Once all journal entries are recorded in the practice set, record the nine adjusting journal entries below in the practice set and use September 30, 2019 as the dates for the transactions. The following are the adjusting journal entries for the month of September. Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $200 of supplies remained on hand. b. $50 of shipping supplies remained on hand. C. $1,200 of wages for the part-time help from Irene's Temp Services for September should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. d. Make the necessary adjusting entries for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. e. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. f. One month of the prepaid insurance has expired. g. One month of the prepaid rent has expired. h. $300 of prepaid advertising remains on hand I. Record the interest for the loan 1. The interest on the computer has been recorded in journal entry #28 Make sure you prepare the journal entries and the adjusting entries, and write them in the practice set. All T-accounts with the proper balances should be prepared. There is a template 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 side of the account. Once all the balances are in the T-Accounts and 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: 7 Page Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # 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. The entire entry 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 C 12000 $8,000.00 Cr 12100 $7,000.00. Both entries should all be on one line of 4. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. $15,000.00 or 15,000 5. When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below. 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. 8 Pas 9/03/19 9/05/19 Deposit #2 7. 9/05/19 Ck #1003 9/06/19 Ck #1004 Purchased a new computer system that cost $4,500 from Office Mart for use in the business. Ms. Morales signed a 6 month note, 12% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $300. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly. Only record the transaction at this time. Depreciation will be recorded as an adjusting entry. Signed a note payable to borrow $10,000 from Wells Fargo Bank. Interest is 12% annually and the note is to be repaid with interest in twelve months. Interest will be an adjusting journal entry at the end of the month.. Paid $12,000 for furniture and fixtures. The estimated service life of these assets is 7 years. The residual (salvage) value is $200. These items will be recorded as Furniture and Fixtures and depreciated accordingly. Depreciation will be an adjusting entry at the end of the month. Arranged for Sun City Motors to make the delivery and installation of the computer system and paid the invoice of $600. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. Paid $ 700 for business cards, flyers, and posters. This will be recorded as prepaid advertising. Purchased $10,000 of inventory BN boots from Betty's Boots on account. The vendor extended credit terms of 2/15, n/30. Purchased $11,000 of inventory-BLK boots from Sassy Shoes on account. The vendor extended credit terms are 2/15 n/30. Ms. Morales received and paid the $900 charge from her lawyer. AHH Boots 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. Morales will allow major customers to charge their purchases on account. Purchased $500 of office supplies on account. Purchased shipping supplies of $500 for cash. Sold boots to Carly's Crazy Shoes for $8,600 and the sales tax collected is $710. The cost of the brown boots are $2,250 and the cost of the black boots are $2,400. They bought it on account and we will bill them. 9. 9/06/19 C k #1005 10. 9/08/19 11. 9/08/19 12. Ck #1006 9/13/19 9/14/19 13. 14. 9/14/19 15. 9/14/19Ck #1007 16. 9/14/19 5 Page AHH Boots 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT AHH Boots Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 09/01/2019 September September 09/30/2019 $0 $83,125 $30,780 $52,345 Deposits Added 9/2/2019 Deposit 1 $40,000 9/5/2019 Deposit 2 $10,000 9/20/2019 Deposit 3 $10,825 9/23/2019 Deposit 4 $9,310 9/28/2019 Deposit 5 $12,990 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $8,100 1007 $500 1002 $7,200 1008 $500 1003 $12,000 1009 $250 1004 $600 1005 $700 DM $30 Check Printing Fee 1006 $900 *Any errors should be assumed to be made by the bank. 10 Page Current Assets 10000 Cash Accounts Receivable 11000 Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends 12000 12100 13100 13200 14000 14100 Inventory - BN Boots * Inventory-BLK Boots ** Office Supplies Shipping Supplies Prepaid Rent Prepaid Insurance Prepaid Advertising *BN = Brown ** BLK = Black Revenue 40000 Sales 14200 Long-Term Assets 15000 Computer Equipment 17000 Accumulated Depreciation -Computer Equipment 15100 Furniture & Fixtures 17100 Accumulated Depreciation-Furniture & Fixtures Expenses 50000 60100 60150 60200 60300 60350 60400 60500 Cost of Goods Sold Legal Expense Office Supplies Expense Shipping Supplies Expense Insurance Expense Wages Expense Credit Card Expense Advertising and Promotion Expense Utility Expense Rent Expense Depreciation Expense-Computer Equipment Depreciation Expense-Furniture & Fixtures Interest Expense Bank Service Fee 60550 60600 60650 60675 60700 60750 Current Liabilities 20000 Accounts Payable 21100 Note Payable-Wells Fargo Bank 21200 Note Payable-Office Mart 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 Utilities Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable 3 | Page Once all journal entries are recorded in the practice set, record the nine adjusting journal entries below in the practice set and use September 30, 2019 as the dates for the transactions. The following are the adjusting journal entries for the month of September. Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $200 of supplies remained on hand. b. $50 of shipping supplies remained on hand. C. $1,200 of wages for the part-time help from Irene's Temp Services for September should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. d. Make the necessary adjusting entries for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. e. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. f. One month of the prepaid insurance has expired. g. One month of the prepaid rent has expired. h. $300 of prepaid advertising remains on hand I. Record the interest for the loan 1. The interest on the computer has been recorded in journal entry #28 Make sure you prepare the journal entries and the adjusting entries, and write them in the practice set. All T-accounts with the proper balances should be prepared. There is a template 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 side of the account. Once all the balances are in the T-Accounts and 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: 7 Page Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # 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. The entire entry 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 C 12000 $8,000.00 Cr 12100 $7,000.00. Both entries should all be on one line of 4. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. $15,000.00 or 15,000 5. When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below. 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. 8 Pas 9/03/19 9/05/19 Deposit #2 7. 9/05/19 Ck #1003 9/06/19 Ck #1004 Purchased a new computer system that cost $4,500 from Office Mart for use in the business. Ms. Morales signed a 6 month note, 12% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $300. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly. Only record the transaction at this time. Depreciation will be recorded as an adjusting entry. Signed a note payable to borrow $10,000 from Wells Fargo Bank. Interest is 12% annually and the note is to be repaid with interest in twelve months. Interest will be an adjusting journal entry at the end of the month.. Paid $12,000 for furniture and fixtures. The estimated service life of these assets is 7 years. The residual (salvage) value is $200. These items will be recorded as Furniture and Fixtures and depreciated accordingly. Depreciation will be an adjusting entry at the end of the month. Arranged for Sun City Motors to make the delivery and installation of the computer system and paid the invoice of $600. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. Paid $ 700 for business cards, flyers, and posters. This will be recorded as prepaid advertising. Purchased $10,000 of inventory BN boots from Betty's Boots on account. The vendor extended credit terms of 2/15, n/30. Purchased $11,000 of inventory-BLK boots from Sassy Shoes on account. The vendor extended credit terms are 2/15 n/30. Ms. Morales received and paid the $900 charge from her lawyer. AHH Boots 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. Morales will allow major customers to charge their purchases on account. Purchased $500 of office supplies on account. Purchased shipping supplies of $500 for cash. Sold boots to Carly's Crazy Shoes for $8,600 and the sales tax collected is $710. The cost of the brown boots are $2,250 and the cost of the black boots are $2,400. They bought it on account and we will bill them. 9. 9/06/19 C k #1005 10. 9/08/19 11. 9/08/19 12. Ck #1006 9/13/19 9/14/19 13. 14. 9/14/19 15. 9/14/19Ck #1007 16. 9/14/19 5 Page AHH Boots 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT AHH Boots Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 09/01/2019 September September 09/30/2019 $0 $83,125 $30,780 $52,345 Deposits Added 9/2/2019 Deposit 1 $40,000 9/5/2019 Deposit 2 $10,000 9/20/2019 Deposit 3 $10,825 9/23/2019 Deposit 4 $9,310 9/28/2019 Deposit 5 $12,990 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $8,100 1007 $500 1002 $7,200 1008 $500 1003 $12,000 1009 $250 1004 $600 1005 $700 DM $30 Check Printing Fee 1006 $900 *Any errors should be assumed to be made by the bank. 10 Page Current Assets 10000 Cash Accounts Receivable 11000 Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends 12000 12100 13100 13200 14000 14100 Inventory - BN Boots * Inventory-BLK Boots ** Office Supplies Shipping Supplies Prepaid Rent Prepaid Insurance Prepaid Advertising *BN = Brown ** BLK = Black Revenue 40000 Sales 14200 Long-Term Assets 15000 Computer Equipment 17000 Accumulated Depreciation -Computer Equipment 15100 Furniture & Fixtures 17100 Accumulated Depreciation-Furniture & Fixtures Expenses 50000 60100 60150 60200 60300 60350 60400 60500 Cost of Goods Sold Legal Expense Office Supplies Expense Shipping Supplies Expense Insurance Expense Wages Expense Credit Card Expense Advertising and Promotion Expense Utility Expense Rent Expense Depreciation Expense-Computer Equipment Depreciation Expense-Furniture & Fixtures Interest Expense Bank Service Fee 60550 60600 60650 60675 60700 60750 Current Liabilities 20000 Accounts Payable 21100 Note Payable-Wells Fargo Bank 21200 Note Payable-Office Mart 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 Utilities Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable 3 | Page