PRACTICE NUMBER 5 I NEED HELP
below. Chart of Accounts Current Assets 10000 Cash ma 11000 Accounts Receivable 12000 Inventory-Orange Roller Blades 12100 Inventory - Black Roller Blades 13100 Office Supplies 13200 Shipping Supplies 14000 Prepaid Rent 14100 Prepaid Insurance Current Liabilities 20000 Accounts Payable 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 uulty Payable 27000 Note Payable-Westerr. 27100 Note Payable Computer Inc. TIT Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends Long-Term Assets 15000 Metal Shelves 17000 Accumulated Depreciation - Metal Shelves 1$ 100 Land 15200 Cortiputer Equipment 17200 Accumulated Depreciation - Computer Equipment 15300 Truck 17300 Accumulated Depreciation Truck Revenue 40000 Sales Expenses 50000 60100 60150 60200 60300 60350 60400 60450 60500 60550 Cost of Goods Sold Legal Expense Office Supplies Expense Shipping Supplies Experise Insurance Expense Wage Expense Credit Card Expense Delivery Expense Advertising and Promotion Expense Utility Expense 60600 60650 60700 60750 60800 60850 Rent Expense Depreciation Expense Interest Expense Hank Service Fee Gasoline Expense Registraton Fee SIPAG o 8198 Record the January 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 joumal entries in the Excel Spreadsheet you will use the MA spreadsheet to enter the information into Blackboard for a grade. Once you are finished entering the journal entries into Blackboard you will upload your Excel Spreadsheet into Blackboard. Here are the instructions to turn in the documents for each part of the practice set: Step Write the journal entries in an Excel spreadsheet or Word document Step 2: use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week Step 3: Once you complete entering information click on the "Practice Set' tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5. Once the assignment opens, scroll down and click on "Browse Local Files" Step 6: When you are done uploading the files, scroll down and click on the Submit" button Transactions Date Deposit No. Check No. Description 1. 1/02/2021 2. 1/02/2021 Deposit #1 Ms. Blade met with her lawyer and CPA for advice on starting the business The lawyer told Ms. Blade to register the company name Rockin' Roller Blades with the County of El Paso. In addition, Ms. Blade will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. Ms. Blade opened a business checking account at Western Bank by depositing 536,000. The corporation issued her a stock certificate for 9,000 shares of common stock with no par value. Ms. Blade signed a one-year rental. She was required to pay $12,000 for rent for the months of January 1, 2021 - April 30, 2021. Arranged for a general business liability insurance policy and paid $6,000 to State Penn Insurance. This premium is for twelve months coverage. Signed a now payable to borrow $20,000 from Western Bank, Interest is 10% annually and the note is to be repaid with interest in twelve months. Interest will be calculated and shown as an adjusting journal entry Purchased Office Supplies $2,800 on account 3. 1/03/2021 Ck #1001 4. 1/03/2021 Ck #1002 5 1/03/2021 Deposit #2 6. 1/05/2021 4 80% + D Page view A Read aloud Draw Highligh GA WINS 7. 1/05/2021 8. 9. 1/05/2021 ck #1003 1/06/2021 Ck #1004 M Purchased metal shelving on account for $3,000. It will be depreciated over 5 years using straight-line depreciation and it will have S500 of salvage value at the end of 5 years. Depreciation will be calculated at the end of the month and in the adjusting journal entries. Purchased Shipping Supplies $1.000 Purchased land for a future building site $75,000, paying $10,000 in cash and giving a note payable from Western Bank for the remainder. The bank note will carry 10% interest and will be repaid in 9 months. The first month of interest will be paid in the adjusting journal entries at the end of the month . Purchased a new computer system that cost $6,255 from corriputer Inc. for use in the business. Ms. Blade signed a 6 month, 10% note payable for the cost of the system. The computer system has an estimated useful lite of five years the residual (sa vagel value is $4001 This will be recorded as Computer Equipment Depreciation and interest will be an adjusting journal entry using straight-line depreciation to be repaid with interest in twelve months and will be done at the end of the month 10. 1/06/2021 11. 1/08/2021 Ck #100S 12.1/08/2021 13. 1/09/2021 14. 1/13/2021 CK #1006 15. 1/14/2021 Ck #1007 Arranged for Muve West to make the delivery of the computer system and paid the delivery charge of $550. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. The depreciation will be calculated in the adjusting journal entries at the end of the month. Purchased 230 merchandise inventory orange roller blades for $6,900 on account. The vendor did not extend credit terms. Purchased 250 merchandise inventory black roller blades for $7,500 of on dwount. There were no credit terms for prompt payment. Ms. Blade received and paid the $1.000 charge from her lawyer Purchased a used truck for 11,000 using cash. The truck will be depreciated over 7 years. The depreciation will be straight line and will be an adjusung journal entry at the end of the month. Rockin' Roller Blades is now open for business! Sold merchandise for $19,800 cash. Sales Tax was $1.633.50. The cost of the Roller Blades is $9.900, the cost of the Orange Roller Blades $3.900. Part of this sale must be delivered to the customer. The merchandise will be shipped FOB destination Paid $225 to ship the militandise. Purchased additional orange roller blades on aunt for $6,000. Credit Terms werk2/15 IB0Assume credidlerens will be used! Purchaseid diirmal black roller blades on aunt for $11,500. Credit from wer: 1/15 Wan Asume kredit terre will help 16.1/14/2021 17. 1/14/2021 Deposit 3 18 1/16/2071Ck #1008 19. 1/16/2021 20. 1/17/2021 @ 809% 8. 9. 1/05/2021 Ck #1003 1/06/2021 Ck #1004 Value autre en or years. Depreciduon were calculdled at the end or ve month and in the adjusting journal entries. Purchased Shipping Supplies $1,000 Purchased land for a future building site $75,000, paying $10,000 in cash and giving a note payable from Western Bank for the remainder. The bank note will carry 10% interest and will be repaid in 9 months. The first month of interest will be paid in the adjusting journal entries at the end of the month. Purchased a new computer system that cost $6,255 from Computer ind for use in the business. Ms. Blade signed a 6 month, 10% note payable for the 6 , cost of the system. The computer system has an estimated useful life of five years the residual (Salvage) value is $400. This will be recorded as Computer Equipment. Depreciation and interest will be an adjusting journal entry using straight-line depreciation to be repaid with interest in twelve months and will be done at the end of the month 10. 1/06/2021 11. 1/08/2021 Ck #1005 12.1/08/2021 13. 1/09/2021 14. 1/13/2021 CK #1006 15. 1/14/2021 Ck #1007 Arranged for Move West to make the delivery of the computer system and paid the delivery charge of $550. This charge should be added to the cost of the computer equipment purchased and deprecated on the same basis as the computer equipment. The depreciation will he calculated in the adjusting journal entries at the end of the month. Purchased 230 merchandise inventory orange roller blades for $6,900 on / arcount. The vendor did not extend credit terms. Animated Purchased 250 merchandise inventory-black roller blades for $7,500 of on account. There were no credit terms for prompt payment Ms Blade received and paid the $1,000 charge from her lwyer Purchased a used truck for 11,000 using cash. The truck will be depreciated over 2 years. The depreciation will be straight line and will be an adjusting journal entry at the end of the month Rockin' Roller Blades is now open for husiness Sold merchandise for $19,800 cash. Sales Tax was $1,633.56. The cost of the Roller Blades is $9,900; the cost of the Orange Roller Blades is $3.900 Part of this sale must be delivered to the customer. The merchandise will be shipped FOB destination. Paid $225 ta ship the merchandise Purchased additional orange roller blades on account for $5,000. Credit terms were 2/15, 1/30. Assume credit terms will be used! Purchase additional black roller blades on a count for $11.500. Credit terms were 1/15 n/30. Assume credit terms will be used. 16. 1/14/2021 17. 1/14/2021 Deposit #3 18. 1/16/2021 Ck #1008 19.1/16/2021 20. 1/17/2021 sease it 2004 04 F6 DO F7 A FA DOD FS F8 F9 FO E11 F12 PUS A COUNTING 21. 1/20/2021 Deposit #4 22 1/22/2021 Ck #1009 23. 01/23/2021 Recorded cash sales that totaled $15,000. Sales tax is $1,237.50. The cost of merchandise sold was $7,500 (orange blades were $3,750; black blades were $3,750) Ms. Blade signed up for a Roller Blade Exhibition. She paid the registration fee of $250 Ms. Blade participated in a rollerblade exhibition held at the convention center sponsored by the Chamber of Commerce. She felt this was a good way to publicize her new business. The cost to participate was $800 and she considers this an Advertising expense and paid on account. Paid for the roller blades purchased on 1/09/7021 Ms. Blade recorded cash sales totaling S10.500. Sales tax is $866.25the cost of the merchandise sold was $5,250 (orange blades $2,250, black 24. 1/26/2021 Ck #1010 25. 1/27/2021 Deposit #5 blades $3,000). 26. 1/27/2021CkW 1011 271/27/2021 ck #1012 28 1/30/2021 Ck #1013 29. 1/30/2021 30. 1/30/2021 Ck #1014 Paid the Advertising expense billed on account in transaction #23 Paid the balance due for the roller blades. There are three invoices Amercan Express sent a bill for $235 for gasoline expense and the bill was bid EST paid Received but did not pay the utility bill for the month, $445. Paid the first monthly installment on the computer equipment. $52.13 for interest and $1,042.50 is for principal. Recorded sales made for the last week of the month. Sales tax is $891. Total cash sales were $10,800. The cost of the merchandise sold was $5,400 Korange blades $1.650 black blades $3,750). Paid the sales tax to the proper taxing authority, Declared and paid a cushi dividend at $200 to Ms. Blade 31.1/30/2021 Deposit W6 32. 1/31/2021 Ck #1015 33. 1/31/2021 ck #1016 SH 8096 0 De FO F7 F8 F9 F1D F F12 st PUSO Blackboard Instructions: When preparing the Excel Spreadsheet below do NOT include a transaction number column. In Blackboard you will only see one box to enter the information and there will not be 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 one 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. 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. *Norice how the smaller account number is entered first when there is more than one debit or 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 takes two lines 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. 1. Dr 10000 $35,000.00 Cr 39003 $35,000.00 and Inventory amount. *Notice how the smaller account number is entered first when there is more than one debit or 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 takes two lines 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. 1. Dr 10000 $35,000.00 | Cr 39003 $35,000.00 Dr 11000 | $10,500.00 Cr 23000 $500.00 40000 $10,000.00 50000 $5,000.00 Cr 12000 $2,500.00 Cr 12100 $2,500.00 3. No JE ACCOUNTING OTETY Part Two Instructions: 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 core the adjusting journal entries for the month of January. Record all adjusting entries on January 31, 2021. Record Adjusting Entries: Record the following month end adjusting entries for the month of January. Write the journal entries in a new Excel Spreadsheet. a $150 of office supplies remained on hand, b. $200 of shipping supplies remained on hand! c. $2.300 of wages for the part-time help from Irene's Temp Services for Jarvoory should be accrued. Do not worry about payroll taxes: Teme Services Inc. wil handle these. d. Make the necessary adjusting entries for one month's depreciation for the Auction Computer Equipment using Straight Line Depreciation. e. Make the necessary adjusting entry ton one month's depreciation for the truck using Straight Line Depreciation. f. Muke the necessary adjusting entry for one month's depreciation for the melal shelving us ng Sliaight Linc Depreciation g. One month of the prepaid insurance has expired. h. One month of the prepaid rent has expired. Record the interest for the loan for $20,000 from Westem Bank for one month. Record the interest for the loan fry the land from Western Bank for one month. Follow the same instructions for the adjusting journal entries that you did in parlene. Once the adjusting entries have been completed in the spreexisheet use the spreadsheet to answer the questions in Blackboard then upload the spreadsheet to Blockboard. Follow these instructions, Step 1: Write the adjusting journal entries in an Excel spreadsheet or Word document Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard In the content falder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files" Step 6: When you are done uploading the files, scroll down and click on the "Submit" button 1. ET L2 e 0 0 8098 0 F4 + FB FS EZ FA F9 F C F11 F12 Insen Puse $ % & CCOUNTING OCIETY Part Three Instructions Before preparing the l-Accounts make sure that all journal entries are corrected so that the ending balance in the T-Accounts will be correct. Find the ending balance for each account. Do this by creating a T-account for each account in an Excel Sprecdsheet as shown in the template after the instructions here. Put all debits and credits in each account and calculate the ending balance. All accounts that were used in the Chart of Accounts should be included and if the account has a zero balance place the zero on the normal balance side. Once you finish preparing all the balances in each account, use the spreadsheet to answer the questions in Blackboard. In Blackboard the question will be the same for each account. "What is the balance in Account number 10000 for whatever account it asks) and what is the normal balance. Since it asked for account number 10000 that is cash so type in Dr $10,500.00 You will do this for each account. Use the spreadsheet to answer the questions in Blackboard. Once you complete answering the questions in Blackboard then upload your T-Account Spreadsheetto Blackboard following the instructions below: Step 1: Create an Excel spreadsheet or Word document with all the T-Accounts and input the numbers from the transactions into the proper account and calculate the ending balance in each account and input the balance on the normal balance side Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files Step 6: When you are done uploading the files, scroll down and click on the "Submit" button A template for the T-Accounts follows. Some accounts such as cash will require more than just one or two lines, W 80 s FB FB FO F11 F11 F12 PUS ACCOUNTING SOCIETY Template for T-Accounts: Prepare the T-Accounts in Excel and use the accounts listed in the Chart of Accounts. This is just an example of how to set it up. Cash Accounts Receivable Debit Credit Inventory-Flowers Debit Credit Inventory-Containers Office Supplies Debit Credit Debit Credit Shipping Supplies Debit Credit Debit Credit 0 0 0 0 0 0 Prepaid Domain Charges Debit Credit Accumulated Depr.- Comp. Equipment Debit Credit Prepaid Rent Debit Credit Website Development Debit Credit Prepaid Insurance Debit Credit Computer Equipment Debit Credit 0 0 Accumulated Depr.- Website Debit Credit Note Payable- Wells Fargo Debit Credit Note Payable- Computer Inc. Debit Credit Accounts Payable Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 Utilities Payable Debit Credit Sales Tax Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit 0 0 0 0 0 Shipping Supplies Office Supplies Cash Debit Credit Accounts Receivable Debit Credit Inventory-Flowers Debit Credit Inventory-Containers Debit Credit Office Supplies Debit Credit Shipping Supplies Debit Credit 0 0 0 01 Prepaid Domain Charges Debit Credit Prepaid Insurance Debit Credit Prepaid Rent Debit Credit Accumulated Depr.- Comp. Equipment Debit Credit Website Development Debit Credit Computer Equipment Debit Credit 0 0 0 0 Accumulated Depr.- Website Debit Credit Accounts Payable Debit Credit Note Payable Wells Fargo Debit Credit Note Payable- Computer Inc. Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 Sales Tax Payable Debit Credit Utilities Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit 0 0 0 0 0 0 0 0 Shipping Supplies Expense Debit Credit Office Supplies Expense Debit Credit Dividends Deolt Credit COGS Credit Sales Debit Credit Legal Expense Debit Credit Debit 0 0 0 0 0 Advertising & Promotion Expense Debit Credit Insurance Expense Debit Credit Domain Expense Debit Credit Wages Expense Debit Credit Delivery Expense Debit Credit Credit Card Expense Debit Credit 0 0 Accumulated Depr.- Website Debit Credit Accounts Payable Debit Credit Note Payable Wells Fargo Cebit Credit Note Payable- Computer Inc Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 0 Sales Tax Payable Credit Utilities Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit Debit 0 0 0 0 0 0 Shipping Supplies Expense Debit Credit Office Supplies Expense Debit Credit Dividends Debit Credit Sales Debit Credit Legal Expense Debit Credit COGS Credit Debit 0 0 0 0 Advertising & Promotion Expense Debit Credit Domain Expense Debit Credit Insurance Expense Debit Credit Wages Expense Debit Credit Credit Card Expense Debit Credit Delivery Expense Debit Credit 0 0 O 0 UwWty Expense Debit Credit Rent Expense Debit Credit Deprecation Expense Debit Credit Interest Expense Debit Credit Bank Service Fee Debit Credit 0 0 ACCOUNTING SOCIET OCIETY Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Word or Excel and use the ending balance in your cash account for the cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard, upload the Bank Reconciliation. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account before starting the Bank Reconciliation. Please use the correct balance in the cash account to start on the book side of the reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank reconciliation is located at the at the bottom of this page. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank Seconciliation. Once you finish the Bank Reconciliation follow the instructions below: Step 1: Use the template below to create an Excel spreadsheet or Word document to show the reconciled balance using the Bank Statement and the correct ending balance in the cash account. Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week. iol on the "rnotico Sot" tab on the navigation nane Page 1 PO Box 12345 El Paso, Texas 79998-2345 Rocking' Roller Blades 123 Main Avenue El Paso, Texas 79945 WESTERN BANK STATEMENT "Rockin' Roller Blades" Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2021 January January 01/31/2021 $0 $105,307.25 $66,530.00 $38.777.25 Deposits Added 1/2/2021 Deposit 1 $36,000.00 1/3/2021 Deposit 2 $20,000.00 1/14/2021 Deposit 3 $21,433,50 1/23/2021 Deposit 4 $16,237.50 1/27/2021 Deposit 5 $11,636.25 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $12,000.00 1007 $11.000.00 1002 $6.000,00 1008 $225.00 WESTERN BANK STATEMENT "Rockin' Roller Blades" Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2021 January January 01/31/2021 $0 $105,307.25 $66,530.00 $38,777.25 Deposits Added 1/2/2021 Deposit 1 $36,000.00 1/3/2021 Deposit 2 $20,000.00 1/14/2021 Deposit 3 $21,433.50 1/23/2021 Deposit 4 $16,237.50 1/27/2021 Deposit 5 $11,636.25 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $12,000.00 1007 $11,000.00 1002 $6,000.00 1008 $225.00 1003 $1,000.00 1009 $250.00 1004 $10,000.00 1012 $23,685.00 1005 $550.00 DM $70 Check Printing Fee 1006 $1,000.00 NSF $750,00 *Assume any errors are made by the bank. ACCOUNTING OCTETY Part Five Instructions Before preparing the Financial Statements make sure all the assignments have been corrected Yourispreddsheets. Prepare the Financial Statements listed below d. Adjusted Tridl Balance blncarne Statement cu statement of Retained Earnings 0. Balance sheet Once you finish the Financial Statements follow the instructions below: Step 1: Take the corrected balances in each account and prepare the Financial Statements listed above. Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content "folder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files" Step 6 When you are done uploading the files, scroll down and click on the "Submit" button SE below. Chart of Accounts Current Assets 10000 Cash ma 11000 Accounts Receivable 12000 Inventory-Orange Roller Blades 12100 Inventory - Black Roller Blades 13100 Office Supplies 13200 Shipping Supplies 14000 Prepaid Rent 14100 Prepaid Insurance Current Liabilities 20000 Accounts Payable 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 uulty Payable 27000 Note Payable-Westerr. 27100 Note Payable Computer Inc. TIT Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends Long-Term Assets 15000 Metal Shelves 17000 Accumulated Depreciation - Metal Shelves 1$ 100 Land 15200 Cortiputer Equipment 17200 Accumulated Depreciation - Computer Equipment 15300 Truck 17300 Accumulated Depreciation Truck Revenue 40000 Sales Expenses 50000 60100 60150 60200 60300 60350 60400 60450 60500 60550 Cost of Goods Sold Legal Expense Office Supplies Expense Shipping Supplies Experise Insurance Expense Wage Expense Credit Card Expense Delivery Expense Advertising and Promotion Expense Utility Expense 60600 60650 60700 60750 60800 60850 Rent Expense Depreciation Expense Interest Expense Hank Service Fee Gasoline Expense Registraton Fee SIPAG o 8198 Record the January 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 joumal entries in the Excel Spreadsheet you will use the MA spreadsheet to enter the information into Blackboard for a grade. Once you are finished entering the journal entries into Blackboard you will upload your Excel Spreadsheet into Blackboard. Here are the instructions to turn in the documents for each part of the practice set: Step Write the journal entries in an Excel spreadsheet or Word document Step 2: use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week Step 3: Once you complete entering information click on the "Practice Set' tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5. Once the assignment opens, scroll down and click on "Browse Local Files" Step 6: When you are done uploading the files, scroll down and click on the Submit" button Transactions Date Deposit No. Check No. Description 1. 1/02/2021 2. 1/02/2021 Deposit #1 Ms. Blade met with her lawyer and CPA for advice on starting the business The lawyer told Ms. Blade to register the company name Rockin' Roller Blades with the County of El Paso. In addition, Ms. Blade will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. Ms. Blade opened a business checking account at Western Bank by depositing 536,000. The corporation issued her a stock certificate for 9,000 shares of common stock with no par value. Ms. Blade signed a one-year rental. She was required to pay $12,000 for rent for the months of January 1, 2021 - April 30, 2021. Arranged for a general business liability insurance policy and paid $6,000 to State Penn Insurance. This premium is for twelve months coverage. Signed a now payable to borrow $20,000 from Western Bank, Interest is 10% annually and the note is to be repaid with interest in twelve months. Interest will be calculated and shown as an adjusting journal entry Purchased Office Supplies $2,800 on account 3. 1/03/2021 Ck #1001 4. 1/03/2021 Ck #1002 5 1/03/2021 Deposit #2 6. 1/05/2021 4 80% + D Page view A Read aloud Draw Highligh GA WINS 7. 1/05/2021 8. 9. 1/05/2021 ck #1003 1/06/2021 Ck #1004 M Purchased metal shelving on account for $3,000. It will be depreciated over 5 years using straight-line depreciation and it will have S500 of salvage value at the end of 5 years. Depreciation will be calculated at the end of the month and in the adjusting journal entries. Purchased Shipping Supplies $1.000 Purchased land for a future building site $75,000, paying $10,000 in cash and giving a note payable from Western Bank for the remainder. The bank note will carry 10% interest and will be repaid in 9 months. The first month of interest will be paid in the adjusting journal entries at the end of the month . Purchased a new computer system that cost $6,255 from corriputer Inc. for use in the business. Ms. Blade signed a 6 month, 10% note payable for the cost of the system. The computer system has an estimated useful lite of five years the residual (sa vagel value is $4001 This will be recorded as Computer Equipment Depreciation and interest will be an adjusting journal entry using straight-line depreciation to be repaid with interest in twelve months and will be done at the end of the month 10. 1/06/2021 11. 1/08/2021 Ck #100S 12.1/08/2021 13. 1/09/2021 14. 1/13/2021 CK #1006 15. 1/14/2021 Ck #1007 Arranged for Muve West to make the delivery of the computer system and paid the delivery charge of $550. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. The depreciation will be calculated in the adjusting journal entries at the end of the month. Purchased 230 merchandise inventory orange roller blades for $6,900 on account. The vendor did not extend credit terms. Purchased 250 merchandise inventory black roller blades for $7,500 of on dwount. There were no credit terms for prompt payment. Ms. Blade received and paid the $1.000 charge from her lawyer Purchased a used truck for 11,000 using cash. The truck will be depreciated over 7 years. The depreciation will be straight line and will be an adjusung journal entry at the end of the month. Rockin' Roller Blades is now open for business! Sold merchandise for $19,800 cash. Sales Tax was $1.633.50. The cost of the Roller Blades is $9.900, the cost of the Orange Roller Blades $3.900. Part of this sale must be delivered to the customer. The merchandise will be shipped FOB destination Paid $225 to ship the militandise. Purchased additional orange roller blades on aunt for $6,000. Credit Terms werk2/15 IB0Assume credidlerens will be used! Purchaseid diirmal black roller blades on aunt for $11,500. Credit from wer: 1/15 Wan Asume kredit terre will help 16.1/14/2021 17. 1/14/2021 Deposit 3 18 1/16/2071Ck #1008 19. 1/16/2021 20. 1/17/2021 @ 809% 8. 9. 1/05/2021 Ck #1003 1/06/2021 Ck #1004 Value autre en or years. Depreciduon were calculdled at the end or ve month and in the adjusting journal entries. Purchased Shipping Supplies $1,000 Purchased land for a future building site $75,000, paying $10,000 in cash and giving a note payable from Western Bank for the remainder. The bank note will carry 10% interest and will be repaid in 9 months. The first month of interest will be paid in the adjusting journal entries at the end of the month. Purchased a new computer system that cost $6,255 from Computer ind for use in the business. Ms. Blade signed a 6 month, 10% note payable for the 6 , cost of the system. The computer system has an estimated useful life of five years the residual (Salvage) value is $400. This will be recorded as Computer Equipment. Depreciation and interest will be an adjusting journal entry using straight-line depreciation to be repaid with interest in twelve months and will be done at the end of the month 10. 1/06/2021 11. 1/08/2021 Ck #1005 12.1/08/2021 13. 1/09/2021 14. 1/13/2021 CK #1006 15. 1/14/2021 Ck #1007 Arranged for Move West to make the delivery of the computer system and paid the delivery charge of $550. This charge should be added to the cost of the computer equipment purchased and deprecated on the same basis as the computer equipment. The depreciation will he calculated in the adjusting journal entries at the end of the month. Purchased 230 merchandise inventory orange roller blades for $6,900 on / arcount. The vendor did not extend credit terms. Animated Purchased 250 merchandise inventory-black roller blades for $7,500 of on account. There were no credit terms for prompt payment Ms Blade received and paid the $1,000 charge from her lwyer Purchased a used truck for 11,000 using cash. The truck will be depreciated over 2 years. The depreciation will be straight line and will be an adjusting journal entry at the end of the month Rockin' Roller Blades is now open for husiness Sold merchandise for $19,800 cash. Sales Tax was $1,633.56. The cost of the Roller Blades is $9,900; the cost of the Orange Roller Blades is $3.900 Part of this sale must be delivered to the customer. The merchandise will be shipped FOB destination. Paid $225 ta ship the merchandise Purchased additional orange roller blades on account for $5,000. Credit terms were 2/15, 1/30. Assume credit terms will be used! Purchase additional black roller blades on a count for $11.500. Credit terms were 1/15 n/30. Assume credit terms will be used. 16. 1/14/2021 17. 1/14/2021 Deposit #3 18. 1/16/2021 Ck #1008 19.1/16/2021 20. 1/17/2021 sease it 2004 04 F6 DO F7 A FA DOD FS F8 F9 FO E11 F12 PUS A COUNTING 21. 1/20/2021 Deposit #4 22 1/22/2021 Ck #1009 23. 01/23/2021 Recorded cash sales that totaled $15,000. Sales tax is $1,237.50. The cost of merchandise sold was $7,500 (orange blades were $3,750; black blades were $3,750) Ms. Blade signed up for a Roller Blade Exhibition. She paid the registration fee of $250 Ms. Blade participated in a rollerblade exhibition held at the convention center sponsored by the Chamber of Commerce. She felt this was a good way to publicize her new business. The cost to participate was $800 and she considers this an Advertising expense and paid on account. Paid for the roller blades purchased on 1/09/7021 Ms. Blade recorded cash sales totaling S10.500. Sales tax is $866.25the cost of the merchandise sold was $5,250 (orange blades $2,250, black 24. 1/26/2021 Ck #1010 25. 1/27/2021 Deposit #5 blades $3,000). 26. 1/27/2021CkW 1011 271/27/2021 ck #1012 28 1/30/2021 Ck #1013 29. 1/30/2021 30. 1/30/2021 Ck #1014 Paid the Advertising expense billed on account in transaction #23 Paid the balance due for the roller blades. There are three invoices Amercan Express sent a bill for $235 for gasoline expense and the bill was bid EST paid Received but did not pay the utility bill for the month, $445. Paid the first monthly installment on the computer equipment. $52.13 for interest and $1,042.50 is for principal. Recorded sales made for the last week of the month. Sales tax is $891. Total cash sales were $10,800. The cost of the merchandise sold was $5,400 Korange blades $1.650 black blades $3,750). Paid the sales tax to the proper taxing authority, Declared and paid a cushi dividend at $200 to Ms. Blade 31.1/30/2021 Deposit W6 32. 1/31/2021 Ck #1015 33. 1/31/2021 ck #1016 SH 8096 0 De FO F7 F8 F9 F1D F F12 st PUSO Blackboard Instructions: When preparing the Excel Spreadsheet below do NOT include a transaction number column. In Blackboard you will only see one box to enter the information and there will not be 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 one 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. 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. *Norice how the smaller account number is entered first when there is more than one debit or 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 takes two lines 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. 1. Dr 10000 $35,000.00 Cr 39003 $35,000.00 and Inventory amount. *Notice how the smaller account number is entered first when there is more than one debit or 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 takes two lines 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. 1. Dr 10000 $35,000.00 | Cr 39003 $35,000.00 Dr 11000 | $10,500.00 Cr 23000 $500.00 40000 $10,000.00 50000 $5,000.00 Cr 12000 $2,500.00 Cr 12100 $2,500.00 3. No JE ACCOUNTING OTETY Part Two Instructions: 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 core the adjusting journal entries for the month of January. Record all adjusting entries on January 31, 2021. Record Adjusting Entries: Record the following month end adjusting entries for the month of January. Write the journal entries in a new Excel Spreadsheet. a $150 of office supplies remained on hand, b. $200 of shipping supplies remained on hand! c. $2.300 of wages for the part-time help from Irene's Temp Services for Jarvoory should be accrued. Do not worry about payroll taxes: Teme Services Inc. wil handle these. d. Make the necessary adjusting entries for one month's depreciation for the Auction Computer Equipment using Straight Line Depreciation. e. Make the necessary adjusting entry ton one month's depreciation for the truck using Straight Line Depreciation. f. Muke the necessary adjusting entry for one month's depreciation for the melal shelving us ng Sliaight Linc Depreciation g. One month of the prepaid insurance has expired. h. One month of the prepaid rent has expired. Record the interest for the loan for $20,000 from Westem Bank for one month. Record the interest for the loan fry the land from Western Bank for one month. Follow the same instructions for the adjusting journal entries that you did in parlene. Once the adjusting entries have been completed in the spreexisheet use the spreadsheet to answer the questions in Blackboard then upload the spreadsheet to Blockboard. Follow these instructions, Step 1: Write the adjusting journal entries in an Excel spreadsheet or Word document Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard In the content falder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files" Step 6: When you are done uploading the files, scroll down and click on the "Submit" button 1. ET L2 e 0 0 8098 0 F4 + FB FS EZ FA F9 F C F11 F12 Insen Puse $ % & CCOUNTING OCIETY Part Three Instructions Before preparing the l-Accounts make sure that all journal entries are corrected so that the ending balance in the T-Accounts will be correct. Find the ending balance for each account. Do this by creating a T-account for each account in an Excel Sprecdsheet as shown in the template after the instructions here. Put all debits and credits in each account and calculate the ending balance. All accounts that were used in the Chart of Accounts should be included and if the account has a zero balance place the zero on the normal balance side. Once you finish preparing all the balances in each account, use the spreadsheet to answer the questions in Blackboard. In Blackboard the question will be the same for each account. "What is the balance in Account number 10000 for whatever account it asks) and what is the normal balance. Since it asked for account number 10000 that is cash so type in Dr $10,500.00 You will do this for each account. Use the spreadsheet to answer the questions in Blackboard. Once you complete answering the questions in Blackboard then upload your T-Account Spreadsheetto Blackboard following the instructions below: Step 1: Create an Excel spreadsheet or Word document with all the T-Accounts and input the numbers from the transactions into the proper account and calculate the ending balance in each account and input the balance on the normal balance side Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files Step 6: When you are done uploading the files, scroll down and click on the "Submit" button A template for the T-Accounts follows. Some accounts such as cash will require more than just one or two lines, W 80 s FB FB FO F11 F11 F12 PUS ACCOUNTING SOCIETY Template for T-Accounts: Prepare the T-Accounts in Excel and use the accounts listed in the Chart of Accounts. This is just an example of how to set it up. Cash Accounts Receivable Debit Credit Inventory-Flowers Debit Credit Inventory-Containers Office Supplies Debit Credit Debit Credit Shipping Supplies Debit Credit Debit Credit 0 0 0 0 0 0 Prepaid Domain Charges Debit Credit Accumulated Depr.- Comp. Equipment Debit Credit Prepaid Rent Debit Credit Website Development Debit Credit Prepaid Insurance Debit Credit Computer Equipment Debit Credit 0 0 Accumulated Depr.- Website Debit Credit Note Payable- Wells Fargo Debit Credit Note Payable- Computer Inc. Debit Credit Accounts Payable Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 Utilities Payable Debit Credit Sales Tax Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit 0 0 0 0 0 Shipping Supplies Office Supplies Cash Debit Credit Accounts Receivable Debit Credit Inventory-Flowers Debit Credit Inventory-Containers Debit Credit Office Supplies Debit Credit Shipping Supplies Debit Credit 0 0 0 01 Prepaid Domain Charges Debit Credit Prepaid Insurance Debit Credit Prepaid Rent Debit Credit Accumulated Depr.- Comp. Equipment Debit Credit Website Development Debit Credit Computer Equipment Debit Credit 0 0 0 0 Accumulated Depr.- Website Debit Credit Accounts Payable Debit Credit Note Payable Wells Fargo Debit Credit Note Payable- Computer Inc. Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 Sales Tax Payable Debit Credit Utilities Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit 0 0 0 0 0 0 0 0 Shipping Supplies Expense Debit Credit Office Supplies Expense Debit Credit Dividends Deolt Credit COGS Credit Sales Debit Credit Legal Expense Debit Credit Debit 0 0 0 0 0 Advertising & Promotion Expense Debit Credit Insurance Expense Debit Credit Domain Expense Debit Credit Wages Expense Debit Credit Delivery Expense Debit Credit Credit Card Expense Debit Credit 0 0 Accumulated Depr.- Website Debit Credit Accounts Payable Debit Credit Note Payable Wells Fargo Cebit Credit Note Payable- Computer Inc Debit Credit Wages Payable Debit Credit Interest Payable Debit Credit 0 0 0 0 0 0 0 Sales Tax Payable Credit Utilities Payable Debit Credit Mortgage Payable Debit Credit Note Payable Debit Credit Common Stock Debit Credit Retained Earnings Debit Credit Debit 0 0 0 0 0 0 Shipping Supplies Expense Debit Credit Office Supplies Expense Debit Credit Dividends Debit Credit Sales Debit Credit Legal Expense Debit Credit COGS Credit Debit 0 0 0 0 Advertising & Promotion Expense Debit Credit Domain Expense Debit Credit Insurance Expense Debit Credit Wages Expense Debit Credit Credit Card Expense Debit Credit Delivery Expense Debit Credit 0 0 O 0 UwWty Expense Debit Credit Rent Expense Debit Credit Deprecation Expense Debit Credit Interest Expense Debit Credit Bank Service Fee Debit Credit 0 0 ACCOUNTING SOCIET OCIETY Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Word or Excel and use the ending balance in your cash account for the cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard, upload the Bank Reconciliation. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account before starting the Bank Reconciliation. Please use the correct balance in the cash account to start on the book side of the reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank reconciliation is located at the at the bottom of this page. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank Seconciliation. Once you finish the Bank Reconciliation follow the instructions below: Step 1: Use the template below to create an Excel spreadsheet or Word document to show the reconciled balance using the Bank Statement and the correct ending balance in the cash account. Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content folder in the corresponding week. iol on the "rnotico Sot" tab on the navigation nane Page 1 PO Box 12345 El Paso, Texas 79998-2345 Rocking' Roller Blades 123 Main Avenue El Paso, Texas 79945 WESTERN BANK STATEMENT "Rockin' Roller Blades" Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2021 January January 01/31/2021 $0 $105,307.25 $66,530.00 $38.777.25 Deposits Added 1/2/2021 Deposit 1 $36,000.00 1/3/2021 Deposit 2 $20,000.00 1/14/2021 Deposit 3 $21,433,50 1/23/2021 Deposit 4 $16,237.50 1/27/2021 Deposit 5 $11,636.25 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $12,000.00 1007 $11.000.00 1002 $6.000,00 1008 $225.00 WESTERN BANK STATEMENT "Rockin' Roller Blades" Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2021 January January 01/31/2021 $0 $105,307.25 $66,530.00 $38,777.25 Deposits Added 1/2/2021 Deposit 1 $36,000.00 1/3/2021 Deposit 2 $20,000.00 1/14/2021 Deposit 3 $21,433.50 1/23/2021 Deposit 4 $16,237.50 1/27/2021 Deposit 5 $11,636.25 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $12,000.00 1007 $11,000.00 1002 $6,000.00 1008 $225.00 1003 $1,000.00 1009 $250.00 1004 $10,000.00 1012 $23,685.00 1005 $550.00 DM $70 Check Printing Fee 1006 $1,000.00 NSF $750,00 *Assume any errors are made by the bank. ACCOUNTING OCTETY Part Five Instructions Before preparing the Financial Statements make sure all the assignments have been corrected Yourispreddsheets. Prepare the Financial Statements listed below d. Adjusted Tridl Balance blncarne Statement cu statement of Retained Earnings 0. Balance sheet Once you finish the Financial Statements follow the instructions below: Step 1: Take the corrected balances in each account and prepare the Financial Statements listed above. Step 2: Use the Excel spreadsheet or Word document to answer the questions in Blackboard in the content "folder in the corresponding week. Step 3: Once you complete entering information click on the "Practice Set" tab on the navigation pane Step 4: When it opens, click on the corresponding assignment of the practice set Step 5: Once the assignment opens, scroll down and click on "Browse Local Files" Step 6 When you are done uploading the files, scroll down and click on the "Submit" button SE
