PROBLEM Review Covering Chapters 5-7. (Inventory Costing, Petty Cash, Bad Debts & Notes Rec.) Includes Journalizing and Adjusting) Rusty Crowe started Crowe's Swimwear during the month of June 20X5. He leased a space in the Mid Rivers Mall and paid a part-time assistant to help him in the business. His chart of accounts is as follows Chart of Accounts Reven4gssnipping Too 402 410 Assets 101 Cash 102 Petty Cash 104 Accounts Receivable 04.1Allowance for Doubtful Accts.Expenses: 105 Merchandise Invento 110 Prepaid Rent 11 Interest Receivable 112 Prepaid Insurance 125 Note Receivable 131 Supplies 181 Equipment 181.1 Accumulated Depreciation 527 Insurance Expense Keep track of your Inv On a separate sheet of pap will need to keep track of various bathing suits that y buving and selling...For e entorv! les r, you terest Revenue ou are le 508 Cost of 511 Wages Expense 514 Advertising Expense 516 Rent Expense 519 Telephone Expense 520 Supplies Expense 525 Depreciation Expense Red Bathing Suits Black String Bikinis 0@ $5 100@ $8 Liabilities 202 Accounts Payable 209 Wages Pavable 530 Utilities Expense 551 Cash Over & Short 550 Miscellaneous Expense 553 Bad Debt Expense Stockholder's Equit 300 Common Stock 312 Dividends 315 Retained Earnings 700 Income Summar Required #1: Using Sage accounting software Open Crowe Swimwear. After company is open,-) Click on :Maintain at the top left corner of your screen. -Click on Company Information.In the Company Name field, ADD your name at the end of the company name Enter the following transactions for the first two months of business for Crowe's Swimwear. (Click on Tasks Menu General Journal Entry) Jun 1 2 3 Rusty invested $40,000 cash in the company in exchange for 40,000 shares of $1 par, common stock. Purchased Store Equipment for $3,000. Paid $1,500 immediately but put the rest on account Prepaid 6 months rent in advance, $4, 800 Jun 1Rusty invested $40,000 cash in the company in exchange for 40,000 shares of $1 par, common stock. 2 Purchased Store Equipment for $3,000. Paid $1,500 immediately but put the rest on account. 3 Prepaid 6 months rent in advance, $4, 800 4 Created a $100 Petty Cash account. 5 Purchased supplies for cash, $1,500 Purchased 50 black string bikinis, (model #211) for $5 each. (paid cash) Purchased 100 black string bikinis, (model #211) for $8 each (paid cash) Purchased 70 red bathing suits, (model #848) for $14 each. (paid cash) Purchased 30 red bathing suits, (model #848) for $20 each. (paid cash) On the first day that the store was open, it sold 60 black bikinis for $100 each and 40 red bathing suits for $150 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) Purchased a one year insurance policy for $1,200 Purchased 25 green thong bikinis, on account, (model #148) for $10 each Purchased 50 green thong bikinis, (model #148) for $12 each (paid cash) 10 12 13 14 15 18 Page 1 ACT110 Financial Accounting Sage Problem 19 Purchased 100 floral halter bathing suits, (model #877) for $20 each (paid cash) Purchased 60 floral halter bathing suits. (model #877) for $22 each (paid cash) 24 The company declared and paid a $200 dividend to the sole shareholder 25 Collected $8500 of the amount owed from customers from the sales made earlier 27 Paid the telephone bill, $95 28 Reimbursed the Petty Cash account. The fund contained: $6.00 and had the following receipts: Supplies $35.00 and Miscellaneous Expenses $58.00 Paid the part-time worker, $250 Received the bank statement from the bank. The bank statement showed that the bank issued a credit memorandum for $33 interest earned and a debit memorandum for the $20 monthly service charge. After entering these two adjusting entries, the cash account shows $ 32,224. Merch. Inv-$5,580, COGS-$1,220 29 30 Hint "Since we are now moving into July transactions, let's change the accounting period to July. Go to the TASKS menu at top left corner of your screen System Change Accounting Period Choose period 19(don't print reports) July 2 Today, the store had a swimwear fashion show and it sold 50 black string bikinis for $110 each and 45 red bathing suits for $150 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) The day after the fashion show, customers came in and purchased 40 green thong bikinis for $90 each and 120 floral halter bathing suits for $130 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) Pamela Anterson, a customer, called and said that she had declared bankruptcy and would not be able to pay for her black string bikini for which she still owed the store. She paid $110 for it earlier and that is what the store had to write off. (The company uses the Allowance Method of accounting for Bad debts.. ) 3 6 10 Paid the electric bill for June, $320 13 Received payment from customers from sales made in June and from the Fashion Show, $ 13,750 14 Received the newspaper advertising bill, $160, it is due in 30 days 15 Paid the part-time worker, $350 19 Collected $2,100 of the amount owed from customers from the sales made earlier 20 Accepted a $6,000, 996, 120 day note dated today, in granting a time extension on a past-due account receivable Paid the advertising bill which was received earlier, $160 Paid $1,000 on the amount owed for the store equipment purchased last month. Reimbursed the Petty Cash account. The fund contained: $14.50 and had the following receipts: Supplies $45.00 and Miscellaneous Expenses $38.00 Received the bank statement from the bank. The bank statement showed that the bank issued a credit memorandum for $65 interest earned and a debit memorandum for the $20 monthly service charge. In the statement, the bank had also returned an NSF check from one of our customers for $260. Lastly, Rusty also noticed that the check issued for the store equipment, $1,000, had not yet cleared the bank. After entering the adjustments needed, the cash account shows S 45,943.50 21 24 29 30 Requirement #2 Print the Trial Balance 7/31/X5 (Reports Menu General Ledger General Ledger Trial Balance) (check figures: Cash- $45,943.50, Supplies $1,580; Accts Rec $13,250; Sales- $43,450, COGS-5,220 Totals- $84,298) PROBLEM Review Covering Chapters 5-7. (Inventory Costing, Petty Cash, Bad Debts & Notes Rec.) Includes Journalizing and Adjusting) Rusty Crowe started Crowe's Swimwear during the month of June 20X5. He leased a space in the Mid Rivers Mall and paid a part-time assistant to help him in the business. His chart of accounts is as follows Chart of Accounts Reven4gssnipping Too 402 410 Assets 101 Cash 102 Petty Cash 104 Accounts Receivable 04.1Allowance for Doubtful Accts.Expenses: 105 Merchandise Invento 110 Prepaid Rent 11 Interest Receivable 112 Prepaid Insurance 125 Note Receivable 131 Supplies 181 Equipment 181.1 Accumulated Depreciation 527 Insurance Expense Keep track of your Inv On a separate sheet of pap will need to keep track of various bathing suits that y buving and selling...For e entorv! les r, you terest Revenue ou are le 508 Cost of 511 Wages Expense 514 Advertising Expense 516 Rent Expense 519 Telephone Expense 520 Supplies Expense 525 Depreciation Expense Red Bathing Suits Black String Bikinis 0@ $5 100@ $8 Liabilities 202 Accounts Payable 209 Wages Pavable 530 Utilities Expense 551 Cash Over & Short 550 Miscellaneous Expense 553 Bad Debt Expense Stockholder's Equit 300 Common Stock 312 Dividends 315 Retained Earnings 700 Income Summar Required #1: Using Sage accounting software Open Crowe Swimwear. After company is open,-) Click on :Maintain at the top left corner of your screen. -Click on Company Information.In the Company Name field, ADD your name at the end of the company name Enter the following transactions for the first two months of business for Crowe's Swimwear. (Click on Tasks Menu General Journal Entry) Jun 1 2 3 Rusty invested $40,000 cash in the company in exchange for 40,000 shares of $1 par, common stock. Purchased Store Equipment for $3,000. Paid $1,500 immediately but put the rest on account Prepaid 6 months rent in advance, $4, 800 Jun 1Rusty invested $40,000 cash in the company in exchange for 40,000 shares of $1 par, common stock. 2 Purchased Store Equipment for $3,000. Paid $1,500 immediately but put the rest on account. 3 Prepaid 6 months rent in advance, $4, 800 4 Created a $100 Petty Cash account. 5 Purchased supplies for cash, $1,500 Purchased 50 black string bikinis, (model #211) for $5 each. (paid cash) Purchased 100 black string bikinis, (model #211) for $8 each (paid cash) Purchased 70 red bathing suits, (model #848) for $14 each. (paid cash) Purchased 30 red bathing suits, (model #848) for $20 each. (paid cash) On the first day that the store was open, it sold 60 black bikinis for $100 each and 40 red bathing suits for $150 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) Purchased a one year insurance policy for $1,200 Purchased 25 green thong bikinis, on account, (model #148) for $10 each Purchased 50 green thong bikinis, (model #148) for $12 each (paid cash) 10 12 13 14 15 18 Page 1 ACT110 Financial Accounting Sage Problem 19 Purchased 100 floral halter bathing suits, (model #877) for $20 each (paid cash) Purchased 60 floral halter bathing suits. (model #877) for $22 each (paid cash) 24 The company declared and paid a $200 dividend to the sole shareholder 25 Collected $8500 of the amount owed from customers from the sales made earlier 27 Paid the telephone bill, $95 28 Reimbursed the Petty Cash account. The fund contained: $6.00 and had the following receipts: Supplies $35.00 and Miscellaneous Expenses $58.00 Paid the part-time worker, $250 Received the bank statement from the bank. The bank statement showed that the bank issued a credit memorandum for $33 interest earned and a debit memorandum for the $20 monthly service charge. After entering these two adjusting entries, the cash account shows $ 32,224. Merch. Inv-$5,580, COGS-$1,220 29 30 Hint "Since we are now moving into July transactions, let's change the accounting period to July. Go to the TASKS menu at top left corner of your screen System Change Accounting Period Choose period 19(don't print reports) July 2 Today, the store had a swimwear fashion show and it sold 50 black string bikinis for $110 each and 45 red bathing suits for $150 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) The day after the fashion show, customers came in and purchased 40 green thong bikinis for $90 each and 120 floral halter bathing suits for $130 each-all sales were on store credit. (The store uses the LIFO method to account for cost of goods sold.) Pamela Anterson, a customer, called and said that she had declared bankruptcy and would not be able to pay for her black string bikini for which she still owed the store. She paid $110 for it earlier and that is what the store had to write off. (The company uses the Allowance Method of accounting for Bad debts.. ) 3 6 10 Paid the electric bill for June, $320 13 Received payment from customers from sales made in June and from the Fashion Show, $ 13,750 14 Received the newspaper advertising bill, $160, it is due in 30 days 15 Paid the part-time worker, $350 19 Collected $2,100 of the amount owed from customers from the sales made earlier 20 Accepted a $6,000, 996, 120 day note dated today, in granting a time extension on a past-due account receivable Paid the advertising bill which was received earlier, $160 Paid $1,000 on the amount owed for the store equipment purchased last month. Reimbursed the Petty Cash account. The fund contained: $14.50 and had the following receipts: Supplies $45.00 and Miscellaneous Expenses $38.00 Received the bank statement from the bank. The bank statement showed that the bank issued a credit memorandum for $65 interest earned and a debit memorandum for the $20 monthly service charge. In the statement, the bank had also returned an NSF check from one of our customers for $260. Lastly, Rusty also noticed that the check issued for the store equipment, $1,000, had not yet cleared the bank. After entering the adjustments needed, the cash account shows S 45,943.50 21 24 29 30 Requirement #2 Print the Trial Balance 7/31/X5 (Reports Menu General Ledger General Ledger Trial Balance) (check figures: Cash- $45,943.50, Supplies $1,580; Accts Rec $13,250; Sales- $43,450, COGS-5,220 Totals- $84,298)