Record the Adjusting Entries A-J.

QUESTION: Record the following adjusting entries:

OCTET Chart of Accounts Current Assets 10000 Cash 11000 Accounts Receivable Long-Term Liabilities 12000 Inventory-Cookies 27000 Mortgage Payable Note Payable 27100 12100 Inventory- Baskets 13100 Supplies (Ribbon, Sticks, Cellophane) Shipping Supplies Prepaid Rent Stockholders' Equity 39003 Common Stock 13200 39005 Retained Earnings 14000 Dividends paid 39007 14100 Prepaid Insurance 14200 Prepaid Advertising Revenue 40000 Sales Long-Term Assets 15000 Computer Equipment Accumulated Depreciation 17000 Expenses Computer Equipment Cost of Goods Sold 50000 Delivery Van 15100 60100 Legal Expense Supplies Expense Shipping Supplies Expense Insurance Expense Accumulated 17100 60150 Depreciation-Delivery Van 60200 60300 Wages Expense Credit Card Expense 60350 60400 Current Liabilities Advertising and Promotion Expense Utility Expense 60500 Accounts Payable 20000 Note Payable - Wells Fargo 60550 21100 60600 Rent Expense Bank Depreciation Expense 60650 Note Payable-Office Mart 21200 60700 Interest Expense Wages Payable 23100 Bank Service Fee 60750 Interest Payable 23200 Sales Tax Payable 23300 SIP OOCTETY Part One, Two and Three Instructions Record the June transactions in the general journal (last section of this practice set) using the following events. No explanation is required for each journal and adjusting journal entry. Skip a line between each entry and number the entries to match the number of transactions. After all journal entries are written in the practice set, then write the adjusting journal entries into the practice set. On an excel spreadsheet or sheet of paper, show each account in the Chart of Accounts as a T-account with an ending balance. You will need the ending balance in the cash account for the bank reconciliation. Transactions Description Date Deposit No. / Check No. Connie Cooper met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cooper would organize the 1 6/02 business as a corporation. The lawyer told Ms. Cooper to register the company name Connie's Cookie Bouquet with the County of El Paso. In addition, Ms. Cooper will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. The lawyer agreed to prepare the Articles of Incorporation to be filed with the Secretary of State of Texas. The CPA has agreed to help Ms. Cooper set up her accounting system. Ms. Cooper opened a business checking account at Wells Fargo Bank by depositing $35,000. The corporation issued her a stock certificate for 35,000 shares of common stock with no par value. 2. 6/02 Deposit #1 Ms. Cooper signed a one-year rental agreement with Reynolds Ck #1001 3. 6/03 Realtors for warehouse space. She was required to pay $2,400 for rent for the months of June 1- September 30, Arranged for a general business liability insurance policy and paid $2,700 to State Penn Insurance. This premium is for twelve months 6/03 Ck #1002 4. coverage. Signed a note payable to borrow $10,000 from Wells Fargo Bank. Interest is 9% annually and the note is to be repaid with interest in Deposit #2 6/05 5. six months. Purchased a delivery estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Delivery Van and depreciated accordingly. Paid $600 to have Connie's logo painted on the side of the van. This van for $16,000 from Marvin's Motors. The Ck #1003 6/05 6. Ck #1004 6/06 7. 61Page CCOUNTING OCTETY should be added to the cost of the van and depreciated over the life of the van 6/06 8. Paid $500 for business cards, flyers, and posters. This will be Ck #1005 recorded as prepaid advertising. Purchased $6,200 of merchandising inventory (cookies) from Connie's Cookies on account. The vendor extended credit terms of 2/15, n/30. 6/08 9. $2,900 of merchandise inventory (baskets) from Bonnie's Baskets on account. The vendor extended credit terms of 2/15, 10. 6/0 n/30*. Ms. Cooper received and paid the $800 charge from her lawyer. Connie's Cookie Bouquet is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online 11. 6/13 Ck #1006 6/14 12. and at the shop and will be charged an 8.25 % sales tax. Wholesale customers are not charged a sales tax in the state of Texas, Ms. Cooper will allow major customers to put their purchases on account. Purchased $300 of supplies consisting of cellophane, ribbon and 13. 6/14 sticks to use in baskets on account. Purchased shipping supplies of $400 for cash. Sold cookies to UTEP for Graduation Ceremonies for $4,000. The 6/14 Ck #1007 14. 6/14 15. cost of the cookies is $1,700; the cost of the baskets is $500, supplies $50. UTEP does not have to pay sales tax on this purchase and they paid on account. Purchased additional cookies on account for $5,500. Credit terms 6/16 16. were 2/15, n/30. Recorded internet sales for the first five days of operation. Sales totaled $6,000. The sales tax collected totaled $480. The $6,480 17. 6/20 Deposit #3 was deposited in the bank. The cost of merchandise sold was $4,200 (cookies were $3,900; baskets $300). Received and paid the $300 invoice for supplies (cellophane and ribbon) purchased on 6/14. Ck #1008 6/22 18. Ms. Cooper donated a cookie arrangement to the Humane Society fund raiser. She felt that this was a good way to advertise her new 19. 6/23 business, Her business was listed as a sponsor and a large ad was put in the fund raiser program. Cost of the cookies were $600 and the baskets were $100. Ms. Cooper considers this an advert expense. CCOUNTING OCIETY 20. 6/23 Received payment in full from UTEP. The payment was deposited in Deposit #4 the bank. 21. 6/23 Ck #1009 Ms. Cooper paid her credit card bill for the month. The total was $350. $300 was for gas and $50 was for the decorative ribbon used in the Humane Society arrangement. 22. 6/23 Paid for the baskets purchased from Bonnie's Baskets on 6/08. Ck #1010 23. 6/23 Deposit #5 Internet and retail sales totaled $7,000 plus sales taxes of $560, The cost of the merchandise sold was $4,500 (cookies $3,500; baskets $1,000). The money was deposited in the bank. 24. 6/23 Ck #1011 Paid the balance due to Connie's Cookies for the cookies. There are two invoices on 6/8 and 6/16. 25. 6/25 Collected and deposited $2,484 of payments on account from retail Deposit #6 credit customers of which $184 was sales tax. COGS is $1,900 and cookies are $1,680 and baskets are $220. 26. 6/28 27. 6/30 Received but did not pay the phone bill for the month, $120. Paid the first monthly installment on the computer equipment. The Ck #1012 payment amount is $336. Of this amount, $36 is for interest and $300 is for principal on the note payable. Make the check payable to Office Mart. Purchased cookies on account for $3,400, terms 2/15, n/30. 6/30 28. C Paid all sales tax owed for June to the Comptroller of Public 6/30 Ck #1013 29. Accounts. Declared and paid a cash dividend of $100 to Connie Cooper. Ck #1014 6/30 30. *Assume all terms will be met for the discount. recorded in the practice set, record the nine adjusting journal entries below Once all journal entries are in the practice set. The following are the adjusting journal entries for the month of June. CCOUNTING OCTETY Bank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79998-2345 Connie's Cookie Bouquet 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Connie's Cookie Bouauet Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 06/01 SC $43,040 June $24,366 June 06/30 $18,674 Deposits Added Deposit 1 Deposit 2 Deposit 3 Deposit 4 Deposit 5 $35,000 $10,000 $6,480 $4,000 $7,560 6/2 6/5 6/20 6/23 6/28 Wells Fargo Bank Statement-Checks Paid and other Debts $400 $300 $2.400 1007 1001 $2,700 1008 $16,000 1012 $600 1002 $636 1003 1004 Check Printing Fee $500 DM $800 $30 1005 1006 Assume that any errors have been made by the bank. 12 P age Debit Credit # Date Account No. Account Name No JE 2-Jun Cash Common Stock 2 2-Jun 10000 35,000.00 39003 35,000.00 Prepaid Rent Cash $ 3 3-Jun 14000 2,400.00 10000 2,400.00 Prepaid Insurance Cash $ 2,700.00 4 3-Jun 14100 10000 2,700.00 Cash $ 10,000.00 5 5-Jun 10000 Note Payable - Wells Fargo Bank $ 10,000.00 21100 Delivery Van Cash $ 16,000.00 6 5-Jun 15100 $ 16,000.00 10000 Delivery Van Cash 6-Jun 15100 600.00 10000 600.00 Prepaid Advertising Cash 8 6-Jun 14200 500,00 500.00 10000 Inventory- Cookies Accounts Payable $ 8-Jun 12000 6,200.00 S 20000 6,200.00 Inventory - Baskets Accounts Payable 2,900.00 10 8-Jun 12100 2,900.00 20000 Legal Expense Cash S 11 13-Jun 60100 800.00 10000 800.00 No JE 12 14-Jun Supplies (Ribbon, Sticks, Cellophane) Account Payable 13 14-Jun 13100 300.00 20000 300.00 Shipping Supplies Cash 14 14-Jun 13200 400.00 10000 400.00 Account Receivable Sales Cost of Goods Sold S 15 14-Jun 11000 4,000.00 40000 4,000.00 2,250.00 50000 Inventory- Cookies 12000 1,700.00 Inventory- Baskets Supplies (Ribbon, Sticks, Cellophane) 12100 500.00 13100 50.00 Inventory- Cookies Accounts Payable 16 16-Jun 12000 5,500.00 20000 5,500.00 Cash Sales Sales Tax Payable Cost of Goods Sold Inventory- Cookies 17 20-Jun 10000 6,480.00 40000 6,000.00 23300 480.00 50000 4,200.00 12000 3,900.00 12100 Inventory- Baskets 300.00 22-Jun Account Payable 18 20000 300.00 Cash 10000 300.00 Advertising and Promotion Expense Inventory- Cookies Inventory- Baskets 60500 12000 700.00 S 19 23-Jun 600.00 100.00 12100 Cash Accounts Receivable $ 20 23-Jun 10000 4,000.00 11000 4,000.00 Utility Expense Advertising and Prom otion Expense Cash 21 23-Jun 60550 300.00 S 60500 50.00 10000 350,00 Account Payable Cash 22 23-Jun 20000 2,900.00 10000 2,900.00 Cash Sales Sales Tax Payable Costs of Goods Sold S 23 23-Jun 10000 7,560.00 40000 7,000.00 23300 560.00 $ 50000 4,500.00 Inventory- Cookies Inventory- Baskets 3,500.00 12000 12100 1,000.00 Account Payable Cash $ 11,700.00 23-Jun 20000 24 $ 11,700.00 10000 Cash Sales Sales Tax Payable 2,484.00 25 25-Jun 10000 40000 2,300.00 23300 184.00 Costs of Good Sold 50000 1,900.00 Inventory- Cookies 12000 1,680.00 Inventory- Baskets 220.00 12100 Utility Expense Accounts Payable $ 26 28-Jun 60550 120.00 20000 120.00 Note Payable Office Mart |Interest Expense Cash 300,00 36.00 S 27 30-Jun 21200 S 60700 10000 336.00 Inventory- Cookies Accounts Payable 28 30-Jun 12000 3,400.00 $ 3,400.00 20000 Sales Tax Payable Cash 1,224.00 29 30-Jun 23300 10000 1,224.00 39007 100.00 Dividends Paid Cash 30 30-Jun 10000 S 100.00 $ 141,804.00$141,804.00 40 Record Adjusting Entries: Record the following month end adjusting entries for the month of June. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $115 of supplies remained on hand. b. $90 of shipping supplies remained on hand. $1,000 of wages for the part-time help from Irene's Temp Services for June should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. d. Make the necessary adjusting entries for one month's depreciation for the van using Straight Line Depreciation. C. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. e One month of the prepaid insurance has expired. One month of the prepaid rent has expired. h. f. g. $250 of prepaid advertising remains on hand. i. Record one month's interest on the loan. j. The interest on the computer has been recorded in journal entry # 28 so you do not need to record it in the adjusting entry