So sent in my unadjusted trail balance sheet in and had some things wrong the FUTA/SUTA need to be added from form27. Then when I went thought the check figures, non of the answers are correct. Its close but not correct. Would you look over this for me to see if this is fixable, and if you need more info i can upload the forms again.

Check Figures - Chocolate Nirvana Purchase Journal Accounts Payable Merchandise Inventory Other Cash Receipts Journal Other Merchandise Inventory / COGS Sales - Store Sales Sales Tax Payable Cash Cash Payments Journal Other Accounts Payable Cash After posting your journals here are some selected balances: Cash Merchandise Inventory Accounts Payable After computing payroll total net pay for all employees End of month activities: Work Sheet: Trial Balance Adjustments Adjusted Trial Balance Income Statement (very botom) Balance Sheet (very botom ) Income Statement: Sales Gross Proft Total Operating Expenses Net Income Statement of Owner's Equity: Queta Johnson, October 31, 2016 Balance Sheet: Total Current Assets Total Property, Plant, & Equipment Total Assets Total Current Liabilities Total Non-Current Liabilities Total Liabilities Total Liabilities plus Owner's Equity Post-Closing Trial Balance: Debits and credit 49,147.80 48,117.80 1,030.00 30,000.00 45,709.56 93,539.25 6,547.76 130,087.01 37,008.73 34,312.30 71,321.03 58,765.98 2,408.24 14,835.50 4,910.75 150,042.91 1,528.56 150,466.47 93,539.25 91,209.22 93,539.25 47,829.69 13,370.40 34,282.00 36,782.00 62,509.22 20,900.00 83,409.22 28,002.22 18,625.00 46,627.22 83,409.22 83,709.22 Steven Crump Introduction Queta Johnson is about to open a new business - Chocolate Nirvana. It will be a small chocolate specialties store. She plans on selling a limited number of hand-made molded candies, some of which are holiday specific and others that are of a more generic nature, as well as carrying a line of top-end candy bars. The majority of her sales will come from walk-in customers which will all be on a cash only basis. She anticipates working full-time at the store and needing the help of four part-time employees. She uses a perpetual FIFO (First-in, First-Out) method to account for her inventory. So, every time you record a sale of merchandise you must also figure out the cost of the goods (determined from recording it in the merchandise inventory sheets and applying FIFO). The purpose of this practice set is to allow you the chance to see how each of the separate components we have worked on this semester fit together. As you complete the set, you may find it necessary to look back at what we learned in various chapters to help remember exactly what to do. Instructions 1. Be sure to complete each form before moving on to the next form. 2. Read the form and decide which journal to put it in. 3. First - journalize the form into ONE of the journals. If it can go into one of the special journals, that is where you first put it. Only if you cannot (the transaction does not work for any of them) would you record it in the general journal. It would never go in two journals but it does have to go in one - you cannot record it anywhere else until you have journalized it. CASH PAYMENTS JOURNAL - Use this if you are told to write a check. It must go in the Cash credit column, which means that it must also go to the check book and write out a check. Why did we pay it? On account would go in the Accounts Payable debit column, you would need the name of the business off to the left, and it would need to be recorded in the Accounts Payable subidiary. Some other reason? Would need to go in the Other column and you would need the name of an account from the chart of accounts. If we have an asset relating to what we are paying for we should use that. If not then we can use the expense or other appropriate account. If we pay for more than one thing with the single check we will need 2 lines to record it so that we can properly show the details. CASH RECEIPTS JOURNAL - Use this one if you receive money FOR ANY REASON. The total amount of cash received must go in the Cash debit column and into the check book as a deposit. Why did you get the money? If you received it for a summary of cash sales, you must credit Sales - Store Sales and Sales Tax Payable. These numbers come from the bottom of the cash sales form. Then we must also take the things we sold into the merchandsie inventory sheets and record them as sales and determine what our COST in the goods sold would be. This is based on what we learned in chapter 7. If we received it for any other reason it needs to go in the Other column and we need the name of an account on the left. PURCHASES JOURNAL - Used if you buy something on account (or receive a service that you will be paying for a bit later). Because everything in this journal will include a credit to Accounts Payable you will need the name of the business off to the left and have to take it to the Accounts Payable Subsidiary. Then, what did you buy? Merchandise? Then also put it in the Merchandise Inventory column and have to take it to the Inventory sheets and show the purchase. Something else? Then over on the right, put the amount in and then find an account from the chart of account that matches what you have gotten. SALES JOURNAL - This business does not use a sales journal GENERAL JOURNAL - Only if you cannot record it in one of these four journals would you record it in the general journal. Which means you should not record anything here that affects Cash. We study payroll in chapter 11. We will also use the general journal for our adjusting and closing entries. Payroll - record the payroll as instructed - 1) into their employee earnings records, 2) then transfer the information into the payroll register and 3) after totaling the payroll register use that information to prepare a general journal entry and then from what we learned in chapter 11 also prepare the entry to record payroll tax expense. Specific data for each individual regarding their pay rate, status and number of allowances can be found on their earnings record sheets. Actual hours worked are given on the form. Federal Income Tax withholding amounts are found on the chart near the front of the booklet. First detemine their gross wages, then based on their claimed marital status go to the appropriate chart (married or single - in the front of the book) and find the intersection of their gross wages and how many allowances they are claiming. This is the dollar amount to take for their income tax withholding. Prepare the journal entries based off what we were taught in the textbook. 4. After journalizing all forms, total up every column from all four special journals and write down your total on the journal page. Compare your totals with the check figures. Do they match? If they do not, determine how far off they are. Try to determine where the error would come from. 5. Once you have your totals correct, begin posting into the general ledger. You must post all 5 journals (includes the general journal!!!) From the special journals, if you have the name of an account in the column heading, you will post ONLY the total from that column into the general ledger as either a debit (DR) or a credit (CR) based on what is shown in the column heading. For the "Other" columns you must post each amount individually. This comes from chapter 5. Notice in chapter 5 how your post reference numbers should look. From the general journal you need to post every account you have used. 6. As you post in the general ledger, keep running balances. Remember if you have a debit balance and a debit transaction they are added and stay a debit. If you have a credit balance and a credit transaction they are added and stay a credit. If you have one as a debit and the other as a credit they are subtracted and the balance goes to the higher side. Remember the rules for normal balances! Do not worry about an account's balance too much until you have posted all transactions - at that time all accounts should have their "normal" balance. 7 After posting all numbers from the journals into the general ledger, go to the Unadjusted Trial Balance in the back of the booklet. Write down each account, in order, from the general ledger that has a balance (you will have many accounts that do not yet have balances) and write in the balance amount - debit or credit - and add up your balances. Check your totals (this is a Trial BALANCE so your two balances should be the same) and compare to the check figures. 8. Use your chart of accounts page to begin work on your worksheet. List all accounts, in order, except you do not need to list Notes Payable - current, Income Summary, or Miscellaneous Expense. 9. For the accounts on your unadjusted trial balance, fill in their balances on to the worksheet in the Unadjusted Trial Balance columns. Leave all other accounts blank for these columns. 10. Journalize your adjusting entries in the general journal. You are given the information here, but you will need to also use the chart of accounts, sometimes you will need to look back at the form where we originally got the information we recorded for this charge, or you may need to look up on the forms, the ledger, or the trial balance a cost amount. Prepare month end adjusting entries based on the following data for OCTOBER: a) Record accrued interest on the long term note for 3 days - $13.56 b) Depreciation - calculate depreciation for JUST the month of October based on the following information: Store Equipment - 5 year life, $3000 salvage value, use straight line depreciation Office Equipment - 5 year life, $200 salvage value, use straight line depreciation c) Record entry for expired insurance d) Currently there are $45 worth of office supplies on hand e) Currently there are $90 worth of store supplies on hand f) Record entry for amount of advertising expired for the period just ended g) Record wages earned, but unpaid, on Oct 31 of $110 11. Post your adjusting entries into the general ledger and get new running balances. Remember from chapter 3 what date we use and how we show this in the ledger. 12. Also, add your adjusting entries on to the worksheet in the Adjustments column. You will total your adjusting entries here. 13. You can now complete the worksheet. Your Adjusted Trial Balance columns should match your general ledger balances. What accounts need to get extended into the Income Statement columns (based on the Adjusted Trial Balance numbers) and which ones need to go into the Balance Sheet columns? Look at chapter 4 if you can't remember. Also, check chapter 4 to remind yourself how to show the totals on the bottom of the last page of the worksheet. 14. You are now ready to prepare your financial statements. Be sure to use chapter 6 examples as references. 15. Your Accounts Payable Vendor balance (Schedule of Accounts Payable) is from chapter 5. Simply list each vendor that you owe money to (Accounts Payable) and total them (example in chapter 5). You do not have to list any business that does not have a balance at the end of the month. 16. Income Statement - use a multiple step format. What all do you show, and in what columns (chapter 6) to get to gross profit? Where do you show Interest Expense? The company decided not to separate their operating expenses into selling and administrative but rather to list them all under Operating Expenses unless they are considered to be Other Expenses. 17. Statement of Owner's Equity - were we in business last month? Does that affect how we show anything on this statement? 18. Balance Sheet - be sure to use the classified format as described and illustrated in chapter 6. They show their Note Payable as a noncurrent liability rather than splitting it between current and noncurrent. 19. You are now ready to prepare your closing entries. These need to be journalized in the general journal. Use chapter 4 as a reference. If you prepared your worksheet correctly this is a great help in preparing the closing entries. Remember, though, we may have some accounts now that we did not have back in chapter 4 that still need to be closed because of the type of account they are. We close revenues and expenses - where are they found on the balance sheet? What amount should we have for the third entry? What are we trying to close in the 4th entry? 20. After journalizing the closing entries, you then need to post them into the general ledger. Do we put something in the item column? 21. After posting the closing entries, you will then prepare the post-closing trial balance. Which accounts should still be open? Be sure to use your textbook as a reference as you work through this set. All of this information comes from work in our textbook. Before turning in your completed practice set - Please be sure to put your name on it Chocolate Nirvana Chart of Accounts ASSETS 100 Cash 112 Office Supplies 113 Store Supplies 114 Prepaid Insurance 115 Prepaid Advertising 120 Merchandise Inventory 150 Office Equipment 151 Accumulated Depreciation - Office Equip 160 Store Equipment 161 Accumulated Depreciation - Store Equip LIABILITIES 210 Accounts Payable 211 Interest Payable 213 Sales Tax Payable 214 Employee's Federal Income Tax Payable 215 Social Security Tax Payable 216 Medicare Tax Payable 217 FUTA Tax Payable 218 SUTA Tax Payable 219 Wages Payable 250 Notes Payable - Non Current OWNERS' EQUITY 310 Queta Johnson, Capital 311 Queta Johnson, Drawing 312 Income Summary REVENUE 410 Sales - Store Sales COST OF GOODS SOLD 510 Cost of Merchandise Sold OPERATING EXPENSES 610 Advertising Expense 615 Depreciation Exp - Store Eq 620 Wages Expense 625 Store Supplies Expense 650 Rent Expense 660 Depreciation Exp - Office Eq 665 Insurance Expense 670 Payroll Tax Expense 675 Office Supplies Expense 680 Telephone Expense 685 Utilities Expense 690 Miscellaneous Expense OTHER EXPENSE 810 Interest Expense Single Persons If the wages are But less At least than 0 200 400 700 1200 1800 2500 And the number of withholding allowances claimed is 0 1 2 3 4 The amount of income tax to be withheld is 0 0 0 0 0 15 12 8 4 0 30 22 17 11 5 38 31 24 17 13 46 39 33 25 19 58 47 42 31 24 65 58 51 40 30 200 400 700 1200 1800 2500 3200 5 0 0 2 9 11 16 22 These are the Federal Income Tax Withholding DOLLAR amounts to use for our practice set Married Persons If the wages are But less At least than 0 400 700 1000 1400 1800 400 700 1000 1400 1800 2500 And the number of withholding allowances claimed is 0 1 2 3 4 The amount of income tax to be withheld is 0 0 0 0 0 9 5 2 0 0 17 12 7 5 3 40 34 27 19 14 52 46 37 25 19 61 52 41 34 24 These are the Federal Income Tax Withholding DOLLAR amounts to use for our practice set The numbers used in these charts do not reflect actual IRS numbers 5 0 0 0 5 11 20 PURCHASES JOURNAL DATE ACCOUNT CREDITED 2016 5 Antwerp Supreme 1 Oct Oct 5 Chocolate Delights 2 5 Fireplace Supplies 3 Oct Oct 18 Chocolate Delights 4 20 Antwerp Supreme 5 Oct Oct 27 Antwerp Supreme 6 27 Chocolate Delights 7 Oct Oct 28 Telephone Expense 8 28 Utility Expense 9 Oct Total 10 POST REF Accounts Merchandise Payable CR. Inventory DR. 4802.00 4802.00 12956.00 12956.00 370.00 10471.00 10471.00 5713.30 5713.30 6146.00 6146.00 8029.50 8029.50 340.00 320.00 49147.80 48117.80 Page 1 POST REF ACCOUNT DR. Amount 1 2 370 3 4 5 6 7 340 320 1030 8 9 10 11 11 12 12 13 13 14 14 15 15 CASH RECEIPTS JOURNAL DATE 2016 1 Oct 2 Oct 3 Oct 4 Oct 5 Oct 6 Oct 7 8 9 ### ### ### ### ### ### 1 1 5 20 27 31 INV ACCOUNT CREDITED NO Queta Johnson, Capital Notes Payable - Non Curr Cash Sales Cash Sales Cash Sales Cash Sales Total POS Other T CR REF 101 102 103 104 105 106 Page 1 Merch Sales Inventory Store Sales CR. CR. COGS DR. Sales Tax Pay CR. 10,000.00 20,000.00 30,000.00 10,221.26 15,925.38 13,818.25 5,744.67 45,709.56 20,748.00 32,812.50 28,342.50 11,636.25 93,539.25 1,452.36 2,296.88 1,983.98 814.54 6,547.76 Cash DR 10,000.00 20,000.00 22,200.36 35,109.38 30,326.48 12,450.79 130,087.01 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CASH PAYMENTS JOURNAL DATE 2016 1 Oct 2 Oct 3 Oct 4 Oct 5 Oct 6 Oct 7 Oct 8 Oct 9 Oct 11 Oct 12 Oct 13 Oct Check No. 1 1 1 5 5 5 15 15 15 28 28 28 14 16 Oct 17 31 ACCOUNT DEBITED 1001 Rent Expense 1002 Store Equipment 1003 Prepaid Insurance 1004 Office Equipment 1005 Store Supplies 1006 Prepaid Advertising 1007 Fireplace Supplies 1008 Antwerp Supreme 1009 Chocolate Delights 1010 Chocolate Delights 1011 Antwerp Supreme 1012 Notes Payable Interest Expense 1013 Queta Johnson, Drawings Total POST REF Page 1 Other Accounts DR. Accounts Payable DR. 4,700.00 18,000.00 900.00 3,200.00 570.00 600.00 370.00 4802.00 12956.00 10471.00 5713.30 1,375.00 163.73 7,500.00 37,008.73 34312.30 Cash CR. 4,700.00 18,000.00 900.00 3,200.00 570.00 600.00 370.00 4,802.00 12,956.00 10,471.00 5,713.30 1,375.00 163.73 7,500.00 71,321.03 1 2 3 4 5 6 7 8 9 11 12 13 14 16 17 18 18 19 19 20 20 No. 1001 Date To For 1001 01.10.2016 Thunderbird Mall Rent Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1002 Date To For 00 00 00 Pay to the Thunderbird Mall Order of Chocolate Nirvana $ Four Thousand and Seven Hundred For 4,700.00 Dollars Rent 1002 October 01 20 16 Cents 25,300 Pay to the D & D Shelving Order of Chocolate Nirvana 25,300 00 18,000 00 7,300 00 $ Eighteen Thousand For 18,000.00 Dollars Shelving Units and Cash Register (Store Supplies) 1003 01.10.2016 Noc Overage Insurance Insurance Dollars No. 1004 00 01.10.2016 D & D Shelving Shelving Units and Cash Register Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance 20 16 Cents 30,000.00 30,000 4,700 25,300 Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1003 Date To For October 01 October 01 20 16 Cents 7,300 00 7,300 900 6,400 00 00 00 00 Pay to the Noc Overage Insurance Order of Chocolate Nirvana Nine Hundred For $ 900.00 Dollars Insurance 1004 Date To For 05.10.2016 Machines Ltd. Copier and Computer Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1005 Date To For Pay to the Machines Ltd. Order of Chocolate Nirvana 6,400.00 00 3,200.00 00 3,200.00 00 Three Thousand and Two Hundred $ 3,200.00 Dollars Copier and Computer (Office Equipment) 1005 October 05 20 16 Cents 3,200 3,200 570 2,630 00 00 00 00 Pay to the PDQ Supplies Order of Chocolate Nirvana $ Five Hundred and Seventy For 570.00 Dollars Store Supplies 1006 05.10.2016 Image Counts Advertising Ad Campaign Dollars No. 1007 Date For 05.10.2016 PDQ Supplies Store Supplies Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance 20 16 Cents 6,400.00 00 - Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1006 Date To For October 05 October 05 20 16 Cents 2,630.00 00 2,630.00 00 600.00 00 2,030.00 00 Pay to the Image Counts Advertising Order of Chocolate Nirvana Six Hundred For $ 600.00 Dollars Ad Campaign (Advertising Expense) 1007 15.10.2016 To For Fireplace Supplies Office Supplies Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1008 Date To For 24,230 36 370 00 23,860 36 Three Hundred and Seventy For $ 370.00 Dollars Office Supplies October 15 20 16 Cents 23,860 36 23,860 36 4,802 00 19,058 36 Pay to the Antwerp Supreme Order of Chocolate Nirvana $ Four Thousand and Eight Hundred For 4802.00 Dollars Purchase of goods 1009 15.10.2016 Chocolate Delights Purchase of Goods Dollars No. 1010 Date To Pay to the Fireplace Supplies Order of Chocolate Nirvana 1008 Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance 20 16 Cents 2,030 00 22,200 36 15.10.2016 Antwerp Supreme Purchase of goods Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1009 Date To For October 15 October 15 20 16 Cents 19,058 36 19,058 36 12,956 00 6,102 36 Pay to the Chocolate Delights Order of Chocolate Nirvana $ Twelve Thousand Nine Hundred and Fifty Six For 12,956 Dollars Purchase of Goods 1010 28.10.2016 Chocolate Delights October 28 20 16 For Purchase of Goods Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1011 Date To For $ Ten Thousand Four Hundred and Seventy One For 10471.00 Dollars Purchase of Goods October 28 20 16 Cents 61,067 22 61,067 22 5,713 30 55,353 92 Pay to the Antwerp Supreme Order of Chocolate Nirvana $ Five Thousand Seven Hundred and Thirteen For 5,713.30 Dollars Purchase of Goods 1012 28.10.2016 Boot Hill Bank Monthly Note Payment Dollars No. 1013 Date To For Pay to the Chocolate Delights Order of Chocolate Nirvana 1011 Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance 36 38 48 22 00 22 28.10.2016 Antwerp Supreme Purchase of Goods Balance Forward Deposit Deposit Sub Total Current Check Balance No. 1012 Date To For Cents 6,102 35,109 30,326 71,538 10,471 61,067 October 28 20 16 Cents 55,353 92 - Pay to the Boot Hill Bank Order of Chocolate Nirvana 55,353 92 1,538 73 56,892 65 One Thousand Three Hundred Eight and Seventy ThreDollars For $ 1,538.73 Monthly Note Payment 1013 31.10.2016 Queta Johnson, Drawings Personal Use October 31 20 16 Dollars Balance Forward Deposit Deposit Sub Total Current Check Balance Cents 56,892 65 12,450 69,343 7,500 61,843 79 44 00 44 Pay to the Queta Johnson, Drawings Order of Seven Thousand Five Hundred For Personal Use $ 7,500.00 Dollars 55353.92 56,892.65 69343.44 61843.44 GENERAL JOURNAL DATE DESCRIPTION 2016 28 Wages Expense 1 Oct Page 1 POST REF. DEBIT CREDIT 5,437.75 1 2 Employee's Federal Income Tax Payable 111.00 2 3 Social Security Tax Payable 337.15 3 4 Medical Tax Payable 78.85 4 5 Cash 4,910.75 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 13 13 14 14 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 GENERAL JOURNAL DATE DESCRIPTION 2016 3 POST. REF. Debit Credit Adjusting Entries 1 2 oct Page 2 31 Insurance Prepaid Insurance 1 150.00 2 150.00 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 GENERAL JOURNAL DATE 2016 1 oct 3 oct 4 oct 5 oct 6 oct 7 oct 8 oct 9 oct 10 oct 11 oct 12 oct 13 oct 14 oct 15 oct 16 oct 17 oct 18 oct 19 oct 20 oct 21 oct 22 oct 23 oct 24 oct 25 oct 26 oct 27 oct 2 DESCRIPTION Page 3 POST. REF. Debit Credit Closing Entries 31 PURCHASES 31 CASH 31 OFFICE SUPPLIES 31 STORE SUPPLIES 31 PREPAID INSURANCE 31 PREPAID ADVERTISING 31 OFFICE EQUIPMENT 31 STORE EQUIPMENT 31 ACCOUNTS PAYABLE 31 SALES TAX 31 TAX PAYABLE 31 SOCIAL SECURITY PAYABLE 31 MEDICARE TAX PAYBLE 31 WAGES PAYABLE 31 NOTESPAYABLE 31 CAPITAL ACCOUNT 31 DRAWINGS 31 SALES 31 31 ADVERTISING 31 SALARIES AND WAGES 31 RENT 31 INSURANCE 31 TELEPHONE 31 UTILITIES 31 INTEREST 1 48,117.80 58,766.28 370.00 570.00 900.00 450.00 3,200.00 18,000.00 2 3 4 5 6 7 8 9 14,835.50 6,547.76 111.00 337.15 78.85 4,910.75 18,625.00 10,000.00 7,500.00 10 11 12 13 14 15 16 17 18 93,539.25 19 20 150.00 5,437.75 4,700.00 21 22 23 24 340.00 320.00 163.73 25 26 27 28 28 29 29 30 30 31 31 32 32 33 33 ACCOUNTS PAYABLE SUBSIDIARY LEDGER Name Antwerp Supreme Address 337 Prumer Str., Antwerp, Belgium Date 2016 Oct Oct Oct Oct Oct Item Post. Ref. Debit 5 Dark / Milk Chocolate 15 Cash 20 Dark / Milk Chocolate 27 Dark / Milk Chocolate 28 Cash Credit 4,802.00 4,802.00 5,713.30 6,146.00 5,713.30 Balance 4,802.00 5,713.30 11,859.30 6,146.00 Name Chocolate Delights Address 48956 257th Ave NE, Minneapolis, MN 55444 Date 2016 Oct Oct Oct Oct Oct Item Post. Ref. Debit 5 Halloween / Thanksgiving / Christmas 15 Cash 12,956.00 18 Halloween / Thanksgiving / Christmas 27 Halloween / Thanksgiving / Christmas 28 Cash 10,471.00 Credit 12,956.00 10,471.00 8,029.50 Balance 12,956.00 10,471.00 18,500.50 8,029.50 Name Fireplace Supplies Address 368 Express Place, Westminster, SD 58307 Date Item 2016 Oct 5 Office Supplies Oct 15 Cash Post. Ref. Debit Credit 370.00 370.00 Balance 370.00 - Name TA & A Bell Address 251 381st St, Westminster, SD 58307 Date Item 2016 Oct 28 Telephone Post. Ref. Debit Credit 340.00 Balance 340.00 Name XY Energy Address 461 2nd St, Westminster, SD 58307 Date Item 2016 Oct 28 Utility Expense Post. Ref. Debit Credit 320.00 Balance 320.00 Item ID C - 101 Item Description Date Oct 5 Oct 13 Oct 18 Christmas Purchases Cost of Merchandise Sold Unit Total Unit Total Qty Cost Cost Qty Cost Cost 500 1.58 790.00 248 1.58 391.84 1000 1.52 1,520.00 Oct 20 Oct 27 1100 1.62 1,782.00 Oct 31 Item ID 1.58 1.52 1.52 1.62 1.62 398.16 471.20 1,048.80 243.00 779.22 690 1.52 1,048.80 950 469 1.62 1.62 1,539.00 759.78 D - 101 Item Description Date Oct 5 Oct 13 Oct 20 252 310 690 150 481 Qty 500 252 252 1000 Inventory Unit Total Cost Cost 1.58 790.00 1.58 398.16 1.58 398.16 1.52 1,520.00 Dark Chocolate Purchases Cost of Merchandise Sold Unit Total Unit Total Qty Cost Cost Qty Cost Cost 2200 0.98 2,156.00 1707 0.98 1,672.86 2940 0.97 2,851.80 Oct 20 Oct 27 2800 Oct 31 493 1901 0.97 2,716.00 2117 1211 0.98 0.97 0.97 0.97 483.14 1,843.97 2,053.49 1,174.67 Qty 2200 493 493 2940 1039 1722 511 Inventory Unit Cost 0.98 0.98 0.98 0.97 0.97 0.97 0.97 Total Cost 2,156.00 483.14 483.14 2,851.80 1,007.83 1,670.34 495.67 Item ID H - 101 Item Description Date Oct 5 Oct 13 Oct 18 Purchases Cost of Merchandise Sold Unit Total Unit Total Qty Cost Cost Qty Cost Cost 4500 1.58 7,110.00 2522 1.58 3,984.76 3750 1.46 5,475.00 Oct 20 1978 2160 1.68 3,360.00 1590 1340 578 Oct 27 2000 Oct 31 Item ID 3,125.24 3,153.60 2,321.40 2,251.20 971.04 Total Cost 7,110.00 3,125.24 3,125.24 5,475.00 1590 1.46 2,321.40 660 82 1.68 1.68 1,108.80 137.76 Milk chocolate Purchases Cost of Merchandise Sold Unit Total Unit Total Qty Cost Cost Qty Cost Cost 2700 0.98 2,646.00 1737 0.98 1,702.26 2950 0.97 2,861.50 Oct 20 Oct 27 3500 Oct 31 1.58 1.46 1.46 1.68 1.68 Qty 4500 1978 1978 3750 Inventory Unit Cost 1.58 1.58 1.58 1.46 M - 101 Item Description Date Oct 5 Oct 13 Oct 20 Halloween 963 1725 0.98 3,430.00 1225 1636 1298 0.98 0.97 0.97 0.98 0.98 943.74 1,673.25 1,188.25 1,603.28 1,272.04 Qty 2700 963 963 2950 Inventory Unit Cost 0.98 0.98 0.98 0.97 Total Cost 2,646.00 943.74 943.74 2,861.50 1225 0.97 1,188.25 1864 566 0.98 0.98 1,826.72 554.68 Item ID T - 101 Item Description Date Oct 5 Oct 13 Oct 18 Oct 20 Oct 27 Oct 31 Thanksgiving Purchases Cost of Merchandise Sold Unit Total Unit Total Qty Cost Cost Qty Cost Cost 3200 1.58 5,056.00 1563 1.58 2,469.54 2200 1.58 3,476.00 2426 1.58 3,833.08 1750 1.65 2,887.50 1411 1.58 2,229.38 533 1.65 879.45 938 1.65 1,547.70 Qty 3200 1637 3837 1411 1217 279 Inventory Unit Cost 1.58 1.58 1.58 1.58 1.65 1.65 Total Cost 5,056.00 2,586.46 6,062.46 2,229.38 2,008.05 460.35 Account Cash Account No. Date Item 2016 Oct 1 Capital Oct 1 Boot hiil Bank Oct 1 Rent Oct 1 Office equipment Oct 1 prepaid insurance Oct 5 Office supplies Oct 5 store supplies Oct 5 prepaid advertising Oct 15 office supplies Oct 15 Antwerp Supreme Oct 15 Chocolate Delight Oct 20 Sales Oct 20 Tax Oct 20 Sales Oct 20 Tax Oct 27 Sales a/c Oct 27 Tax Oct 28 Tax Oct 28 Sales Oct 28 Chocolate Delight Oct 28 Antwerp Supreme Oct 28 Boot hiil Bank Oct 28 Interest Oct 31 Drawings Post. Ref. Debit Credit 10000.00 20000.00 4700.00 18000.00 900.00 3200.00 570.00 600.00 370.00 4802.00 12956.00 20748.00 1452.36 32812.50 2296.88 28342.50 1983.98 814.54 11636.25 10471.00 5713.00 1375.00 163.73 7500.00 Account Office Supplies Date Item 2016 Oct 5 Fireplace Supplies Item Account Prepaid Insurance Credit 3142.00 16098.00 4650.00 6102.36 38914.86 41211.74 69554.24 71538.22 72352.76 83989.01 73518.01 67805.01 66430.01 66266.28 58765.98 Account No. Post. Ref. Debit Credit 370.00 Account Store Supplies Date 2016 Oct 5 Cash Balance Debit 10000.00 30000.00 25300.00 7300.00 6400.00 3200.00 2630.00 2030.00 1660.00 100 Balance Debit 370.00 112 Credit Account No. Post. Ref. Debit 570.00 Credit Balance Debit 570.00 Account No. 113 Credit 114 Date 2016 Oct 1 Cash Item Post. Ref. Debit Credit 900.00 Account Prepaid Advertising Date 2016 Oct 5 Cash Item Post. Ref. Debit Credit 600.00 Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Item 5 Accounts Payable 5 Accounts Payable 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 18 Accounts Payable 20 Accounts Payable 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 27 Antwerp Supreme 27 Chocolate Delights 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 31 Cost of goods sold Credit Account No. Account Merchandise Inventory Date 2016 Balance Debit 900.00 Post. Ref. Balance Debit 600.00 115 Credit Account No. Debit Credit 4802.00 12956.00 391.84 1672.86 3984.76 1702.26 2469.54 10471.00 5713.00 398.16 471.20 483.14 1843.97 3125.24 3153.60 2321.40 2251.20 943.74 1673.25 3833.08 6146.00 8029.50 1048.80 243.00 2053.49 1188.25 1603.28 2229.38 879.45 779.22 Balance Debit 4802.00 17758.00 17366.16 15693.30 11708.54 10006.28 7536.74 18007.74 23720.74 23322.58 22851.38 22368.24 20524.27 17399.03 14245.43 11924.03 9672.83 8729.09 7055.84 3222.76 9368.76 17398.26 16349.46 16106.46 14052.97 12864.72 11261.44 9032.06 8152.61 7373.39 120 Credit Oct Oct Oct Oct 31 Cost of 31 Cost of 31 Cost of 31 Cost of goods sold goods sold goods sold goods sold 1174.67 971.04 1272.04 1547.70 Account Office Equipment Date 2016 oct 5 Item Account No. Post. Ref. Debit Credit 3200.00 Account Accumulated Depreciation - Office Equipment Date Item 2016 Oct 31 office equipment Post. Ref. Debit Credit Account Interest Payable Balance Debit 151 Credit 80.00 Account No. Post. Ref. Debit Credit 18000.00 Post. Ref. Debit Balance Debit 18000.00 160 Credit Account No. Credit Balance Debit 187.50 Account Accounts Payable Date Item 2016 Oct 5 Purchases Oct 5 Purchases Oct 15 Cash Oct 15 Cash Oct 18 Purchases a/c Oct 20 Purchases Oct 27 Purchases a/c Oct 27 Purchases Oct 28 Cash Oct 28 Cash Oct 28 Utility Oct 28 Telephone Credit 80.00 Account Accumulated Depreciation - Store Equipment Date Item 2016 Oct 31 Store equipment Balance Debit 3200.00 150 Account No. Account Store Equipment Date Item 2016 Oct 5 Shelving Units 6198.72 5227.68 3955.64 2408.24 161 Credit 187.50 Account No. Post. Ref. Debit Credit Balance Debit 210 Credit 4802.00 12956.00 4802.00 17758.00 0.00 10471.00 5713.00 8029.50 6146.00 10471.00 16184.00 24213.50 30359.50 19888.50 14175.50 14495.50 14835.50 4802.00 12956.00 10471.00 5713.00 320.00 340.00 Account No. 211 Date 2016 Oct 28 Item Post. Ref. Debit Credit 163.73 Account Sales Tax Payable Date Post. Item Ref. 2016 oct 31 salaries and wages Account Social Security Tax Payable Post. Ref. Debit Credit Credit Item Debit Credit Item 213 Credit 214 Credit 111.00 215 Credit 337.15 Account No. Post. Ref. Debit Credit Balance Debit 216 Credit 78.85 78.85 Account No. Post. Ref. Debit Credit Balance Debit 217 Credit Account No. Post. Ref. Debit Credit Account Wages Payable Date Item 2016 oct 31 salaries and wages Balance Debit 337.15 Account SUTA Tax Payable Date 2016 Balance Debit Account No. Account FUTA Tax Payable Date 2016 Balance Debit 6547.76 Account No. 111.00 Account Medicare Tax Payable Date Item 2016 oct 31 salaries and wages Credit Account No. Date Post. Item Debit Ref. 2016 oct 31 6547.76 Account Employee's Federal Income Tax Payable Date Item 2016 Oct 31 salaries and wages Balance Debit 163.73 Balance Debit Account No. Post. Ref. Account Notes Payable - Non Current Debit Credit Balance Debit 4910.75 Account No. 218 Credit 219 Credit 4910.75 250 Date 2016 Oct 1 Cash Oct 28 Cash Item Post. Ref. Debit 102 Credit 20000.00 1375.00 Account Queta Johnson, Capital Date 2016 Oct 1 Cash Item Post. Ref. Debit 101 Item Post. Ref. Credit Debit Credit Item Post. Ref. Debit Credit Balance Debit 7500.00 Post. Ref. Debit Cash Cash Cash Cash Balance Debit Credit Balance Debit 20748.00 32812.50 28342.50 11636.25 Item Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases 311 Credit 312 Credit Account No. Account Cost of Goods Sold Date 2016 Credit 10000.00 Account No. Account Sales - Store Sales Date 2016 Oct 10 Oct 20 Oct 27 Oct 28 310 Account No. Account Income Summary Item Balance Debit 10000.00 7500.00 Date 2016 Credit 20000.00 18625.00 Account No. Account Queta Johnson, Drawing Date 2016 oct 31 Balance Debit 410 Credit 20748.00 53560.50 81903.00 93539.25 Account No. Post. Ref. Debit 391.84 1672.86 3984.76 1702.26 2469.54 398.16 471.20 483.14 Credit Balance Debit 391.84 2064.70 6049.46 7751.72 10221.26 10619.42 11090.62 11573.76 510 Credit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases 1843.97 3125.24 3153.60 2321.40 2251.20 943.74 1673.25 3833.08 1048.80 243.00 2053.49 1188.25 1603.28 2229.38 879.45 779.22 1174.67 971.04 1272.04 1547.70 13417.73 16542.97 19696.57 22017.97 24269.17 25212.91 26886.16 30719.24 31768.04 32011.04 34064.53 35252.78 36856.06 39085.44 39964.89 40744.11 41918.78 42889.82 44161.86 45709.56 Account Advertising Expense Date 2016 oct 5 cash Item Account No. Post. Ref. Debit Credit 600.00 Account Depreciation Expense - Store Equipment Date Post. Item Ref. 2016 oct 31 Accumulated Depreciation Debit Credit 187.50 Credit Balance Debit 187.50 615 Credit Account No. Post. Ref. Debit Credit 5437.75 Account Store Supplies Expense Date Item 2016 Oct 5 pdq supplies Balance Debit 600.00 610 Account No. Account Wages Expense Date Item 2016 oct 31 Salaries Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Post. Ref. Balance Debit 5437.75 620 Credit Account No. Debit 570.00 Credit Balance Debit 570.00 625 Credit Account Rent Expense Date 2016 Oct 1 Cash Item Account No. Post. Ref. Debit Credit 4700.00 Account Depreciation Expense - Office Equipment Date Post. Item Ref. 2016 Oct 31 Accumulated Depreciation Debit Item Credit 80.00 Item Post. Ref. Debit Credit Post. Ref. Debit Credit Account Office Supplies Expense Post. Ref. Debit Credit 370.00 Credit Balance Debit 526.99 670 Credit Balance Debit 370.00 675 Credit Account No. Post. Ref. Debit Credit 340.00 Account Utilities Expense Date Item 2016 Oct 28 XY Energy Balance Debit 665 Account No. Account Telephone Expense Date Item 2016 Oct 28 TA & A Bell Credit Account No. 526.99 Date Item 2016 oct 5 fireplace supplies Balance Debit 80.00 660 Account No. Account Payroll Tax Expense Date 2016 Credit Account No. Account Insurance Expense Date 2016 Oct 1 Balance Debit 4700.00 650 Balance Debit 340.00 680 Credit Account No. Post. Ref. Debit 320.00 Credit Balance Debit 320.00 685 Credit Account Miscellaneous Expense Date 2016 Oct 28 Item Post. Ref. Account No. Debit Credit Account Interest Expense Date 2016 Oct 28 Cash Item Balance Debit 690 Credit Account No. Post. Ref. Debit 163.73 Credit Balance Debit 163.73 810 Credit EMPLOYEE EARNINGS RECORD Employee Name: Sue A. Doll Address: 231 Crescent Street Westminster, SD 58307 $14.00 Pay Rate per hour: Pay Period Ending 1 Oct 28, 2016 Gross Earnings 1960.00 Social Security 501-08-1111 Status: Single Allowances: 3 Cumulative Earnings 1960.00 Federal Income Tax 31.00 Social Security Tax Medicare Tax 122.50 28.42 Total Deductions 181.92 Net Pay 1778.08 1 EMPLOYEE EARNINGS RECORD Employee Name: Angie Faust Address: 2216 Ave D East Westminster, SD 58307 $10.75 Pay Rate per hour: Pay Period Ending 1 Oct 28, 2016 Gross Earnings 1365.25 Social Security #501-08-2222 Status: Single Allowances: 0 Cumulative Earnings 1365.25 Federal Income Tax 46.00 Social Security Tax Medicare Tax 85.33 19.80 Total Deductions 151.12 Net Pay 1214.13 1 EMPLOYEE EARNINGS RECORD Employee Name: Marge Hoffman Address: 152 Columbia Blvd Westminster, SD 58307 $13.25 Pay Rate per hour: Pay Period Ending 1 Oct 28, 2016 Gross Earnings 1192.50 Social Security #501-08-3333 Status: Married Allowances: 2 Cumulative Earnings 1192.50 Federal Income Tax 27.00 Social Security Medicare Tax Tax 74.53 17.29 Total Deductions 118.82 Net Pay 1073.68 1 EMPLOYEE EARNINGS RECORD Employee Name: Thomas Kapp Address: 3248 Manitoba Ave Westminster, SD 58307 $11.50 Pay Rate per hour: Pay Period Ending 1 Oct 28, 2016 Gross Earnings 920.00 Social Security #501-08-4444 Status: Married Allowances: 2 Cumulative Earnings 920.00 Federal Income Tax 7.00 Social Security Medicare Tax Tax 54.79 13.34 Total Deductions 75.13 526.99 Net Pay 844.87 1 Chocolate Nirvana Payroll Register Gross Earnings Deductions Federal Income Tax Employee Name Account Debited Social Medicare Tax Security Tax Total Deductions Net Pay Check No. Wages Expense (Gross Wages) 1 Sue Doll 1,960.00 31.00 122.50 28.42 181.92 1,778.08 1,960.00 1 2 Angie Faust 1,365.25 46.00 85.33 19.80 151.12 1,214.13 1,365.25 2 3 Marge Hoffman 1,192.50 27.00 74.53 17.29 118.82 1,073.68 1,192.50 3 4 Thomas Kapp 920.00 7.00 54.79 13.34 75.13 844.87 920.00 4 5 6 5 TOTALS 5,437.75 111.00 337.15 78.85 527.00 4,910.75 5,437.75 6 7 7 8 8 9 9 Wages Expense 5437.75 Employee's federal income tax social security tax payable Medicare tax payable Cash FUTA SUTA 43.50 598.15 111 337.15 78.85 4910.75 6079.40 Chocolate Nirvana Unadjusted Trial Balance DEBIT Cash Office Supplies Store Supplies Prepaid Insurance Prepaid Advertising Merchandise Inventory Office Equipment Store Equipment Accounts Payable Sales tax Payable Employee's Federal Income Tax Payable Social Security Tax Payable Medicare Tax Payable FUTA Tax Payable SUTA Tax Payable Wages Payable Notes Payable - Noncurrent Queta Johnson, Capital Queta Johnson, Drawing Sales - Store Sales Cost of Merchandise (Goods) Sold Wages Expense Rent Expense Payroll Tax Expense Telephone Expense Utilities Expense Interest Expense CREDIT 58,765.98 370.00 570.00 900.00 600.00 2408.24 3200.00 18000.00 14835.50 6547.76 111.00 337.15 78.85 43.50 598.15 4910.75 18625.00 10000.00 7500.00 93539.25 45709.56 6079.40 4700.00 527.00 340.00 320.00 163.73 total 149626.91 150153.91 Should be the answer 150,042.91 150,042.91 58,765.98 FUTA SUTA 43.50 598.15 2,408.24 6079.40 Wages Expe 5437.75 Employee's federal inc social security tax paya Medicare tax payable Cash 111 337.15 78.85 4910.75 Chocolate Nirvana Work Sheet Account Title 1 Cash 370.00 370.00 2 Supplies 570.00 570.00 570.00 3 5 Prepaid Advertising 6 Merchandise 7 Office Equipment Equipment 12 Interest 4 600.00 450.00 450.00 5 2407.94 2407.94 2407.94 6 3200.00 3200.00 3200.00 7 80.00 18000.00 13 Sales Payable Payable 1 750.00 Depr - Store Equip 11 Accounts 15 Soc Inventory 150.00 58766.28 750.00 Depr - Off Equip 14 Emp Balance Sheet Debit Credit 370.00 900.00 10 Acc Income Statement Debit Credit Supplies Insurance 9 Store Adjusted Trial Balance Debit Credit 58766.28 4 Prepaid 8 Acc Adjustments Debit Credit 58766.28 2 Office 3 Store Unadjusted Trial Balance Debit Credit 80.00 18000.00 18000.00 187.50 187.50 14835.50 14835.50 163.73 Tax Payable 6547.76 8 6547.76 9 10 14835.50 11 0.00 12 6547.76 13 111.00 14 Fed Inc Tax Pay 111.00 Security Tax Pay 337.15 337.15 337.15 15 78.85 78.85 78.85 16 16 Medicare Tax Payable 17 FUTA Tax Payable 0.00 17 18 SUTA Tax Payable 0.00 18 19 Wages 20 Notes Payable Payable - noncurrent 21 Queta Johnson, Capital 22 Queta Johnson, Drawing 7500.00 4910.75 4910.75 4910.75 19 18625.00 18625.00 18625.00 20 10000.00 10000.00 10000.00 21 0.00 22 7500.00 Chocolate Nirvana Work Sheet Unadjusted Trial Balance Account Title 1 Sales 2 Cost - Store Sales of Merchandise Sold 3 Advertising 5 Wages 7 Rent Exp - St Eq Expense Supplies Expense Expense 8 Depreciation 9 Insurance 10 Payroll 11 Office Credit Debit Credit Adjusted Trial Balance Debit 93539.25 Credit Income Statement Debit 93539.25 45709.56 45709.56 Credit 93539.25 45709.56 Exp - Office Eq Expense Credit 1 187.50 187.50 187.50 4 5437.75 5437.75 5437.75 5 570.00 570.00 570.00 6 4700.00 4700.00 4700.00 7 80.00 80.00 80.00 8 150.00 150.00 9 150.00 Tax Expense 12 Telephone Debit 3 Expense Supplies Expense Balance Sheet 2 Expense 4 Depreciation 6 Store Debit Adjustments 10 370.00 370.00 370.00 11 340.00 340.00 340.00 12 13 Utilities Expense 320.00 320.00 320.00 13 14 Interest Expense 163.73 163.73 163.73 14 15 16 Net 15 Income 58178.54 93539.25 16 17 17 18 18 19 19 20 20 21 21 Chocolate Nirvana Schedule of Accounts Payable (Accounts Payable Creditor Balances) ACCOUNT ANTWERP SUPREME CHOCOLATE DELIGHT TA & A BELL XY ENERGY TOTAL 6146.00 8029.50 340.00 320.00 14835.50 Chocolate Nirvana Income Statement Sales Cost of Sales 93539.25 45709.56 Gross Profit 45709.56 47829.69 Expenses Wages Expense Rent Expense Office Supplies Store Supplies Telephone Expense Utilities Expense Advertising Expense Insurance Expense Depreciation Interest Expense Net Income 5437.75 4700.00 370.00 570.00 340.00 320.00 150.00 150.00 267.50 163.73 12468.98 35360.71 Chocolate Nirvana Statement of Owners' Equity Cotribution Profits for the month Money taken for personal use Ending Balance Drawings capital Profits Totals 10,000 10,000 35,361 35,361 (7,500) (7,500) (7,500) 10,000 35,361 37,861 Chocolate Nirvana Balance Sheet Current assets Cash Prepaid Expenses Insurance Prepaid advertising merchandise inventory Non current Assets office equipment store equipment 58766.28 750.00 450.00 2407.94 62374.22 3120.00 17812.50 20932.50 Current Liabilities Accounts payable Sales tax Payable Employee's Federal Income Tax Payable Social Security Tax Payable Salaries and wages payable Medicare Tax Payable 14835.50 6547.76 111.00 337.15 4910.75 78.85 26821.01 Non current Liabilities notes payable equity Total 18625.00 37860.71 56485.71 83306.72 83306.72 Chocolate Nirvana Post Closing Trial Balance ACCOUNT PROPERTY PLANT & EQUIPMENT office supplies office equipment DEBIT 3200.00 18000.00 ACCUMULATED DEPRECIATION office supplies office equipment CASH MERCHANDICE INVENTORY PREPAID EXPENSES CAPITAL ACCOUNT sales capital drawings CREDIT 80.00 187.50 58766.28 2407.94 1200.00 35360.71 10000.00 7500.00 BOOT HILL BANK 18625.00 ACCOUNTS PAYABLE 26821.01 TOTAL 91074.22 91074.22 Steven Crump Introduction Queta Johnson is about to open a new business - Chocolate Nirvana. It will be a small chocolate specialties store. She plans on selling a limited number of hand-made molded candies, some of which are holiday specific and others that are of a more generic nature, as well as carrying a line of top-end candy bars. The majority of her sales will come from walk-in customers which will all be on a cash only basis. She anticipates working full-time at the store and needing the help of four part-time employees. She uses a perpetual FIFO (First-in, First-Out) method to account for her inventory. So, every time you record a sale of merchandise you must also figure out the cost of the goods (determined from recording it in the merchandise inventory sheets and applying FIFO). The purpose of this practice set is to allow you the chance to see how each of the separate components we have worked on this semester fit together. As you complete the set, you may find it necessary to look back at what we learned in various chapters to help remember exactly what to do. Instructions 1. Be sure to complete each form before moving on to the next form. 2. Read the form and decide which journal to put it in. 3. First - journalize the form into ONE of the journals. If it can go into one of the special journals, that is where you first put it. Only if you cannot (the transaction does not work for any of them) would you record it in the general journal. It would never go in two journals but it does have to go in one - you cannot record it anywhere else until you have journalized it. CASH PAYMENTS JOURNAL - Use this if you are told to write a check. It must go in the Cash credit column, which means that it must also go to the check book and write out a check. Why did we pay it? On account would go in the Accounts Payable debit column, you would need the name of the business off to the left, and it would need to be recorded in the Accounts Payable subidiary. Some other reason? Would need to go in the Other column and you would need the name of an account from the chart of accounts. If we have an asset relating to what we are paying for we should use that. If not then we can use the expense or other appropriate account. If we pay for more than one thing with the single check we will need 2 lines to record it so that we can properly show the details. CASH RECEIPTS JOURNAL - Use this one if you receive money FOR ANY REASON. The total amount of cash received must go in the Cash debit column and into the check book as a deposit. Why did you get the money? If you received it for a summary of cash sales, you must credit Sales - Store Sales and Sales Tax Payable. These numbers come from the bottom of the cash sales form. Then we must also take the things we sold into the merchandsie inventory sheets and record them as sales and determine what our COST in the goods sold would be. This is based on what we learned in chapter 7. If we received it for any other reason it needs to go in the Other column and we need the name of an account on the left. PURCHASES JOURNAL - Used if you buy something on account (or receive a service that you will be paying for a bit later). Because everything in this journal will include a credit to Accounts Payable you will need the name of the business off to the left and have to take it to the Accounts Payable Subsidiary. Then, what did you buy? Merchandise? Then also put it in the Merchandise Inventory column and have to take it to the Inventory sheets and show the purchase. Something else? Then over on the right, put the amount in and then find an account from the chart of account that matches what you have gotten. SALES JOURNAL - This business does not use a sales journal GENERAL JOURNAL - Only if you cannot record it in one of these four journals would you record it in the general journal. Which means you should not record anything here that affects Cash. We study payroll in chapter 11. We will also use the general journal for our adjusting and closing entries. Payroll - record the payroll as instructed - 1) into their employee earnings records, 2) then transfer the information into the payroll register and 3) after totaling the payroll register use that information to prepare a general journal entry and then from what we learned in chapter 11 also prepare the entry to record payroll tax expense. Specific data for each individual regarding their pay rate, status and number of allowances can be found on their earnings record sheets. Actual hours worked are given on the form. Federal Income Tax withholding amounts are found on the chart near the front of the booklet. First detemine their gross wages, then based on their claimed marital status go to the appropriate chart (married or single - in the front of the book) and find the intersection of their gross wages and how many allowances they are claiming. This is the dollar amount to take for their income tax withholding. Prepare the journal entries based off what we were taught in the textbook. 4. After journalizing all forms, total up every column from all four special journals and write down your total on the journal page. Compare your totals with the check figures. Do they match? If they do not, determine how far off they are. Try to determine where the error would come from. 5. Once you have your totals correct, begin posting into the general ledger. You must post all 5 journals (includes the general journal!!!) From the special journals, if you have the name of an account in the column heading, you will post ONLY the total from that column into the general ledger as either a debit (DR) or a credit (CR) based on what is shown in the column heading. For the "Other" columns you must post each amount individually. This comes from chapter 5. Notice in chapter 5 how your post reference numbers should look. From the general journal you need to post every account you have used. 6. As you post in the general ledger, keep running balances. Remember if you have a debit balance and a debit transaction they are added and stay a debit. If you have a credit balance and a credit transaction they are added and stay a credit. If you have one as a debit and the other as a credit they are subtracted and the balance goes to the higher side. Remember the rules for normal balances! Do not worry about an account's balance too much until you have posted all transactions - at that time all accounts should have their "normal" balance. 7 After posting all numbers from the journals into the general ledger, go to the Unadjusted Trial Balance in the back of the booklet. Write down each account, in order, from the general ledger that has a balance (you will have many accounts that do not yet have balances) and write in the balance amount - debit or credit - and add up your balances. Check your totals (this is a Trial BALANCE so your two balances should be the same) and compare to the check figures. 8. Use your chart of accounts page to begin work on your worksheet. List all accounts, in order, except you do not need to list Notes Payable - current, Income Summary, or Miscellaneous Expense. 9. For the accounts on your unadjusted trial balance, fill in their balances on to the worksheet in the Unadjusted Trial Balance columns. Leave all other accounts blank for these columns. 10. Journalize your adjusting entries in the general journal. You are given the information here, but you will need to also use the chart of accounts, sometimes you will need to look back at the form where we originally got the information we recorded for this charge, or you may need to look up on the forms, the ledger, or the trial balance a cost amount. Prepare month end adjusting entries based on the following data for OCTOBER: a) Record accrued interest on the long term note for 3 days - $13.56 b) Depreciation - calculate depreciation for JUST the month of October based on the following information: Store Equipment - 5 year life, $3000 salvage value, use straight line depreciation Office Equipment - 5 year life, $200 salvage value, use straight line depreciation c) Record entry for expired insurance d) Currently there are $45 worth of office supplies on hand e) Currently there are $90 worth of store supplies on hand f) Record entry for amount of advertising expired for the period just ended g) Record wages earned, but unpaid, on Oct 31 of $110 11. Post your adjusting entries into the general ledger and get new running balances. Remember from chapter 3 what date we use and how we show this in the ledger. 12. Also, add your adjusting entries on to the worksheet in the Adjustments column. You will total your adjusting entries here. 13. You can now complete the worksheet. Your Adjusted Trial Balance columns should match your general ledger balances. What accounts need to get extended into the Income Statement columns (based on the Adjusted Trial Balance numbers) and which ones need to go into the Balance Sheet columns? Look at chapter 4 if you can't remember. Also, check chapter 4 to remind yourself how to show the totals on the bottom of the last page of the worksheet. 14. You are now ready to prepare your financial statements. Be sure to use chapter 6 examples as references. 15. Your Accounts Payable Vendor balance (Schedule of Accounts Payable) is from chapter 5. Simply list each vendor that you owe money to (Accounts Payable) and total them (example in chapter 5). You do not have to list any business that does not have a balance at the end of the month. 16. Income Statement - use a multiple step format. What all do you show, and in what columns (chapter 6) to get to gross profit? Where do you show Interest Expense? The company decided not to separate their operating expenses into selling and administrative but rather to list them all under Operating Expenses unless they are considered to be Other Expenses. 17. Statement of Owner's Equity - were we in business last month? Does that affect how we show anything on this statement? 18. Balance Sheet - be sure to use the classified format as described and illustrated in chapter 6. They show their Note Payable as a noncurrent liability rather than splitting it between current and noncurrent. 19. You are now ready to prepare your closing entries. These need to be journalized in the general journal. Use chapter 4 as a reference. If you prepared your worksheet correctly this is a great help in preparing the closing entries. Remember, though, we may have some accounts now that we did not have back in chapter 4 that still need to be closed because of the type of account they are. We close revenues and expenses - where are they found on the balance sheet? What amount should we have for the third entry? What are we trying to close in the 4th entry? 20. After journalizing the closing entries, you then need to post them into the general ledger. Do we put something in the item column? 21. After posting the closing entries, you will then prepare the post-closing trial balance. Which accounts should still be open? Be sure to use your textbook as a reference as you work through this set. All of this information comes from work in our textbook. Before turning in your completed practice set - Please be sure to put your name on it 0.2 0.016667 GENERAL JOURNAL DATE DESCRIPTION 2016 28 Wages Expense 1 Oct Page 1 POST REF. DEBIT CREDIT 5,437.75 1 2 Employee's Federal Income Tax Payable 111.00 2 3 Social Security Tax Payable 337.15 3 4 Medical Tax Payable 78.85 4 5 Cash 4,910.75 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 13 13 14 14 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 GENERAL JOURNAL DATE DESCRIPTION 2016 3 Debit Credit Adjusting Entries 1 2 oct Page 2 POST. REF. 31 Insurance 1 150.00 Prepaid Insurance 2 150.00 4 3 4 5 oct 31 depreciation-equipment 6 oct 31 accomulated deprciation-equipment 250.00 5 250.00 6 oct 31 depreciation-office equipment oct 31 accomulated deprciation-office equipment 50.00 50.00 7 7 8 oct 31 closing stock-office supplies 45.00 8 office supplies 9 45.00 10 9 10 oct 31 advertising 150.00 prepaid advertising 11 oct 150.00 31 closing stock-store supplies 90.00 11 store supplies 12 90.00 13 12 13 14 oct 31 interest 13.00 14 interest payable 15 13.00 16 15 16 17 oct 31 salaries and wages 110.00 17 wages payable 18 110.00 19 18 19 858.00 20 858.00 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 GENERAL JOURNAL DATE 2016 3 Page 3 POST. REF. Debit Closing Entries 1 2 DESCRIPTION oct oct 4 oct 31 PURCHASES 31 CASH Credit 1 48,117.80 58,766.28 2 3 31 OFFICE SUPPLIES 370.00 4 31 STORE SUPPLIES 570.00 5 6 oct 31 PREPAID INSURANCE 900.00 6 oct 8 oct 31 PREPAID ADVERTISING 31 OFFICE EQUIPMENT 5 7 oct 450.00 3,200.00 1,528.56 7 8 670.56 670.56 oct 10 oct 9 31 STORE EQUIPMENT 31 ACCOUNTS PAYABLE 18,000.00 9 14,835.50 10 6,547.76 11 oct 31 SALES TAX 13 oct oct 31 TAX PAYABLE 31 SOCIAL SECURITY PAYABLE 14 oct 31 MEDICARE TAX PAYBLE 78.85 14 15 oct 31 WAGES PAYABLE 4,910.75 15 16 oct 11 12 111.00 337.15 12 13 31 NOTESPAYABLE 18,625.00 16 oct 18 oct 31 CAPITAL ACCOUNT 31 DRAWINGS 10,000.00 17 oct 20 oct 31 SALES 31 17 19 21 oct 22 oct 23 oct oct 25 oct 24 31 ADVERTISING 7,500.00 18 93,539.25 19 20 150.00 21 31 SALARIES AND WAGES 5,437.75 22 31 RENT 4,700.00 23 31 INSURANCE 31 TELEPHONE 24 340.00 25 26 oct 31 UTILITIES 320.00 26 27 oct 31 INTEREST 163.73 27 28 28 29 29 30 30 31 31 32 32 33 33 Account Cash Date 2016 Account No. Post. Ref. Item Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct 1 Capital 1 Boot hiil Bank 1 Rent 1 Office equipment 1 prepaid insurance 5 Office supplies 5 store supplies 5 prepaid advertising 15 office supplies 15 Antwerp Supreme 15 Chocolate Delight 20 Sales 20 Tax 20 Sales 20 Tax 27 Sales a/c 27 Tax 28 Tax 28 Sales 28 Chocolate Delight 28 Antwerp Supreme Oct 28 Boot hiil Bank Oct 28 Interest Oct 31 Drawings Debit Credit 10000.00 20000.00 4700.00 18000.00 900.00 3200.00 570.00 600.00 370.00 4802.00 12956.00 20748.00 1452.36 32812.50 2296.88 28342.50 1983.98 814.54 11636.25 10471.00 5713.00 1375.00 163.73 7500.00 Account Office Supplies-closing stock Date 2016 Oct Post. Ref. Item 31 closing stock Debit Credit 45.00 Post. Ref. Item 4910.75 Credit 10000.00 30000.00 25300.00 7300.00 6400.00 3200.00 2630.00 2030.00 1660.00 3142.00 16098.00 4650.00 6102.36 38914.86 41211.74 69554.24 71538.22 72352.76 83989.01 73518.01 67805.01 66430.01 66266.28 58765.98 Account No. Balance Debit 112 Credit 45.00 Account Store Supplies-closing stock Date 2016 Balance Debit 100 Account No. Debit Credit Balance Debit 113 Credit Oct 31 closing stock-store supplies 90.00 90.00 Account Prepaid Insurance Date 2016 Item Account No. Post. Ref. Oct 1 Cash Oct 31 insurance Account Prepaid Advertising Date 2016 Oct Oct Item Debit 900.00 Post. Ref. 5 Cash 31 advertising Debit Credit Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Item Credit 600.00 150.00 5 Accounts Payable 5 Accounts Payable 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 13 Cost of goods sold 18 Accounts Payable 20 Accounts Payable 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 20 Cost of goods sold 27 Antwerp Supreme 27 Chocolate Delights 27 Cost of goods sold Post. Ref. Credit 900.00 150.00 750.00 Account No. Account Merchandise Inventory Date 2016 Balance Debit 114 Balance Debit 115 Credit 600.00 450.00 Account No. Debit Credit 4802.00 12956.00 391.84 1672.86 3984.76 1702.26 2469.54 10471.00 5713.00 398.16 471.20 483.14 1843.97 3125.24 3153.60 2321.40 2251.20 943.74 1673.25 3833.08 6146.00 8029.50 1048.80 Balance Debit 4802.00 17758.00 17366.16 15693.30 11708.54 10006.28 7536.74 18007.74 23720.74 23322.58 22851.38 22368.24 20524.27 17399.03 14245.43 11924.03 9672.83 8729.09 7055.84 3222.76 9368.76 17398.26 16349.46 120 Credit Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct 27 Cost of goods sold Cost of goods sold 27 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 27 Cost of goods sold 31 Cost of goods sold 31 Cost of goods sold 31 Cost of goods sold 31 Cost of goods sold 31 Cost of goods sold 243.00 2053.49 1188.25 1603.28 2229.38 879.45 779.22 1174.67 971.04 1272.04 1547.70 Account Office Equipment Date 2016 oct Item Account No. Post. Ref. 5 Debit Credit 3200.00 Oct Item Post. Ref. Debit 31 office equipment Oct Item Credit Oct Post. Ref. Debit Credit 18000.00 Post. Ref. Debit 31 Store equipment Oct 5 Oct 5 Item Purchases Purchases 50.00 Balance Debit 160 Credit 18000.00 Account No. Credit Balance Debit 250.00 Account Accounts Payable Date 2016 Credit Account No. Account Accumulated Depreciation - Store Equipment Item Balance Debit 151 50.00 5 Shelving Units Date 2016 Credit Account No. Account Store Equipment Date 2016 Balance Debit 150 3200.00 Account Accumulated Depreciation - Office Equipment Date 2016 16106.46 14052.97 12864.72 11261.44 9032.06 8152.61 7373.39 6198.72 5227.68 3955.64 2408.24 161 Credit 250.00 Account No. Post. Ref. Debit Credit 4802.00 12956.00 Balance Debit 210 Credit 4802.00 17758.00 Cash Cash 18 Purchases a/c 20 Purchases 27 Purchases a/c 27 Purchases 28 Cash 28 Cash 28 Utility 4802.00 12956.00 Oct 15 Oct 15 Oct Oct Oct Oct Oct Oct Oct 0.00 10471.00 5713.00 8029.50 6146.00 14175.50 320.00 14495.50 340.00 14835.50 Post. Ref. Debit Credit Item Item Post. Ref. Debit Post. Ref. Debit oct 31 payroll tax Account Social Security Tax Payable Oct Item Post. Ref. Credit oct 31 payroll tax 176.00 Balance Debit 6547.76 Account No. Credit Balance Debit Account No. Debit Credit Balance Debit 337.15 Account Medicare Tax Payable Item Credit 163.00 111.00 31 payroll tax Date 2016 211 Account No. oct 31 cash Account Employee's Federal Income Tax Payable Date 2016 Balance Debit 163.00 13.00 Account Sales Tax Payable Date 2016 30359.50 Account No. Oct 28 interest oct 31 interest Date 2016 24213.50 19888.50 Account Interest Payable Item 16184.00 10471.00 5713.00 Oct 28 Telephone Date 2016 10471.00 213 Credit 6547.76 214 Credit 111.00 215 Credit 337.15 Account No. Post. Ref. Debit Credit 78.85 Balance Debit 216 Credit 78.85 Account FUTA Tax Payable Date 2016 oct Item Account No. Post. Ref. Debit 31 payroll tax Credit 43.00 Account SUTA Tax Payable Date 2016 Item oct Post. Ref. Debit Credit 598.00 Account Wages Payable Item Post. Ref. Debit Credit Oct Oct 1 Cash 28 Cash Post. Ref. Debit 102 Oct 1 Cash Credit oct Post. Ref. Item Debit Credit Credit 598.00 Post. Ref. 219 Credit 4910.75 5020.75 Balance Debit 250 Credit 20000.00 18625.00 Balance Debit 10000.00 310 Credit 10000.00 Account No. Debit Credit 7500.00 Balance Debit 311 Credit 7500.00 Account Income Summary Item 218 Account No. 101 31 Date 2016 Balance Debit 20000.00 Account Queta Johnson, Drawing Date 2016 0.00 1375.00 Item 43.00 Account No. Account Queta Johnson, Capital Date 2016 Balance Debit 4910.75 110.00 Account Notes Payable - Non Current Item 0.00 Account No. oct 31 salaries and wages oct salaries and wages Date 2016 Credit Account No. payroll taxes Date 2016 Balance Debit 217 Account No. Post. Ref. Debit Credit Balance Debit 312 Credit Account Sales - Store Sales Date 2016 Item Account No. Post. Ref. Debit Cash Oct 20 Cash Oct 27 Cash Oct 28 Cash Credit 20748.00 32812.50 28342.50 11636.25 Oct 10 Account Cost of Goods Sold Date 2016 Balance Debit Item Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases 410 Credit 20748.00 53560.50 81903.00 93539.25 Account No. Post. Ref. Debit 391.84 1672.86 3984.76 1702.26 2469.54 398.16 471.20 483.14 1843.97 3125.24 3153.60 2321.40 2251.20 943.74 1673.25 3833.08 1048.80 243.00 2053.49 1188.25 1603.28 2229.38 Credit Balance Debit 391.84 2064.70 6049.46 7751.72 10221.26 10619.42 11090.62 11573.76 13417.73 16542.97 19696.57 22017.97 24269.17 25212.91 26886.16 30719.24 31768.04 32011.04 34064.53 35252.78 36856.06 39085.44 510 Credit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Purchases Purchases Purchases Purchases Purchases Purchases 39964.89 40744.11 41918.78 42889.82 44161.86 45709.56 879.45 779.22 1174.67 971.04 1272.04 1547.70 Account Advertising Expense Date 2016 oct Item Account No. Post. Ref. Debit 31 advertising Credit 150.00 Account Depreciation Expense - Store Equipment Date 2016 oct Item Post. Ref. 31 Accumulated Depreciation Debit oct oct Item Credit 250.00 Oct oct Post. Ref. Post. Ref. 5 pdq supplies 31 closing stck Debit Credit 4910.75 110.00 Oct Item 1 Cash Balance Debit 615 Credit Balance Debit 620 Credit 4910.75 5020.75 Account No. Debit Credit 570.00 90.00 Account Rent Expense Date 2016 150.00 250.00 Account Store Supplies Expense Item Credit Account No. 31 Salaries Payable 31 salries and wages payable Date 2016 Balance Debit 610 Account No. Account Wages Expense Date 2016 0.00 0.00 0.00 0.00 0.00 0.00 Balance Debit 625 Credit 570.00 480.00 Account No. Post. Ref. Debit 4700.00 Account Depreciation Expense - Office Equipment Credit Balance Debit 650 Credit 4700.00 Account No. 660 Date 2016 Oct Item Post. Ref. 31 Accumulated Depreciation Debit Credit 50.00 Oct Item Account No. Post. Ref. 1 prepaid insurance Debit Credit 150.00 oct oct oct oct oct Item Post. Ref. Debit Credit 111.00 337.15 78.00 43.00 598.00 oct oct Post. Ref. 5 fireplace supplies 31 closing stoc-office supplies Oct Item Debit Credit 370.00 45.00 Post. Ref. Debit Credit 340.00 Oct Credit 370.00 325.00 Balance Debit 680 Credit 340.00 Account Utilities Expense Item Balance Debit 675 Account No. 28 TA & A Bell Date 2016 Credit Account No. Account Telephone Expense Date 2016 Balance Debit 670 111.00 448.15 526.15 569.15 1167.15 Account Office Supplies Expense Item Credit Account No. 31 federal tax 31 social security tax 31 medicare tax 31 futa 31 suta Date 2016 Balance Debit 665 150.00 Account Payroll Tax Expense Date 2016 Credit 50.00 Account Insurance Expense Date 2016 Balance Debit Account No. Post. Ref. 28 XY Energy Account Miscellaneous Expense Debit 320.00 Credit Balance Debit 685 Credit 320.00 Account No. 690 Date 2016 Oct Item Post. Ref. Debit Credit Credit 28 Account Interest Expense Date 2016 Oct Oct Balance Debit Item 28 Cash 31 interest payble Account No. Post. Ref. Debit 163.73 13.00 Credit Balance Debit 163.73 176.73 810 Credit Chocolate Nirvana Work Sheet Account Title 1 Cash Unadjusted Trial Balance Debit Credit Adjustments Debit Credit 58765.98 2 Office Supplies-closing stoc 3 Store Supplies-closing stock 0.00 Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit 58765.98 58765.98 1 45.00 45.00 45.00 2 90.00 90.00 90.0