Question
Prepare an unadjusted trial balance with the following information below: Month-End Processing: Marty, Chavez considers each month to be a separated fiscal period, you must
Prepare an unadjusted trial balance with the following information below:
Month-End Processing:
Marty, Chavez considers each month to be a separated fiscal period, you must now complete the month-end processing.
1. Prepare schedules of accounts receivable and accounts payable and compare the totals with the balances of the controlling accounts in the general ledger. 2. Prepare a trail balance at April 30, 2018 3. Make necessary adjustments. Record adjusting entries. Adjustment data are as follows: a. Inventory per physical count, April 30 $208,554.75 b. Office supplies on hand at April 30 $1,600.00 c. Store supplies on hand at April 30 $3.005.00 d. Prepaid Insurance: Transfer 1/12 of the of the premium paid on April 2 to expense. Depreciation for the month: e. Equipment $1,250.00 f. Building $2,475.00 g. Interest earned on note receivable $30.00 h. Accrued salaries at April 30: Sale Salaries $1,200.00 Office Salaries $500.00 Record the estimate of customer returns of this months sales: i. Customer Refunds $4,470.00 (Debit Sales, Credit Customer Refunds Payable) j. Returns inventory $3,190.00 (Debit estimated returns inventory, credit cost of goods sold)
Apri Purchased merchandise on account Ap 4 Issued Check No. 2204 for $14,000.00 to HeartFit Enterprises in payment of its invoice of March 28 from Alexus Fitness Connection, $13,865.00. Terms are n/30 4 Reccived a check for $6,174.00 from 1 Sold merchandise on account, Invoice No. 301, to Miami Health Club for the net amount of $5,301.60. The Cost of Goods Sold is $3,864.00 The Sun Set Recreation Center in payment of our invoice of March 8 5 Sold merchandise on account, Invoice Credit terms for all sales on account are 2/10, n/30. Credit sales are recorded net of the 2% discount assuming customers will take the discount. Fit & Fashionable uses a perpetual inventory system and therefore records the cost of goods sold as well as the sale Issued Check No. 2201 for S14,268.80 to Alexus Fitness Connection payment of its invoice of March 6 Received a check for $14,406.00 from Body Excellence Fitness Club in payment of our invoice of March 27 for $14,700.00, less discount. No. 303, to Westwood Boxing Gym for the net amount of $27,306.48. The Cost of Goods Sold is $19,903.68 5 Purchased merchandise on account from Sports Magic Warehouse, S49,519.75. Terms are n/30 6 Cash sales for Apr-6 were 1 S26,600.00. The Cost of Goods Sold is $18,024.00 in Reminder: Recordthe following separate deposits in the checkbook register: the S26,600.00 of cash sales and the total of the checks received as payments on account this week. 2 2 Issued Check No. 2202 for $5,700.00 8 Received a check for $8,232.00 from to Harvey Insurance Company as a prepaymen of insurance for a 12 month policy Westwood Boxing Gym in payment of our invoice of March 29 for $8,400.00 less discount. 3 Issued Check No. 2203 for $46,480.00 to Fizzy-Cal Network in payment of its invoice of March 7 (no discount). 8 Purchased merchandise on account from Fi & Fab Health Products, S5,230.00, terms 2/10, n/30. Record this purchase net of the discount. 3 Sold merchandise on account, Invoice No. 302, to All Access Fitness Center for the net amount of $9,364.29. The Cost of Goods Sold is $6,825.00 8 Sold merchandise on account, Invoice No. 304, to The Sun Set Recreation Center for the net amount of S21,756.88. The Cost of Goods Sold is S15,858.00 3 Received a check from Cory's Gym in the Grove for $12,348.00 in payment of our invoice of March 27 1 April 8 Received a check for S10,976.00 from Apri 15 Received a check for $27,306.48 from Pine Bay Fitness Club in payment of our invoice of March 30. Westwood Boxing Gym in payment of Invoice No. 303 9 Purchased the following on account 16 Purchased the following items on from Fizzy-Cal Network: display (charge to Store Supplies), $1,800.00 merchandise, $9,600.00. Total S11,400.00. Terms are n/30 account from Alexus Fitness Connection inventory, $9,180.00 miscellaneous selling expense (display cases), S675.00 store supplies (promotion pack), $250.00. Total: $10,105.00. Terms are n/30 9 Issued Credit Memorandum No. 107 to The Sun Set Recrcation Center for merchandise returned onInvoiceNo 304 of April 8 for the discounted price of $823.20. The Cost of Goods Sold is S600.00 16 Sold merchandise on account, Invoice No. 306, to Miami Health Club for the net amount of $5,649.80. The Cost of Goods Sold is $4,115.20 10 Issued Check No. 2205 for S175.00 to Marty Chavez for customer entertain ment (charge to Miscellancous Selling Expense). 17 Issued Check No. 2207 for $4,200.00 to Marty Chavez for personal usc. Issued Check No. 2208 for $441.00 to U.S. Health &Fitness Magazine for an advertisement. 17 10 Sold merchandise on account, Invoice No. 305, to Rockdale Gym for the net amount of S13,373.86. The Cost of Goods Sold is $9,412.00 17 Purchased merchandisc on account from Sports Magic Warehouse, $16,900.00. Terms arc n/30 11 Received Credit Memorandum No. 432 from Fit & Fab Health Products for merchandise returned, $875.00. Record this return nct of the discount, $857.50 11 Received a check for $300.00 from SupplyMax for return of store supplics that were originally purchased for cash. Reccived a check for S5,301.60 from Miami Health Club in payment of 18 Issued Check No. 2209 for $4,267.90 to Fit & Fab Hcalth Products in payment of its invoice of April 6 less the return of April 11 and the discount. Issued Check No. 2210 for $53,200.00 to Museles Rx Distributors in payment of its invoice of March 21 Issued Check No. 2211 for $185.00 to Sunshine Gazette for an advertisement in the April 15 edition. 18 18 Invoice No. 301 12 Received a check for S9,364.29 from Reccived a check for $20,933.68 from The Sun Set Recreation Center in payment of Invoice No. 304 less the return of April 9 and the discount. Issued Credit Memorandum No. 108 to Miami Health Club for merchandise returned on our April 16 invoice for the discounted price of $416.50. The Cost of Goods Sold is $304.00 18 All Access Fitness Center in payment of Invoice No. 302. 13 Issued Check No. 2206 for $13,000.00 to Payroll for biweekly salaries: sales salaries, $8,000.00; office salaries, $5,000.00 19 13 Cash sales for Apri 8-13 were S36,120.00. The Cost of Goods Sold is S24,910.80 19 Received a check for $13,373.86 from Reminder: Record the following separate deposits in the checkbook register: the 836,120.00 of cash sales and the total of the checks received as payments on account this week. Rockdale Gym in payment of Invoice No. 305 April 20 Issued Check No. 2212 for $231.00 to Apr26Issued Check No. 2214 for S13,000.00 to Payroll for biweekly salaries: sales salaries, S8,000.00; office salaries, $5,000.00 Marty Chavez focustomer entertainment (charge to Miscellaneous Selling Expense). 26 Sold merchandise on account, Invoice 20 Purchased the following on account from Fizzy-Cal Network: merchandise, 5,125.00; store suppes, $225.00 Total, S5,350.00. Terms are n/30 No. 309, to Body Excellence Fitness Club for the net amount of $3,789.17. The Cost of Goods Sold is $2,640.00 20 Cash sales for April 15-20 were 27 Issued Check No. 2215 to Miami $27,020,00. The Cost of Goods Sold is S19,292.80 Water Supply Department for $340.00 in payment of the water bill for the month (charge to Miscellaneous Administrative Expense) Issued Check No. 2216 for $13,865.00 to Alexus Fitness Connection in payment of its invoice received April 20 Reminder: Record the following separate deposits in the checkbook register: the S27,020.00 of cash sales and the total of the checks received as payments on account this week. 27 22 Purchased merchandise on account from HcartFit Enterprises, $3,400.00 Terms are n/30. 27 Issucd Check No. 2217 for $2,500.00 to Marty Chavez for personal use 22 Purchased merchandise on account 29 Issued Check No. 2218 to Florida Telc- phone for S612.00 in payment of the telephone bill for thc month (charge S204.00 to Miscellaneous Administrative Expense and $408.00 to Miscellancous Selling Expense). from Fizzy-Cal Network, $10,800.00 Terms arc n/30. 23 Sold merchandise on account, Invoice No. 307, to All Access Fitness Center for the net amount of $13,770.64. The Cost of Goods Sold is $10,040.00 29 Issued Check No. 2219 to MIA Gas & Electric for S360.00 in payment of the gas and electric bil for the month (charge to Miscellaneous Administrative Expensc) 24 Purchased merchandise on account from Sports Magic Warehouse, S2,400.00. Terms are n/30 24 Issued Check No. 2213 for $287.00 to 30 Issued Check No. 2220 for $700.00 to South Miami Bank in payment interest on a note payable for April. Miami Cleaning Services for cleaning supplics (charge to Miscellancous Administrative Expense) 30 Received a check for $3,060.00 from 25 Received Credit Memorandum No. 114 from HeartFi Enterprises for merchandise returned, $400.00. There was no discount. Blue Water Enterprises in payment of a $3,000.00 note receivable plus $60.00 interest earned. 30 Cash sales for April 22-30 were 25 Sold merchandise on account, Invoice $28,280.00. The Cost of Goods Sold is $19,099.20 Reminder: Record the following separate deposits in the checkbook register: the $28,280.00 of cash sales and the total of the checks received as payments on account this week. No. 308, to Cory's Gym in the Grove for the net amount of $5,186.36. The Cost of Goods Sold is $3,780.00. Apri Purchased merchandise on account Ap 4 Issued Check No. 2204 for $14,000.00 to HeartFit Enterprises in payment of its invoice of March 28 from Alexus Fitness Connection, $13,865.00. Terms are n/30 4 Reccived a check for $6,174.00 from 1 Sold merchandise on account, Invoice No. 301, to Miami Health Club for the net amount of $5,301.60. The Cost of Goods Sold is $3,864.00 The Sun Set Recreation Center in payment of our invoice of March 8 5 Sold merchandise on account, Invoice Credit terms for all sales on account are 2/10, n/30. Credit sales are recorded net of the 2% discount assuming customers will take the discount. Fit & Fashionable uses a perpetual inventory system and therefore records the cost of goods sold as well as the sale Issued Check No. 2201 for S14,268.80 to Alexus Fitness Connection payment of its invoice of March 6 Received a check for $14,406.00 from Body Excellence Fitness Club in payment of our invoice of March 27 for $14,700.00, less discount. No. 303, to Westwood Boxing Gym for the net amount of $27,306.48. The Cost of Goods Sold is $19,903.68 5 Purchased merchandise on account from Sports Magic Warehouse, S49,519.75. Terms are n/30 6 Cash sales for Apr-6 were 1 S26,600.00. The Cost of Goods Sold is $18,024.00 in Reminder: Recordthe following separate deposits in the checkbook register: the S26,600.00 of cash sales and the total of the checks received as payments on account this week. 2 2 Issued Check No. 2202 for $5,700.00 8 Received a check for $8,232.00 from to Harvey Insurance Company as a prepaymen of insurance for a 12 month policy Westwood Boxing Gym in payment of our invoice of March 29 for $8,400.00 less discount. 3 Issued Check No. 2203 for $46,480.00 to Fizzy-Cal Network in payment of its invoice of March 7 (no discount). 8 Purchased merchandise on account from Fi & Fab Health Products, S5,230.00, terms 2/10, n/30. Record this purchase net of the discount. 3 Sold merchandise on account, Invoice No. 302, to All Access Fitness Center for the net amount of $9,364.29. The Cost of Goods Sold is $6,825.00 8 Sold merchandise on account, Invoice No. 304, to The Sun Set Recreation Center for the net amount of S21,756.88. The Cost of Goods Sold is S15,858.00 3 Received a check from Cory's Gym in the Grove for $12,348.00 in payment of our invoice of March 27 1 April 8 Received a check for S10,976.00 from Apri 15 Received a check for $27,306.48 from Pine Bay Fitness Club in payment of our invoice of March 30. Westwood Boxing Gym in payment of Invoice No. 303 9 Purchased the following on account 16 Purchased the following items on from Fizzy-Cal Network: display (charge to Store Supplies), $1,800.00 merchandise, $9,600.00. Total S11,400.00. Terms are n/30 account from Alexus Fitness Connection inventory, $9,180.00 miscellaneous selling expense (display cases), S675.00 store supplies (promotion pack), $250.00. Total: $10,105.00. Terms are n/30 9 Issued Credit Memorandum No. 107 to The Sun Set Recrcation Center for merchandise returned onInvoiceNo 304 of April 8 for the discounted price of $823.20. The Cost of Goods Sold is S600.00 16 Sold merchandise on account, Invoice No. 306, to Miami Health Club for the net amount of $5,649.80. The Cost of Goods Sold is $4,115.20 10 Issued Check No. 2205 for S175.00 to Marty Chavez for customer entertain ment (charge to Miscellancous Selling Expense). 17 Issued Check No. 2207 for $4,200.00 to Marty Chavez for personal usc. Issued Check No. 2208 for $441.00 to U.S. Health &Fitness Magazine for an advertisement. 17 10 Sold merchandise on account, Invoice No. 305, to Rockdale Gym for the net amount of S13,373.86. The Cost of Goods Sold is $9,412.00 17 Purchased merchandisc on account from Sports Magic Warehouse, $16,900.00. Terms arc n/30 11 Received Credit Memorandum No. 432 from Fit & Fab Health Products for merchandise returned, $875.00. Record this return nct of the discount, $857.50 11 Received a check for $300.00 from SupplyMax for return of store supplics that were originally purchased for cash. Reccived a check for S5,301.60 from Miami Health Club in payment of 18 Issued Check No. 2209 for $4,267.90 to Fit & Fab Hcalth Products in payment of its invoice of April 6 less the return of April 11 and the discount. Issued Check No. 2210 for $53,200.00 to Museles Rx Distributors in payment of its invoice of March 21 Issued Check No. 2211 for $185.00 to Sunshine Gazette for an advertisement in the April 15 edition. 18 18 Invoice No. 301 12 Received a check for S9,364.29 from Reccived a check for $20,933.68 from The Sun Set Recreation Center in payment of Invoice No. 304 less the return of April 9 and the discount. Issued Credit Memorandum No. 108 to Miami Health Club for merchandise returned on our April 16 invoice for the discounted price of $416.50. The Cost of Goods Sold is $304.00 18 All Access Fitness Center in payment of Invoice No. 302. 13 Issued Check No. 2206 for $13,000.00 to Payroll for biweekly salaries: sales salaries, $8,000.00; office salaries, $5,000.00 19 13 Cash sales for Apri 8-13 were S36,120.00. The Cost of Goods Sold is S24,910.80 19 Received a check for $13,373.86 from Reminder: Record the following separate deposits in the checkbook register: the 836,120.00 of cash sales and the total of the checks received as payments on account this week. Rockdale Gym in payment of Invoice No. 305 April 20 Issued Check No. 2212 for $231.00 to Apr26Issued Check No. 2214 for S13,000.00 to Payroll for biweekly salaries: sales salaries, S8,000.00; office salaries, $5,000.00 Marty Chavez focustomer entertainment (charge to Miscellaneous Selling Expense). 26 Sold merchandise on account, Invoice 20 Purchased the following on account from Fizzy-Cal Network: merchandise, 5,125.00; store suppes, $225.00 Total, S5,350.00. Terms are n/30 No. 309, to Body Excellence Fitness Club for the net amount of $3,789.17. The Cost of Goods Sold is $2,640.00 20 Cash sales for April 15-20 were 27 Issued Check No. 2215 to Miami $27,020,00. The Cost of Goods Sold is S19,292.80 Water Supply Department for $340.00 in payment of the water bill for the month (charge to Miscellaneous Administrative Expense) Issued Check No. 2216 for $13,865.00 to Alexus Fitness Connection in payment of its invoice received April 20 Reminder: Record the following separate deposits in the checkbook register: the S27,020.00 of cash sales and the total of the checks received as payments on account this week. 27 22 Purchased merchandise on account from HcartFit Enterprises, $3,400.00 Terms are n/30. 27 Issucd Check No. 2217 for $2,500.00 to Marty Chavez for personal use 22 Purchased merchandise on account 29 Issued Check No. 2218 to Florida Telc- phone for S612.00 in payment of the telephone bill for thc month (charge S204.00 to Miscellaneous Administrative Expense and $408.00 to Miscellancous Selling Expense). from Fizzy-Cal Network, $10,800.00 Terms arc n/30. 23 Sold merchandise on account, Invoice No. 307, to All Access Fitness Center for the net amount of $13,770.64. The Cost of Goods Sold is $10,040.00 29 Issued Check No. 2219 to MIA Gas & Electric for S360.00 in payment of the gas and electric bil for the month (charge to Miscellaneous Administrative Expensc) 24 Purchased merchandise on account from Sports Magic Warehouse, S2,400.00. Terms are n/30 24 Issued Check No. 2213 for $287.00 to 30 Issued Check No. 2220 for $700.00 to South Miami Bank in payment interest on a note payable for April. Miami Cleaning Services for cleaning supplics (charge to Miscellancous Administrative Expense) 30 Received a check for $3,060.00 from 25 Received Credit Memorandum No. 114 from HeartFi Enterprises for merchandise returned, $400.00. There was no discount. Blue Water Enterprises in payment of a $3,000.00 note receivable plus $60.00 interest earned. 30 Cash sales for April 22-30 were 25 Sold merchandise on account, Invoice $28,280.00. The Cost of Goods Sold is $19,099.20 Reminder: Record the following separate deposits in the checkbook register: the $28,280.00 of cash sales and the total of the checks received as payments on account this week. No. 308, to Cory's Gym in the Grove for the net amount of $5,186.36. The Cost of Goods Sold is $3,780.00
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