MANUAL INSTRUCTIONS FOR MAY 1) Joumalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations 2) Prepare an unadjusted trial balance. 3) Journalize the adjusting entries and post to the general ledger. Adjustment data are provided on the next page. 4) Prepare an adjusted trial balance. 5) Prepare a schedule of accounts receivable and a schedule of necounts payabile. 6) Prepare an income statement for the five months ended May 31, 20Y8. If not completing the optional requirements below, use only the year-to-date amount column to complete your statement. Optional: Prepare the statement for both the month of May and the year to date. Balances in the income and expense accounts currently reflect year-to-date activity. Complete the year-to-date income statement first. To calculate May figures, subtract year-to-date figures of April's income statement from May's year-to-date figures. Optional: Include vertical analysis figures in the statement by calculating the percent of cach line item to total revenue Note: If working the set with the general ledger software, the generated statement will buto- matically include monthly and year to date figures and include percentages for vertical analysis, 7) Prepare a retained earnings statement for the five months ended May 31, 20Y8. 8) Prepare a balance sheet as of May 31, 20Y8. 9) Complete the analysis test for Mayon page 69. GENERAL LEDGER SOFTWARE INSTRUCTIONS Follow the instructions on page 2 of this booklet. Detailed instructions for this month are available in the general ledger software by clicking the Instructions button near the bottom of your screen. (Note that you may have to scroll down and over to see this button.) TRANSACTIONS FOR MAY General Entries May 2 Issued Check No. 132 for $21,500 for the current month's advertising. 4 Purchased furniture and fixtures for $16,000, plus sales tax of $1,040, by issuing a 10% short-term note payable due in monthly installments of $2,840 principal plus interest for six months. 65 C 2018 Cercowe. May not be called, copied or depicared, or pested to a policy docessible website, in whole or in par May 6 Issued Check No. 133 for $3,000 for May office rent. The company expanded its office space to accommodate its new furniture business. No additional monies were requested as prepayments 6 Received $13,600 from Marble Tile Co. for decorating services. 7 Issued Check No. 134 for $1,800 on account to A & D Inc. for the purchase of supplies on April 7. 8 Purchased supplies on account from A & D Inc. for $3,200 (net 30). 8 Purchased merchandise on account from Golden Antiques for $55,000 (net 60). 9 Performed services on account for Marie's Boat Shop for $28,000 (net 60). 10 Received $18,000 cash from the sales of an antique office table and a chair. The cost of the goods sold was $11.250. 11 Received $10,800 cash on account from Adelle's Gift Shop 20 Sold an antique dining room set on account to Romi Architect, P.A. for $21,000 (terms 2/15, net 60). The cost of the goods sold was $13,125. Record the sale net of the discount, or $20,580, as you expect Romi to pay within the discount period. 25 Performed decorating services on account for Haute Couture Dresses for $15,000 (net 60). 30 Issued Check No. 135 for $240 to pay the utilities bill for the month. 30 Issued Check No. 136 for $320 in payment of the telephone bill for the month. 30 Issued Check No. 137 for $350 for postage. 30 Issued Check No. 138 for $600 for business automobile expenses. 30 Issued Check No. 139 to Sophia LeBron for salary: gross amount $7,500, withholding income tax of $1,500, and FICA (Medicare and Social Security) at 7.5%. (Record Medicare and Social Security tax withholdings together as FICA Tax Payable.) 30 Recorded the payroll tax expenses: FICA at 7.5% (cmployer), SUTA at 3%, and FUTA at 0.8%. (Ignore the salary limit amount for SUTA and PUTA.) 30 Issued Check No. 140 to replenish petty cash. The expenditures were for supplies used, 885, and auto expenses, S150. Adjusting Entries a) Expired insurance for the period, S500. b) Supplies on hand at the end of the month, $3,375 c) Provision for uncollectible accounts estimated at 3.0% of May credit sales. $1.290. (Note: This estimate applies only to the service part of the business.) d) Monthly depreciation on plant (fixed) assets is based on an 8-year life, no salvage value, and the straight-line method of depreciation Record the estimate of customer returns on this month's furniture sales: c) Customer refunds, $5,850. 1) Returns inventory, $3,800. MAY ANALYSIS Date Name Grade From the staternents you prepared for May, provide the following amounts: Adjusted Trial Balance 1) Trial balance totals Schedules of Accounts Receivable and Payable 2) Schedule of accounts receivable totul.. 3) Schedule of accounts payable total.. Income Statement 4) Total revenues for the five months ended May 31, 20Y8. 5) Depreciation expense for May. 6) Total expension for the five months ended May 31, 20Y8. 7) Net income for the five months ended May 31, 2048 Retained Earnings Statement 8) Ending retained earnings balance transferred to balance sheet ..... Balance Sheet 9) Book value of furniture and fixtures.... 10) Total assets as of May 31, 2018 11) Total liabilities as of May 31, 20Y8. 12) Total stockholder's equity as of May 31, 20Y8 5 S S M MANUAL INSTRUCTIONS FOR MAY 1) Joumalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations 2) Prepare an unadjusted trial balance. 3) Journalize the adjusting entries and post to the general ledger. Adjustment data are provided on the next page. 4) Prepare an adjusted trial balance. 5) Prepare a schedule of accounts receivable and a schedule of necounts payabile. 6) Prepare an income statement for the five months ended May 31, 20Y8. If not completing the optional requirements below, use only the year-to-date amount column to complete your statement. Optional: Prepare the statement for both the month of May and the year to date. Balances in the income and expense accounts currently reflect year-to-date activity. Complete the year-to-date income statement first. To calculate May figures, subtract year-to-date figures of April's income statement from May's year-to-date figures. Optional: Include vertical analysis figures in the statement by calculating the percent of cach line item to total revenue Note: If working the set with the general ledger software, the generated statement will buto- matically include monthly and year to date figures and include percentages for vertical analysis, 7) Prepare a retained earnings statement for the five months ended May 31, 20Y8. 8) Prepare a balance sheet as of May 31, 20Y8. 9) Complete the analysis test for Mayon page 69. GENERAL LEDGER SOFTWARE INSTRUCTIONS Follow the instructions on page 2 of this booklet. Detailed instructions for this month are available in the general ledger software by clicking the Instructions button near the bottom of your screen. (Note that you may have to scroll down and over to see this button.) TRANSACTIONS FOR MAY General Entries May 2 Issued Check No. 132 for $21,500 for the current month's advertising. 4 Purchased furniture and fixtures for $16,000, plus sales tax of $1,040, by issuing a 10% short-term note payable due in monthly installments of $2,840 principal plus interest for six months. 65 C 2018 Cercowe. May not be called, copied or depicared, or pested to a policy docessible website, in whole or in par May 6 Issued Check No. 133 for $3,000 for May office rent. The company expanded its office space to accommodate its new furniture business. No additional monies were requested as prepayments 6 Received $13,600 from Marble Tile Co. for decorating services. 7 Issued Check No. 134 for $1,800 on account to A & D Inc. for the purchase of supplies on April 7. 8 Purchased supplies on account from A & D Inc. for $3,200 (net 30). 8 Purchased merchandise on account from Golden Antiques for $55,000 (net 60). 9 Performed services on account for Marie's Boat Shop for $28,000 (net 60). 10 Received $18,000 cash from the sales of an antique office table and a chair. The cost of the goods sold was $11.250. 11 Received $10,800 cash on account from Adelle's Gift Shop 20 Sold an antique dining room set on account to Romi Architect, P.A. for $21,000 (terms 2/15, net 60). The cost of the goods sold was $13,125. Record the sale net of the discount, or $20,580, as you expect Romi to pay within the discount period. 25 Performed decorating services on account for Haute Couture Dresses for $15,000 (net 60). 30 Issued Check No. 135 for $240 to pay the utilities bill for the month. 30 Issued Check No. 136 for $320 in payment of the telephone bill for the month. 30 Issued Check No. 137 for $350 for postage. 30 Issued Check No. 138 for $600 for business automobile expenses. 30 Issued Check No. 139 to Sophia LeBron for salary: gross amount $7,500, withholding income tax of $1,500, and FICA (Medicare and Social Security) at 7.5%. (Record Medicare and Social Security tax withholdings together as FICA Tax Payable.) 30 Recorded the payroll tax expenses: FICA at 7.5% (cmployer), SUTA at 3%, and FUTA at 0.8%. (Ignore the salary limit amount for SUTA and PUTA.) 30 Issued Check No. 140 to replenish petty cash. The expenditures were for supplies used, 885, and auto expenses, S150. Adjusting Entries a) Expired insurance for the period, S500. b) Supplies on hand at the end of the month, $3,375 c) Provision for uncollectible accounts estimated at 3.0% of May credit sales. $1.290. (Note: This estimate applies only to the service part of the business.) d) Monthly depreciation on plant (fixed) assets is based on an 8-year life, no salvage value, and the straight-line method of depreciation Record the estimate of customer returns on this month's furniture sales: c) Customer refunds, $5,850. 1) Returns inventory, $3,800. MAY ANALYSIS Date Name Grade From the staternents you prepared for May, provide the following amounts: Adjusted Trial Balance 1) Trial balance totals Schedules of Accounts Receivable and Payable 2) Schedule of accounts receivable totul.. 3) Schedule of accounts payable total.. Income Statement 4) Total revenues for the five months ended May 31, 20Y8. 5) Depreciation expense for May. 6) Total expension for the five months ended May 31, 20Y8. 7) Net income for the five months ended May 31, 2048 Retained Earnings Statement 8) Ending retained earnings balance transferred to balance sheet ..... Balance Sheet 9) Book value of furniture and fixtures.... 10) Total assets as of May 31, 2018 11) Total liabilities as of May 31, 20Y8. 12) Total stockholder's equity as of May 31, 20Y8 5 S S M