Please help me answer this question by answering the requirements for part V. The right journal entries have also been posted to make things easier. Please please answer this ASAP!!! Thank you!!
Descipt Date Deposit No. Check No. Carla Cannel met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cannel would organize the business as a corporation. The lawyer told Ms. Cannel to register the company name, Carla's Candles, Inc., with the County of El Paso. In addition, Ms. Cannel will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. 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 Ms. Cannel set up her accounting system. | Ms. Cannel opened a business checking account at Wells Fargo Bank 1. 1/02/19 | 1/02/19 | Deposit #1 2. by depositing the personal check she gave her company for $40,000. The corporation issued her a stock certificate for 4,000 shares of common stock | Ms. Cannel signed a one-year rental agreement with Reynolds Realtors for shop space. She was required to pay $3,000 for rent for the months of January 1, 2019- March 31, 2019. | Arranged for a general business liability insurance policy and paid $1,200 to State Penn Insurance. This premium is for one year of coverage. Purchased office equipment for a cost of $5,000 from Office Mart for use in the business. Ms. Cannel signed a six-month, 8% note payable for the cost of the system. The office equipment has an | 1/03/19 | ck #1001 3. | 1/03/19 4. | ck #1002 5. 1/03/19 estimated useful life of 4 years and the residual (salvage) value is so. This will be recorded as Office Equipment, and depreciated using the Straight-Line Depreciation method accordingly. | Signed a note payable to borrow $5,000 from Wells Fargo Bank. Deposit #2 6. 1/05/19 Interest is 8% annually and the note is to be repaid with interest in nine months Purchased furniture and fixtures for $15,000 from Furniture | Ck #1003 | 1/05/19 7. Warehouse. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Furniture and Fixtures and depreciated using the Straight-Line Depreciation Method | Purchased 8. | 1/06/19 9. | 1/06/19 10 1/08/19 | ck #1004 Ck #1005 Purchased $700 in office supp Purchased $7,000 of Inventory-Candles from Fantastic Flames on account 11. 1/08/19 Purchased $3,000 of Inventory-Holders from Handsome Holders on account. 12. 1/13/19 13. 1/18/19 ck #1006 | Ms. Cannel received and paid the $650 charge from her lawyer Carla's Candles 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. Ms. Cannel will allow major customers to charge their purchases on account and then pay later Sold a candelabra to UTEP for their homecoming banquet on account for $4,000. The cost of the candles is $1,450. The cost of the holders is $450. UTEP does not have to pay sales tax on the purchase Purchased $300 of store supplies on account. This is to be recorded 14. 1/18/19 15. 1/18/19 16. 1/18/19 17. | 1/19/19 Purchased additional candles from Fantastic Flames on account, for $5,500. | Deposit #3 Recorded cash sales for the first five days of operation. Sales totaled $6,000 and the sales tax collected totaled $495. A total of $6,495 was deposited in the bank. The cost of merchandise sold was $4,200. (Candles were $3,500 and Holders were $700) 18. 1/20/19 19. | 1/22/19 20. 1/22/19 21. 1/23/19 | ck #1007 ck #1008 | Received and paid the $300 invoice for store supplies | Paid the invoice from Handsome Holders from 1/08/19 Ordered $700 of holders on account Ms. Cannel donated a candelabra to the Providence Hospital fund raiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was 7IPage put in the fund raiser p the holders were $100. Ms. Cannel considers this an advertising expense Received payment in full from UTEP. The payment was deposited in rogram. Cost of the candles were $600 and 1/23/19 Deposit #4 22. the bank. Ms. Cannel paid her credit card bill for the month. The total was $300 which $250 was for delivery charges to deliver both candelabras and $50 was for store supplies for the cellophane used for the Humane Society candelabra. Purchased and paid for $50 of office supplies 23. | 1/23/19 | Ck #1009 | Ck #1010 Deposit #5 24. | 1/23/19 25. 1/23/19 | Internet and retail sales totaled $9,300 and sales taxes of $767.25 was collected. The cost of the merchandise sold was $4,500 (Candles $4,000; Holders $500). The money was deposited in the bank. | ck #1011 | Paid the balance due to Fantastic Flames. There are two invoices: 26. | 1/23/19 one on 1/8/19 and the other on 1/18/19. | Deposit #6 | Collected sales of $3.400. Sales tax collected was S280.50. All was 27| 1/25/19 deposited in the bank. The cost of the merchandise sold was $1,250. (Candles $1,000; Holders $250) Received but did not pay the electric bill for the month, $350. 28. 1/28/19 | Ck #1012 | Paid the first monthly installment on the office equipment. The 29. | 1/30/19 payment amount is $866.66. Of this amount, $33.33 is for interest and $833.33 is for principal. Make the check payable to Office Mart. | Recorded internet sales for the last week of the m onth. Sales were | Deposit #7 30. | 1/30/19 $2,570 and sales tax collected was $212.03, all was deposited in the bank. The cost of the merchandise sold was $1,350 (Candles $1,000; Holders $350). 31. | 1/31/19 | Ck #1013 | Paid all sales tax owed for January to the Comptroller of Public Accounts Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2019. The following are the adjusting journal entries for the month of January Record Adjusting Entries: Record the following month end adjusting entries for the month of January. Write the journal entries in the practice set after the original journal entries and round to the nearest cent $50 of store supplies remained on hand. $10 of office supplies remained on hand. a. b. 8|P a g e $1,250 of wages for the part-time help from Irene's Temp Services for January should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. Make the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. Make the necessary adjusting entry for the office equipment using Straight Line Depreciation One month of the prepaid insurance has expired. One month of the prepaid rent has expired. Record the interest on the loan from Wells Fargo. C. d. e. f. g. h. Make sure you prepare the journal entries, and the adjusting entries, and write them in the practice set. All T-accounts with the correct balances should be prepared. There is an example of how to set up the T-Accounts in Excel at the end of the practice set. Make zero balance and make sure that the zero is on the normal balance side of the account. Once all t balances are in the T-accounts and the answers have been inputted into Blackboard please stap T-Account page to the back cover of the practice set. sure to include all accounts even if they have a he Blackboard Instructions: When entering the journal entries into Blackboard please follow the examples below exactly. 1. Enter each transaction on one line. First the debit and then the credit. Do NOT enter anvu Part Five Instructions Prepare an Adjusted Trial Balance, then an Income Statement, Statement of Retained Earnings and a Balance Sheet and staple them to the back cover of the practice set in the correct order as listed here. These statements should be done in Word or Excel. e it Debit Name Account No. 2 1000 12| P a g e Credit Debit Account Name Account Transaction ate No. 2660 12000nvcnis- candies 200 260 20000 Accun 7 019 1oS0s cash 6495 23300 Sales 40000 495 6 800 Losh o gords sold 4200 3500 700 2100 13 Page Credit Debit Account Name Account Transaction tel No. 600 100 Holder 4000 DeLnA EXpen Cash 86 23 I0000 loo sales. Tarm able Sales 767.a5 3300 141 Page credit Debit TransactionDateNo. Account Name ash 23300 Sales Tax Pauabl aies 220-60 ld a50 2100 able-oyice Mart K33.33 33.33 2782.03 40000 Sales 2 / (est goods said l odo a g e Credit Debit Account Name TransactionDateNo. 121001 unvenant- nol dan 1754.18 1754 13 loomcash tSupplies expen oO 250 16I Page ttttttrtf
