Part Two Instructions The following are the adjusting journal entries for the month of September using the same format as given above. Before you prepare the ten adjusting journal entries below in an Excel spreadsheet please make sure corrections have been made to any previous journal entries. The following are the adjusting journal entries for the month of September. Record all adjusting entries with the date September 30, 2021. Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in a new Excel Spreadsheet. Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries after the original journal entries. Round all answers to the nearest cent. a. $300 of supplies remained on hand. b. $75 of ribbon supplies remained on hand. c. $200 of prepaid advertising remains on hand d. $900 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. e. Make the necessary adjusting entries for one month's depreciation for the fixtures and shelves using Straight Line Deprecia Make the necessary adjusting entry one month's depreciation for the computer equipment using Straight Line Depecon. 8. One month of the prepaid insurance has expired. h. One month of the prepaid rent has expired. i. Record the interest for the loan 1. The interest on the computer has been recorded in journal entry #27 f. Follow the same instructions for the adjusting journal entries that you did in part one. Once the adjusting entries have been completed in the spreadsheet use the spreadsheet to answer the questions in Blackboard then print out the Spreadsheet and turn it in. Step 1: Write the adjusting journal entries in an Excel spreadsheet Step 2: Use the Excel spreadsheet to answer the questions in Blackboard Step 3: Once you complete entering information print out the Spreadsheet and turn in the assignment Transactions Date Deposit No. Check No. Description 1. 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. 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. 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 Arranged for a general business liability insurance policy and paid $600 to State Farm Insurance. This premium is for six months coverage. 2. 9/02/21 Deposit #1 3. 9/03/21 Ck #1001 - 4. 9/03/21 Ck #1002 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 syem and the shelves and paid the invoice of $360. Half of the targe 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, 1/30. 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 $300 of ribbon and other supplies from Floral Fantasy on 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. Ck #1009 22. 23. 9/23/21 9/23/21 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