PAGE 12 COMPREHENSIVE REVIEW PROBLEM (General Journal) (concluded) PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 12, 20- TAVALEM DOTTO BEGINS ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL INCOME SECURITY MEDICARE NAME HOURS EARNING EARNING LEARNING MENT SECURITY MEDICARE TAX TAY TAX RIN 30 5.463.00 5,465.00 0.00 0.00 0.00 TL Ninkan 80 4,580.00 4,580.00 0.00 0.00 0.00 10.043 00 0.00 RON 0.00 0.00 0.00 0.00 NO TOTAL 0.00 0.00 0.00 MET AMOUNT 0.00 0.00 0.00 7219 7220 LALARY DSENSE been 0.00 0.00 0.00 0.00 0.00 PAGE 13 NAME Raru TL Mark PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 26, 20- TAXABELLA LACUCHOS BEGANO ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL INCOME SECURITY MEDICARE HOURS LARNING EARNING E EARNINGS MENT SECURITY MEDICARE TAX TAX TAX 50 5,466.00 5,465.00 0.00 2,840.00 2,840.00 50 4,580.00 4,580.00 0.00 0.00 0.00 10,045.00 0.00 0.00 2,840.00 2,840.00 0.00 0.00 0.00 TOTAL 0.00 0.00 0.00 NET AMOUNT W3 2,840.00 0.007226 2,840.00 7225 TALARY COENSE DEN 2,840.00 0.00 2.840.00 LG4 LGS1G6 LG3 LG LGA EGO sch WKSHTI WSHTOE 65 POTBAL PAYROLL Sheet1 Sheet2 for Office are ready to be installed, but first we need to close some apps. Update now fa B D EFT H G 4 5 6 ACCOUNT NAME 7 Cash 8 Per Cash Fund 9 Accounts Receivable 10 Merchandise Inventory 11 Supplies 12 Prepaid Insurance 13 Equipment 14 Accumulated Depreciation Equipment 15 Accounts Payable 16 Employees' Income Tax Payable 17 FICA Social Securin Tax Payable 18 FIC.4 Medicare Tax Parable 19 State Unemployment Tax Payable ## Federal Unemployment Tax Payable 21 M L Langdon Capital ## M L Langdon, Drawing ## Sales TRIAL BALANCE DEBIT CREDIT 13,157.47 70.00 45,552.48 52,640.00 366.24 2,480.00 9.324.00 5,328.00 39,154,10 1,006.00 1,595.48 1.297.60 750.30 111.16 66.047.32 5,000.00 72,358.72 LGS LG7 LG8 L610 LG6 WKSHT1 sch1 WKSHT2 IS Sheet1 OE BS PAYROLL PCTBAL B D E F G H 1,595.48 1,297.60 750.30 111.16 66,047.32 5,000.00 72,358.72 17 FICA Social Security Tax Payable 18 FICA Medicare Tax Payable 19 State Unemployment Tax Payable ## Federal Unemployment Tax Payable 21 M L Langdon, Capital M L Langdon, Drawing Sales ## Sales Returns and Allowances ## Purchases ## Purchases Returns and Allowances ## Purchases Discounts ## Freight In Salaries Expense ## Payroll Tax Expense 31 Rent Expense ## Utilities Expense Miscellaneous Expense 185.00 42,786.90 692.00 478.29 2,435.00 ############### 9,808.00 1,042.95 2.290.00 358.00 25.36 189,013.45 187,326.92 Schl IS WKSHT1 WKSHT2 OE BS PETBAL Sheet1 G3 LG7 PAYROLL LG8 1910 CHAPTER 12 Financial Statements, Closing Entries, and Reversing Entries COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) 2 B ADJUSTMENTS DEBIT CREDIT INCOME STATEMENT DEBIT CREDIT 16 BALANCE SHEET DEBIT CREDIT 13,157.47 70.00 45,552.48 45,484.00 366.24 8 10 (b) 52,640.00 45,484.00 (a) (1) Sheel IS BS WKSHT2 PAYROLL Sheet1 OE PCTBAL WKSHTI GS LGO LG3 LGT sch LGO LG 10 =E13 D E F G H 11 (1) (d) 210.00 366.24 2,270.00 9,324.00 (e) 1,885.00 12 13 1,885.00 14 39,154,10 15 1,006.00 16 1,595.48 17 1,297.60 18 750.30 19 111.16 20 66,047.32 21 22 23 24 5,000.00 72,358.72 185.00 42,786.90 25 26 27 692.00 478.29 OEBS IS POTBAL PAYROLL Sheet1 Sheet WKSHT2 LG6 WKSHTI LGS LG10 Schl LG3 LG7 D F H E G AB 5,000.00 72,358.72 185.00 42,786.90 66,047.32 21 22 23 24 25 26 27 28 692.00 478.29 (c) 2,084.00 11,892.00 29 30 31 2.290.00 32 33 25.36 52,640.00 45,484.00 52,640.00 (b) (c) 210.00 45,484.00 2,084.00 34 35 2,084.0036 37 210.00 (d) Sheet2 WKSHT2 IS BS Sheet1 OE WESHTI PCTOAL PAYROLL D F H E G (d) 210.00 2,270.00 9,324.00 (e) 1,885.00 12 13 1,885.00 14 39,154.10 15 1,006.00 16 1,595.48 12 1,297.60 18 750.30 19 111.16 20 66,047.32 21 22 5,000.00 72,358.72 24 185.00 42,786.90 692.00 478.29 26 27 28 WKSHT2 OE PCTBAL BS PAYROLL Sheet Sheet2 55 Schi LG6 WESHTI G3 LG7 168 1610 G H E 4 B D 26 692.00 478.29 (c) 2,084.00 11,892.00 2,290.00 25.36 27 28 29 30 31 32 33 34 35 2,084.00 36 32 38 39 113,930.9660 7,293.2341 121,224.1922 PAYROLL Sheet1 52,640.00 (b) (c) 210.00 1,885.00 45,484.00 52,640.00 45,484.00 2,084.00 210.00 1,885.00 72,358.72 102,303.00 111,914.26 191,371.73 121,224.19 79.457.47 191,371.73 191,371.73 121,224.19 sch1 WKSHT WKSHT2 IS DE BS PCTBAL (d) (e) () 102,303.00 Sheet2 1 198 LG10 2 D AB E F H G Fabulous Furnishings Income Statement For Month Ended February 28, 20- $72,173.72 $27,844.99 185.00 $27,659.99 Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold: Merchandise Inventory, Feb. 1,20- Purchases Less: Purchases Returns and Allowances Purchases Discounts Net Purchases ALLA LGS LG6 LG3 LG7 LG8 LG10 $52,640.00 $42,786.90 $692.00 478.29 1,170.29 $41,616.61 An WKSHT2 IS BS OE PCTBAL PAYROLL Sheet1 Sch1 WKSHTI G4 ch . F G H $41,616.61 2,435.00 AB D E Net Purchases Add Freight In Delivered Cost of Purchases Cost of Goods Available for Sale Less Merchandise Inventory, Feb. 28, 20- Cost of Goods Sold Gross Profit 44,051.61 $96,691.61 45,484.00 51,207.61 ($23,547.62) Operating Expenses: Salary Expense Payroll Tax Expense Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, LGS LG6 LG3 LG7 LGB $11,892.00 1,042.95 2,290.00 358.00 366.24 210.00 LG4 LG10 Sch1 WKSHTI IS WKSHT2 BS PCTBAL PAYROLL H G F E AB D 2,290.00 358.00 366.24 Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, Equipment Miscellaneous Expense Total Operating Expenses Net Income 210.00 1,885.00 25.36 18,069.55 ######### COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Statement of Owner's Equity For Month Ended February 28, 20- $66,047.32 M. L. Langdon, Capital February 1, 20-- Net Income for February Less Withdrawals for February Decrease in Capital M. L. Langdon, Capital, February 28, 20- (541,617.17) 5,000.00 2,103.44 $63,943.88 15 Sheet2 OE PCTBAL BS PAYROLL Sheets WKSH12 LG6 LGS LG LGS WESHTI 1610 Schi HIZIO A B C D F F 4 5 Balance Sheet February 28, 20- 6 7 Assets 8 9 10 11 12 13 14 Current Assets: Cash Petty Cash Fund Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $13,157.47 70.00 45,552.48 45,484.00 366.24 2,270.00 $106,900.19 15 16 17 18 19 20 Property and Equipment: Equipment Less Accumulated Depreciation Total Assets $ 9,324.00 1,885.00 2,111.00 $109,011.19 LG4 LG LGT LGS LGB LG LGIO Schi WESHTI WESHT IS BS OE PAYROLL Sheet PCTBAL Sheet2 Page 1 of 1 Search et e H E A A B C D Total Assets $109,011.19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Liabilities Current Liabilities: Accounts Payable Employees' Income Tax Payable FICA Social Security Tax Payable FICA Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable Total Liabilities $39,154,10 1,006.00 1,293.08 1,297.60 750.30 111.16 2,084.00 $ 45,696.24 Owner's Equity M. L. Langdon, Capital Total Liabilities and Owner's Equity 63,943.88 $109,640.12 LG LGS LGO LG LOZ LGB LGIO Schi WESHTI WESHT is OE BS PCTUAL PAYROLL Sheet Page 1 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Post-Closing Trial Balance February 28, 20- ACCOUNT NAME Cash Petty Cash Fund Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation, Equipment Accounts Payable Employees' Income Tax Payable CICN Canin CARTAU DALARIA 1.66 LG LG7 LGB LG 10 Schi WKSHTI DEBIT CREDIT 13,157.47 70.00 45,552.48 52,640.00 366.24 2,480.00 9,324.00 5,328.00 39,154.10 1,006.00 ne ne PCTBAL PAYROLL Sheet G4 LG5 WKSHT2 IS BS Sheet2 o G H E 45,552.48 52,640.00 366.24 2,480.00 9,324.00 A B C D Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Employees' Income Tax Payable FICA Social Security Tax Payable FICA Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable M. L. Langdon, Capital 5,328.00 39,154,10 1,006.00 306.26 1,297.60 750.30 111.16 2,084.00 66,047.32 118,564.74 121,110.19 Sheet Sheet2 IS PAYROLL PCTBAL BS WKSHT2 LGTO WESHTE Schi 35 1Gb 13 PEG 168 PAGE 12 VATERE COMPREHENSIVE REVIEW PROBLEM (General Journal) (concluded) PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 12 20 TANELLARI DEDICI BEGINNING ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMILOY. SOCIAL WCOME NAME HOURS SECURITY MEDICARE TARNINGI EARNING LEARNINOS MENT SECURITY MEDICARE TAS TAX R. Hamir 50 3.405.00 5,465.00 0.00 0.00 000 IL Nnnkark 30 4.580.00 4,580.00 0.00 0.00 0.00 10.045.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SALANY PONTE TAS TOTAL 0.00 NET AMOURET 0.00 0.00 0.00 OK NO 7219 7220 0.00 0.00 0.00 0.00 0.00 PAGE PAYLINE February 26, 20- UDOTIUNI FEDERAL SOCIAL INCOME BEOUFITY MEDICARE TAX *TAX TAX PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED YAXALILL LAINE BEGINNING ENDING TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL HOUR EARNING EARNING E EARNING MENT SECURITY MEDICARE 80 5,465,00 6,465.00 0.00 2,840.00 2,840.00 50 4.580.00 4.580.00 0.00 0.00 10.045.00 0.00 0.00 2,840.00 2,840.00 CE NO NAME R Harri TL Merkik TOTAL 0.00 0.00 0.00 NET AMOUNT 2,840.00 0.00 2,840.00 7225 7226 SALARY DIE DEBIT 2,840.00 0.00 2840.00 0.00 0.00 0.00 0.00 164 LGS LG3 LG7 LG LG6 WKSHT Sheet2 PETBAL WISHF2 PAYROLL LG10 SCM 15 OE BS Sheet1 226 Employees Income Tax Payable 227 FICA Social Security Tax Payable CHAPTER 12: FINANCIAL STATEMENTS, CLOSING ENTRIES AND REVERSING ENTRIES Liabilities (200-231) 221 Accounts Payable 20 5 00 228 FICA Medicare Tax Payable 229 State Unemployment Tax Payable 230 Federal Unemployment Tax Payable 231 Salaries Payable Owner's Equity (300-399) 311 M. L Langdon. Capital 312 M. L Langdon, Drawing 313 Income Summary Revenue (400-499) Cost of Goods Sold (500-999) 511 Purchases 512 Purchases Returns and Allowances 513 Purchases Discounts 514 Freight in Expenses (600-699 611 Salaries Expense 612 Payroll Tax Expense 613 Rent Expense 614 Utilities Expense 616 Supplies Expense 617 Insurance Expense 00 411 Sales 618 Depreciation Expense, Equipment 619 Miscellaneous Expense 412 Sales Returns and Allowances ts JOURNALS Sales Journal, page 65 Purchases Journal, page 65 Cash Receipts Journal, page 66 Cash Payments Journal, page 67 General Journal, pages 68-71 "If using Working Papers, reference the journal page numbers listed above. ACCOUNTS RECEIVABLE Fashion Decor Hotel Beritz Jason and Waldon ACCOUNTS PAYABLE Brandon, Inc. Kingston Fabrics Magnuson Textiles Tyson Manufacturing Company ary of your Eeting th. TRANSACTIONS The following transactions were completed during February of this year. Fabulous Furnishings does not track cash sales by customer. If you are using CLGL. select "Cash Sales" as the customer for all cash sales transactions Feb. 1 Reversed the adjusting entry for accrued salaries, 5620. 1 Sold merchandise on account to Hotel Beritz. $12,520.86, invoice no. 5221 2 Issued Ck No 7216, S16,593.46, to Kingston Fabrics, in payment of its Invoice no. 01739 for $16,932.10 less 2 percent discount 3 Bought merchandise on account from Magnuson Textiles 54.874.80, invoice no RE275, dated February 2; terms 1/10, 1/30, FOB Louwville: freight (Continued prepaid and added to the invoice, $158. PART 3: The Accounting Cycle for a Merchandising Business Feb. 5 Received an electric bill and paid Countywide Power, Ck. No, 7217, 5358. 6 Received check from Jason and Waldon, $10,780.51, in payment of account. 7 Issued Ck No. 7218, 89,684. 18. to Magnuson Textiles, in payment of its invoice no RE64 for $9.782 less 1 percent discount. 9 Cash sales for February 1 through February 9, 89.745.40. 12 Recorded the payroll in the payroll register for regular biweekly salaries for period ended February 12. Salaries R. W. Harris, $2.840; T. L. Newkirk, $2,374. Income tax withholdings are 5287 for Harris and $216 for Newkirk. Assume the following tax rates and taxable earnings limits (see the payroll register for beginning cumalative earnings in your Working Papers. This information is also provided in CengageNow, or CLGL): Social Security taxable earnings, $118,500, with a rate of 6.2 percent for employees and 6.2 percent for employers. Medicare taxable earnings, all earnings, with a rate of 1.45 percent (for both employees and employers). 12 Recorded the payroll entry, crediting Salaries Payable. 12 Issued Ck. No 7219. $2.335.74, to R. W. Harris. Issued Ck. No. 7220, $1,976.39, to TL Newkirk 12 Recorded payroll taxes. Assume the following tax rates and taxable earnings: Federal unemployment taxable earnings, $7,000, with a rate of 0.6 percent. State unemployment taxable earnings, 57,000, with a rate of 5.4 percent 12 Received a credit memo from Magnuson Textiles for defective merchandise, 5692. credit memo no. 916. 14 Issued Ck. No. 7221, $2.900.80, to Mid-State Bank for monthly deposit of January employees' federal income tax withheld, 51,285, FICA Social Security tax, $1,309.54 and FICA Medicare tax, $306.26. 14 Sold merchandise on account to Jason and Waldon, $15.781.30, invoice no. 5222 14 Issued Ck. No. 7222, 84.298.97. to Magnuson Textiles, in payment of its invoice no RE275 less the credit memo for defective merchandise and less the discount. 18 Bought merchandise on account from Brandon, Inc., $21,375.20, invoice no. 164M, dated February 14: terms 2/10, n/30, FOB Miami; freight prepaid and added to the invoice, S1,242. 18 Cash sales for February 10 through February 18, 57,889.24. 19 Issued Ck. No. 7223 payable to Quicker Printing for invoice forms, $336 (not previously recorded). 19 Received check from Fashion Decor, $4,830.65, in payment of account. 22 Issued Ck. No. 7224. S12.540. to Tyson Manufacturing Company, in payment of its invoice no. 926 D. 22 Sold merchandise on account to Fashion Decor, $17.435.32, invoice no. 5223 Comprehe 24 Issued credit memo no 214 to Fashion Decor, $185, for merchandise returned 24 Bought merchandise on account from Kingston Fabrics, $16,536.90, invoice no. D1797, dated February 22, terms 2/10, n/30; FOB Dallas. 26 Recorded the payroll in the payroll register for regular biweekly salaries for period ended February 26. Salaries R W. Harris, $2.840, T. L Newkirk, $2,374. Income tax withholdings are 5287 for Harris and $216 for Newkirk. Note: See the entry of February 12 for taxable earnings limits and tax rates. See the payroll register for this payroll's beginning cumulative earnings. (Continued) CHAPTER 12: FINANCIAL STATEMENTS, CLOSING ENTRIES, AND REVERSING ENTRIES Feb. 26 Recorded the payroll entry, crediting Salaries Payable. 26 Issued Ck No. 7225, $2,335.74. to R. W. Harris. Issued Ck. No. 7226, $1.976,39, to T. L Newkirk. Use two lines and debit Salaries Payable. 26 CK No. 7227 voided. 26 Recorded payroll taxes. Assume the following tax rates and table earning Federal unemployment taxable carnings, 57,000, with a rate of 0.6 percent. State unemployment taxable earnings. 57.000, with a rate of 54 percent. 27 Issued Ck. No. 7228, 51,035, to JIT Freight Line for transportation charge on merchandise purchased from Kingston Fabrics. 28 Issued Ck No. 7229, $155.60, payable to Cash to reimburse the petty cash fund. Petty cash payments consist of Supplies, $130.24, and Miscellaneous Expense, $25.36. 28 Cash sales for February 19 through February 28, 58,986.60 28 Issued Ck No. 7230, 52.290, to Global Rental Agency for monthly rent. 28 M. L. Langdon (owner) withdrew $5,000 for personal use. Ck. No. 7231. Required 1. Journalize and post the transactions completed during February, using either a general journal or special journals or both. (Your instructor will assign you which one(s) to use.) General Journal. Ignore this section if using CLGL a. Post daily all entries involving customer accounts to the accounts receivable ledger. b. Post daily all entries involving creditor accounts to the accounts payable ledger c. Post daily the general journal entries to the general ledger. Special Journals. Ignore this section if using CLGL. a. Post daily the amounts in the Other Accounts columns of the special journals. b. Post dally the general journal c. Post the totals of the special columns of the special journals at the end of the month. 2. Prepare a schedule of accounts receivable and a schedule of accounts payable. 3. Complete the work sheet for February.Ignore this step if using CLGL Data for the month-end adjustments are as follows a-b. Merchandise inventory at February 28, 545,484 c. Salaries accrued at February 28, $2,084. d. Insurance expired during February, $210. e. Depreciation of equipment during February, $1,885. f. Supplies on hand, $100. 4. Journalize the adjusting entries. If using manual Working Papers, post the adjusting entries to the general ledger. 5. Prepare an income statement 6. Prepare a statement of owner's equity. (No additional investment was made during the month.) 7. Prepare a balance sheet. 8. Journalize the closing entries. If using manual Working Papers, post to the general ledger, 9. Prepare a post-closing trial balance. PAGE 12 COMPREHENSIVE REVIEW PROBLEM (General Journal) (concluded) PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 12, 20- TAVALEM DOTTO BEGINS ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL INCOME SECURITY MEDICARE NAME HOURS EARNING EARNING LEARNING MENT SECURITY MEDICARE TAX TAY TAX RIN 30 5.463.00 5,465.00 0.00 0.00 0.00 TL Ninkan 80 4,580.00 4,580.00 0.00 0.00 0.00 10.043 00 0.00 RON 0.00 0.00 0.00 0.00 NO TOTAL 0.00 0.00 0.00 MET AMOUNT 0.00 0.00 0.00 7219 7220 LALARY DSENSE been 0.00 0.00 0.00 0.00 0.00 PAGE 13 NAME Raru TL Mark PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 26, 20- TAXABELLA LACUCHOS BEGANO ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL INCOME SECURITY MEDICARE HOURS LARNING EARNING E EARNINGS MENT SECURITY MEDICARE TAX TAX TAX 50 5,466.00 5,465.00 0.00 2,840.00 2,840.00 50 4,580.00 4,580.00 0.00 0.00 0.00 10,045.00 0.00 0.00 2,840.00 2,840.00 0.00 0.00 0.00 TOTAL 0.00 0.00 0.00 NET AMOUNT W3 2,840.00 0.007226 2,840.00 7225 TALARY COENSE DEN 2,840.00 0.00 2.840.00 LG4 LGS1G6 LG3 LG LGA EGO sch WKSHTI WSHTOE 65 POTBAL PAYROLL Sheet1 Sheet2 for Office are ready to be installed, but first we need to close some apps. Update now fa B D EFT H G 4 5 6 ACCOUNT NAME 7 Cash 8 Per Cash Fund 9 Accounts Receivable 10 Merchandise Inventory 11 Supplies 12 Prepaid Insurance 13 Equipment 14 Accumulated Depreciation Equipment 15 Accounts Payable 16 Employees' Income Tax Payable 17 FICA Social Securin Tax Payable 18 FIC.4 Medicare Tax Parable 19 State Unemployment Tax Payable ## Federal Unemployment Tax Payable 21 M L Langdon Capital ## M L Langdon, Drawing ## Sales TRIAL BALANCE DEBIT CREDIT 13,157.47 70.00 45,552.48 52,640.00 366.24 2,480.00 9.324.00 5,328.00 39,154,10 1,006.00 1,595.48 1.297.60 750.30 111.16 66.047.32 5,000.00 72,358.72 LGS LG7 LG8 L610 LG6 WKSHT1 sch1 WKSHT2 IS Sheet1 OE BS PAYROLL PCTBAL B D E F G H 1,595.48 1,297.60 750.30 111.16 66,047.32 5,000.00 72,358.72 17 FICA Social Security Tax Payable 18 FICA Medicare Tax Payable 19 State Unemployment Tax Payable ## Federal Unemployment Tax Payable 21 M L Langdon, Capital M L Langdon, Drawing Sales ## Sales Returns and Allowances ## Purchases ## Purchases Returns and Allowances ## Purchases Discounts ## Freight In Salaries Expense ## Payroll Tax Expense 31 Rent Expense ## Utilities Expense Miscellaneous Expense 185.00 42,786.90 692.00 478.29 2,435.00 ############### 9,808.00 1,042.95 2.290.00 358.00 25.36 189,013.45 187,326.92 Schl IS WKSHT1 WKSHT2 OE BS PETBAL Sheet1 G3 LG7 PAYROLL LG8 1910 CHAPTER 12 Financial Statements, Closing Entries, and Reversing Entries COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) 2 B ADJUSTMENTS DEBIT CREDIT INCOME STATEMENT DEBIT CREDIT 16 BALANCE SHEET DEBIT CREDIT 13,157.47 70.00 45,552.48 45,484.00 366.24 8 10 (b) 52,640.00 45,484.00 (a) (1) Sheel IS BS WKSHT2 PAYROLL Sheet1 OE PCTBAL WKSHTI GS LGO LG3 LGT sch LGO LG 10 =E13 D E F G H 11 (1) (d) 210.00 366.24 2,270.00 9,324.00 (e) 1,885.00 12 13 1,885.00 14 39,154,10 15 1,006.00 16 1,595.48 17 1,297.60 18 750.30 19 111.16 20 66,047.32 21 22 23 24 5,000.00 72,358.72 185.00 42,786.90 25 26 27 692.00 478.29 OEBS IS POTBAL PAYROLL Sheet1 Sheet WKSHT2 LG6 WKSHTI LGS LG10 Schl LG3 LG7 D F H E G AB 5,000.00 72,358.72 185.00 42,786.90 66,047.32 21 22 23 24 25 26 27 28 692.00 478.29 (c) 2,084.00 11,892.00 29 30 31 2.290.00 32 33 25.36 52,640.00 45,484.00 52,640.00 (b) (c) 210.00 45,484.00 2,084.00 34 35 2,084.0036 37 210.00 (d) Sheet2 WKSHT2 IS BS Sheet1 OE WESHTI PCTOAL PAYROLL D F H E G (d) 210.00 2,270.00 9,324.00 (e) 1,885.00 12 13 1,885.00 14 39,154.10 15 1,006.00 16 1,595.48 12 1,297.60 18 750.30 19 111.16 20 66,047.32 21 22 5,000.00 72,358.72 24 185.00 42,786.90 692.00 478.29 26 27 28 WKSHT2 OE PCTBAL BS PAYROLL Sheet Sheet2 55 Schi LG6 WESHTI G3 LG7 168 1610 G H E 4 B D 26 692.00 478.29 (c) 2,084.00 11,892.00 2,290.00 25.36 27 28 29 30 31 32 33 34 35 2,084.00 36 32 38 39 113,930.9660 7,293.2341 121,224.1922 PAYROLL Sheet1 52,640.00 (b) (c) 210.00 1,885.00 45,484.00 52,640.00 45,484.00 2,084.00 210.00 1,885.00 72,358.72 102,303.00 111,914.26 191,371.73 121,224.19 79.457.47 191,371.73 191,371.73 121,224.19 sch1 WKSHT WKSHT2 IS DE BS PCTBAL (d) (e) () 102,303.00 Sheet2 1 198 LG10 2 D AB E F H G Fabulous Furnishings Income Statement For Month Ended February 28, 20- $72,173.72 $27,844.99 185.00 $27,659.99 Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold: Merchandise Inventory, Feb. 1,20- Purchases Less: Purchases Returns and Allowances Purchases Discounts Net Purchases ALLA LGS LG6 LG3 LG7 LG8 LG10 $52,640.00 $42,786.90 $692.00 478.29 1,170.29 $41,616.61 An WKSHT2 IS BS OE PCTBAL PAYROLL Sheet1 Sch1 WKSHTI G4 ch . F G H $41,616.61 2,435.00 AB D E Net Purchases Add Freight In Delivered Cost of Purchases Cost of Goods Available for Sale Less Merchandise Inventory, Feb. 28, 20- Cost of Goods Sold Gross Profit 44,051.61 $96,691.61 45,484.00 51,207.61 ($23,547.62) Operating Expenses: Salary Expense Payroll Tax Expense Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, LGS LG6 LG3 LG7 LGB $11,892.00 1,042.95 2,290.00 358.00 366.24 210.00 LG4 LG10 Sch1 WKSHTI IS WKSHT2 BS PCTBAL PAYROLL H G F E AB D 2,290.00 358.00 366.24 Rent Expense Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, Equipment Miscellaneous Expense Total Operating Expenses Net Income 210.00 1,885.00 25.36 18,069.55 ######### COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Statement of Owner's Equity For Month Ended February 28, 20- $66,047.32 M. L. Langdon, Capital February 1, 20-- Net Income for February Less Withdrawals for February Decrease in Capital M. L. Langdon, Capital, February 28, 20- (541,617.17) 5,000.00 2,103.44 $63,943.88 15 Sheet2 OE PCTBAL BS PAYROLL Sheets WKSH12 LG6 LGS LG LGS WESHTI 1610 Schi HIZIO A B C D F F 4 5 Balance Sheet February 28, 20- 6 7 Assets 8 9 10 11 12 13 14 Current Assets: Cash Petty Cash Fund Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $13,157.47 70.00 45,552.48 45,484.00 366.24 2,270.00 $106,900.19 15 16 17 18 19 20 Property and Equipment: Equipment Less Accumulated Depreciation Total Assets $ 9,324.00 1,885.00 2,111.00 $109,011.19 LG4 LG LGT LGS LGB LG LGIO Schi WESHTI WESHT IS BS OE PAYROLL Sheet PCTBAL Sheet2 Page 1 of 1 Search et e H E A A B C D Total Assets $109,011.19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Liabilities Current Liabilities: Accounts Payable Employees' Income Tax Payable FICA Social Security Tax Payable FICA Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable Total Liabilities $39,154,10 1,006.00 1,293.08 1,297.60 750.30 111.16 2,084.00 $ 45,696.24 Owner's Equity M. L. Langdon, Capital Total Liabilities and Owner's Equity 63,943.88 $109,640.12 LG LGS LGO LG LOZ LGB LGIO Schi WESHTI WESHT is OE BS PCTUAL PAYROLL Sheet Page 1 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Post-Closing Trial Balance February 28, 20- ACCOUNT NAME Cash Petty Cash Fund Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation, Equipment Accounts Payable Employees' Income Tax Payable CICN Canin CARTAU DALARIA 1.66 LG LG7 LGB LG 10 Schi WKSHTI DEBIT CREDIT 13,157.47 70.00 45,552.48 52,640.00 366.24 2,480.00 9,324.00 5,328.00 39,154.10 1,006.00 ne ne PCTBAL PAYROLL Sheet G4 LG5 WKSHT2 IS BS Sheet2 o G H E 45,552.48 52,640.00 366.24 2,480.00 9,324.00 A B C D Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Employees' Income Tax Payable FICA Social Security Tax Payable FICA Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable M. L. Langdon, Capital 5,328.00 39,154,10 1,006.00 306.26 1,297.60 750.30 111.16 2,084.00 66,047.32 118,564.74 121,110.19 Sheet Sheet2 IS PAYROLL PCTBAL BS WKSHT2 LGTO WESHTE Schi 35 1Gb 13 PEG 168 PAGE 12 VATERE COMPREHENSIVE REVIEW PROBLEM (General Journal) (concluded) PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED February 12 20 TANELLARI DEDICI BEGINNING ENDING FEDERAL SOCIAL TOTAL CUMULATIVE TOTAL CUMULATIV UNEMILOY. SOCIAL WCOME NAME HOURS SECURITY MEDICARE TARNINGI EARNING LEARNINOS MENT SECURITY MEDICARE TAS TAX R. Hamir 50 3.405.00 5,465.00 0.00 0.00 000 IL Nnnkark 30 4.580.00 4,580.00 0.00 0.00 0.00 10.045.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SALANY PONTE TAS TOTAL 0.00 NET AMOURET 0.00 0.00 0.00 OK NO 7219 7220 0.00 0.00 0.00 0.00 0.00 PAGE PAYLINE February 26, 20- UDOTIUNI FEDERAL SOCIAL INCOME BEOUFITY MEDICARE TAX *TAX TAX PAYROLL REGISTER FOR BIWEEKLY PERIOD ENDED YAXALILL LAINE BEGINNING ENDING TOTAL CUMULATIVE TOTAL CUMULATIV UNEMPLOY SOCIAL HOUR EARNING EARNING E EARNING MENT SECURITY MEDICARE 80 5,465,00 6,465.00 0.00 2,840.00 2,840.00 50 4.580.00 4.580.00 0.00 0.00 10.045.00 0.00 0.00 2,840.00 2,840.00 CE NO NAME R Harri TL Merkik TOTAL 0.00 0.00 0.00 NET AMOUNT 2,840.00 0.00 2,840.00 7225 7226 SALARY DIE DEBIT 2,840.00 0.00 2840.00 0.00 0.00 0.00 0.00 164 LGS LG3 LG7 LG LG6 WKSHT Sheet2 PETBAL WISHF2 PAYROLL LG10 SCM 15 OE BS Sheet1 226 Employees Income Tax Payable 227 FICA Social Security Tax Payable CHAPTER 12: FINANCIAL STATEMENTS, CLOSING ENTRIES AND REVERSING ENTRIES Liabilities (200-231) 221 Accounts Payable 20 5 00 228 FICA Medicare Tax Payable 229 State Unemployment Tax Payable 230 Federal Unemployment Tax Payable 231 Salaries Payable Owner's Equity (300-399) 311 M. L Langdon. Capital 312 M. L Langdon, Drawing 313 Income Summary Revenue (400-499) Cost of Goods Sold (500-999) 511 Purchases 512 Purchases Returns and Allowances 513 Purchases Discounts 514 Freight in Expenses (600-699 611 Salaries Expense 612 Payroll Tax Expense 613 Rent Expense 614 Utilities Expense 616 Supplies Expense 617 Insurance Expense 00 411 Sales 618 Depreciation Expense, Equipment 619 Miscellaneous Expense 412 Sales Returns and Allowances ts JOURNALS Sales Journal, page 65 Purchases Journal, page 65 Cash Receipts Journal, page 66 Cash Payments Journal, page 67 General Journal, pages 68-71 "If using Working Papers, reference the journal page numbers listed above. ACCOUNTS RECEIVABLE Fashion Decor Hotel Beritz Jason and Waldon ACCOUNTS PAYABLE Brandon, Inc. Kingston Fabrics Magnuson Textiles Tyson Manufacturing Company ary of your Eeting th. TRANSACTIONS The following transactions were completed during February of this year. Fabulous Furnishings does not track cash sales by customer. If you are using CLGL. select "Cash Sales" as the customer for all cash sales transactions Feb. 1 Reversed the adjusting entry for accrued salaries, 5620. 1 Sold merchandise on account to Hotel Beritz. $12,520.86, invoice no. 5221 2 Issued Ck No 7216, S16,593.46, to Kingston Fabrics, in payment of its Invoice no. 01739 for $16,932.10 less 2 percent discount 3 Bought merchandise on account from Magnuson Textiles 54.874.80, invoice no RE275, dated February 2; terms 1/10, 1/30, FOB Louwville: freight (Continued prepaid and added to the invoice, $158. PART 3: The Accounting Cycle for a Merchandising Business Feb. 5 Received an electric bill and paid Countywide Power, Ck. No, 7217, 5358. 6 Received check from Jason and Waldon, $10,780.51, in payment of account. 7 Issued Ck No. 7218, 89,684. 18. to Magnuson Textiles, in payment of its invoice no RE64 for $9.782 less 1 percent discount. 9 Cash sales for February 1 through February 9, 89.745.40. 12 Recorded the payroll in the payroll register for regular biweekly salaries for period ended February 12. Salaries R. W. Harris, $2.840; T. L. Newkirk, $2,374. Income tax withholdings are 5287 for Harris and $216 for Newkirk. Assume the following tax rates and taxable earnings limits (see the payroll register for beginning cumalative earnings in your Working Papers. This information is also provided in CengageNow, or CLGL): Social Security taxable earnings, $118,500, with a rate of 6.2 percent for employees and 6.2 percent for employers. Medicare taxable earnings, all earnings, with a rate of 1.45 percent (for both employees and employers). 12 Recorded the payroll entry, crediting Salaries Payable. 12 Issued Ck. No 7219. $2.335.74, to R. W. Harris. Issued Ck. No. 7220, $1,976.39, to TL Newkirk 12 Recorded payroll taxes. Assume the following tax rates and taxable earnings: Federal unemployment taxable earnings, $7,000, with a rate of 0.6 percent. State unemployment taxable earnings, 57,000, with a rate of 5.4 percent 12 Received a credit memo from Magnuson Textiles for defective merchandise, 5692. credit memo no. 916. 14 Issued Ck. No. 7221, $2.900.80, to Mid-State Bank for monthly deposit of January employees' federal income tax withheld, 51,285, FICA Social Security tax, $1,309.54 and FICA Medicare tax, $306.26. 14 Sold merchandise on account to Jason and Waldon, $15.781.30, invoice no. 5222 14 Issued Ck. No. 7222, 84.298.97. to Magnuson Textiles, in payment of its invoice no RE275 less the credit memo for defective merchandise and less the discount. 18 Bought merchandise on account from Brandon, Inc., $21,375.20, invoice no. 164M, dated February 14: terms 2/10, n/30, FOB Miami; freight prepaid and added to the invoice, S1,242. 18 Cash sales for February 10 through February 18, 57,889.24. 19 Issued Ck. No. 7223 payable to Quicker Printing for invoice forms, $336 (not previously recorded). 19 Received check from Fashion Decor, $4,830.65, in payment of account. 22 Issued Ck. No. 7224. S12.540. to Tyson Manufacturing Company, in payment of its invoice no. 926 D. 22 Sold merchandise on account to Fashion Decor, $17.435.32, invoice no. 5223 Comprehe 24 Issued credit memo no 214 to Fashion Decor, $185, for merchandise returned 24 Bought merchandise on account from Kingston Fabrics, $16,536.90, invoice no. D1797, dated February 22, terms 2/10, n/30; FOB Dallas. 26 Recorded the payroll in the payroll register for regular biweekly salaries for period ended February 26. Salaries R W. Harris, $2.840, T. L Newkirk, $2,374. Income tax withholdings are 5287 for Harris and $216 for Newkirk. Note: See the entry of February 12 for taxable earnings limits and tax rates. See the payroll register for this payroll's beginning cumulative earnings. (Continued) CHAPTER 12: FINANCIAL STATEMENTS, CLOSING ENTRIES, AND REVERSING ENTRIES Feb. 26 Recorded the payroll entry, crediting Salaries Payable. 26 Issued Ck No. 7225, $2,335.74. to R. W. Harris. Issued Ck. No. 7226, $1.976,39, to T. L Newkirk. Use two lines and debit Salaries Payable. 26 CK No. 7227 voided. 26 Recorded payroll taxes. Assume the following tax rates and table earning Federal unemployment taxable carnings, 57,000, with a rate of 0.6 percent. State unemployment taxable earnings. 57.000, with a rate of 54 percent. 27 Issued Ck. No. 7228, 51,035, to JIT Freight Line for transportation charge on merchandise purchased from Kingston Fabrics. 28 Issued Ck No. 7229, $155.60, payable to Cash to reimburse the petty cash fund. Petty cash payments consist of Supplies, $130.24, and Miscellaneous Expense, $25.36. 28 Cash sales for February 19 through February 28, 58,986.60 28 Issued Ck No. 7230, 52.290, to Global Rental Agency for monthly rent. 28 M. L. Langdon (owner) withdrew $5,000 for personal use. Ck. No. 7231. Required 1. Journalize and post the transactions completed during February, using either a general journal or special journals or both. (Your instructor will assign you which one(s) to use.) General Journal. Ignore this section if using CLGL a. Post daily all entries involving customer accounts to the accounts receivable ledger. b. Post daily all entries involving creditor accounts to the accounts payable ledger c. Post daily the general journal entries to the general ledger. Special Journals. Ignore this section if using CLGL. a. Post daily the amounts in the Other Accounts columns of the special journals. b. Post dally the general journal c. Post the totals of the special columns of the special journals at the end of the month. 2. Prepare a schedule of accounts receivable and a schedule of accounts payable. 3. Complete the work sheet for February.Ignore this step if using CLGL Data for the month-end adjustments are as follows a-b. Merchandise inventory at February 28, 545,484 c. Salaries accrued at February 28, $2,084. d. Insurance expired during February, $210. e. Depreciation of equipment during February, $1,885. f. Supplies on hand, $100. 4. Journalize the adjusting entries. If using manual Working Papers, post the adjusting entries to the general ledger. 5. Prepare an income statement 6. Prepare a statement of owner's equity. (No additional investment was made during the month.) 7. Prepare a balance sheet. 8. Journalize the closing entries. If using manual Working Papers, post to the general ledger, 9. Prepare a post-closing trial balance
