Mimi Practice Set 2

Merchandising Business Accounting Cycle

The Fashion Rack

Can someone PLEASE HELP?

To 19% D ....o Sprint F 4:27 PM 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 discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 2016. This 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 2016. INTRODUCTION The Fashion Rack has a monthly accounting period. The firm's chart of accounts is shown below and on the next page. The journals used to record transactions are the sales journal, purchases journal, cash receipts journal cash paymentsjournal, 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. INSTRUCTIONS I. Open the general ledger accounts and enter the balances for October l, 2016. Obtain the necessary figures from the postclosing trial balance prepared on September 30, 2016, which is shown on below (If you are using the Study Guide & Working Papers, you will find that the general ledger accounts are already open.) 2. Open the subsidiary ledger accounts and enter the balances for October 1, 2016. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts receivable prepared on September 30, 2016. which appear on below. (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 proper journal. (Use 10 as the number for the first page of each special journal and 16 as the number for the first page of the general journal 4. Post the individual entries that involve customer and creditor accounts from the journals to the subsidiary ledgers on a daily basis Post the individual entries that appear in the general journal and in the Other Accounts sections of the cash receipts and cash payments journals to the general ledger on a daily basis 5. Total, prove, and rule the special journals as of October 31, 2016 6. Post the column totals from the special journals to the general ledger accounts To 19% D ....o Sprint F 4:27 PM 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 discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 2016. This 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 2016. INTRODUCTION The Fashion Rack has a monthly accounting period. The firm's chart of accounts is shown below and on the next page. The journals used to record transactions are the sales journal, purchases journal, cash receipts journal cash paymentsjournal, 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. INSTRUCTIONS I. Open the general ledger accounts and enter the balances for October l, 2016. Obtain the necessary figures from the postclosing trial balance prepared on September 30, 2016, which is shown on below (If you are using the Study Guide & Working Papers, you will find that the general ledger accounts are already open.) 2. Open the subsidiary ledger accounts and enter the balances for October 1, 2016. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts receivable prepared on September 30, 2016. which appear on below. (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 proper journal. (Use 10 as the number for the first page of each special journal and 16 as the number for the first page of the general journal 4. Post the individual entries that involve customer and creditor accounts from the journals to the subsidiary ledgers on a daily basis Post the individual entries that appear in the general journal and in the Other Accounts sections of the cash receipts and cash payments journals to the general ledger on a daily basis 5. Total, prove, and rule the special journals as of October 31, 2016 6. Post the column totals from the special journals to the general ledger accounts