Nees the journal entries

Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends Part One Current Assets 10000 Cash 11000 Accounts Receivable 12000 Inventory-Orange Headbands 12100 Inventory - Blue Headbands 13100 Office Supplies 13200 Store Supplies 18000 Prepaid Rent 18100 Prepaid Insurance 18200 Prepaid Advertising Revenue 40000 Sales the ad ACOU roun Expenses 50000 60100 60150 60200 60300 Long-Term Assets Store & Office Equipment 17000 Accumulated Depreciation -Store & Office Equipment 15100 Furniture & Fixtures 17100 Accumulated Depreciation-Furniture & Fixtures 15200 Computer Equipment 17200 Accumulated Depreciation - Computer Equipment 60400 60500 Cost of Goods Sold Legal Expense Store Supplies Expense Office Supplies Expense Insurance Expense Wages Expense Delivery Expense Advertising and Promotion Expense Utility Expense Rent Expense Depreciation Expense Interest Expense Bank Service Fee 60550 60600 60650 60700 60750 Current Liabilities 20000 Accounts Payable 21100 Note Payable-Wells Fargo Bank 21200 Note Payable-Store & Office Supply 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 Utility Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable 41 Page Part One, Two and Three Instructions Record the January 2020 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, Dr/Cr and the account numbers along with the dollar amounts. 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 8. Transactions Date Deposit No. / Check No. Description 1. 1/02/20 1/02/20 Deposit #1 Samantha Sneed met with her lawyer and CPA for advice on starting the business. They decided that Ms. Sneed would organize the business as a corporation. The lawyer told Ms. Sneed to register the company name, Sweaty Bands, Inc., with the County of El Paso. In addition, Ms. Sneed 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. Sneed set up her accounting system. Ms. Sneed opened a business checking account at Wells Fargo Bank by depositing the personal check she gave her company for $25,000. The corporation issued her a stock certificate for 50,000 shares of common stock. Ms. Sneed signed a one-year rental agreement with Rusty Realtors for shop space. She was required to pay $3,200 for rent for the months of January 1, 2020 - April 30, 2020. Arranged for a general business liability insurance policy and paid $1,800 to State Penn Insurance. This premium is for six months of coverage. Purchased store equipment for a cost of $10,000 from Office and Store Supply for use in the business. Ms. Sneed signed a one year, 6% note payable for the cost of the office and store equipment. The store and office equipment have an estimated useful life of 4 years 1/03/20 Ck #1001 1/03/20 Ck #1002 1/03/20 and the residual salvage) value is 52,000. This will be recorded as Store and Office Equipment 1/05/20 Deposit 2 Signed a note payable to borrow $7.000 from Wells Fargo Bank Interest is 6% annually and the note is to be repaid with interest in six months 1/05/20 Purchased furniture and fixtures for $13,000 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. 8. 1/06/20 Ck #1004 Purchased computer Equipment for 5000 to be used in the store. The computer equipment has a useful life of 3 years. 9. 1/06/20 Ck #1005 Purchased $300 in office supplies. 10. 1/08/20 Purchased $11.000 of Inventory Orange Headbands from Hailey's Headbands on account. 11. 1/08/20 Purchased $5,000 Inventory-Blue Headbands from Hailey's Headbands on account. 12. 1/13/20 Ck #1006 Ms. Sneed received and paid the $350 charge from her lawyer 13. 1/13/20 Sweaty Bands 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. Sneed will allow major customers to charge their purchases on account and then pay later. 14. 1/13/20 Sold headbands to UTEP for their homecoming banquet on account for $8,000. The cost of the orange headbands is $2,500. The cost of the blue headbands is $1,500. UTEP does not have to pay sales tax on the purchase. 15. 1/14/20 Purchased $200 of store supplies on account. This is to be recorded as store supplies 16. 1/14/20 Purchased additional orange headbands from Hailey's Headbands on account, for $5,500. 17. 1/15/20 Recorded sales on account for the first five days of operation. Sales on account totaled $5,500 and the sales tax totaled $453.75. The cost of merchandise sold was $2750.00. (Orange headbands were $1,500 and Blue headbands were $1,250.) 18. 1/20/20 Ck #1007 Received and paid the $200 invoice for store supplies. 19. 1/22/20 Deposit #3 Received cash from sales on account on 1/15/20 20. 1/22/20 Ck #1008 Paid the two invoices from Hailey's Headbands from 1/08/20. 21. 1/22/20 Ordered blue headbands for $2,900 on account 22. 1/23/20 Ms. Sneed donated headbands to the Child Crisis 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 put in the fund raiser program. Cost of the blue headbands were $750, and the 6 Page 23. SCOTT 1/23/20 24. 1/23/20 25. 26. 1/23/20 1/23/20 27. 1/23/20 28. 1/25/20 orange headbands were $100. Ms. Sneed considers this an advertising expense. Deposit 14 Received payment in full from UTEP. The payment was deposited in the bank Ck #1009 Ms. Sneed paid her credit card bin for the month. The total was $375 for deliveries. Ck #1010 Purchased and paid for $65 of office supplies. Deposit 115 Internet and retail sales totaled $10,620 and sales taxes of $876.15 was collected. The cost of the merchandise sold was $5,310 Blue Headbands $2,655; Orange headbands $2,655). The money was deposited in the bank. Ck #1011 Paid the balance due to Hailey's Headbands. There are two invoices; one on 1/14/20 and the other on 1/22/20. Deposit #16 Collected sales of $4,300. Sales tax collected was $280.50. All was deposited in the bank. The cost of the merchandise sold was $2,150. (Orange headbands $2,000, Blue headbands $150). Received but did not pay the electric bill for the month, $277.23. Ck #1012 Paid the first monthly installment on the office equipment. The payment amount is $883.33. Of this amount, $50.00 is for interest and $833.33 is for principal. Make the check payable to Store & Office Supply. 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 (Blue headbands $1,000; Orange headbands $350). Paid all sales tax owed for January to the Comptroller of Public 29. 1/28/20 30. 1/30/20 31. 1/30/20 361 32. 1/31/20 Ck #1013 Accounts. Declared and paid a cash dividend of $100 to Samantha Sneed. 33. 1/31/20 C k #1014 Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2020. 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 cent. a. 1,550 of wages for the part-time help from Irene's Temp Services for January should accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. b. $150 of store supplies remained on hand. C. $43 of office supplies remained on hand. d. Make the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation e. Make the necessary adjusting entry for the store and office equipment using Straight Line Depreciation f. One month of depreciation for computer equipment using Straight Une Depreciation. One month of prepaid Insurance has expired. h. One month of prepaid rent has expired. Record the interest on the loan from Wells Fargo. Make sure you prepare the journal entries, and the adjusting entries, and write them in the practice set. T-Accounts: 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 balances 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 1. Enter each transaction on one line. First the debit and then the credit. Do NOT enter any 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: Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account I 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. 2. 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. Make sure that you enter Dr or Cr before each account number. See example below: Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 3. For all sales, list the Sale entry first then the cost of Goods Sold entry second. Th for both should be on one line. First the sale, as shown below, then the cost of the inventory, Again, put the smallest account number first if there are more than one debit or credit. Dr 10000 $30,000.00 Cr 23300 $500.00 Cr 40000 $29,000.00 Dr 50000 $15,000.00 Cr 12000 $8,000.00 Cr 12100 $7,000.00. Both entries should all be on one line. 8P els no journal entry and you only need to put in a number please enter the amount as the 4. If there is no journal entry and dollar amount or as a number as the example below $15,000.00 or 15,000 When entering the ending balances for the T-Accounts enter the debt of credit first and the amount last. You do not need to enter the account number. See example below. 33333333333 Dr $10,000.00 or Cr $10,000.00 6 if there is no journal entry to be written please write No JE for no journal entry. See below for example. 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 1. Correct Errors: Correct any errors that you made on the journal entries. Both the debits and the credits must equal each other. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. 3. 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 4. Assume that any errors are made by the bank. 5. After preparing the bank reconciliation answer the questions in Blackboard and then stapleth bank reconciliation to the back cover. Part Five Instructions Prepare an Adjusted Trial Balance, then an Income Statement, Statement of Stockholders' Equity and a Balance Sheet and staple them to the front cover of the practice set in the core order as listed here. These statements should be done in Word or Excel. Bank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79902 Sweaty Bands, Inc. 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Sweaty Bands, Inc. Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2020 January January 01/31/2020 $0 $57,449.90 $37,163.33 $20,286.57 Deposits Added 1/2/2020 Deposit 1 $25,000.00 1/5/2020 Deposit 2 $7,000.00 1/19/2020 Deposit 3 $5,953.75 1/23/2020 Deposit 4 $8,000.00 1/23/2020 Deposit 5 $11,496.15 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $3,200.00 1007 $200.00 1002 $1,800.00 1008 $16,000.00 1003 $13,000.00 1012 $883.33 1004 $900.00 NSF $300.00 1005 $300.00 DM $30.00 Check Printing Fee 1006 $530.00 SC $20.00 Charge for NSF Check Assume any errors are made by the bank 10Pa