utility bill received today (invoice number52233 ). Check 02628 for $575.00 to Higby Accountancy, Inc., for accounting services received (invoiceHA301 ). Check 02629 for $1,425.00 to the Reed Insurance Company for increased liability insurance coverage (invoice number88899 ). Check 02630 to Jacob's Truck Service for delivery van service and repairs totaling $258.80 (invoice56788 ). ******************************************************************************* This concludes the daily transactions for the period of June 24-30. When all of the transactions for the week of June 24-30 have been entered, print a copy of the June 30 Trial Balance. Carefully compare your totals to those in the \"Check It Out\" block on the next page. If any of the figures do not match the \"Check It Out\" block, use the Error Correction detailed at the end of Module 1. Procedures Print the Inventory Analysis. The value of the perpetual inventory at the close of business on June 30 should total $35,420.50 . This perpetual total should also match the balance of the Merchandise Inventory account as shown on the June 30 Trial Balance. When all of your totals match the check figures on page 5, you are ready to pro June 30 bank reconciliation. Should you wish to exit the program before completing the bank reconciliation, remember toBack Up Your Data Files. Page 4 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 \"CHECK IT OUT\" 101 Cash $28,993.46 105 Accounts Receivable 8,154.43 107 Accounts Rec., Credit Card Company 2,985.30 109 Notes Receivable 3,200.00 121 Prepaid Insurance 5,275.00 127 Store and Shop Supplies 1,423.25 135 Shop Equipment 20,750.00 201 Accounts Payable 2,880.50 203 Notes Payable 15,000.00 205 Sales Taxes Payable 142.64 221 Unearned Lesson Fees 6,225.00 401 Sales 151,777.25 402 Sales Returns and Allowances 4,260.00 411 Services Fees Earned 11,681.50 501 Cost of Goods Sold 87,773.50 505 Transportation-In 1,497.00 601 Salaries and Wages Expense 14,796.75 603 Van Operating Expense 931.80 604 Advertising Expense 1,093.00 606 Delivery Expense 427.75 607 Credit Card Expense 139.82 629 Professional Services Expense 955.00 631 Cash Short & Over 19.00 TRIAL BALANCE TOTAL $360,557.12 Page 5 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 BANK RECONCILIATION Before entering the adjusting entries, complete the bank reconciliation (page 7) the statement date and the last workday Enter of thethe month. cash balance from the trial . Additional balance as the book balance and $30,877.51 bank statement as the balance information needed to complete the reconciliation is: 1. The last cash sale on June 28 was not deposited in the bank. All other deposits required were made in a timely manner in June and were properly reported on the bank statement. 2. Accrued interest earned on the checking account totals$114.12 . 3. The debit memo from the bank for miscellaneous account services (charged to Bank Service Charges) totals $34.50 . 4. During the month of June, customers purchased $10,138.79 worth of merchandise and services using their bank credit cards . A debit memo with the bank statement charges Zacks Bike Hut 3.5%of the total of these sales receipts as a credit card fee (Credit Card Expense). For all calculations remember to round your answer to the nearest cent. , 02629 , and 02630 were not returned with the bank statement. 5. Checks 02628 in Zacks Bike Hut checking account. 6. The bank statement shows a balance of$30,877.51 Using the Journalize Daily Entries (Daily option, JE)record the required transactions resulting from the bank reconciliation. Since the entries are the balance of the cash updating account and no check is being issued , when the system asks for a check number, enter BKR06 . When an invoice number is requested for the interest earned, or bank service charge, also enter BKR06(Bank Reconciliation for June). ******************************************************************************* Use this space to write down the journal entries you must record for the bank re ******************************************************************************* Print a copy of the after bank reconciliation Trial Balance! THIS IS TH BALANCE THAT WILL BE USED WHEN RECORDING THE ADJUSTING ENTRIES The new June 30 Trial Balance total is $360,671.24 . The new balance of FOR THE BUSINESS! the Cashaccount is $28,718.22, Credit Card Expense totals $494.68 , Miscellaneous Expense remains unchanged at $44.90 , and Interest Earned totals $308.37 . If your balances match these figures, you have correctly completed all of your work for the quarter. Page 6 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 BANK RECONCILIATION ZACKS BIKE HUT NAME_____________________________ SECTION__________DATE_____________ BANK RECONCILIATION ZACKS BIKE HUT June 30 Book Balance: $________________ Add:____________________________ ________________ Total $________________ Deduct: __________________ $_____________ __________________ $_____________ $________________ Reconciled Book Balance: $________________ ============== Bank Balance: $________________ Add: Deposit in Transit: $________________ Total $________________ Deduct: Outstanding Checks: Check No.________ $______________ Check No.________ $______________ Check No.________ $______________$________________ Reconciled Bank Balance: $________________ ============== Page 7 Zacks Bike Hut, Level II - Module 4 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 Zacks Bike Hut Level II 1st Web-Based Edition Adjusting & Closing Entrie and the Final Project Evaluation Page 1 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the June 30, Unadjusted Trial Balance (printed after the bank reconciliation entries) and the information and financial data shown below, record the adjusting entries for Zacks Bike Hut. Be sure to click on the Adjusting on JEthe button tool bar. Adjusting entries must NOT BE entered using the Daily JE procedures . Any corrections to adjusting entries must also be entered using the Adjusting JE option. Adjusting entries will not require documentation entries. Where necessary round all calculations to the nearest cent. ALL ENTRIES MUST BE RECORDED AS OF JUNE 30, THE END OF THE SECOND QUARTER! A. The unexpired insurance balance is $2,350.00 . B. The ending store and shop supplies inventory is$924.40 . C. Wages accrued for June 29 per hour . th and 30 th for Louis Manich include 9.2 hours worked at $15.25 D. Zacks Bike Hut has followed a policy of recording all advertising bills directly to Advertising Expense because most if not all of these billings are received during the accounting period. An examination of the advertising invoices discloses that $99.00 worth of advertising copy, paid for and correctly charged to the Advertising Expense account, will be received early next quarter. E. Straight-line depreciation of store equipment totals$1,225.00 for the quarter . F. Depreciation for the shop equipment is$245.00 per month. G. Zacks Bike Hut has one delivery van. The van is depreciated using the 'units-of-production' method at $.37 per mile. The van was driven 4,000 miles during the quarter. Page 2 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 H. All of the fees for lessons were recorded in the Unearned Lesson Fees account. these fees have been earned during the quarter. $4,850.00 of I. Accrue the interest on the $3,200.00, 9.0%, 60-day, note receivable. The note is dated May 23. Use the 360-day bankers' year (ordinary interest) for the calculation of interest earned. J. Record the accrued interest on the short-term,9.0%, 90-day, $15,000.00 note issued June 24. Use the 360-day bankers' year (ordinary interest) for the calculation of interest payable. K. Record the accrued interest for the quarter on the long-term, 6.0%, 4-year note payable of $12,000.00. (use the 360-day year) L. Accrued income taxes expense for the period total$2,365.00 . M. The balance sheet (computer aging) method is used to estimate the balance of the Allowance for Doubtful Accounts account for the end of each quarter. The program has analyzed all accounts receivable and calculated the estimated balance of the account to be$963.40 . In the past, Zacks Bike Hut has experienced small shortages (shrinkage) in merchandise inventory when the perpetual inventory total, maintained on the computerized accounting system, was compared to the actual physical inventory count taken at the end of the accounting period. When this shrinkage occurred, the Cost of Goods Sold account was debited and the Merchandise Inventory account was credited for the total value of the inventory shortage. The entry was followed by an update of the specific merchandise items where the quantities reported were not correct. At the end of the current quarter, the physical count of merchandise on hand matches the perpetual inventory for each item in stock. As a result of the satisfactory inventory control system that is in place, no losses have occurred and no adjusting entry for inventory shrinkage is required this quarter. Page 3 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 When all of the adjusting entries have been correctly entered, print a copy of th Trial Balance. The correct balance will be $366,991.54. After you have printed the Adjusted Trial Balance and matched the check figure, you are ready to complete the final evaluation of the Zacks Bike Hut, operations. To gather the necessary information to complete the final evaluation questions, PRINT ALL of the docum in instructions 1-10. Be sure to print all documents listed below BEFORE closing 1. Move the pointer to Journals/Ledgers/Statements, select Financial Statement on Income Statement and print the document. Use the same procedure to di Retained Earnings statement and the Balance Sheet, and print these stateme THE CORRECT NET INCOME FOR ZACKS BIKE HUT, INCORPORATED, IS BETWEEN $38,600.00 AND $38,700.00. 2. Print the Schedule of Accounts Receivable 3. Print the Accounts Receivable Subsidiary Ledger (All Customers) 4. Print the Schedule of Accounts Payable 5. Print the Accounts Payable Subsidiary Ledger (All Vendors) 6. Print the Inventory Analysis Form 7. From the inventory selection box, select and print the following inventory st A0024 A0300 B1300 C2300 The Closing Process for the Zacks Bike Hut accounting system is an automatic function. The program will close all of the temporary accounts and, at the same time, update the balance of the Retained Earnings account. 8. Click on the Data Entry tab. Click Close on the JE button and the closing entries will be automatically recorded in the General Journal and posted to the General Ledg 9. Print the Post-Closing Trial Balance ($229,332.65). Page 4 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 10.Print the following General Ledger accounts: 101 Cash 105 Accounts Receivable 115 Merchandise Inventory 201 Accounts Payable 305 Retained Earnings 401 Sales 411 Service Fees Earned 501 Cost of Goods Sold 813 Interest Expense 901 Income Summary Error Correction After Closing the Books If, after closing the books, you discover an error or wish to print a corrected copy of any of the financial statements, you must click on Support and then click on Restore to Adjusted Balances . Daily or adjusting entries can then be corrected using the Daily JEor Adjusting JE options and new copies of all corrected documents MUST . be printed Again, close the books and print the correctedPost-Closing Trial Balance and any corrected general ledger accounts. BACKUPyour work and exit the program. You are now ready to complete the Final Project Evaluation. On the menu Evaluations, select Final Project Evaluation, and carefully complete the docume BACKUP YOUR DATA FILES Go to Administration on the Menu Bar, scroll down to Files: Reset and Backup, a Backup data Files. You now have a copy of all of your work to the end of the Ad Module. This file will allow you to return to the end of the Adjusting Module. EXITING THE SYSTEM If you have completed your work for this session, move the pointer to A scroll down to Return to Home Page and click on Home Page. You can exit the p any point and return to that point at a later time. Page 5 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 FINAL PROJECT EVALUATION NAME_______________________________________ ZACKS BIKE HUT CLASS DAY AND TIME__________DATE________ 1. Which customer has the largest outstanding balance on June 30 (Identify by customer number)? _____________ Customer Number 2. Is the balance of Doris Highlander account past due as of June 30?_____________ Answer Y for Yes or N for No. 3. On or before what date should the balance owed by customer Allen Yarborough be received? A. July 30 B. July 10 C. July 2 D. August 2 _____________ 4. What was the balance owed to Bingham Supply before the supplies were returned on June 11? $_____________ 5. How many debit memos for the return of merchandise have been issued during June? A. 1 B. 2 C. 3 D. 4 _____________ 6. Examine the Crater Bikes account. What was the net cost of the $_____________ merchandise purchase listed on invoice C5884? 7. If the Crater Bikes invoice of May 27 had not been paid on time, what would have been the cost of this management error? Remember that the invoices are recorded net. $_____________ 8. What amount is currently owed to Jurassic Bikes? A. $10,240.00 B. $11,240.00 C. $0.00 D. $1,000.00 E. None of the above _____________ 9. During your accounting internship (June 3-30), the balance of the Accounts Payable account has: A. increased. B. decreased. C. not changed. _____________ Page 6 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 FINAL PROJECT EVALUATION ZACKS BIKE HUT 10. During the period of your accounting internship, the balance of the Cash account: A. increased. B. decreased. C. did not change. _____________ 11. Has the correct Cash balance fallen below $30,000.00 at any time during your internship? Answer Y for Yes or N for No. _____________ 12. How much cash was paid out by check on June 29? $_____________ 13. The June 23 credit entry of $749.00 to the Cash Account was for the payment of: A. Transportation In B. Delivery Expense C. Supplies D. None of the above _____________ 14. How many inventory items are at or below the reorder point? A. One B. Two C. Three D. Eight E. None of the above. _____________ 15. How many A0016 inventory items are currently in stock? A. One B. Two C. Three D. Five E. None of the above. _____________ 16. How many of the following inventory items (A0008, A0300, B1010, _____________ and C2355) are at or below the reorder point? C2300, A. One B. Two C. Three D. Four E. None of the above. Page 7 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 FINAL PROJECT EVALUATION ZACKS BIKE HUT 17. Round all percentage answers to two decimal positions: (4.57689% = 4.58%). Total Cost of Goods Sold is what percent of Net Sales? A. 60.25% B. 60.52% C. 65.20% D. 62.50% E. None of the above. _____________ 18. Total Gross Profit is what percent of the total of Net Sales and Total Fees Earned? A. 45.58% B. 48.78% C. 49.07% D. 56.94% E. None of the above. _____________ 19. Income From Operations is what percent of Total Net Revenues? A. 24.48% B. 25.95% C. 26.94% D. 28.76% E. None of the above. _____________ 20. Last quarter the Total Selling Expenses were 9.14% of Total Net Revenues. Has this quarter, ending June 30, been an improvement over last quarter? Answer Y for Yes or N for No. _____________ 21. Salaries and Wages Expense is what percent of Total Net Revenues? A. 9.84% B. 10.13% C. 9.11% D. 9.25% _____________ 22. What is the current ratio for Zacks Bike Hut (current assets divided by current liabilities)? A. 3.18:1 B. 3.66:1 C. 2.37:1 D. 6.78:1 _____________ Page 8 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010 FINAL PROJECT EVALUATION ZACKS BIKE HUT 23. Sales Returns and Allowances is what percent of Sales? A. 2.81% B. 2.89% C. 2.00% D. 2.18% _____________ 24. Does Zacks Bike Hut have enough cash on hand to meet the current debt? Answer Y for Yes or N for No. _____________ 25. What is the net realizable value of the Accounts Receivable? _____________ 26. What has been the Netincrease in Retained Earnings this quarter? _____________ 27. What must be the last account listed on the Post-Closing Trial Balance? A. Common Stock B. Dividends Declared C. Retained Earnings D. Cash _____________ 28. After closing, what is the balance of the IncomeSummary account? A. $34,105.94 B. $44,188.36 C. $38,606.13 D. $0.00 _____________ 29. If the transportation-in costs had been reduced to zero through more successful negotiation of merchandise contracts, what would be the Gross Profit on Sales? $_____________ 30. If $400.00 of Delivery Expense charges was found to be recorded in the Transportation-In account, and this error was corrected, the Gross Profit would change by $400.00 and the balance of Net Income be: A. increased. B. decreased. C. unchanged. _____________ Page 9 Zacks Bike Hut, Level II - Module 5 1st Web-Based Edition, Copyright 2010, PKL Software, Incorporated. All rights reserved. Last Revised: April 1, 2010