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Please help. If cant do all, can you help with Oct. 27-31, specifically This content is protected and may not be shared, uploaded, or distributed
Please help. If cant do all, can you help with Oct. 27-31, specifically
This content is protected and may not be shared, uploaded, or distributed This content is protected and may not be shared, uploaded, or distributed Introduction: Brooke's Books is a retail book store. The company is owned by Brooke Riley, the only shareholder (to be). Brooke has asked you to keep the records for the store, and to prepare its financial statements at the end of the month. You decide to use a simple manual accounting system consisting of: - A General Journal - A General Ledger Books of the company are adjusted and closed, with financial statements prepared on a monthly basis. Reversing entries ARE NOT made. The General Ledger is empty, as this is the first month of operations. It is October, the start of the busiest retail season of the year, and there are going to be many entries to reflect all the activity necessary to get the business started. Brooke will sell merchandise inventory to two types of customers: - Walk-in customers: These are customers who come to the physical store location, browse the selection of merchandise inventory, and purchase goods while onsite. Brooke decides to accept CASH ONLY for in-person sales to walk-in customers. - Online customers: These customers place orders on account. Sales of merchandise inventory which are made on account are made on strict terms of 2/10,N/30, unless otherwise stated. Additionally, purchases of merchandise inventory are made on strict terms of 2/10,N/30, unless otherwise stated. You have decided to account for sales and purchases using the GROSS METHOD. Use the perpetual inventory system to account for inventory. Brooke's Books depreciates assets according to the straight-line method of depreciation, and uses the half-month convention for asset purchases occurring during the month. Brooke hires one employee - P. Anderson, who works in the retail store as a salesperson. Required: Journalize the following transactions for October. Entries should be posted daily/immediately. Due to the order of posting, it is possible that an account with a normal debit balance may temporarily have a credit balance (and vice versa). Do not worry - at the end of the month, after all the posting has been completed, everything will work out properly. Remember - a journal entry is not complete without a description! Transactions: Oct 1 Oct 1 Oct 1 Oct 1 Oct 1 Oct 2 Oct 3 Oct 4 Brooke Riley contributes the following to start the business: Cash, $100,000; Merchandise Inventory (she has saved up certain rare books and other items over the years), $50,000. Ms. Riley is the only stockholder and is issued shares of $1 par common stock in return. Paid cash for 2 month's rent in advance, $12,000, to Vroman's Property Co. Debit the entire amount to one account. (Assume the entire rent amount is paid for the retail store space; no rent is to be allocated to "office space".) Borrowed $100,000 from Page Bank, on an eight-year, 6% note, with interest only to be paid at each year-end (December 31) and principal due October 1, Year 6. Purchased cash registers (store equipment) from Ring Up Company, $30,000, cash. The useful life is four years and the salvage value is $1,200. Brooke's Books uses straight line depreciation. Paid cash for three months of insurance for October through December in advance, $6,300 to Book Worm Insurance Company. Debit the entire amount to one account. Purchased some inventory on account from Arbitrary House Publishers, $77,500, terms 2/10,N/30. As soon as the store opens the doors, ten customers walk in ready to shop. Total cash sales for the day, \$[**FIRST 5 DIGITS OF YOUR SID, EXCLUDE LEADING ZEROS**]. The cost of the related merchandise sold was $2,000. Two online customers purchase merchandise on account: - R. Rowell, antique rotary telephone sold for $1,500. The cost of the merchandise was $1,050. - M. Twain, upcycled white picket fence bookcase sold for $2,200. The cost of the merchandise was $1,540. Oct 5 Purchased supplies on account with terms N/30 from Office Max, $2,500. Oct 7 Sold some merchandise on account to the following new corporate customers: Oct 18 - Arcadia City College purchased 600 textbooks for $250, each. The cost of the merchandise was $175 each. - Sunshine Preschool purchased 200 picture books for $30 each. The cost of the merchandise was $21 each. Oct 8 Oct 9 Oct10 Oct11 Oct 12 Received a check from R. Rowell in payment of her Oct 4 invoice. (Reminder, all sales on account are made with terms 2/10,n/30. It will be up to you to determine whether or not payment is made within the discount period.) Recorded cash sales for the rest of the first week, $2,620. The cost of the related merchandise sold was $1,834. Some of the units sold to Arcadia City College are defective. Issued a $13,000 sales allowance. (Arcadia keeps the damaged merchandise inventory.) Due to a power surge, all the bulbs in our store had to be replaced. Purchased supplies from Bells \& Bulbs, on account, $1,000, terms, n/30. Paid balance due to Arbitrary House for purchase made on October 2. Oct13 Oct14 Oct14 Oct14 Oct15 Issued payroll check to our employee, P. Anderson, for the entire amount due. Oct16 Recorded cash sales for the week, $10,400. The cost of the merchandise was $7,280. Oct 17 Purchased some inventory on account from Panda Publishers, $36,500, terms 2/10, n/30. Received credit memorandum from Panda Publishers for damaged merchandise, $1,150. Accrued the semi-monthly salary expense for our only employee, P. Anderson, as follows (record this exact entry and the next one, in the general journal): Oct 19 Oct20 Oct 21 Oct 22 Oct23 Oct24 Oct25 Oct 26 Oct27 Oct28 Oct29 Oct30 Oct31 Purchased some merchandise inventory on account from Symon \& Simon, $87,000, terms 2/10,n/30 Paid Bells \& Bulbs the amount due from the Oct 11 purchase. Ms. Riley, the owner, took home cash for her own personal use, $12,000. (This should be recorded as a dividend.) Paid the amount due to Panda Publishers from the Oct 13 purchase. Returned for credit, supplies purchased from Office Max on Oct 5,$600. Recorded cash sales for the week, $17,000. The cost of the merchandise was $11,900. We sold merchandise on account to the following new client: - J. Tolkien, single golden ring sold for $28,000. The cost of the merchandise was $20,000. Paid Office Max balance due. Received check from M. Twain in payment of their balance due from the Oct 4 invoice. Returned for cash some merchandise previously purchased from Panda Publishers for $5,500. (Hint: In recording this entry, we do not receive a cash refund in full, because we took advantage of the cash discount when we originally paid for the goods.) Issued a full credit memorandum to J. Tolkien for the return of the merchandise from their Oct 24 purchase. The merchandise was in good condition. In honor of her birthday, Ms. Riley closed the shop today, after taking home cash of $8,000 for her own personal use. Accrued the semi-monthly salary expense and employers payroll taxes for our only employee, P. Anderson (repeat both the entries from Oct 14) Issued payroll check to our employee, P. Anderson, for the entire amount due. Received the following checks from customers on account: - Arcadia City College - in full payment of their Oct 7 invoice This content is protected and may not be shared, uploaded, or distributed This content is protected and may not be shared, uploaded, or distributed Introduction: Brooke's Books is a retail book store. The company is owned by Brooke Riley, the only shareholder (to be). Brooke has asked you to keep the records for the store, and to prepare its financial statements at the end of the month. You decide to use a simple manual accounting system consisting of: - A General Journal - A General Ledger Books of the company are adjusted and closed, with financial statements prepared on a monthly basis. Reversing entries ARE NOT made. The General Ledger is empty, as this is the first month of operations. It is October, the start of the busiest retail season of the year, and there are going to be many entries to reflect all the activity necessary to get the business started. Brooke will sell merchandise inventory to two types of customers: - Walk-in customers: These are customers who come to the physical store location, browse the selection of merchandise inventory, and purchase goods while onsite. Brooke decides to accept CASH ONLY for in-person sales to walk-in customers. - Online customers: These customers place orders on account. Sales of merchandise inventory which are made on account are made on strict terms of 2/10,N/30, unless otherwise stated. Additionally, purchases of merchandise inventory are made on strict terms of 2/10,N/30, unless otherwise stated. You have decided to account for sales and purchases using the GROSS METHOD. Use the perpetual inventory system to account for inventory. Brooke's Books depreciates assets according to the straight-line method of depreciation, and uses the half-month convention for asset purchases occurring during the month. Brooke hires one employee - P. Anderson, who works in the retail store as a salesperson. Required: Journalize the following transactions for October. Entries should be posted daily/immediately. Due to the order of posting, it is possible that an account with a normal debit balance may temporarily have a credit balance (and vice versa). Do not worry - at the end of the month, after all the posting has been completed, everything will work out properly. Remember - a journal entry is not complete without a description! Transactions: Oct 1 Oct 1 Oct 1 Oct 1 Oct 1 Oct 2 Oct 3 Oct 4 Brooke Riley contributes the following to start the business: Cash, $100,000; Merchandise Inventory (she has saved up certain rare books and other items over the years), $50,000. Ms. Riley is the only stockholder and is issued shares of $1 par common stock in return. Paid cash for 2 month's rent in advance, $12,000, to Vroman's Property Co. Debit the entire amount to one account. (Assume the entire rent amount is paid for the retail store space; no rent is to be allocated to "office space".) Borrowed $100,000 from Page Bank, on an eight-year, 6% note, with interest only to be paid at each year-end (December 31) and principal due October 1, Year 6. Purchased cash registers (store equipment) from Ring Up Company, $30,000, cash. The useful life is four years and the salvage value is $1,200. Brooke's Books uses straight line depreciation. Paid cash for three months of insurance for October through December in advance, $6,300 to Book Worm Insurance Company. Debit the entire amount to one account. Purchased some inventory on account from Arbitrary House Publishers, $77,500, terms 2/10,N/30. As soon as the store opens the doors, ten customers walk in ready to shop. Total cash sales for the day, \$[**FIRST 5 DIGITS OF YOUR SID, EXCLUDE LEADING ZEROS**]. The cost of the related merchandise sold was $2,000. Two online customers purchase merchandise on account: - R. Rowell, antique rotary telephone sold for $1,500. The cost of the merchandise was $1,050. - M. Twain, upcycled white picket fence bookcase sold for $2,200. The cost of the merchandise was $1,540. Oct 5 Purchased supplies on account with terms N/30 from Office Max, $2,500. Oct 7 Sold some merchandise on account to the following new corporate customers: Oct 18 - Arcadia City College purchased 600 textbooks for $250, each. The cost of the merchandise was $175 each. - Sunshine Preschool purchased 200 picture books for $30 each. The cost of the merchandise was $21 each. Oct 8 Oct 9 Oct10 Oct11 Oct 12 Received a check from R. Rowell in payment of her Oct 4 invoice. (Reminder, all sales on account are made with terms 2/10,n/30. It will be up to you to determine whether or not payment is made within the discount period.) Recorded cash sales for the rest of the first week, $2,620. The cost of the related merchandise sold was $1,834. Some of the units sold to Arcadia City College are defective. Issued a $13,000 sales allowance. (Arcadia keeps the damaged merchandise inventory.) Due to a power surge, all the bulbs in our store had to be replaced. Purchased supplies from Bells \& Bulbs, on account, $1,000, terms, n/30. Paid balance due to Arbitrary House for purchase made on October 2. Oct13 Oct14 Oct14 Oct14 Oct15 Issued payroll check to our employee, P. Anderson, for the entire amount due. Oct16 Recorded cash sales for the week, $10,400. The cost of the merchandise was $7,280. Oct 17 Purchased some inventory on account from Panda Publishers, $36,500, terms 2/10, n/30. Received credit memorandum from Panda Publishers for damaged merchandise, $1,150. Accrued the semi-monthly salary expense for our only employee, P. Anderson, as follows (record this exact entry and the next one, in the general journal): Oct 19 Oct20 Oct 21 Oct 22 Oct23 Oct24 Oct25 Oct 26 Oct27 Oct28 Oct29 Oct30 Oct31 Purchased some merchandise inventory on account from Symon \& Simon, $87,000, terms 2/10,n/30 Paid Bells \& Bulbs the amount due from the Oct 11 purchase. Ms. Riley, the owner, took home cash for her own personal use, $12,000. (This should be recorded as a dividend.) Paid the amount due to Panda Publishers from the Oct 13 purchase. Returned for credit, supplies purchased from Office Max on Oct 5,$600. Recorded cash sales for the week, $17,000. The cost of the merchandise was $11,900. We sold merchandise on account to the following new client: - J. Tolkien, single golden ring sold for $28,000. The cost of the merchandise was $20,000. Paid Office Max balance due. Received check from M. Twain in payment of their balance due from the Oct 4 invoice. Returned for cash some merchandise previously purchased from Panda Publishers for $5,500. (Hint: In recording this entry, we do not receive a cash refund in full, because we took advantage of the cash discount when we originally paid for the goods.) Issued a full credit memorandum to J. Tolkien for the return of the merchandise from their Oct 24 purchase. The merchandise was in good condition. In honor of her birthday, Ms. Riley closed the shop today, after taking home cash of $8,000 for her own personal use. Accrued the semi-monthly salary expense and employers payroll taxes for our only employee, P. Anderson (repeat both the entries from Oct 14) Issued payroll check to our employee, P. Anderson, for the entire amount due. 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