Page 1 > of 3 ZOOM List of business transactions to record in a general journal Chapter 2 The Accounting Cycle: During the Period 1 1/1/2022 2 1/1/2022 3 + 5 6 r 7 1/1/2022 1/1/2022 1/15/2022 1/15/2022 1/18/2022 8 1/20/2022 9 1/28/2022 Sells (Issues) $55,000 of Common Stock to shareholders for cash. Pays $3,000 for 6 months of space rent starting on January 1st. Record as a pre- paid. Purchases supplies worth $1,500 on account. Record the new asset. On account means charged to accounts payable as this is a typical recurring transaction with a vendor. Generally, supplies and inventory are charged to accounts payable (on account) when not paid for in cash. Purchases a building borrowing from the bank by signing a note payable for $500,000 at 6% annual interest and pays an additional $10,000 down payment to the seller. Record the transaction in 3 accounts. Note the TOTAL amount paid for the building and record the asset for the total amount. The building is expected to have a salvage value of $222,000 at the end of its 40 years of its useful life. Purchases equipment worth $3,000 on a six month 8% note payable. Record the new asset. The equipment will be depreciated at a rate of $100 per month over its useful life of 30 months. Provides services for $20,000 on account due in 30 days. Record the Service Revenue. Schedules service to be performed at a future date for a customer. Receives $3,000 in advance from the customer on this date. Record the asset and the liability. Remember you are deferring the recording of the revenue until it is actually earned. Pay employees $5,000 for salaries earned thru 1/15/2022. Provides services worth $15,300 and is paid in cash with 2 checks. A $300 deposit check and a $15,000 check Chapter 3 The Accounting Cycle: End of the Period Page 1 > of 3 ZOOM 7 1/18/2022 8 1/20/2022 9 1/28/2022 $3,000 in advance from the customer on this date. Record the asset and the liability. Remember you are deferring the recording of the revenue until it is actually earned. Pay employees $5,000 for salaries earned thru 1/15/2022. Provides services worth $15,300 and is paid in cash with 2 checks. A $300 deposit check and a $15,000 check Chapter 3 The Accounting Cycle: End of the Period 10 1/31/2022 11 1/31/2022 12 1/31/2022 13 1/31/2022 14 1/31/2022 15 1/31/2022 16 1/31/2022 Received a $1,000 bill for utilities consumed in the 2nd half of January's that will be paid in February. Company employees earn $6,000 in salaries in the last half of January to be paid in the February. Record the expense and the liability (payable). Record one month of depreciation on the building. The building is being depreciated at a rate of $600 per month. $510,000-$222,000 salvage value = 288,000/480 =$600 over a 40 year of useful life. T-4 One month of pre-paid rent from 1/1/2022 has expired. T-2 $1,000 of supplies remain in supplies inventory at the end of January. Record the adjusting entry. T-3 Accrue one month of interest expense on the note related to the building loan on 1/1/2022. Face x Rate x Time T-4 Performed $1,000 of the service that was pre-paid for on January 18th. T-7 17 1/31/2022 Accrue $4,000 of services provided to a customer in January. Page < 2 > of 3 Chapter 4 Cash and Internal Controls 18 2/2/2022 19 2/2/2022 20 2/3/2022 21 2/3/2022 22 2/5/2022 23 2/7/2022 24 25 2/8/2022 2/14/2022 Bank Reconciliation adjusting entries: (Record in one journal) 1. Record a $300 NSF check received from a customer recorded as cash earlier in the month. T-9 2. Record $200 of advertising paid for by a debit card transaction that cleared the bank. 3. Record a bank service fee of $30 charged by the bank for the company's checking account fees. 4. Record interest earned on the checking account in the amount of $25. Cash ...... (net cash for bank reconciling items to adjust) 5. Pays for supplies purchased on 1/1/2022 on account. T-3 The company was notified of a customer inability to pay the full amount of the service performed on 1/15 when it is due. Estimate that $5,000 of the Accounts Receivable recorded on 1/15/2022 will be uncollectible. Accrue the adjusting entry. T-6 Provides Services on account with terms 2/10 net 30 to a customer. The original invoice was for $5,200 but the customer received a $200 trade discount. The customer complained about the service provided on 2/3 so the company issued a $500 Sales Allowance. T-21 The customer from 2/3 paid their balance due on their account. T-21 & T-22 A $16,000 payment was made Services for performed on 1/15/2022. The customer is unable to pay the full amount of the invoice, so the remainder of the accounts receivable is written off. (post to 3 accounts). T-6 & T-20 The company decided to pay off $3,000 8% Note Payable on Equipment issued on 1/1/2022. Accrue and pay one month of interest expense when paying off the note. T-5 Chapter 6 Inventory and Cost of Goods Sold *The Company records transactions according to the Perpetual Method of Recording Inventory ZOOM 25 21172022 The customer from 24 2/8/2022 25 2/14/2022 Page < 2 > ance due on then account. 1-21 & 1-22 A $16,000 payment was made Services for performed on 1/15/2022. The customer is unable to pay the full amount of the invoice, so the remainder of the accounts receivable is written off. (post to 3 accounts). T-6 & T-20 The company decided to pay off $3,000 8% Note Payable on Equipment issued on 1/1/2022. Accrue and pay one month of interest expense when paying off the note. T-5 Chapter 6 Inventory and Cost of Goods Sold *The Company records transactions according to the Perpetual Method of Recording Inventory Purchased 200 units of inventory for $50 each on account terms 3/10 net 30. 26 2/14/2022 27 2/14/2022 28 2/15/2022 29 2/15/2022 30 2/15/2022 Paid $200 in freight charges to the freight company for inventory purchased on 2/14/2022. Paid salaries accrued on 1/31/2022. T-11 Sold 50 units of inventory for $90 each that was purchased on 2/14/2022 on account with terms 2/10 net 30. T-26 Returned 20 units of inventory purchased on 2/14 for poor quality. T-26 of 3 ZOOM Page < 3 of 3 ZOOM Chapter 7 Long-Term Assets 31 2/15/2022 32 2/15/2022 33 2/15/2022 34 2/15/2022 Record the cash purchase of an acre of land that the company plans to build a distribution plant on in the future. The land cost $25,000; the real estate fees were $3,000; the attorney fees were $500; the cost to remove an old wood building and level the land was $1,500. The wood from the salvaged building was sold for $2,000. The city fined the company $200 for failure to acquire a permit to tear down the old building which they paid for in cash. Record the purchase of the land. The company decided to sell the equipment purchased on 1/15/2022 for $2,000. Record the deprecation up to the date of the sale of the equipment. T-5 Record the Sale of the equipment for $2,000. T-5 & T-32 The company developed a patent for the new product they are developing. They incurred $5,000 in research and development costs; $200 patent filing fees; $800 in attorney fees for drawing up the patent documentation. Record the patent. The company president asked you to report the financial position of the company as of 2/15/2022. There will not be any adjusting entries for the month of February included in the 2/15/2022 interim financial statements. You will need to: 1. Post all your handwritten journal entries by hand into chart of T accounts form. Determine each individual T account's ending balance on the T Account form. 2. 3. Enter each account's ending balance into the provided excel worksheet to complete the Income Statement, the Balance Sheet, and the Statement of Stockholders' Equity financial statements as of 2/15/2022. 4. Confirm: a. Your journal entries match your postings into the T accounts b. Your T account ending balances match your postings to the financial statements c. Your financial statements balance - Green check provided in the excel sheet 230 Summer 2022 online # Date 1 2 Each account posts on one single line for each Debit or Credit entered T= Transaction Reference Account Name $ Debit Entry $ Credit Entry Sells (Issues) $55,000 of Common Stock to shareholders for cash Pay $3,000 for 6 months of space rent starting on January 1* 3 4 5 6 7 8 9 Purchases supplies worth $1,500 on account Company purchases a building borrowing from the bank by signing a note payable for $500,000 at 6% annual interest and in addition the Company also pays an additional $10,000 down payment to the seller. Purchases equipment worth $3,000 on a six month 8% note payable. Record the new asset Provides services for $20,000 on account due in 30 days Schedules a service to be performed at a future date for a customer. Receives the $3,000 in advance from the customer on this date Pay employees $5,000 for salaries earned thru 1/15/2022 ZOOM 9 10 Pay employees $5,000 for salaries earned thru 1/15/2022 Company provides services worth $15,300 and is paid in cash with 2 checks. A $300 deposit check and a $15,000 check 11 Received a $1,000 bill for utilities consumed in the 2nd half of January that will be paid in February 12 Company employees earn $6,000 in salaries in the second half of January to be paid in February 13 T-4 Record one month of depreciation on the building. The building is being depreciated at a rate of $600 per month. $510,000-$222,000 months salvage value - $288,000/480 over a 40 year of useful life 14 T-2 One month of pre-paid rent from 1/1/2022 has expired 15 T-3 $1,000 of supplies remain in supplies inventory at the end of January. Record the adjusting entry 16 T-4 Accrue one month of interest expense on the note related to the building loan on 1/1/2022. 17 T-7 Performed $1,000 of the service pre-paid for on January 18th $1.000 ZOOM Accrue $4,000 of services provided to a customer in January 18 19 20 Bank Reconciliation adjusting entries: (Record in one journal) T-9 1. 2. Record a $300 NSF check received from a customer and recorded as cash earlier in the month Record $200 of advertising paid for by a debit card charge that cleared the bank 3. 4. Record a bank service fee of $30 charged by the bank for the company's checking account fees Record interest earned on the checking account in the amount of $25 5. Cash $... (net cash adjustment for bank reconciling items) T-3 Pays for supplies purchased on 1/1/2022 on account 21 T-6 Estimate that $5,000 of the Accounts Receivable recorded on 1/15/2022 will be uncollectible. Accrue the bas debt adjusting entry 22 Provides Services on account with terms 2/10 net 30 to a customer. The original invoice was for $5,200 but the customer received a $200 trade discount 23 T-21 The customer complained about the service provided on 2/3 so the company issued a $500 Sales Allowance 24 T-21 & T-22 The customer from 2/3 paid their balance due on their account 4,500 * .02 = $90 ZOOM T-21 & T-22 The customer from 2/3 paid their balance due on their account 4,500.02 = $90 24 T-6 & T-20 25 26 27 T-5 A $16,000 payment was made for Services performed on 1/15/2022. The customer is unable to pay the full amount of the invoice so the remainder of the accounts receivable is written off The company decided to pay off $3,000 8% Note Payable on Equipment issued on 1/1. Accrue and pay one month of interest when paying off the note *The company records transactions using the perpetual inventory system Purchased 200 units of inventory for $50 each on account terms 3/10 net 30 28 T-26 Paid $200 in freight charges to ship in inventory purchased on 2/14/2022 29 30 Paid salaries accrued on 1/31/2022. T-11 Sold 50 units of inventory purchased on 2/14/2022 for $90 each on account with terms 2/10 net 30 T-26 Returned 20 units of inventory purchased on 2/14 for poor quality ZOOM 32 31 T-5 33 T-26 Returned 20 units of inventory purchased on 2/14 for poor quality The company purchased with cash an acre of land on which to build a building in the future. The land cost $25,000; the real estate fees were $3,000. the attomey fees were $500; the cost to remove an old wood building and level the land was $1,500. The wood from the salvaged building was sold for $2,000. The city fined the company $200 for failure to acquire a permit to tear down the old building which they paid for in cash. Record the purchase of the land The company decided to sell the equipment purchased on 1/15/2020 for $2,000 cash. Record the deprecation up to the date of the sale T-5 & T-32 Record the sale of the equipment 34 The company developed a patent for a new product they are developing. They incurred $5,000 in research and development costs: $200 patent filing fees; 800 in attorney fees for drawing up the patent documentation. Record the patent The company president asked you to report the financial position of the company as of 2/15/2022. You will not enter any adjusting entries for the month of February in the 2/15/2022 interim financial statements. You will need to: 1. Post all your handwritten journal entries by hand into chart of T accounts form. Calculate each individual T account's ending balance on the T Account form. 2. 3. Enter each account's ending balance into the provided excel worksheet to complete the Income Statement, the Balance Sheet, and the Statement of Stockholders' Equity financial statements as of 2/15/2022. 4. Confirm: a. Your journal entries match your postings into the T accounts b. Your T account ending balances match your postings to the financial statements C. Your financial statements balance - Green check provided in the excel sheet; Stockholders' Equity; Common Stock & Retained Earnings balances (that auto posts to the Balance Sheet)t balances Assets Liabilities + Stockholders' Equity ZOOM