Only need to do #1-26 ~ 1-33 Adjusting Entry
his is the end of the first month of operating activity. However, you will also need o prepare adjusting entries for the end of August. Below is some information that nelp you prepare adjusting entries. Make no entries for dividends this month. Adjust. 1 Accrued payroll since Aug 26 is648.Make the accrual for gross wages only. You will record the employee and employer taxes when payment is made in September. #1-26 Arctic Blast has not yet been billed for utilities (electricity, water, etc.) for August. You need to accrue the estimated expense Adjust. 2 of 206 #1-27 The value of the office supplies on hand at the end of the month is Adjust. 3 #1-28 267. Record the amount used during August. Adjust. 4 #1-29 Arctic Blast must accrue the telephone bill for the second half of August. It is estimated to be 67 Adjust. 5 You need to expense one month of the franchise fee. The franchise fee #1-30 has a two year life. Adj.6-8 There are three other adjusting entries that need to be made based on | #1-31 to the information provided in transactions #1 through 25, Record these 1#1-33 adiustments as needed. Start-up activities Aug. 1 Common stock was sold to the managers and outside shareholders. The #1-1 total amount received was 50000 Aug. 1 #1-2 A lease was signed to rent the space needed for your store in the location that you chose. The leasedpon was equalc one month's rent. The deposit is 2500. The first month's rent is also 2500 You receive the loan you requested in the amount d The loan is due intwo years and 10% annual interest is payabgquarterly You pay both of these amounts now. Aug.1 100000 #1-3 Aug. 1 #1-4 You purchase liability and property insurane for the next year. You pay cash of 2400. The coverage begins today Aug 1 Office suplislare purchased from Staples &@ accoun. Total from Staples dospey ab #1-5 cost of supplies is 300.Payment is due in ten days. Aug. 1 All of the store squipmept tables, chairs, freezers,etc.) are purchased #1-6 from Restaurant Suppy Corporation. The total cost of these items is 79400 Arctic Blast pays cash for 19000 of these items and charges the rest dn account, payable in 45 days. Aug. 1 #1-7 You purchase all of the office equipment from Office Interiors, Inc. The cost is 9000.You pay cash for all of these items If you chose to obtain a franchise, you receive the bill from the franchisor. You must pay the fee for the first two years. The franchise agreement runs from Aug. 1, 20X3 through July 31, 20X5 The cost to you for two years is 0 If the amount is zero, no entry is required. You pay the deposits to the telephone company and the utility company Aug. 1 #1-8 Aug. 1 #1-9 to get your service turned on. The amounts are as follows Phone Utiliti 150 200 Aug. 1 #1-10 You pay for all of your The cost of advertising for for the first month of operation the first month 706 C V Aug. 1 #1-11 You receive the first shipment of products that you chose to sell that you need to start the business. Several times during the month you will receive enough new inventory to return to this level. Total Total units cost Ice cream 8000 2400 Novelties 1150 575 You should record ice cream and oveies in separate accounts. Purchases are on account and will get a 1%discount rpaid within 10 day Use the perpetual net method to record all ice cream & novelty purchase Operating activities Aug. 5 #1-12 Record sales and cost of sales for the first week of activity. Refer to the assignment for the cost of each unit and refer to your choices of selling prces to record the appropriate amount of revenue. Arctic Blast uses a perpetual (net method) inventory system Units sold 1036 Scoops of ice cream Novelties 1312.ee Aug. 10 Paid the amounts due for the inventory received on Aug. 1 in #1-13 transaction #11. You receive thedicon use the perpetual net method Paid the amount due to Staples from the Aug. 1 purchase Aug. 11 #1-14 Aug. 12 Record sales and cost of sales activity for the second week. #1-15 Units sold Scoops of ice cream Novelties 2072 262 Aug. 15 You receive the second shipment of product to be sold. #1-16 Total Total units cost Ice cream 3108 932 Novelties 393 197 Aug 16 You purchased some aditiona ofi R Us #1-17 You put these supplies on your acccount and will pay for them in 30 days. The total is83 Record sales and cost of sales activity for the third week. Scoops of ice cream2590 Aug. 19 #1-18 Units sold Novelties 328 Aug. 22 #1-19 The telephone company bils us for telephone service in the middle of each month. Paid the bill for Aug. 1-15, 66 Aug. 22 You receive the third shipment of product to be sold #1-20 Total Total units cost Ice cream 2590777 Novelties 328 164 25 #1-21 Aug. Paid the amounts due for the inventory received on Aug. 15 in transaction #16. You receive the 1% discount. Record sales and cost of sales activity for the fourth week. Scoops of ice cream 3108 Aug. 26 #1-22 Units sold Novelties 393 Aug. 26 You receive the fourth shipment of product to be sold #1-23 Total Total units cost ce cream 3108 932.4 Novelties393 196.5 Aug 26 #1-24 You pay the employees their wages and the manager his/her salary for the first month of opearations. The total amount of wages and salaries is 6983 The employer is required to withhold the following from the employees' paychecks: Federal income tax 10% State income tax 5% Social Security tax 6.2% Medicare 145% The employer's payroll)taxes are: 62% Social Security tax Medicare 1.45% FUTA 0.8% SUTA-2.8% 7 You will accrue these taxes now but will be told to make payment in September Aug. 31 Record sales and cost of sales activity for the last five days of August Units sold Scoops of ice cream1554 197 #1-25 Novelties his is the end of the first month of operating activity. However, you will also need o prepare adjusting entries for the end of August. Below is some information that nelp you prepare adjusting entries. Make no entries for dividends this month. Adjust. 1 Accrued payroll since Aug 26 is648.Make the accrual for gross wages only. You will record the employee and employer taxes when payment is made in September. #1-26 Arctic Blast has not yet been billed for utilities (electricity, water, etc.) for August. You need to accrue the estimated expense Adjust. 2 of 206 #1-27 The value of the office supplies on hand at the end of the month is Adjust. 3 #1-28 267. Record the amount used during August. Adjust. 4 #1-29 Arctic Blast must accrue the telephone bill for the second half of August. It is estimated to be 67 Adjust. 5 You need to expense one month of the franchise fee. The franchise fee #1-30 has a two year life. Adj.6-8 There are three other adjusting entries that need to be made based on | #1-31 to the information provided in transactions #1 through 25, Record these 1#1-33 adiustments as needed. Start-up activities Aug. 1 Common stock was sold to the managers and outside shareholders. The #1-1 total amount received was 50000 Aug. 1 #1-2 A lease was signed to rent the space needed for your store in the location that you chose. The leasedpon was equalc one month's rent. The deposit is 2500. The first month's rent is also 2500 You receive the loan you requested in the amount d The loan is due intwo years and 10% annual interest is payabgquarterly You pay both of these amounts now. Aug.1 100000 #1-3 Aug. 1 #1-4 You purchase liability and property insurane for the next year. You pay cash of 2400. The coverage begins today Aug 1 Office suplislare purchased from Staples &@ accoun. Total from Staples dospey ab #1-5 cost of supplies is 300.Payment is due in ten days. Aug. 1 All of the store squipmept tables, chairs, freezers,etc.) are purchased #1-6 from Restaurant Suppy Corporation. The total cost of these items is 79400 Arctic Blast pays cash for 19000 of these items and charges the rest dn account, payable in 45 days. Aug. 1 #1-7 You purchase all of the office equipment from Office Interiors, Inc. The cost is 9000.You pay cash for all of these items If you chose to obtain a franchise, you receive the bill from the franchisor. You must pay the fee for the first two years. The franchise agreement runs from Aug. 1, 20X3 through July 31, 20X5 The cost to you for two years is 0 If the amount is zero, no entry is required. You pay the deposits to the telephone company and the utility company Aug. 1 #1-8 Aug. 1 #1-9 to get your service turned on. The amounts are as follows Phone Utiliti 150 200 Aug. 1 #1-10 You pay for all of your The cost of advertising for for the first month of operation the first month 706 C V Aug. 1 #1-11 You receive the first shipment of products that you chose to sell that you need to start the business. Several times during the month you will receive enough new inventory to return to this level. Total Total units cost Ice cream 8000 2400 Novelties 1150 575 You should record ice cream and oveies in separate accounts. Purchases are on account and will get a 1%discount rpaid within 10 day Use the perpetual net method to record all ice cream & novelty purchase Operating activities Aug. 5 #1-12 Record sales and cost of sales for the first week of activity. Refer to the assignment for the cost of each unit and refer to your choices of selling prces to record the appropriate amount of revenue. Arctic Blast uses a perpetual (net method) inventory system Units sold 1036 Scoops of ice cream Novelties 1312.ee Aug. 10 Paid the amounts due for the inventory received on Aug. 1 in #1-13 transaction #11. You receive thedicon use the perpetual net method Paid the amount due to Staples from the Aug. 1 purchase Aug. 11 #1-14 Aug. 12 Record sales and cost of sales activity for the second week. #1-15 Units sold Scoops of ice cream Novelties 2072 262 Aug. 15 You receive the second shipment of product to be sold. #1-16 Total Total units cost Ice cream 3108 932 Novelties 393 197 Aug 16 You purchased some aditiona ofi R Us #1-17 You put these supplies on your acccount and will pay for them in 30 days. The total is83 Record sales and cost of sales activity for the third week. Scoops of ice cream2590 Aug. 19 #1-18 Units sold Novelties 328 Aug. 22 #1-19 The telephone company bils us for telephone service in the middle of each month. Paid the bill for Aug. 1-15, 66 Aug. 22 You receive the third shipment of product to be sold #1-20 Total Total units cost Ice cream 2590777 Novelties 328 164 25 #1-21 Aug. Paid the amounts due for the inventory received on Aug. 15 in transaction #16. You receive the 1% discount. Record sales and cost of sales activity for the fourth week. Scoops of ice cream 3108 Aug. 26 #1-22 Units sold Novelties 393 Aug. 26 You receive the fourth shipment of product to be sold #1-23 Total Total units cost ce cream 3108 932.4 Novelties393 196.5 Aug 26 #1-24 You pay the employees their wages and the manager his/her salary for the first month of opearations. The total amount of wages and salaries is 6983 The employer is required to withhold the following from the employees' paychecks: Federal income tax 10% State income tax 5% Social Security tax 6.2% Medicare 145% The employer's payroll)taxes are: 62% Social Security tax Medicare 1.45% FUTA 0.8% SUTA-2.8% 7 You will accrue these taxes now but will be told to make payment in September Aug. 31 Record sales and cost of sales activity for the last five days of August Units sold Scoops of ice cream1554 197 #1-25 Novelties
