Part One Instructions 1. Record the September 2021 transactions, journal entries, in an Excel Spreadsheet. An example of an Excel spreadsheet follows the transactions below. No explanation is required for the journal entries. Instead of recording the names of the accounts use the corresponding account numbers in the chart of accounts. Prepare the journal entries as shown in an Excel Spreadsheet following the transactions below. Once you have written all the journal entries in the Excel Spreadsheet you will use the spreadsheet to enter the information into Blackboard for a grade. Once you are finished entering the journal entries into Blackboard you will bring the Excel spreadsheet to class on the Monday following the due date. Here are the instructions: Step 1: Write the journal entries in an Excel spreadsheet Step 2: Use the Excel spreadsheet to answer the questions in Blackboard in the content folder in the corresponding week. Step 3: Once you complete entering all information into Blackboard, print out the spreadsheet and turn it in Transactions Date Deposit No. Description / Check No. 9/02/21 Ted Edwards met with his lawyer and CPA for advice on starting the business. They decided that Mr. Edwards would organize the business as a corporation. The lawyer told Mr. Edwards to register the company name, Teddy's Bears & Balloons, with the County of El Paso. In addition, Mr. Edwards will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the Comptroller of Public Accounts. 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 Mr. Edwards set up his accounting system. 2. 9/02/21 Deposit #1 Mr. Edwards opened a business checking account at Wells Fargo Bank by depositing $20,000. The corporation issued him a stock certificate for 20,000 shares of common stock at $1 par value. 3. 9/03/21 Ck #1001 Mr. Edwards signed a one-year rental agreement with RIA Realtors for store space. He was required to pay $2,800 for rent for the months of September 1, 2021 - December 31, 2021 9/03/21 Ck #1002 Arranged for a general business liability insurance policy and paid $600 to State Farm Insurance. This premium is for six months coverage. 4. 5. 9/03/21 6. . 9/05/21 Deposit #2 7. 9/05/21 Ck #1003 . 8. 9/06/21 Ck #1004 Purchased a new computer system that cost $4,800 from Office Mart for use in the business. Mr. Edwards 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 $600. 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 $5,000 from Western Bank Interest is 6% annually and the note is to be repaid with interest in six months. Only record the receipt of the note. Interest will be recorded as an adjusting journal entry. Purchased display shelves for $6,000 from Office Furniture Liquidators. The estimated service life of these assets is 10 years. The residual (salvage) value is $0. These items will be recorded as Office Fixtures and depreciated accordingly using the Straight-Line of Depreciation. Only record the purchase of the shelves. Depreciation will be an adjusting entry. Arranged for Eastside Movers to make the delivery and installation of the computer system and the shelves and paid the invoice of $360. Half of this charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment and the other half to the display shelves Paid $500 of office supplies using cash from Ace Office Supplies. Purchased $6,200 of merchandise inventory-bears from Betty's Bears on account. The invoice number was SG3040. The vendor extended credit terms of 2/15, n/30. Purchased $900 of merchandise inventory-balloons from Brenda's Balloons on account. The vendor extended credit terms which are 2/15 n/30. (The invoice number was GG2001.) Mr. Edwards received and paid the $800 charge from his lawyer for the work to set up the business. Teddy's Bears and Balloons 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. Mr. Edwards will allow major customers to charge their purchases on account. Ck #1005 9. 9/06/21 10. 9/08/21 11. 9/08/21 12. 9/13/21 Ck #1006 13. 9/14/21 14. 9/14/21 15. 9/14/21 16. 9/14/21 17, 9/16/21 Deposit #3 18. 9/20/21 Ck #1007 19. 9/22/21 20. 9/23/21 Deposit #4 21. 9/23/21 Ck #1008 Sold merchandise that cost $2,000 to Pedro's Party Planners on account for $4,000. The cost of the bears $1,700, the cost of the balloons $300. $330 of sales tax was recorded. (Invoice number A1021) Purchased 5300 of ribbon and other supplies from Floral Fantasyon account. Purchased additional bears from Betty's Bears on account, invoice number SG0610, for $5,500. Credit terms were 2/15, n/30. Recorded cash sales for the first five days of operation. Sales totaled $6,000, sales tax collected $495. A total of $6,495 in cash was deposited in the bank. The cost of the merchandise sold was $4,200 (bears were $3,900; balloons $300). Received and paid the $300 invoice number A1021 for ribbon and supplies purchased on 9/14/2021. Mr. Edwards participated in a weekend arts/crafts fair at the mall. He felt that this was a good way to publicize his new business. Received payment in full from Pedro's Party Planners. The payment was deposited in the bank. The mall charged $300 for the use of their space for the fair. Mr. Edwards considers this an advertising expense. Mr. Edward paid the bill. Paid invoice number GG2001 from Brenda's Balloons, Cash sales for the month totaled $7,000. Sales tax on the sale is $578. The cost of the merchandise sold was $4,200 (bears $4,000 and balloons $200) Paid the balance to Betty's Bears. There are two invoices Paid $400 for fliers, posters and business cards. This is considered prepaid advertising Received but did not pay the utility bill for the month, $120. Paid the first monthly installment on the computer equipment. The payment amount is $848. Of this amount, $48 is for interest and $800 is for principal. Make the check payable to Office Mart. Recorded cash sales for the last week of the month. Sales of $3,400 were deposited. The cost of the merchandise sold was $1,200 for the bears; and balloons were $50. Sales tax collected is $280. Paid all sales tax owed for September to the Comptroller of Public Accounts Declared and paid a cash dividend of $200 to Ted Edwards. 22. 9/23/21 23. 9/23/21 Ck #1009 Deposit #5 24. 9/23/21 25. 9/23/21 Ck #1010 Ck #1011 26. 9/25/21 27. 9/30/21 Ck #1012 28. 9/30/21 Deposit #6 29. 9/30/21 Ck #1013 30. 9/30/21 Ck #1014 Chart of Accounts: use the account numbers listed below in the journal entries. Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends Current Assets 10000 Cash 11000 Accounts Receivable 12000 Inventory.Bears 12100 Inventory.Balloons 13100 Office Supplies 13200 Ribbon Supplies 14000 Prepaid Rent 14100 Prepaid Insurance 14200 Prepaid Advertising Revenue 40000 Sales Long-Term Assets 15000 Computer Equipment 17000 Accumulated Depreciation -Computer Equipment 15100 Office Fixtures 17100 Accumulated Depreciation Office Fixtures Expenses 50000 60100 60150 60200 60300 60350 60400 60500 60550 60600 60650 Cost of Goods Sold Legal Expense Office Supplies Expense Ribbon Supplies Expense Insurance Expense Wages Expense Credit Card Expense Advertising Expense Utility Expense Rent Expense Depreciation Expense-Computer Equipment Depreciation Expense-Office Fixtures Interest Expense Bank Service Fee 60675 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 60700 60750 Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable Blackboard Instructions: When preparing the Excel Spreadsheet below do NOT include a transaction number column. In Blackboard, there will be one box to enter the information so this is the format: Dr, Account No., Dollar Amount, Cr, Account No., Dollar Amount. You will only see one box and you will enter the journal entry into the box on one row and it will go to the next row by itself. Put one space in between each item as shown here. It will ask the question what is the journal entry for transaction #1, #2, #3 etc. and you would enter the journal entry as shown here. This is how it will look in Blackboard. Notice that there is no period after Drand Cr and all dollar amounts contain cents, Dr 10000 $35,000.00 Cr 39003 $35,000.00 Dr 11000 $10,500.00 Cr 23300 $500.00 Cr 40000 $10,000.00 Dr 50000 $5,000.00 Cr 12000 $2,500.00 Cr 12100 $2,500.00 NO JE Entering the information into an Excel Spreadsheet can be done with or without the gridlines as shown below. Using the information above Example #1 is where there is one debit and one credit. Example #2 shows you how to enter a Sale and the COGS and Inventory amount. *Notice how the smaller account number is entered first when there is more than one debitor credit. (Account number 23300 is smaller than account number 40000 when both are credits and the same for 12000 and 12100.) Also notice that the sale transaction has two entries, the sale and the inventory, and must be entered into BB exactly as specified below. Example #3 shows what to do if there is No Journal Entry. You can enter the transaction # in the Excel spreadsheet to help you but DO NOT enter the transaction number into the journal entry when entering the information into Blackboard or it will be counted wrong. Once all answers are entered into Excel then print out the Excel spreadsheet and turn it in. 1. 10000 $35,000.00 Cr 39003 $35,000.00 2. 11000 $10,500.00 Cr 23000 $500.00 Cr 40000 $10,000.00 Dr 50000 $5,000.00 12000 $2,500.00 Cr 12100 $2,500.00 3 NO JE 7 Page