In this part of the parctice set, the student will prepare a Bank Reconciliation for the month of January. Start by using the ending balance in your cash account for the cash for your books and the eanding balance on the bank statement for the bank balance.
I need help with bank Reconciliation.
Current Assets Cash 10000 11000Accounts Receivable 12000 12100 13100 Office Supplies Stockholders' Equity 39003 Common Stock 9005 Retained Earnings 39007 Dividends Inventory-Candles Inventory- Holders Store Supplies Prepaid Rent 18000 18100 Prepaid Insurance 18200 Revenue 40000 Sales Pre Expenses Long-Term Assets Cost of Goods Sold 50000 15000 Office Equipment 17000 Accumulated Depreciation 60100 Legal Expense 60150 Store Supplies Expense 50200 Office Supplies Expense 60300 In 60350 60400Delivery Expense 60500 Advertising and Promotion -Office Equipment Furniture & Fixtures 15100 17100 Accumulated Insurance Expense Depreciation-Furniture & Fixtures Expense 60550 Utility Expense 60600 Rent Expense 60650 Current Liabilities 20000 Accounts Payable 21100 Note Payable- Wells Fargo Depreciation Expense 60700 60750 Interest Expense Bank Service Fee Bank 21200 Note Payable-Office Mart 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400Utility Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable Part One, Two and Three Instructions Record the January 2019 transactions in the general journal (last section of this practice set) using the following events. Skip a line between each entry and number the entries to match the number of the transaction. In the general journal record the transaction number, the date, and the account numbers. After all journal entries are entered into the practice set, enter the adjusting journal entries. Next create a T-Account for each account that is used in the Chart of Accounts and record the transactions and end with an ending balance. All ending balances should be on the normal balance side even if the account has a zero balance. If there is a number that is uneven round to the nearest cent. You will need the ending balance in the cash account for the bank reconciliation. All instructions for Blackboard start on page 9. Transactions Date Deposit No. Description Carla Cannel met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cannel would organize the business as a corporation. The lawyer told Ms. Cannel to register the company name, Carla's Candles, Inc., with the County of El Paso. In addition, Ms. Cannel will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. The lawyer agreed to prepare the Articles of Incorporation to be filed with the Secretary of State of Texas. The CPA has agreed to help Ms. Cannel set up her accounting system. 1. 1/02/19 | 1/02/19 | Deposit #1 | Ms. Cannel opened a business checking account at Wells Fargo Bank 2. by depositing the personal check she gave her company for $40,000. The corporation issued her a stock certificate for 4,000 shares of common stock | 1/03/19 | ck #1001 | Ms. Cannel signed a one-year rental agreement with Reynolds 3. Realtors for shop space. She was required to pay $3,000 for rent for the months of January 1, 2019- March 31, 2019. | 1/03/19 | Ck #1002 | Arranged for a general business liability insurance policy and paid 4. $1,200 to State Penn Insurance. This premium is for one year of coverage Purchased office equipment for a cost of $5,000 from Office Mart for use in the business. Ms. Cannel signed a six-month, 8% note payable for the cost of the system. The office equipment has an 5. 1/03/19 6l Page estimated useful life of 4 years and the residual (salvage) value is S0. This will be recorded as Office Equipment, and depreciated using the Straight-Line Depreciation method accordingly | Signed a note payable to borrow SS,000 from Wells Fargo | Deposit #2 6. | 1/05/19 erest is 8% annually and the note is to be repaid with interest in nine months. Purchased furniture and fixtures for S15,000 from Furniture Warehouse. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Furniture and Fixtures and depreciated using the Straight-Line Depreciation Method Int 7. Ck #1003 1/05/19 | Purchased more office Equipmenet for S700 to be used in the store. | Purchased $700 in office supplies. | Ck #1004 | ck #1005 8. | 1/06/19 9, 1/06/19 10. 1/08/19 Purchased $7,000 of Inventory-Candles from Fantastic Flames on account. Purchased $3,000 of Inventory-Holders from Handsome Holders on account. 11. 1/08/19 Ms. Cannel received and paid the $650 charge from her lawyer 12. 1/13/19 13. 1/18/19 Ck #1006 Carla's Candles is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8-25% sales tax. Ms. Cannel will allow major customers to charge their purchases on account and then pay later Sold a candelabra to UTEP for their homecoming banquet on account for $4,000. The cost of the candles is $1,450. The cost of the holders is $450. UTEP does not have to pay sales tax on the purchase Purchased $300 of store supplies on account. This is to be recorded as store supplies Purchased additional candles from Fantastic Flames on account, for $5,500. 14. 1/18/19 15. |1/18/19 16. 1/18/19 17. 1/19/19 | Deposit #3 | Recorded cash sales for the first five days of operation. Sales totaled $6,000 and the sales tax collected totaled $495. A total of $6,495 was deposited in the bank. The cost of merchandise sold was $4,200. (Candles were $3,500 and Holders were $700) | Received and paid the $300 invoice for store supplies | Paid the invoice from Handsome Holders from 1/08/19 18. 1/20/19 19| 1/22/19 20. 1/22/19 21. 1/23/19 ck #1007 | ck #1008 Ordered $700 of holders on account. Ms. Cannel donated a candelabra to the Providence Hospital fund raiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was 71Page put in the fund raiser program. Cost of the candles were $600 and the holders were $100. Ms. Cannel considers this an advertising expense 22. | 1/23/19 | Deposit #4 | Received payment in full from UTEP. The payment was deposited in the bank 23, 1/23/19 Ck #1009 | Ms. Cannel paid her credit card bill for the month. The total was $300 which $250 was for delivery charges to deliver both candelabras and $50 was for store supplies for the cellophane used for the Humane Society candelabra. Purchased and paid for SSO of office supplies. 24. | 1/23/19 25. | 1/23/19 Ck #1010 | Deposit #5 | Internet and retail sales totaled S9,300 and sales taxes of $767.25 was collected. The cost of the merchandise sold was $4,500 (Candles $4,000; Holders $500). The money was deposited in the bank. Paid the balance due to Fantastic Flames. There are two invoices; one on 1/8/19 and the other on 1/18/19. 26. | 1/23/19 | Ck #1011 | Collected sales of S 3,400. Sales tax collected was S28050. All was | Deposit #6 27. | 1/25/19 deposited in the bank. The cost of the merchandise sold was $1,250. (Candles $1,000; Holders $250). Received but did not pay the electric bill for the month, $350. 28. 1/28/19 29. | 1/30/19 | Ck #1012 | Paid the first monthly installment on the office equipment. The payment amount is $866.66, of this amount, $33.33 is for interest and $833.33 is for principal. Make the check payable to Office Mart. 30. | 1/30/19 | Deposit #7 | Recorded internet sales for the last week of the month. Sales were $2,570 and sales tax collected was $212.03, all was deposited in the bank. The cost of the merchandise sold was $1,350 (Candles $1,000; Holders $350) 31. | 1/31/19 | ck #1013 | Paid all sales tax owed for January to the Comptroller of Public Accounts. Declared and paid a cash dividend of $500 to Carla Cannel. 32. 1/31/19 Ck #1014 Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2019. The following are the adjusting journal entries for the month of January Record Adjusting Entries: Record the following month end adjusting entries for the month of January Write the journal entries in the practice set after the original journal entries and round to the nearest $50 of store supplies remained on hand. $10 of office supplies remained on hand. a. b. 8I Page $1,250 of wages for the part-time help from Irene's Temp Services for January should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. M C. ake the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. Make the necessary adjusting entry for the office equipment using Straight Line Depreciation One month of the prepaid insurance has expired One month of the prepaid rent has expired Record the interest on the loan from Wells Fargo. d. e. f. g. h. Make sure you prepare the journal entries, and the adjusting entries, and write them in the practice set. All T-accounts with the correct balances should be prepared. There is an example of how to set up the T-Accounts in Excel at the end of the practice set. Make sure to include all accounts even if they have a zero balance and make sure that the zero is on the normal balance side of the account. Once all the bal ances are in the T-accounts and the answers have been inputted into Blackboard please staple your T-Account page to the back cover of the practice set. Blackboard Instructions When entering the journal entries into Blackboard please follow the examples below exactly Enter each transaction on one line. First the debit and then the credit. account names only account numbers, Use Dr for Debit and Cr for Credit with no period. Also please put the cents even if it is zero. See example below: Do NOT enter any 1. Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # Amount Credit Account # Amount) Notice that the account numbers do NOT have commas and the dollar amounts have commas and dollar signs and all dollar amounts have the cents even if it is zero. If there is more than one debit enter the debit first with the smallest account number(s) listed first and then the credits with the smallest account number listed first. enter Dr or Cr before each account number. See example below: 2. Make sure that you Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 For all sales, list the Sale entry first then the Cost of Goods Sold entry second. The entire entry 3. both should be on one line. First the sale, as shown below, then the cost of the inventory. for Again, put the smallest account number first if there are more than one debit or credit. Both entries should all be on one line. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. 4. $15,000.00 or 15,000 When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below 5. Dr $10,000.00 or Cr $10,000.00 If there is no journal entry to be written please write No JE for no journal entry. See below for example. 6. No JE Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Start by using the ending balance in your cash account for the cash for your books and the ending balance on the bank statement for the bank balance. Requirements Correct Errors: Correct any errors that you made on the journal entries. Both the debits and the credits must equal each other. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation Assume that any errors are made by the bank. After preparing the bank reconciliation answer the questions in Blackboard and then staple the bank reconciliation to the back cover. 1. 2. 3. 4. 5. ank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79902 Carla's Candles, Inc. 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Carla's Candles, Inc. Balance, beginning Deposits and other credits Checks and other debits 01/01/2019 So $65,562.25 37,260.00 $28,302.25 January January Balance on statement date 01/31/2019 Deposits Added 1/2/2019 Deposit 1$40000 1/5/2019 Deposit 2$5,000 1/19/2019 Deposit 3 $6,495 1/23/2019 Deposit 4 $4,000 t5 $10,067.25 3/2019 Wells Fargo Bank Statement -Checks Paid and other Debits 1001 $3,000 1007 $300 1002 $1,200 1008 $3,000 1003 $15,000 1011 $12,500 1004 $700 NS 1005 | $700 | DM | S301 Check Printing F 1006 $560 $250 SC$20 Charge for NSF Check any errors are made by the bank ssume 11 1Page Current Assets Cash 10000 11000Accounts Receivable 12000 12100 13100 Office Supplies Stockholders' Equity 39003 Common Stock 9005 Retained Earnings 39007 Dividends Inventory-Candles Inventory- Holders Store Supplies Prepaid Rent 18000 18100 Prepaid Insurance 18200 Revenue 40000 Sales Pre Expenses Long-Term Assets Cost of Goods Sold 50000 15000 Office Equipment 17000 Accumulated Depreciation 60100 Legal Expense 60150 Store Supplies Expense 50200 Office Supplies Expense 60300 In 60350 60400Delivery Expense 60500 Advertising and Promotion -Office Equipment Furniture & Fixtures 15100 17100 Accumulated Insurance Expense Depreciation-Furniture & Fixtures Expense 60550 Utility Expense 60600 Rent Expense 60650 Current Liabilities 20000 Accounts Payable 21100 Note Payable- Wells Fargo Depreciation Expense 60700 60750 Interest Expense Bank Service Fee Bank 21200 Note Payable-Office Mart 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400Utility Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable Part One, Two and Three Instructions Record the January 2019 transactions in the general journal (last section of this practice set) using the following events. Skip a line between each entry and number the entries to match the number of the transaction. In the general journal record the transaction number, the date, and the account numbers. After all journal entries are entered into the practice set, enter the adjusting journal entries. Next create a T-Account for each account that is used in the Chart of Accounts and record the transactions and end with an ending balance. All ending balances should be on the normal balance side even if the account has a zero balance. If there is a number that is uneven round to the nearest cent. You will need the ending balance in the cash account for the bank reconciliation. All instructions for Blackboard start on page 9. Transactions Date Deposit No. Description Carla Cannel met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cannel would organize the business as a corporation. The lawyer told Ms. Cannel to register the company name, Carla's Candles, Inc., with the County of El Paso. In addition, Ms. Cannel will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. The lawyer agreed to prepare the Articles of Incorporation to be filed with the Secretary of State of Texas. The CPA has agreed to help Ms. Cannel set up her accounting system. 1. 1/02/19 | 1/02/19 | Deposit #1 | Ms. Cannel opened a business checking account at Wells Fargo Bank 2. by depositing the personal check she gave her company for $40,000. The corporation issued her a stock certificate for 4,000 shares of common stock | 1/03/19 | ck #1001 | Ms. Cannel signed a one-year rental agreement with Reynolds 3. Realtors for shop space. She was required to pay $3,000 for rent for the months of January 1, 2019- March 31, 2019. | 1/03/19 | Ck #1002 | Arranged for a general business liability insurance policy and paid 4. $1,200 to State Penn Insurance. This premium is for one year of coverage Purchased office equipment for a cost of $5,000 from Office Mart for use in the business. Ms. Cannel signed a six-month, 8% note payable for the cost of the system. The office equipment has an 5. 1/03/19 6l Page estimated useful life of 4 years and the residual (salvage) value is S0. This will be recorded as Office Equipment, and depreciated using the Straight-Line Depreciation method accordingly | Signed a note payable to borrow SS,000 from Wells Fargo | Deposit #2 6. | 1/05/19 erest is 8% annually and the note is to be repaid with interest in nine months. Purchased furniture and fixtures for S15,000 from Furniture Warehouse. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Furniture and Fixtures and depreciated using the Straight-Line Depreciation Method Int 7. Ck #1003 1/05/19 | Purchased more office Equipmenet for S700 to be used in the store. | Purchased $700 in office supplies. | Ck #1004 | ck #1005 8. | 1/06/19 9, 1/06/19 10. 1/08/19 Purchased $7,000 of Inventory-Candles from Fantastic Flames on account. Purchased $3,000 of Inventory-Holders from Handsome Holders on account. 11. 1/08/19 Ms. Cannel received and paid the $650 charge from her lawyer 12. 1/13/19 13. 1/18/19 Ck #1006 Carla's Candles is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8-25% sales tax. Ms. Cannel will allow major customers to charge their purchases on account and then pay later Sold a candelabra to UTEP for their homecoming banquet on account for $4,000. The cost of the candles is $1,450. The cost of the holders is $450. UTEP does not have to pay sales tax on the purchase Purchased $300 of store supplies on account. This is to be recorded as store supplies Purchased additional candles from Fantastic Flames on account, for $5,500. 14. 1/18/19 15. |1/18/19 16. 1/18/19 17. 1/19/19 | Deposit #3 | Recorded cash sales for the first five days of operation. Sales totaled $6,000 and the sales tax collected totaled $495. A total of $6,495 was deposited in the bank. The cost of merchandise sold was $4,200. (Candles were $3,500 and Holders were $700) | Received and paid the $300 invoice for store supplies | Paid the invoice from Handsome Holders from 1/08/19 18. 1/20/19 19| 1/22/19 20. 1/22/19 21. 1/23/19 ck #1007 | ck #1008 Ordered $700 of holders on account. Ms. Cannel donated a candelabra to the Providence Hospital fund raiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was 71Page put in the fund raiser program. Cost of the candles were $600 and the holders were $100. Ms. Cannel considers this an advertising expense 22. | 1/23/19 | Deposit #4 | Received payment in full from UTEP. The payment was deposited in the bank 23, 1/23/19 Ck #1009 | Ms. Cannel paid her credit card bill for the month. The total was $300 which $250 was for delivery charges to deliver both candelabras and $50 was for store supplies for the cellophane used for the Humane Society candelabra. Purchased and paid for SSO of office supplies. 24. | 1/23/19 25. | 1/23/19 Ck #1010 | Deposit #5 | Internet and retail sales totaled S9,300 and sales taxes of $767.25 was collected. The cost of the merchandise sold was $4,500 (Candles $4,000; Holders $500). The money was deposited in the bank. Paid the balance due to Fantastic Flames. There are two invoices; one on 1/8/19 and the other on 1/18/19. 26. | 1/23/19 | Ck #1011 | Collected sales of S 3,400. Sales tax collected was S28050. All was | Deposit #6 27. | 1/25/19 deposited in the bank. The cost of the merchandise sold was $1,250. (Candles $1,000; Holders $250). Received but did not pay the electric bill for the month, $350. 28. 1/28/19 29. | 1/30/19 | Ck #1012 | Paid the first monthly installment on the office equipment. The payment amount is $866.66, of this amount, $33.33 is for interest and $833.33 is for principal. Make the check payable to Office Mart. 30. | 1/30/19 | Deposit #7 | Recorded internet sales for the last week of the month. Sales were $2,570 and sales tax collected was $212.03, all was deposited in the bank. The cost of the merchandise sold was $1,350 (Candles $1,000; Holders $350) 31. | 1/31/19 | ck #1013 | Paid all sales tax owed for January to the Comptroller of Public Accounts. Declared and paid a cash dividend of $500 to Carla Cannel. 32. 1/31/19 Ck #1014 Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2019. The following are the adjusting journal entries for the month of January Record Adjusting Entries: Record the following month end adjusting entries for the month of January Write the journal entries in the practice set after the original journal entries and round to the nearest $50 of store supplies remained on hand. $10 of office supplies remained on hand. a. b. 8I Page $1,250 of wages for the part-time help from Irene's Temp Services for January should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. M C. ake the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. Make the necessary adjusting entry for the office equipment using Straight Line Depreciation One month of the prepaid insurance has expired One month of the prepaid rent has expired Record the interest on the loan from Wells Fargo. d. e. f. g. h. Make sure you prepare the journal entries, and the adjusting entries, and write them in the practice set. All T-accounts with the correct balances should be prepared. There is an example of how to set up the T-Accounts in Excel at the end of the practice set. Make sure to include all accounts even if they have a zero balance and make sure that the zero is on the normal balance side of the account. Once all the bal ances are in the T-accounts and the answers have been inputted into Blackboard please staple your T-Account page to the back cover of the practice set. Blackboard Instructions When entering the journal entries into Blackboard please follow the examples below exactly Enter each transaction on one line. First the debit and then the credit. account names only account numbers, Use Dr for Debit and Cr for Credit with no period. Also please put the cents even if it is zero. See example below: Do NOT enter any 1. Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # Amount Credit Account # Amount) Notice that the account numbers do NOT have commas and the dollar amounts have commas and dollar signs and all dollar amounts have the cents even if it is zero. If there is more than one debit enter the debit first with the smallest account number(s) listed first and then the credits with the smallest account number listed first. enter Dr or Cr before each account number. See example below: 2. Make sure that you Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 For all sales, list the Sale entry first then the Cost of Goods Sold entry second. The entire entry 3. both should be on one line. First the sale, as shown below, then the cost of the inventory. for Again, put the smallest account number first if there are more than one debit or credit. Both entries should all be on one line. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. 4. $15,000.00 or 15,000 When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below 5. Dr $10,000.00 or Cr $10,000.00 If there is no journal entry to be written please write No JE for no journal entry. See below for example. 6. No JE Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Start by using the ending balance in your cash account for the cash for your books and the ending balance on the bank statement for the bank balance. Requirements Correct Errors: Correct any errors that you made on the journal entries. Both the debits and the credits must equal each other. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation Assume that any errors are made by the bank. After preparing the bank reconciliation answer the questions in Blackboard and then staple the bank reconciliation to the back cover. 1. 2. 3. 4. 5. ank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79902 Carla's Candles, Inc. 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Carla's Candles, Inc. Balance, beginning Deposits and other credits Checks and other debits 01/01/2019 So $65,562.25 37,260.00 $28,302.25 January January Balance on statement date 01/31/2019 Deposits Added 1/2/2019 Deposit 1$40000 1/5/2019 Deposit 2$5,000 1/19/2019 Deposit 3 $6,495 1/23/2019 Deposit 4 $4,000 t5 $10,067.25 3/2019 Wells Fargo Bank Statement -Checks Paid and other Debits 1001 $3,000 1007 $300 1002 $1,200 1008 $3,000 1003 $15,000 1011 $12,500 1004 $700 NS 1005 | $700 | DM | S301 Check Printing F 1006 $560 $250 SC$20 Charge for NSF Check any errors are made by the bank ssume 11 1Page
