journalizing this entries, and doing the closing entries too.

Financial Statements end Clesing Procd in Mini-Practice Set 2 Merchandising Business Accounting Cycle The Fashion Rack The Fashion Rack is a retail merchandising business that sells brand-name clothing at discown prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 2019 7his project will give you an opportunity to put your knowledge of accounting into practice as you handle the accounting work of The Fashion Rack during the month of October 2019 The Fashion Rack has a monthly accounting period. The firm's chart of accounts is shown below The journals used to record transactions are the sales journal, purchases journal, cash receipts jour- nal, cash payments journal, and general journal. Postings are made from the journals to the accounts receivable ledger, accounts payable ledger, and general ledger. The employees are paid at the end of the month. A computerized payroll service prepares all payroll records and checks 1. Open the general ledger accounts and enter the balances for October 1, 2019. Obtain the nec- essary figures from the postclosing trial balance prepared on September 30, 2019, which is shown below. (If you are using the Study Guide & Working Papers, you will find that the gen- eral ledger accounts are already open.) 2. Open the subsidiary ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts receivable prepared on September 30, 2019, which appears helow, (If you are using the Study Guide & Working Papers, you will find that the subsidiary ledger accounts are already open.) 3. Analyze the transactions for October and record each transaction in the general journal. (Use 16 as the number for the first page of the general journal.) 4. Post the individual entries from the general journal to the general ledger and subsidiary ledgers. 5. Check the accuracy of the subsidiary ledgers by preparing a schedule of accounts receivable and a schedule of accounts payable as of October 31, 2019. Compare the totals with the balances of the Accounts Receivable account and the Accounts Payable account in the general ledger The Fashion Rack Chart of Accounts Liabilities Assets Accounts Payable 203 Cash 101 Social Security Tax Payable 221 Accounts Receivable 111 Medicare Tax Payable 222 Allowance for Doubtful Accounts 112 Employee Income Tax Payable 223 Merchandise Inventory 121 Federal Unemployment Tax Payable 225 Supplies 131 State Unemployment Tax Payable 227 Prepaid Insurance 133 Salaries Payable 229 Prepaid Advertising 135 Sales Tax Payable 231 Equipment 141 Accumulated Depreciation-Equipment 142 Financial Statements end Clesing Procd in Mini-Practice Set 2 Merchandising Business Accounting Cycle The Fashion Rack The Fashion Rack is a retail merchandising business that sells brand-name clothing at discown prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 2019 7his project will give you an opportunity to put your knowledge of accounting into practice as you handle the accounting work of The Fashion Rack during the month of October 2019 The Fashion Rack has a monthly accounting period. The firm's chart of accounts is shown below The journals used to record transactions are the sales journal, purchases journal, cash receipts jour- nal, cash payments journal, and general journal. Postings are made from the journals to the accounts receivable ledger, accounts payable ledger, and general ledger. The employees are paid at the end of the month. A computerized payroll service prepares all payroll records and checks 1. Open the general ledger accounts and enter the balances for October 1, 2019. Obtain the nec- essary figures from the postclosing trial balance prepared on September 30, 2019, which is shown below. (If you are using the Study Guide & Working Papers, you will find that the gen- eral ledger accounts are already open.) 2. Open the subsidiary ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts receivable prepared on September 30, 2019, which appears helow, (If you are using the Study Guide & Working Papers, you will find that the subsidiary ledger accounts are already open.) 3. Analyze the transactions for October and record each transaction in the general journal. (Use 16 as the number for the first page of the general journal.) 4. Post the individual entries from the general journal to the general ledger and subsidiary ledgers. 5. Check the accuracy of the subsidiary ledgers by preparing a schedule of accounts receivable and a schedule of accounts payable as of October 31, 2019. Compare the totals with the balances of the Accounts Receivable account and the Accounts Payable account in the general ledger The Fashion Rack Chart of Accounts Liabilities Assets Accounts Payable 203 Cash 101 Social Security Tax Payable 221 Accounts Receivable 111 Medicare Tax Payable 222 Allowance for Doubtful Accounts 112 Employee Income Tax Payable 223 Merchandise Inventory 121 Federal Unemployment Tax Payable 225 Supplies 131 State Unemployment Tax Payable 227 Prepaid Insurance 133 Salaries Payable 229 Prepaid Advertising 135 Sales Tax Payable 231 Equipment 141 Accumulated Depreciation-Equipment 142