The Business This practice set is designed to be five parts. In the first part, the student will complete the journal entries by writing the journal entries for Carla's Candles, Inc. in the back of the Practice Set and then entering the entries into Blackboard. For part two, the student will write the adjusting journal entries in the back of the practice set and then enter them into Blackboard. For part three, students will enter all journal entries into the corresponding T-Accounts and then enter the balances into Blackboard. In the fourth and will then record the bank's reconciling cash journal entries. The answers to the bank reconciliation will be entered into Blackboard along with any journal entries written on behalf of the company. Part part, the student will complete a bank reconciliation using the bank statement in the practice set five consists of the student a Statement of Retained Earnings and then a Balance Sheet. After everything is complete, the student will turn in the practice set along with all financial statements in the correct order for credit preparing an Adjusted Trial Balance, then completing an Income Statement, Carla's Candles is a gift shop started in January of 2019 by Carla Cannel. She has saved over $40,000 to invest in the business. She has had a meeting with her lawyer and her Certified Public Accountant (CPA) and they have determined that the business should be organized as a corporation. The CPA has agreed to help Ms. Cannel set up her accounting system. He provided to Ms. Cannel a chart of accounts. Numbering System Current Asset boocK 15xo0 17xox 2xooox 27xxx 39hoox 4x00 Revenues Current Liabilities Long-term Liabilities Cost of Goods Sold 60xxx 41Page Current Assets 10000 Cash 11000 Accounts Receivable Inventory-Candles Inventory-Holders 39003Common Stock 39005 Retained Earnings 39007 Dividends 12100 13100 Office Supplies 13200 18000 18100 Prepaid Insurance 18200 Prepaid Advertising Prepaid Rent Revenue 40000 Sales Long-Term Assets 15000Office Equipment 17000 Accumulated Depreciation Expenses 30000 Cost of Goods Sold 60150Store Supplies Expense 60100 egal Expense -Office Equipment 60200 Office Supplies Expense Furniture & Fixtures Insurance Expense 17100Accumulated Depreciation-Furniture & Fixtures 60350 Wages Expense 60400 Delivery Expense 60500 Advertising and Promotion 60550 Utility Expense 60600Rent Expense 60650 Depreciation Expense 60700 Interest Ex 60750 Bank Service Fee Current Liabilities 20000 Accounts Payable 21100 Note Payable- Wells Fargo Interest Expense Bank 21200 Note Payable-Office Mart 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 Utility Payable Long-Term Liabilities 27000 27100 Mortgage Payable Notes Payable siPage $1,250 of wages for the part-time help from Irene's Temp Services for January accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. Make the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. Make the necessary adjusting entry for the office equipment using Straight Line Depreciation. c. should be d. e. f. One month of the prepaid insurance has expired 8. One month of the prepaid rent has expired. h. Record the interest on the loan from Wells Fargo. Make sure you prepare the journal entries, and the adjusting entries, and write them in the practice set. All T-accounts with the correct balances should be prepared. There is an example of how to set up the T-Accounts in Excel at the end of the practice set. Make sure to include all accounts even if they have a zero balance and make sure that the zero is on the normal balance side of the account. Once all the lances are in the T-accounts and the answers have been inputted into Blackboard please staple your T-Account page to the back cover of the practice set. Blackboard Instructions: When entering the journal entries into Blackboard please follow the examples below exactly Enter each transaction on one line. First the debit and then the credit. Do NOT enter any account names only account numbers, Use Dr for Debit and Cr for Credit with no period. Also please put the cents even if it is zero. See example below: 1. Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # Amount Credit Account # Amount) Notice that the account numbers do NOT have commas and the dollar amounts have commas and dollar signs and all dollar amounts have the cents even if it is zero. If there is more than one debit enter the debit first with the smallest account number(s) listed first and then the credits with the smallest account number listed first. Make sure that you enter Dr or Cr before each account number. See example below: 2. Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 For all sales, list the Sale entry first then the Cost of Goods Sold entry second. The entire entry for both should be on one line. First the sale, as shown below, then the cost of the inventory Again, put the smallest account number first if there are more than one debit or credit. 3. Dr 10000 $30,000.00 Cr 23300 $500.00 Cr 40000 $29,000.00 Dr 50000 $15,000.00 Cr 12000 $8,000.00 Cr 12100 $7,000.00. 91 Page Both entries should all be on one line. 4. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. $15,000.00 or 15,000 When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below. 5. Dr $10,000.00 or Cr $10,000.00 6. If there is no journal entry to be written please write No JE for no journal entry. See below for example. No JE Part Four Instructions In this part of the practice Start by using the ending balance in your cash account for the cash for your books and the ending balance on the bank statement for the bank balance. set, the student will prepare a Bank Reconcililation for the month of January Requirements Correct Errors: Correct any errors that you made on the journal entries. Both the debits and the credits must equal each other 1. 2. Bank Recondilation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation. Assume that any errors are made by the bank. After preparing the bank reconciliation answer the questions in Blackboard and then staple the bank reconciliation to the back cover 3. 4. 5. Part Five Instructions . Prepare an Adjusted Trial Balance, then an Income Statement, Statement of Retained Earnings and a Balance Sheet and staple them to the back cover of the practice set in the correct order as listed here. These statements should be done in Word or Excel. 10 Page QUESTION 3 Journalize entries for the Adjusting transaction #C with the Dr. Acct. Number $Amount Cr Acct. Number $Amount EXACTLY as is example below with. Ex.) Dr 50000 $10,000.00 Cr 12000 $8,000.00 Copy and Paste the example into the answer section and edit the amounts and the account numbers. If two Journal entries are required put them one right after the other. If no journal entries are required, write "No JE". DO NOT spell out "credit" or "debit", DO NOT use periods after "Dr/Cr, and ALWAYS include cents in the dollar amounts. QUESTION 4 Journalize entries for the Adjusting transaction #D with the Dr. Acct. Number $Amount Cr Acct. Number $Amount EXACTLY as is example below with. Ex.) Dr 50000 $10,000.00 Cr 12000 $8,000.00 Copy and Paste the example into the answer section and edit the amounts and the account numbers. If two Journal entries are required put them one right after the other. If no journal entries are required, write "No JE". DO NOT spell out "credit" or "debit", DO NOT use periods after "Dr/Cr, and ALWAYS include cents in the dollar amounts. QUESTION 5 Journalize entries for the Adjusting transaction #E with the Dr. Acct. Number $Amount Cr Acct. Number $Amount EXACTLY as is example below with. Ex.) Dr 50000 $10,000.00 Cr 12000 $8,000.00 Copy and Paste the example into the answer section and edit the amounts and the account numbers. If two Journal entries are required put them one right after the other. If no journal entries are required, write "No JE" DO NOT spell out "credit" or "debit", DO NOT use periods after "Dr/Cr, and ALWAYS include cents in the dollar amounts. QUESTION 6 Journalize entries for the Adjusting transaction #F with the Dr. Acct. Number $Amount Cr Acct. Number $Amount EXACTLY as is example below with. Ex.) Dr 50000 $10,000.00 Cr 12000 $8,000.00 Copy and Paste the example into the answer section and edit the amounts and the account numbers. If two Journal entries are required put them one right after the other If no journal entries are required, write "No JE". DO NOT spell out "credit" or "debit", DO NOT use periods after "Dr/Cr, and ALWAYS include cents in the dollar amounts