Question Details

Transactions for December 20xx December 01 Borrowed $50,000.00 from North Bank by signing a 6%, 12 month note. Interest payments are due on January 01 and July 01 throughout the life of the note. December 01 Issued Check No. 5855 for $3,840.00 to Rainey Dae Insurance Company for a one-year insurance policy on the building, effective January 01 next year. December 01 Issued Check No. 5857 for $1,600.00 to Sterling Supply Company in exchange for office supplies. December 01 Distributed the net salaries amount for the bi-weekly period ending 11/30/xx, which was accrued in November, to employees via direct deposits. ote: This entry should include a credit to the Cash account. December 02 Issued Check No. 5858 for $4,500.00 to Xtreme Sports Magazine to run a two page advertisement for six months, effective January 01 next year. December 02 Issued Check No. 5859 for $1,727.18 to Portland Lending Bank for monthly mortgage payment: Interest Payable for $ 643.85 and Mortgage Payable for $1,083.33. December 03 Sold two XTRM - X23F ATVs to a cash customer for $6,500.00 each. December 03 Billed customer A. Reece $565.24, for service work performed on his XTRM - X23F ATV. The costs of parts and accessories totaled $367.41 (Invoice No. SA20123). December 04 Received a check for $6,370.00 from customer C. Diaz as payment on her account, less discount (Invoice No. SI18453). 8 December 04 Purchased ATV parts and accessories from supplier Dust Quest ATV Supply Company on account for $1,365.25 (Invoice No. SP11653). Freight costs amounted to $24.50, with terms FOB destination. December 07 Issued Check No. 5860 for $1,765.26 to purchase office equipment from P.N. Sill Equipment Company. December 07 Issued Check No. 5861 for $27,300.00 to Winding Trail ATVs as payment on their account, less discount, on a November 27 purchase of merchandise inventory (Invoice No. IP5676). The terms of the purchase were 2/15, n/60. December 08 Sold on account three XTRM - X23F ATVs to customer S. Paulson for $6,500.00 each, terms 2/15, n/60 (Invoice No. S12861). The goods were shipped FOB destination point via carrier US Shipping Company. The transportation costs will be paid later upon receipt of the invoice. December 08 Exchanged an old truck and signed a $14,000.00 6%, 4 month note for a similar new truck. The old truck had an original cost of $32,000.00, accumulated depreciation of $11,000.00, and a fair value of $21,000.00. December 09 Issued Check No. 5862 for $475.29 to We Fix It Truck Repair Services for repair and maintenance work performed on trucks. December 09 Received a check for $6500.00, in exchange for the sale of one XTRM - X23F ATV. December 10 Owner A. Marks withdrew $4,000.00 cash for personal use (Check No. 5864). December 11 Purchased office furniture from Woodland Furniture, Inc., for $10,000.00 by signing a 6%, 5 month note. December 11 Sold on account one XTRM - X23F ATV to customer S. Thompson for $6,500.00, terms 2/10, n/30 (Invoice No. S12862). Freight costs amounted to $104.20, with terms FOB shipping point. 9 December 11 Issued Check No. 5865 for $201.23 to Portland Utilities Co. to pay the November 20xx utilities bill. December 11 Issued Check No. 5866 for $1,365.25 to Dust Quest ATV Supply Company for ATV parts and accessories purchased on December 04 (Invoice No. SP11653). December 14 Granted customer S. Paulson credit for one XTRM - X23F ATV returned from the December 08 transaction (Invoice No. S2861). December 14 The bi-weekly payroll for the period ending December 14 is as follows: Salaries: Store Salaries $2,000 Office Salaries 4,080 Total $6,080 Witholdings: FICA Taxes $547 Federal Income Tax Withholding 1,155 Total $1,702 Net Salaries $4,378 The payroll distribution of the net salaries amount is made to employees via direct deposits. ote: The entry for the payment made to employees should include a credit to the Cash account. December 14 The following represents the employers payroll taxes: Payroll Taxes FICA Taxes $547 Federal Unemployment Tax 36 State Unemployment Tax 243 Total $826 Payment of Payroll Taxes will be made to the appropriate government authorities next month. 10 December 15 Issued Check No. 5867 to the appropriate government authorities to pay for the prior months FICA Taxes $1,094.00, Federal Income Tax Withholding $2,310.00, Federal Unemployment Tax $72.00, and State Unemployment Tax $486.00. December 15 Received a check for $754.54 from customer L. Walker as payment on his account (Invoice No. SA20122). December 16 Purchased merchandise from supplier Quest ATVs on account for $16,900.00, terms 2/15, n/60 (Invoice No. IP12003). December 16 Received a check for $13,000.00 from customer H. Lincoln as payment on her account (Invoice No. SI18452). December 16 Issued Check No. 5868 for $12,223.12 to Dirty Trail ATVs as payment on their account, less discount, on a November 30 purchase of merchandise inventory (Invoice No. IP2576). The terms of the purchase were 1/20, n/45. December 17 Issued Check No. 5869 for $181.23 to US Shipping Company for payment of shipping costs incurred on the December 08 sale to customer S. Paulson. December 18 Returned and was granted credit for two XTRM - X23F ATVs purchased on December 16 from supplier Quest ATVs. The total costs of the merchandise returned amounted to $8,450.00. December 21 Purchased ATV parts and accessories from supplier ATV Supply Company on account for $2,500.23 (Invoice No. SP11983). December 21 Received a check from S. Paulson as payment for the balance due from his purchase on December 08, less discount (Invoice No. S2861). December 21 Received a check from S. Thompson as payment for the net balance due from his purchase on December 11, (Invoice No. S2862). 11 December 22 Issued check No. 5870 for $279.42 to US Shipping Company for payment of shipping costs incurred on merchandise purchased. December 23 Issued Check No. 5871 for $1,125.45 to ATV Supply Company as payment for ATV parts and accessories purchased on account on November 23 (Invoice No. SP32653). December 23 Issued Check No. 5872 for $4,671.99 to purchase a photocopy machine from OfficeThings.com, an eBusiness. December 28 Received a check for $873.25, for service work performed on a customers XTRM - X23F ATV. The costs of parts and accessories totaled $567.61 (Invoice No. SA20123). December 28 Sold on account two XTRM - X23F ATVs to customer P. Simon for $6,500.00 each, terms 2/10, n/30 (Invoice No. S12863). December 28 The bi-weekly payroll for the period ending December 28 is as follows: Salaries: Store Salaries $2,000 Office Salaries 4,080 Total $6,080 Witholdings: FICA Taxes $547 Federal Income Tax Withholding 1,155 Total $1,702 Net Salaries $4,378 The payroll distribution of the net salaries amount is made to employees via direct deposits. ote: The entry for the payment made to employees should include a credit to the Cash account. 12 December 28 The following represents the employers payroll taxes: Payroll Taxes FICA Taxes $547 Federal Unemployment Tax 36 State Unemployment Tax 243 Total $826 Payment of Payroll taxes will be made to the appropriate government authorities next month. December 29 Issued Check No. 5873 for $650.00 to purchase additional office supplies from Sterling Supply Company. December 30 Received a check from customer A. Reece for service work performed on his XTRM - X23F ATVs on December 03 (Invoice No. SA20123). December 31 Received $19,500.00 from R. Morizio, a long standing customer, as an advance payment for two XTRM - X23F ATVs to be held for him until January 15 next year, when he returns from his European vacation. December 31 The Company hired Ms. Johanna Lopez as a Sales Clerk. It was agreed that she will be paid $600 per week, and her starting date would be on Monday, January 04 next year.

Answer Details

1-Dec	Cash		50000
	Notes Payable				50000
1-Dec	Prepaid Insurance		3840
	Bank				3840
1-Dec	Supplies		1600
	Bank				1600
	...
1-Dec	Cash		50000
	Notes Payable				50000
1-Dec	Prepaid Insurance		3840
	Bank				3840
1-Dec	Supplies		1600
	Bank				1600
1-Dec	Salaries Payable
	Cash
2-Dec	Prepaid Advertising		4500
	Cash				4500
2-Dec	Interest Payable		643.85
	Mortgage Note Payable		1727.18
	Cash				1727.18
3-Dec	Cash		13000
	Sales Revenue				13000
3-Dec	Accounts Receivable		565.24
	Sales and Service Revenue				565.24
3-Dec	Cost of Spare parts		367.24
	Inventory of spare parts				367.24
4-Dec	Cash		6370
	Accounts Receivable				6370
4-Dec	TV Parts and Accessories Inventory		1365.25
	Accounts Payable				1365.25
7-Dec	Office Equipment		1765.26
	Bank				1765.26
7-Dec	Accounts Payable		27857.14
	Cash				27300
	Discount Received				557.14
8-Dec	Accounts Receivable		19500
	Sales and Service Revenue				19500
8-Dec	New Truck		35000
	Accumulated Depreciation		11000
	Old Truck				32000
	Notes Payable				14000
9-Dec	Repair Services		475.29
	Bank				475.29
9-Dec	Bank		6500
	Services Revenue				6500
10-Dec	Drawings		4000
	Cash				4000
11-Dec	Office Furniture		10000
	Notes Payable				10000
11-Dec	Accounts Receivable		6500
	Sales and Service Revenue				6500
11-Dec	Accounts Payable		201.23
	Cash				201.23
11-Dec	Accounts Payable		1365.25
	Cash				1365.25
14-Dec	Sales Returns		6500
	Accounts Receivable				6500
14-Dec	Salaries Expense		6080
	Salaries Payable				4378
	Taxes Payable				1702
	Salaries Payable		4378
	Cash				4378
14-Dec	Tax Expense		826
	FICA Taxes				547
	Federal Unemployment Tax				36
	State Unemployment Tax				243
15-Dec	Taxes Payable		3962
	Cash				3962
16-Dec	Merchandise Inventory		16900
	Accounts Payable
16-Dec	Cash		13000
	Accounts Receivable				13000
17-Dec	Accounts Payable		12346.58
	Cash				12223.12
	Discount Received				123.46
17-Dec	Transportation Costs		181.23
	Bank				181.23
18-Dec	Accounts Payable		8450
	Merchandise Inventory				8450
21-Dec	Merchandise Inventory		2500.23
	Accounts Payable				2500.23
21-Dec	Cash		6370
	Discount Expense		130
	Accounts Receivable				6500
22-Dec	Shipping Expenses		279.42
	Shipping Expenses				279.42
23-Dec	Accounts Payable		125.45
	Cash				125.45
23-Dec	Office Equipment		4671.99
	Bank				4671.99
28-Dec	Bank		873.25
	Sales and Service Revenue				873.25
28-Dec	Cost of Sales and Service Revenue		561.61
	Parts and Accessories Inventories				561.61
28-Dec	Accounts Receivable		6500
	Sales Revenue				6500
28-Dec	Salaries Expense		6080
	Salaries Payable				4378
	Taxes Payable				1702
28-Dec	Tax Expense		826
	FICA Tax				547
	Federal Unemployment Tax				36
	State Unemployment Tax				243
29-Dec	Office Supplies		650
	Bank				650
30-Dec	Bank		564.24
	Accounts Receivable				564.24
31-Dec	Cash		19500
	Unearned Sales and Service Revenue

Trial Balance on December 31, 20xx Is Below

Journalize and post adjusting journal entries at December 31, 20xx. (Note: Omit explanations for journal entries). Answer is below:

The journal entries to their respective accounts in the General Ledger and the Subsidiary Ledgers is below:

This Is A Journalize the December 20xx transactions for the Company in the General Journal. (Note: Omit explanations for journal entries).

1-Dec	Cash		50000
	Notes Payable				50000
1-Dec	Prepaid Insurance		3840
	Bank				3840
1-Dec	Supplies		1600
	Bank				1600
1-Dec	Salaries Payable
	Cash
2-Dec	Prepaid Advertising		4500
	Cash				4500
2-Dec	Interest Payable		643.85
	Mortgage Note Payable		1727.18
	Cash				1727.18
3-Dec	Cash		13000
	Sales Revenue				13000
3-Dec	Accounts Receivable		565.24
	Sales and Service Revenue				565.24
3-Dec	Cost of Spare parts		367.24
	Inventory of spare parts				367.24
4-Dec	Cash		6370
	Accounts Receivable				6370
4-Dec	TV Parts and Accessories Inventory		1365.25
	Accounts Payable				1365.25
7-Dec	Office Equipment		1765.26
	Bank				1765.26
7-Dec	Accounts Payable		27857.14
	Cash				27300
	Discount Received				557.14
8-Dec	Accounts Receivable		19500
	Sales and Service Revenue				19500
8-Dec	New Truck		35000
	Accumulated Depreciation		11000
	Old Truck				32000
	Notes Payable				14000
9-Dec	Repair Services		475.29
	Bank				475.29
9-Dec	Bank		6500
	Services Revenue				6500
10-Dec	Drawings		4000
	Cash				4000
11-Dec	Office Furniture		10000
	Notes Payable				10000
11-Dec	Accounts Receivable		6500
	Sales and Service Revenue				6500
11-Dec	Accounts Payable		201.23
	Cash				201.23
11-Dec	Accounts Payable		1365.25
	Cash				1365.25
14-Dec	Sales Returns		6500
	Accounts Receivable				6500
14-Dec	Salaries Expense		6080
	Salaies Payable				4378
	Taxes Payable				1702
	Salaies Payable		4378
	Cash				4378
14-Dec	Tax Expense		826
	FICA Taxes				547
	Federal Unemployment Tax				36
	State Unemployment Tax				243
15-Dec	Taxes Payable		3962
	Cash				3962
16-Dec	Merchandise Inventory		16900
	Accounts Payable
16-Dec	Cash		13000
	Accounts Receivable				13000
17-Dec	Accounts Payable		12346.58
	Cash				12223.12
	Discount Received				123.46
17-Dec	Transportation Costs		181.23
	Bank				181.23
18-Dec	Accounts Payable		8450
	Merchandise Inventory				8450
21-Dec	Merchandise Inventory		2500.23
	Accounts Payable				2500.23
21-Dec	Cash		6370
	Disount Expense		130
	Accounts Receivable				6500
22-Dec	Shipping Expenses		279.42
	Shipping Expenses				279.42
23-Dec	Accounts Payable		125.45
	Cash				125.45
23-Dec	Office Equipment		4671.99
	Bank				4671.99
28-Dec	Bank		873.25
	Sales and Service Revenue				873.25
28-Dec	Cost of Sales and Service Revenue		561.61
	Parts and Accessories Inventories				561.61
28-Dec	Accounts Recivable		6500
	Sales Revenue				6500
28-Dec	Salaries Expense		6080
	Salaries Payable				4378
	Taxes Payble				1702
28-Dec	Tax Expense		826
	FICA Tax				547
	Federal Unemployment Tax				36
	State Unemployment Tax				243
29-Dec	Office Supplies		650
	Bank				650
30-Dec	Bank		564.24
	Accounts Receivable				564.24
31-Dec	Cash		19500
	Unearned Sales and Service Revenue				19500
	No journal Entry required

Instructions With regards to the December 20xx activities for Offroad ATV Company, you are required to complete the following:

1) Prepare an Adjusted Trial Balance on December 31, 20xx.