It is February 1, 2015, the first business day of the month, and you have just been hired as the accountant for Segura Corporation, which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Segura Corporation sells one product. All of the company's accounting work has been completed through the end of January, 2015. Segura Corporation's year end is February 29. The post-closing alphabetized trial balance at January 31, 2015 follows. Segura Corporation Post-Closing Trial Balance January 31, 2015 Debit Credit Accounts receivable 160,600 Accounts payable ? 660,000 Accumulated depreciation, store equipment. 115,100 Allowance for doubtful accounts 9,636 Cash 1,061,392 Common shares 3 49,000 Interest receivable 4 344 Merchandise inventory 5. 1,440,000 Notes receivable 4 82,500 6 Prepaid advertising 35,000 Retained earnings. 2,056,200 Store equipment? 140,100 Utilities payable 30,000 Totals 2,919,936 2,919,936 1 See the Accounts Receivable Subledger below for details regarding customer balances. 2See the Accounts Payable Subledger below for details regarding creditor balances. 3There are an unlimited number of shares authorized with 20,000 shares issued and outstanding as at January 31, 2015. 4This is a 10% note due January 15, 2017 with interest collectible on the 15th of each month. Refer to the collection schedule below for the note details. Values in schedule have been rounded for convenience. 5 See the Merchandise Inventory Subledger below for details of inventory holdings. 6The balance in Prepaid Advertising represents payment for 6 months starting February 1, 2015. 7See the Property, Plant and Equipment Subledger below for detailed information. You have determined that Segura Corporation uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $217 per unit. The following source documents are from February : O Inter-Office Memo 19 O Inter-Office Memo 20 O Inter-Office Memo 13 O Invoice 1856 O Inter-Office Memo 17 0 Invoice 7294 O CM 157 O Inter-Office Memo 18 O Receipt 1360 0 Inter-Office Memo 15 O Invoice 1496 O Inter-Office Memo 14 O Invoice 7295 O Invoice 1441 0 Invoice 1912 O Deposit slip (February 15) O Invoice 7296 O Deposit slip (February 9) Inter-Office Memo 16 O Deposit slip (February 23) O Inter-Office Memo 21 Inter-Office Memo 22 O Inter-Office Memo 23 a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Account/Explanation Page Gj1 Credit General Journal Account/Explanation Page GJ2 Credit Date Debit Date Debit + - + + - += +1 -1 + Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). *All cost/unit calculations should be rounded to two decimal places. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Balance in Inventory Date PR Units Cost/Unit* Total $ Units Cost/Unit* Total $ Units AvgCost/Unit* Total $ January 31 BFWD 18,000 80 1,440.000 18,000 80 1,440,000 February 2 February 11 February 14 February 19 February 22 February 23 February 27 Segura Corporation Accounts Receivable Subledger Acct. #10603; Gulf Corp. Acct. #10610; Northstar Corp. Date Desc. F Debit Credit Balance Date Desc. F Debit Credit Balance Period Ending January 15, 2015 February 15, 2015 March 15, 2015 April 15, 2015 May 15, 2015 June 15, 2015 July 15, 2015 August 15, 2015 September 15, 2015 October 15, 2015 November 15, 2015 December 15, 2015 January 15, 2016 February 15, 2016 Collection Principal Interest Balance 82,500 3,807 3,119 688 79,381 3,807 3,145 662 76,236 3,807 3,172 635 73,064 3,807 3,198 609 69,866 3,807 3,225 582 66,641 3,807 3,252 555 63,389 3.807 3,279 528 60.110 3,306 501 56,804 3,807 3,334 473 53,470 3,807 3,361 446 50.109 3,807 3,389 418 46,720 3.807 3,418 389 43,302 3,807 3,446 361 39.856 3,807 Acct. #10611; Dylex Corporation Date Desc F Debit Credit Balance 1/Feb Terms 2/10, n/30 BFWD 160,600|| 160,600 November 15, 2016 December 15, 2016 January 15, 2017 7.520 3.776 Segura Corporation Accounts Payable Subledger Acct. #20105: Velor Inc. Acct. #20106, Southgate Inc. Date Desc Debit Credit Balance Date Desc. F Debit Credit Balance 1/Feb Terms 2/10, n/30 BFWD 660,000 660,000 3,807 3,807 3,807 91.368 3,713 94 3.744 63 3,776 31 82,500 8,868 0 Acct. #20108; XYZ Corporation Date Desc. F Debit Credit Balance Acct. #20109, ABC Inc. Date Desc. F Debit Credit Balance Property, Plant and Equipment Subledger Cost Information Depreciation Desc F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal. Depr. Exp, February, Accum. Depr. Bal. January 31, 2015 2015 February 28, 2015 Store Equipment BFWD Mar 10, 2011 Double-Declining 140,100 25,000 5 115,100 Office Furniture Feb 9, 2015 (Select One) ? ? Notes: 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the number of months the asset was used in that fiscal year to get the depreciation per month. Round final values to the nearest whole dollar. c) What is the next step in the accounting cycle? O Prepare an unadjusted trial balance Prepare financial statements O Prepare bank reconciliation and adjusting entries O Post adjusting entries Post closing entries O Prepare an adjusted trial balance Post transactions O Prepare a post-closing trial balance O Prepare closing entries This is the last step It is February 1, 2015, the first business day of the month, and you have just been hired as the accountant for Segura Corporation, which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Segura Corporation sells one product. All of the company's accounting work has been completed through the end of January, 2015. Segura Corporation's year end is February 29. The post-closing alphabetized trial balance at January 31, 2015 follows. Segura Corporation Post-Closing Trial Balance January 31, 2015 Debit Credit Accounts receivable 160,600 Accounts payable ? 660,000 Accumulated depreciation, store equipment. 115,100 Allowance for doubtful accounts 9,636 Cash 1,061,392 Common shares 3 49,000 Interest receivable 4 344 Merchandise inventory 5. 1,440,000 Notes receivable 4 82,500 6 Prepaid advertising 35,000 Retained earnings. 2,056,200 Store equipment? 140,100 Utilities payable 30,000 Totals 2,919,936 2,919,936 1 See the Accounts Receivable Subledger below for details regarding customer balances. 2See the Accounts Payable Subledger below for details regarding creditor balances. 3There are an unlimited number of shares authorized with 20,000 shares issued and outstanding as at January 31, 2015. 4This is a 10% note due January 15, 2017 with interest collectible on the 15th of each month. Refer to the collection schedule below for the note details. Values in schedule have been rounded for convenience. 5 See the Merchandise Inventory Subledger below for details of inventory holdings. 6The balance in Prepaid Advertising represents payment for 6 months starting February 1, 2015. 7See the Property, Plant and Equipment Subledger below for detailed information. You have determined that Segura Corporation uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $217 per unit. The following source documents are from February : O Inter-Office Memo 19 O Inter-Office Memo 20 O Inter-Office Memo 13 O Invoice 1856 O Inter-Office Memo 17 0 Invoice 7294 O CM 157 O Inter-Office Memo 18 O Receipt 1360 0 Inter-Office Memo 15 O Invoice 1496 O Inter-Office Memo 14 O Invoice 7295 O Invoice 1441 0 Invoice 1912 O Deposit slip (February 15) O Invoice 7296 O Deposit slip (February 9) Inter-Office Memo 16 O Deposit slip (February 23) O Inter-Office Memo 21 Inter-Office Memo 22 O Inter-Office Memo 23 a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Account/Explanation Page Gj1 Credit General Journal Account/Explanation Page GJ2 Credit Date Debit Date Debit + - + + - += +1 -1 + Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). *All cost/unit calculations should be rounded to two decimal places. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Balance in Inventory Date PR Units Cost/Unit* Total $ Units Cost/Unit* Total $ Units AvgCost/Unit* Total $ January 31 BFWD 18,000 80 1,440.000 18,000 80 1,440,000 February 2 February 11 February 14 February 19 February 22 February 23 February 27 Segura Corporation Accounts Receivable Subledger Acct. #10603; Gulf Corp. Acct. #10610; Northstar Corp. Date Desc. F Debit Credit Balance Date Desc. F Debit Credit Balance Period Ending January 15, 2015 February 15, 2015 March 15, 2015 April 15, 2015 May 15, 2015 June 15, 2015 July 15, 2015 August 15, 2015 September 15, 2015 October 15, 2015 November 15, 2015 December 15, 2015 January 15, 2016 February 15, 2016 Collection Principal Interest Balance 82,500 3,807 3,119 688 79,381 3,807 3,145 662 76,236 3,807 3,172 635 73,064 3,807 3,198 609 69,866 3,807 3,225 582 66,641 3,807 3,252 555 63,389 3.807 3,279 528 60.110 3,306 501 56,804 3,807 3,334 473 53,470 3,807 3,361 446 50.109 3,807 3,389 418 46,720 3.807 3,418 389 43,302 3,807 3,446 361 39.856 3,807 Acct. #10611; Dylex Corporation Date Desc F Debit Credit Balance 1/Feb Terms 2/10, n/30 BFWD 160,600|| 160,600 November 15, 2016 December 15, 2016 January 15, 2017 7.520 3.776 Segura Corporation Accounts Payable Subledger Acct. #20105: Velor Inc. Acct. #20106, Southgate Inc. Date Desc Debit Credit Balance Date Desc. F Debit Credit Balance 1/Feb Terms 2/10, n/30 BFWD 660,000 660,000 3,807 3,807 3,807 91.368 3,713 94 3.744 63 3,776 31 82,500 8,868 0 Acct. #20108; XYZ Corporation Date Desc. F Debit Credit Balance Acct. #20109, ABC Inc. Date Desc. F Debit Credit Balance Property, Plant and Equipment Subledger Cost Information Depreciation Desc F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal. Depr. Exp, February, Accum. Depr. Bal. January 31, 2015 2015 February 28, 2015 Store Equipment BFWD Mar 10, 2011 Double-Declining 140,100 25,000 5 115,100 Office Furniture Feb 9, 2015 (Select One) ? ? Notes: 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the number of months the asset was used in that fiscal year to get the depreciation per month. Round final values to the nearest whole dollar. c) What is the next step in the accounting cycle? O Prepare an unadjusted trial balance Prepare financial statements O Prepare bank reconciliation and adjusting entries O Post adjusting entries Post closing entries O Prepare an adjusted trial balance Post transactions O Prepare a post-closing trial balance O Prepare closing entries This is the last step