Please answer and full within the template that is provided. Thank you Required 1. Assume that Lynn Addie is an unmarried employee. Her $ 1,000 of wages are subject to no deductions other than FICA Social security taxes. FICA Medicare taxes and federal income taxes. Her federal income taxes for this pay period total $ 159. Compute her net pay for the eight days? work paid on February 26. (Round to the nearest cent.) 2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. 3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and STUA?the FUTA rate is 0.8% and the SUTA rate is 4% for Success Systems. (Round amounts to the nearest cent.) 4. Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies. 
SP 11, SUCCESS SYSTEMS 1. Gross Pay ( 8 days x $125/day................................................. FICA Social Security Tax deduction (6.2%) FICA Medicare Tax Deduction (1.45%) Income Tax Deduction Total Deductions 1,000.00 62.00 14.50 159.00 235.50 Net Pay $764.50 Debit 2. Debit 3. 2010 Feb. 26 Payroll Tax Expense.............................................. FICA- Social Security Tax Payable.................. FICA- Medicare Taxes Payable---------------------State Unemployment Taxes Payable* Federal Unemployment Taxes Payable.** To record employer payroll taxes. Computation: * 1,000 x.04= **1,000 x.008= 4. Credit Credit 2010 Feb. 26 Wages Expense..................................................... FICA- Social Security Tax Payable.................. FICA- Medicare Taxes Payable---------------------Employee Federal Income Tax Payable.......... Cash........................................................... To record payroll period. 2010 March 25 Accounts Receivable- Wildcat Services Sales Sales Taxes Payable Sold merchandise on credit and collected sales tax of 4%. March 25 Cost of Goods Sold Merchandise Inventory To record cost of March 25 sale. SP 5 REQUIRED: (1) PREPAID JOURNAL ENTRIES TO RECORD EACH OF THE JANUARY THROUGH MARCH TRANSACTIONS. (2) POST JOURNAL ENTRIES IN PART 1 TO GENERAL LEDGER. (BEGIN WITH THE LEDGER POST CLOSING ADJUSTED BALANCES AS OF DECEMBER 31, 200 (3) PREPARE A PARTIAL WORKSHEET CONSISTING OF THE FIRST SIX COLUMNS (4) PREPARE AN INCOME STATEMENT (5) PREPARE A STATEMENT OF OWNER'S EQUITY (6) PREPARE A CLASSIFIED BALANCE SHEET DATE 1/4/2009 1/5/2009 1/7/2009 1/9/2009 1/11/2009 1/13/2009 1/13/2009 1/15/2009 1/16/2009 1/17/2009 1/20/2009 1/22/2009 1/24/2009 1/26/2009 1/26/2009 1/26/2009 CODE 623 210 101 PR DEBIT CREDIT 125 500 625 101 301 Cash Lopez Capital Additional investment by owner 119 201 Merchandise Inventory Accounts Payable-Kansas Purchased merchandise on credit. 5,800 101 106.6 Cash Accounts Receivable- Gomez Co Collected accounts receivable. 2,668 106.1 236 403 Accounts Receivable- Alex Engineering Co. Unearned Computer Services Revenue Computer Services Revenue Completed work on project. 5,500 1,500 106.5 413 Accounts Receivable- Liu Corporation Sales Sold merchandise on credit. 5,200 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Jan 13 sale. 3,560 119 101 Merchandise Inventory Cash Paid freight on incoming merchandise. 600 101 403 Cash Computer Services Revenue Collected cash revenue from customer 4,000 201 119 101 Accounts Payable- Kansas Merchandise Inventory Cash Paid accounts payable within discount period. Discount taken= $5,800 x.01- $58.00 5,800 414 106.5 Sales Returns and Allowances Accounts Receivable- Liu Customer returned defective goods. 101 415 106.5 Cash Sales Discounts Accounts Receivable- Liu Collected accounts receivable: January 13 Sale...........$5,200 January 20 return....... 500 Amount due Liu.... $4,700 Discount at 1%....... 47 Cash received fr Liu 4,653 25,000 25,000 5,800 2,668 7,000 5,200 3,560 600 4,000 58 5,742 500 500 4,653 47 4,700 201 119 Accounts Payable-Kansas Merchandise Inventory Returned merchandise for credit/. 119 201 Merchandise Inventory Accounts Payable-Kansas Purchased merchandise for resale. 9,000 106.8 413 Accounts Receivable- KC Inc Sales Sold merchandise on credit. 5,800 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Jan 26 sale. 4,640 1/29/2009 1/31/2009 ACCOUNT TITLE & EXPLANATION Wages Expense Wages Payable Cash Paid employee 496 496 9,000 5,800 4,640 No entry recorded in the journal. 623 101 Wages Expense Cash Paid employee 1,250 1,250 86,639 86,639 SP 5 REQUIRED: (1) PREPAID JOURNAL ENTRIES TO RECORD EACH OF THE JANUARY THROUGH MARCH TRANSACTIONS. (2) POST JOURNAL ENTRIES IN PART 1 TO GENERAL LEDGER. (BEGIN WITH THE LEDGER POST CLOSING ADJUSTED BALANCES AS OF DECEMBER 31, 2007 (3) PREPARE A PARTIAL WORKSHEET CONSISTING OF THE FIRST SIX COLUMNS (4) PREPARE AN INCOME STATEMENT (5) PREPARE A STATEMENT OF OWNER'S EQUITY (6) PREPARE A CLASSIFIED BALANCE SHEET DATE 2/1/2009 2/3/2009 2/5/2009 2/11/2009 2/15/2009 2/23/2009 2/23/2009 2/26/2009 2/27/2009 CODE 131 101 ACCOUNT TITLE & EXPLANATION Prepaid Rent Cash Paid three month's rent in advance. 201 119 101 Accounts Payable Merchandise Inventory Cash Paid accounts payable within discount period. January 26 purchase $9,000 Less credit allowed (496) Accounts Payable- Kansas $8,504 Less discount 1% x9,000 (90) Amount due Kansas Corp. $8,414 655 101 Advertising Expense Cash Purchased ad in local newspaper. 101 106.1 PR DEBIT 2,475 CREDIT 2,475 8,504 90 8,414 600 600 Cash Accounts Receivable- Alex Engineering Co. Collected accounts receivable 5,500 A. Lopez, Withdrawals Cash Paid cash withdrawals 4,800 Accounts Receivable- Delta Sales Sold merchandise on credit 3,220 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Feb, 23 sale 2,660 623 101 Wages Expense Cash Paid employee 1,000 676 101 Mileage Expense Cash Reimbursed Lopez for business mileage 302 101 106.7 413 5,500 4,800 3,220 2,660 1,000 192 192 28,951 28,951 SP 5- ACCOUNTING FOR MERCHANDISING OPERATIONS PART 1 DATE ACCOUNT TITLE & EXPLANATION 3/8/2009 Computer Supplies Accounts payable Purchased supplies on credit. 3/9/2009 Cash Accounts receivable - Delta Collected Accounts Receivable CODE PR DEBIT 126 201 2,730 101 106.7 CREDIT 3,220 2,730 3,220 3/11/2009 Repairs Expense - Computer Cash Paid for computer repairs. 684 101 960 3/16/2009 Cash Computer Services Revenue Collected cash revenue from customer. 101 403 5,260 3/19/2009 Accounts Payable Cash Paid accounts payable (1,100 + 2,730.) 201 101 3,830 3/24/2009 Computer Services Revenue Accounts Receivable - Easy Leasing Billed customer for services 403 106.3 8,900 3/25/2009 Accounts Receivable - Wildcat Services Sales Sold merchandise on account. 106.2 413 2,800 502 119 2,002 106.4 413 2,220 3/30/2009 Cost of goods sold Merchandise Inventory To record cost of March 30 Sale. 502 119 1,100 3/31/2009 Milage Expense Cash Reimbursed Lopez for business mileage. 676 101 128 3/25/2009 Cost of Good Sold Merchandise Inventory 3/30/2009 Accounts Receivable - IFM Company Sales Sold merchandise on account. 960 5,260 3,830 8,900 2,800 2,002 2,220 1,100 128 33,150 33,150 PART 2 GENERAL LEDGER CASH DAT E 31-Dec Jan. DESCRIPT ION Balance PR Account No. 101 DEBIT 4 Wages Expense 5 Lopez Capit al 9 Gomez Payment 15 Freight Charges 16 Delt a Revenue CREDIT 25000 2668 4 000 84 603 88603 574 2 82861 87514 4 653 31 Wages Expense 1 Prepaid Rent 3 Paid Kansas 1250 24 75 84 14 5 Advert ising 11 Comput er Repairs 9 Delt a payment 11 Comput er Repairs 74 775 80275 754 75 74 4 75 74 283 3220 900 16 Dream Revenue 19 Paid Harris 31 Milage Expense 5260 77503 784 03 3830 128 GENERAL LEDGER Account s Receivable- Alex's Engineering Company DAT E DESCRIPT ION PR Dec 31 Balance Jan 11 Billed Feb 11 Received Balance due DEBIT DAT E DESCRIPT ION PR Dec. 31 Balance Mar 25 Sold merchandise CREDIT 5 500 5500 DEBIT CREDIT 0 2800 DEBIT DEBIT 0 8900 CREDIT 2200 CREDIT 5200 500 4 700 CREDIT CREDIT 3220 3220 DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 5800 3560 600 58 4 96 9000 4 64 0 90 2660 2002 1100 PR CREDIT 580 3310 2730 Account No. 128 BALANCE DEBIT CREDIT 1665 PR Account No. 131 BALANCE DEBIT CREDIT 825 3300 24 75 GENERAL LEDGER Office Equipment PR Account No. 163 BALANCE DEBIT CREDIT 8000 GENERAL LEDGER Accumulat ed Depreciat ion-Office Equipment PR DEBIT Account No. 164 BALANCE CREDIT 4 00 GENERAL LEDGER Comput er Equipment PR Account No. 167 BALANCE DEBIT CREDIT 20000 GENERAL LEDGER Accumulat ed Depreciat ion-Comput er Equipment DAT E DESCRIPT ION Dec 31 Balance PR DEBIT Account No. 168 BALANCE CREDIT 1250 GENERAL LEDGER Account s Payable DAT E DESCRIPT ION PR Dec 31 Balance Jan 7 17 24 26 Feb 3 Mar 8 supplies 19 Paid balance Harris Account No. 201 BALANCE DEBIT CREDIT 5800 5800 4 96 9000 8504 2730 3830 GENERAL LEDGER Wages Payable DAT E DESCRIPT ION Dec 31 Balance Jan 4 PR CREDIT 500 0 500 PR DEBIT Account No. 236 BALANCE CREDIT 1500 0 1500 GENERAL LEDGER A. Lopez Capit al DAT E DESCRIPT ION Dec 31 Balance Jan 5 PR DEBIT Account No. 301 BALANCE CREDIT 25000 GENERAL LEDGER A. Lopez Capit al DAT E DESCRIPT ION Feb 15 Balance PR DEBIT PR DEBIT PR PR DEBIT CREDIT 500 PR DEBIT CREDIT 47 DESCRIPT ION PR DEBIT CREDIT 3560 4 64 0 2660 2002 1100 DEBIT 47 Account No. 502 BALANCE GENERAL LEDGER Depreciat ion Expense- Office Equipment DAT E 500 Account No. 4 15 BALANCE GENERAL LEDGER Cost of Goods Sold DAT E DESCRIPT ION Jan 13 26 Feb 23 Mar 25 30 5200 11000 14 220 17020 1924 0 Account No. 4 14 BALANCE GENERAL LEDGER Sales Discount s DAT E DESCRIPT ION Jan 22 7000 11000 16260 25160 Account No. 4 13 BALANCE CREDIT 5200 5800 3220 2800 2220 GENERAL LEDGER Sales Ret urns and Allowances DAT E DESCRIPT ION Jan 20 4 800 Account No. 4 03 BALANCE CREDIT 7000 4 000 5260 8900 GENERAL LEDGER Sales DAT E DESCRIPT ION Jan 13 26 Feb 23 Mar 25 Wildcat Services 30 IFM Co. 9014 8 11514 8 Account No. 302 BALANCE DEBIT CREDIT 4 800 GENERAL LEDGER Comput er Services Revenue DAT E DESCRIPT ION PR Jan 11 16 Mar 16 Cash from Dream Inc Mar 24 Easy Leasing revenue 1100 6900 1100 604 9604 1100 3830 0 0 Account No. 210 BALANCE DEBIT GENERAL LEDGER Unearned Comput er Services Revenue DAT E DESCRIPT ION Dec 31 Balance Jan 11 0 5800 224 0 284 0 2782 2286 11286 664 6 6556 3896 1894 794 Account No. 126 BALANCE DEBIT GENERAL LEDGER Prepaid Rent DAT E DESCRIPT ION Dec 31 Balance DEBIT Account No. 119 BALANCE GENERAL LEDGER Prepaid Insurance DAT E DESCRIPT ION Dec 31 Balance BALANCE Account No. 106.9 Comput er Supplies DAT E DESCRIPT ION PR Dec 31 Balance MAR 8 purchased supplies DAT E DESCRIPT ION Dec 31 Balance 0 3220 0 0 0 0 0 DAT E DESCRIPT ION PR Dec 31 Balance Jan 7 purchase 13 ret ail cost 15 freight cost 17 Kansas 24 ret urn 26 sold merchandise 26 cost of goods sold Feb 3 23 Mar 25 sold merchandise 30 sold merchandise DAT E DESCRIPT ION Dec 31 Balance Feb. 1 Hillside Mall BALANCE 0 5800 5800 GENERAL LEDGER Merchandise Invent ory DAT E DESCRIPT ION Dec 31 Balance BALANCE 2668 0 0 Account No. 106.8 GENERAL LEDGER Account s Receivable- Dream Inc PR 0 5200 4 700 0 Account No. 106.7 DEBIT GENERAL LEDGER Account s Receivable-KC Inc DAT E DESCRIPT ION Dec 31 Balance BALANCE Account No. 106.6 DEBIT GENERAL LEDGER Account s Receivable- Delt a DAT E DESCRIPT ION PR Dec 31 Balance Jan 26 Merchandise on credit BALANCE 3000 5200 Account No. 106.5 DEBIT 2 668 DAT E DESCRIPT ION PR Dec 31 Balance Feb 23 merchandise on credit Mar 9 Paid BALANCE Account No. 106.4 GENERAL LEDGER Account s Receivable- Gomez Corp. PR BALANCE Account No. 106.3 CREDIT 8900 GENERAL LEDGER Account s Receivable- Liu DAT E DESCRIPT ION PR Dec 31 Balance Jan 13 Merchandise on credit 20 Ret urn 22 Money owed 0 5500 0 0 2800 GENERAL LEDGER Account s Receivable- IFM Corporat ion DAT E DESCRIPT ION PR Dec. 31 Balance Mar 30 Merchandise on credit BALANCE Account No. 106.2 GENERAL LEDGER ACCOUNT S RECEIVABLE- Easy Leasing DAT E DESCRIPT ION PR Dec. 31 Balance Mar 24 Billed for services 83663 79833 79705 Account No. 106.1 GENERAL LEDGER ACCOUNT S RECEIVABLE- Wildcat DAT E DESCRIPT ION Dec 31 Balance JAN 9 Paid 86264 83789 75375 600 4 800 1000 192 5500 15 Lopez Wit hdrawl 26 Wages Expense 27 Milage Expense Mar 57535 82535 85203 600 17 Paid Kansas 22 Lui payment Feb. BALANCE 58160 625 3560 8200 10860 12862 13962 Account No. 612 BALANCE CREDIT 0 0 0 0 0 GENERAL LEDGER Depreciat ion Expense- Comput er Equipment DAT E DESCRIPT ION PR DEBIT Account No. 613 BALANCE CREDIT 0 0 0 0 0 Wages Expense DAT E Jan Feb DESCRIPT ION PR 4 31 26 Account No. 623 BALANCE DEBIT CREDIT 125 1250 1000 Insurance Expense DAT E DESCRIPT ION DAT E DESCRIPT ION DAT E DESCRIPT ION PR Account No. 637 BALANCE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Rent Expense PR Account No. 64 0 BALANCE Comput er Supplies Expense PR Account No. 652 BALANCE Advert ising Expense DAT E Feb DESCRIPT ION PR 5 Account No. 655 BALANCE DEBIT CREDIT 600 Mileage Expenses DAT E DESCRIPT ION Feb 27 Mar 31 PR DESCRIPT ION PR PR 192 320 Account No. 677 BALANCE DEBIT CREDIT Repairs Expense DAT E DESCRIPT ION Mar 11 600 Account No. 676 BALANCE DEBIT CREDIT 192 128 Miscellenous DAT E 125 1375 2375 Account No. 684 BALANCE DEBIT CREDIT 920 920 Success Systems Partial WorkSheet March 31, 2010 Unadjusted Trial Balance 101 Cash 106.1 Accounts Receivable- Alex Engineering 106.2 Accounts Receivable- Wildcat Services 106.3 Accounts Receivable- Easy Leasing 106.4 Accounts Receivable- IMF Company 106.5 Accounts Receivable- Liu Company 106.6 Accounts Receivable- Gomez Company 106.7 Accounts Receivable- Delta Company 106.8 Accounts Receivable- K C, Inc. 106.9 Accounts Receivable- Dream Inc. 119 Merchandise Inventory 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 164 Accumulated Depreciation- Office Equipment 167 Computer Equipment 168 Accumulated Depreciation- Computer Equipment 201 Accounts Payable 210 Wages Payable 236 Unearned computer Services Revenue 301 A. Lopez, Capital 302 A. Lopez, Withdrawals 403 Computer Services Revenue 413 Sales 414 Sales Returns and Allowances 415 Sales Discounts 502 Cost of Goods Sold 612 Depreciation Expense- Office Equipment 613 Depreciation Expense- Computer Equipment 623 Wages Expenses 637 Insurance Expense 640 Rent Expense 652 Computer Supplies Expense 655 Advertising Expense 676 Mileage Expense 677 Miscelleneous Expense 684 Repairs Expense- Computer Debit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 0.00 5,800.00 0.00 794.00 3,310.00 1,665.00 3,300.00 8,000.00 Credit Debit Adjustments Credit g a b d f 400.00 90.00 1,305.00 555.00 2,475.00 400.00 20,000.00 1,250.00 0.00 0.00 0.00 115,148.00 e 1,250.00 c 875.00 4,800.00 25,160.00 19,240.00 500.00 47.00 13,962.00 0.00 0.00 2,375.00 0.00 0.00 0.00 600.00 320.00 0.00 960.00 161,198.00 g f e c b d a 161,198.00 90.00 400.00 1,250.00 875.00 555.00 2,475.00 1,305.00 $6,950.00 $6,950.00 Adjusted Trial Balance Debit Credit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 0.00 5,800.00 0.00 704.00 2,005.00 1,110.00 825.00 8,000.00 800.00 20,000.00 2,500.00 0.00 875.00 0.00 115,148.00 4,800.00 25,160.00 19,240.00 500.00 47.00 14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 0.00 960.00 $163,723.00 NET INCOME $163,723.00 Income Statement- P& L Debit Credit Balance Sheet Debit Credit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 5,800.00 0.00 704.00 2,005.00 1,110.00 825.00 8,000.00 800.00 20,000.00 2,500.00 0.00 875.00 0.00 115,148.00 4,800.00 25,160.00 19,240.00 500.00 47.00 14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 0.00 960.00 $25,714.00 $18,686.00 $44,400.00 $44,400.00 $138,009.00 $44,400.00 $138,009.00 $119,323.00 18,686.00 $138,009.00 SUCCESS SYSTEMS INCOME STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 2010 Revenues Computer Services Revenue Net Sales (see computation below) Total Revenues Expenses Cost of Goods Sold Depreciation- Office Equipment Depreciation- Computer Equipment Wages Expense Insurance Expense Rent Expense Computer Supplies Expense Advertising Expense Mileage Expense Repairs Expense- Computer Total Expenses Net Income Computation of Net Sales Gross Sales Less: Sales Returns Sales Discount $19,240.00 (500.00) (47.00) $18,693.00 $25,160.00 18,693.00 $14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 960.00 25,167 $18,686.00 SUCCESS SYSTEMS STATEMENT OF OWNER'S EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2009 A. Lopez, Capital, December 31, 2009 Add: Owner's Contributions Net Income Total Less: Withdrawals by Owner A.Lopez, Capital, March 31, 2010 $- $90,148 $115,148 $205,296 $4,800 $200,496 SUCCESS SYSTEMS BALANCE SHEET MARCH 31, 2010 ASSETS Current Assets Cash Accounts Receivable- See schedule below Merchandise Inventory Computer Supplies Prepaid Insurance Prepaid Rent Total Current Assets Plant Assets Office Equipment Accumulated Depreciation- Office Equipment 77,845 22,720 704 2,005 1,110 825 105,209 8,000 800 Computer Equipment Accumulated Depreciation- Computer Equipment Total Plant Assets Total Assets 20,000 2,500 23,300 128,509 LIABILITIES Current Liabilities Wages Payable 875 EQUITY A. Lopez, Capital- See Owners Equity Statement Total Liabilities and equity 90,148 91,023 ** You have to add the customer receivable to arrive at the total Accounts Receivable Accounts Receivable: A/R- Wildcat Services A/R- Easy Leasing A/R-IMF A/R- KC, Inc; Total 2,800 8,900 5,220 5,800 22,720 SP 5 REQUIRED: (1) PREPAID JOURNAL ENTRIES TO RECORD EACH OF THE JANUARY THROUGH MARCH TRANSACTIONS. (2) POST JOURNAL ENTRIES IN PART 1 TO GENERAL LEDGER. (BEGIN WITH THE LEDGER POST CLOSING ADJUSTED BALANCES AS OF DECEMBER 31, 200 (3) PREPARE A PARTIAL WORKSHEET CONSISTING OF THE FIRST SIX COLUMNS (4) PREPARE AN INCOME STATEMENT (5) PREPARE A STATEMENT OF OWNER'S EQUITY (6) PREPARE A CLASSIFIED BALANCE SHEET DATE 1/4/2009 1/5/2009 1/7/2009 1/9/2009 1/11/2009 1/13/2009 1/13/2009 1/15/2009 1/16/2009 1/17/2009 1/20/2009 1/22/2009 1/24/2009 1/26/2009 1/26/2009 1/26/2009 CODE 623 210 101 PR DEBIT CREDIT 125 500 625 101 301 Cash Lopez Capital Additional investment by owner 119 201 Merchandise Inventory Accounts Payable-Kansas Purchased merchandise on credit. 5,800 101 106.6 Cash Accounts Receivable- Gomez Co Collected accounts receivable. 2,668 106.1 236 403 Accounts Receivable- Alex Engineering Co. Unearned Computer Services Revenue Computer Services Revenue Completed work on project. 5,500 1,500 106.5 413 Accounts Receivable- Liu Corporation Sales Sold merchandise on credit. 5,200 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Jan 13 sale. 3,560 119 101 Merchandise Inventory Cash Paid freight on incoming merchandise. 600 101 403 Cash Computer Services Revenue Collected cash revenue from customer 4,000 201 119 101 Accounts Payable- Kansas Merchandise Inventory Cash Paid accounts payable within discount period. Discount taken= $5,800 x.01- $58.00 5,800 414 106.5 Sales Returns and Allowances Accounts Receivable- Liu Customer returned defective goods. 101 415 106.5 Cash Sales Discounts Accounts Receivable- Liu Collected accounts receivable: January 13 Sale...........$5,200 January 20 return....... 500 Amount due Liu.... $4,700 Discount at 1%....... 47 Cash received fr Liu 4,653 25,000 25,000 5,800 2,668 7,000 5,200 3,560 600 4,000 58 5,742 500 500 4,653 47 4,700 201 119 Accounts Payable-Kansas Merchandise Inventory Returned merchandise for credit/. 119 201 Merchandise Inventory Accounts Payable-Kansas Purchased merchandise for resale. 9,000 106.8 413 Accounts Receivable- KC Inc Sales Sold merchandise on credit. 5,800 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Jan 26 sale. 4,640 1/29/2009 1/31/2009 ACCOUNT TITLE & EXPLANATION Wages Expense Wages Payable Cash Paid employee 496 496 9,000 5,800 4,640 No entry recorded in the journal. 623 101 Wages Expense Cash Paid employee 1,250 1,250 86,639 86,639 SP 5 REQUIRED: (1) PREPAID JOURNAL ENTRIES TO RECORD EACH OF THE JANUARY THROUGH MARCH TRANSACTIONS. (2) POST JOURNAL ENTRIES IN PART 1 TO GENERAL LEDGER. (BEGIN WITH THE LEDGER POST CLOSING ADJUSTED BALANCES AS OF DECEMBER 31, 2007 (3) PREPARE A PARTIAL WORKSHEET CONSISTING OF THE FIRST SIX COLUMNS (4) PREPARE AN INCOME STATEMENT (5) PREPARE A STATEMENT OF OWNER'S EQUITY (6) PREPARE A CLASSIFIED BALANCE SHEET DATE 2/1/2009 2/3/2009 2/5/2009 2/11/2009 2/15/2009 2/23/2009 2/23/2009 2/26/2009 2/27/2009 CODE 131 101 ACCOUNT TITLE & EXPLANATION Prepaid Rent Cash Paid three month's rent in advance. 201 119 101 Accounts Payable Merchandise Inventory Cash Paid accounts payable within discount period. January 26 purchase $9,000 Less credit allowed (496) Accounts Payable- Kansas $8,504 Less discount 1% x9,000 (90) Amount due Kansas Corp. $8,414 655 101 Advertising Expense Cash Purchased ad in local newspaper. 101 106.1 PR DEBIT 2,475 CREDIT 2,475 8,504 90 8,414 600 600 Cash Accounts Receivable- Alex Engineering Co. Collected accounts receivable 5,500 A. Lopez, Withdrawals Cash Paid cash withdrawals 4,800 Accounts Receivable- Delta Sales Sold merchandise on credit 3,220 502 119 Cost of Goods Sold Merchandise Inventory To record cost of Feb, 23 sale 2,660 623 101 Wages Expense Cash Paid employee 1,000 676 101 Mileage Expense Cash Reimbursed Lopez for business mileage 302 101 106.7 413 5,500 4,800 3,220 2,660 1,000 192 192 28,951 28,951 SP 5- ACCOUNTING FOR MERCHANDISING OPERATIONS PART 1 DATE ACCOUNT TITLE & EXPLANATION 3/8/2009 Computer Supplies Accounts payable Purchased supplies on credit. 3/9/2009 Cash Accounts receivable - Delta Collected Accounts Receivable CODE PR DEBIT 126 201 2,730 101 106.7 CREDIT 3,220 2,730 3,220 3/11/2009 Repairs Expense - Computer Cash Paid for computer repairs. 684 101 960 3/16/2009 Cash Computer Services Revenue Collected cash revenue from customer. 101 403 5,260 3/19/2009 Accounts Payable Cash Paid accounts payable (1,100 + 2,730.) 201 101 3,830 3/24/2009 Computer Services Revenue Accounts Receivable - Easy Leasing Billed customer for services 403 106.3 8,900 3/25/2009 Accounts Receivable - Wildcat Services Sales Sold merchandise on account. 106.2 413 2,800 502 119 2,002 106.4 413 2,220 3/30/2009 Cost of goods sold Merchandise Inventory To record cost of March 30 Sale. 502 119 1,100 3/31/2009 Milage Expense Cash Reimbursed Lopez for business mileage. 676 101 128 3/25/2009 Cost of Good Sold Merchandise Inventory 3/30/2009 Accounts Receivable - IFM Company Sales Sold merchandise on account. 960 5,260 3,830 8,900 2,800 2,002 2,220 1,100 128 33,150 33,150 PART 2 GENERAL LEDGER CASH DAT E 31-Dec Jan. DESCRIPT ION Balance PR Account No. 101 DEBIT 4 Wages Expense 5 Lopez Capit al 9 Gomez Payment 15 Freight Charges 16 Delt a Revenue CREDIT 25000 2668 4 000 84 603 88603 574 2 82861 87514 4 653 31 Wages Expense 1 Prepaid Rent 3 Paid Kansas 1250 24 75 84 14 5 Advert ising 11 Comput er Repairs 9 Delt a payment 11 Comput er Repairs 74 775 80275 754 75 74 4 75 74 283 3220 900 16 Dream Revenue 19 Paid Harris 31 Milage Expense 5260 77503 784 03 3830 128 GENERAL LEDGER Account s Receivable- Alex's Engineering Company DAT E DESCRIPT ION PR Dec 31 Balance Jan 11 Billed Feb 11 Received Balance due DEBIT DAT E DESCRIPT ION PR Dec. 31 Balance Mar 25 Sold merchandise CREDIT 5 500 5500 DEBIT CREDIT 0 2800 DEBIT DEBIT 0 8900 CREDIT 2200 CREDIT 5200 500 4 700 CREDIT CREDIT 3220 3220 DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 5800 3560 600 58 4 96 9000 4 64 0 90 2660 2002 1100 PR CREDIT 580 3310 2730 Account No. 128 BALANCE DEBIT CREDIT 1665 PR Account No. 131 BALANCE DEBIT CREDIT 825 3300 24 75 GENERAL LEDGER Office Equipment PR Account No. 163 BALANCE DEBIT CREDIT 8000 GENERAL LEDGER Accumulat ed Depreciat ion-Office Equipment PR DEBIT Account No. 164 BALANCE CREDIT 4 00 GENERAL LEDGER Comput er Equipment PR Account No. 167 BALANCE DEBIT CREDIT 20000 GENERAL LEDGER Accumulat ed Depreciat ion-Comput er Equipment DAT E DESCRIPT ION Dec 31 Balance PR DEBIT Account No. 168 BALANCE CREDIT 1250 GENERAL LEDGER Account s Payable DAT E DESCRIPT ION PR Dec 31 Balance Jan 7 17 24 26 Feb 3 Mar 8 supplies 19 Paid balance Harris Account No. 201 BALANCE DEBIT CREDIT 5800 5800 4 96 9000 8504 2730 3830 GENERAL LEDGER Wages Payable DAT E DESCRIPT ION Dec 31 Balance Jan 4 PR CREDIT 500 0 500 PR DEBIT Account No. 236 BALANCE CREDIT 1500 0 1500 GENERAL LEDGER A. Lopez Capit al DAT E DESCRIPT ION Dec 31 Balance Jan 5 PR DEBIT Account No. 301 BALANCE CREDIT 25000 GENERAL LEDGER A. Lopez Capit al DAT E DESCRIPT ION Feb 15 Balance PR DEBIT PR DEBIT PR PR DEBIT CREDIT 500 PR DEBIT CREDIT 47 DESCRIPT ION PR DEBIT CREDIT 3560 4 64 0 2660 2002 1100 DEBIT 47 Account No. 502 BALANCE GENERAL LEDGER Depreciat ion Expense- Office Equipment DAT E 500 Account No. 4 15 BALANCE GENERAL LEDGER Cost of Goods Sold DAT E DESCRIPT ION Jan 13 26 Feb 23 Mar 25 30 5200 11000 14 220 17020 1924 0 Account No. 4 14 BALANCE GENERAL LEDGER Sales Discount s DAT E DESCRIPT ION Jan 22 7000 11000 16260 25160 Account No. 4 13 BALANCE CREDIT 5200 5800 3220 2800 2220 GENERAL LEDGER Sales Ret urns and Allowances DAT E DESCRIPT ION Jan 20 4 800 Account No. 4 03 BALANCE CREDIT 7000 4 000 5260 8900 GENERAL LEDGER Sales DAT E DESCRIPT ION Jan 13 26 Feb 23 Mar 25 Wildcat Services 30 IFM Co. 9014 8 11514 8 Account No. 302 BALANCE DEBIT CREDIT 4 800 GENERAL LEDGER Comput er Services Revenue DAT E DESCRIPT ION PR Jan 11 16 Mar 16 Cash from Dream Inc Mar 24 Easy Leasing revenue 1100 6900 1100 604 9604 1100 3830 0 0 Account No. 210 BALANCE DEBIT GENERAL LEDGER Unearned Comput er Services Revenue DAT E DESCRIPT ION Dec 31 Balance Jan 11 0 5800 224 0 284 0 2782 2286 11286 664 6 6556 3896 1894 794 Account No. 126 BALANCE DEBIT GENERAL LEDGER Prepaid Rent DAT E DESCRIPT ION Dec 31 Balance DEBIT Account No. 119 BALANCE GENERAL LEDGER Prepaid Insurance DAT E DESCRIPT ION Dec 31 Balance BALANCE Account No. 106.9 Comput er Supplies DAT E DESCRIPT ION PR Dec 31 Balance MAR 8 purchased supplies DAT E DESCRIPT ION Dec 31 Balance 0 3220 0 0 0 0 0 DAT E DESCRIPT ION PR Dec 31 Balance Jan 7 purchase 13 ret ail cost 15 freight cost 17 Kansas 24 ret urn 26 sold merchandise 26 cost of goods sold Feb 3 23 Mar 25 sold merchandise 30 sold merchandise DAT E DESCRIPT ION Dec 31 Balance Feb. 1 Hillside Mall BALANCE 0 5800 5800 GENERAL LEDGER Merchandise Invent ory DAT E DESCRIPT ION Dec 31 Balance BALANCE 2668 0 0 Account No. 106.8 GENERAL LEDGER Account s Receivable- Dream Inc PR 0 5200 4 700 0 Account No. 106.7 DEBIT GENERAL LEDGER Account s Receivable-KC Inc DAT E DESCRIPT ION Dec 31 Balance BALANCE Account No. 106.6 DEBIT GENERAL LEDGER Account s Receivable- Delt a DAT E DESCRIPT ION PR Dec 31 Balance Jan 26 Merchandise on credit BALANCE 3000 5200 Account No. 106.5 DEBIT 2 668 DAT E DESCRIPT ION PR Dec 31 Balance Feb 23 merchandise on credit Mar 9 Paid BALANCE Account No. 106.4 GENERAL LEDGER Account s Receivable- Gomez Corp. PR BALANCE Account No. 106.3 CREDIT 8900 GENERAL LEDGER Account s Receivable- Liu DAT E DESCRIPT ION PR Dec 31 Balance Jan 13 Merchandise on credit 20 Ret urn 22 Money owed 0 5500 0 0 2800 GENERAL LEDGER Account s Receivable- IFM Corporat ion DAT E DESCRIPT ION PR Dec. 31 Balance Mar 30 Merchandise on credit BALANCE Account No. 106.2 GENERAL LEDGER ACCOUNT S RECEIVABLE- Easy Leasing DAT E DESCRIPT ION PR Dec. 31 Balance Mar 24 Billed for services 83663 79833 79705 Account No. 106.1 GENERAL LEDGER ACCOUNT S RECEIVABLE- Wildcat DAT E DESCRIPT ION Dec 31 Balance JAN 9 Paid 86264 83789 75375 600 4 800 1000 192 5500 15 Lopez Wit hdrawl 26 Wages Expense 27 Milage Expense Mar 57535 82535 85203 600 17 Paid Kansas 22 Lui payment Feb. BALANCE 58160 625 3560 8200 10860 12862 13962 Account No. 612 BALANCE CREDIT 0 0 0 0 0 GENERAL LEDGER Depreciat ion Expense- Comput er Equipment DAT E DESCRIPT ION PR DEBIT Account No. 613 BALANCE CREDIT 0 0 0 0 0 Wages Expense DAT E Jan Feb DESCRIPT ION PR 4 31 26 Account No. 623 BALANCE DEBIT CREDIT 125 1250 1000 Insurance Expense DAT E DESCRIPT ION DAT E DESCRIPT ION DAT E DESCRIPT ION PR Account No. 637 BALANCE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Rent Expense PR Account No. 64 0 BALANCE Comput er Supplies Expense PR Account No. 652 BALANCE Advert ising Expense DAT E Feb DESCRIPT ION PR 5 Account No. 655 BALANCE DEBIT CREDIT 600 Mileage Expenses DAT E DESCRIPT ION Feb 27 Mar 31 PR DESCRIPT ION PR PR 192 320 Account No. 677 BALANCE DEBIT CREDIT Repairs Expense DAT E DESCRIPT ION Mar 11 600 Account No. 676 BALANCE DEBIT CREDIT 192 128 Miscellenous DAT E 125 1375 2375 Account No. 684 BALANCE DEBIT CREDIT 920 920 Success Systems Partial WorkSheet March 31, 2010 Unadjusted Trial Balance 101 Cash 106.1 Accounts Receivable- Alex Engineering 106.2 Accounts Receivable- Wildcat Services 106.3 Accounts Receivable- Easy Leasing 106.4 Accounts Receivable- IMF Company 106.5 Accounts Receivable- Liu Company 106.6 Accounts Receivable- Gomez Company 106.7 Accounts Receivable- Delta Company 106.8 Accounts Receivable- K C, Inc. 106.9 Accounts Receivable- Dream Inc. 119 Merchandise Inventory 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent 163 Office Equipment 164 Accumulated Depreciation- Office Equipment 167 Computer Equipment 168 Accumulated Depreciation- Computer Equipment 201 Accounts Payable 210 Wages Payable 236 Unearned computer Services Revenue 301 A. Lopez, Capital 302 A. Lopez, Withdrawals 403 Computer Services Revenue 413 Sales 414 Sales Returns and Allowances 415 Sales Discounts 502 Cost of Goods Sold 612 Depreciation Expense- Office Equipment 613 Depreciation Expense- Computer Equipment 623 Wages Expenses 637 Insurance Expense 640 Rent Expense 652 Computer Supplies Expense 655 Advertising Expense 676 Mileage Expense 677 Miscelleneous Expense 684 Repairs Expense- Computer Debit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 0.00 5,800.00 0.00 794.00 3,310.00 1,665.00 3,300.00 8,000.00 Credit Debit Adjustments Credit g a b d f 400.00 90.00 1,305.00 555.00 2,475.00 400.00 20,000.00 1,250.00 0.00 0.00 0.00 115,148.00 e 1,250.00 c 875.00 4,800.00 25,160.00 19,240.00 500.00 47.00 13,962.00 0.00 0.00 2,375.00 0.00 0.00 0.00 600.00 320.00 0.00 960.00 161,198.00 g f e c b d a 161,198.00 90.00 400.00 1,250.00 875.00 555.00 2,475.00 1,305.00 $6,950.00 $6,950.00 Adjusted Trial Balance Debit Credit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 0.00 5,800.00 0.00 704.00 2,005.00 1,110.00 825.00 8,000.00 800.00 20,000.00 2,500.00 0.00 875.00 0.00 115,148.00 4,800.00 25,160.00 19,240.00 500.00 47.00 14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 0.00 960.00 $163,723.00 NET INCOME $163,723.00 Income Statement- P& L Debit Credit Balance Sheet Debit Credit 77,845.00 0.00 2,800.00 8,900.00 5,220.00 0.00 0.00 5,800.00 0.00 704.00 2,005.00 1,110.00 825.00 8,000.00 800.00 20,000.00 2,500.00 0.00 875.00 0.00 115,148.00 4,800.00 25,160.00 19,240.00 500.00 47.00 14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 0.00 960.00 $25,714.00 $18,686.00 $44,400.00 $44,400.00 $138,009.00 $44,400.00 $138,009.00 $119,323.00 18,686.00 $138,009.00 SUCCESS SYSTEMS INCOME STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 2010 Revenues Computer Services Revenue Net Sales (see computation below) Total Revenues Expenses Cost of Goods Sold Depreciation- Office Equipment Depreciation- Computer Equipment Wages Expense Insurance Expense Rent Expense Computer Supplies Expense Advertising Expense Mileage Expense Repairs Expense- Computer Total Expenses Net Income Computation of Net Sales Gross Sales Less: Sales Returns Sales Discount $19,240.00 (500.00) (47.00) $18,693.00 $25,160.00 18,693.00 $14,052.00 400.00 1,250.00 3,250.00 555.00 2,475.00 1,305.00 600.00 320.00 960.00 25,167 $18,686.00 SUCCESS SYSTEMS STATEMENT OF OWNER'S EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2009 A. Lopez, Capital, December 31, 2009 Add: Owner's Contributions Net Income Total Less: Withdrawals by Owner A.Lopez, Capital, March 31, 2010 $- $90,148 $115,148 $205,296 $4,800 $200,496 SUCCESS SYSTEMS BALANCE SHEET MARCH 31, 2010 ASSETS Current Assets Cash Accounts Receivable- See schedule below Merchandise Inventory Computer Supplies Prepaid Insurance Prepaid Rent Total Current Assets Plant Assets Office Equipment Accumulated Depreciation- Office Equipment 77,845 22,720 704 2,005 1,110 825 105,209 8,000 800 Computer Equipment Accumulated Depreciation- Computer Equipment Total Plant Assets Total Assets 20,000 2,500 23,300 128,509 LIABILITIES Current Liabilities Wages Payable 875 EQUITY A. Lopez, Capital- See Owners Equity Statement Total Liabilities and equity 90,148 91,023 ** You have to add the customer receivable to arrive at the total Accounts Receivable Accounts Receivable: A/R- Wildcat Services A/R- Easy Leasing A/R-IMF A/R- KC, Inc; Total 2,800 8,900 5,220 5,800 22,720
