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 AHH Boots, Inc. in the back of the Practice Set and then enter 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 and then staple the T-Accounts to the inside back cover. In the fourth part, the student will complete a bank reconciliation using the bank statement in the practice set 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. The bank reconciliation will be stapled to the back cover. Part five consists of the student preparing an Adjusted Trial Balance, then completing an income Statement, 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 stapled to the front cover. Background AHH Boots is a boot retailer that started in September of 2019 by April Morales. 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. Morales set up her accounting system. He provided to Ms. Morales a chart of accounts 1xxx 151 17xxx Numbering System Current Asset Property, Plant & Equipment Brum Accumulated Depreciation Current Liabilities Long-term Liabilities Stockholders' Equity Revenues Cost of Goods Sold Operating Expenses 27xxx 39.00 4xccx 51K 2 Page Part One, Two, and Three Instructions Record the September 2019 transactions in the general journal (last section of this practice set) using the following events. Skip a line between each entry and number the entries to match the number of transactions. In the general journal record the transaction number, the date, and the account numbers. After all journal entries are entered into the practice set, enter the adjusting entries. Next, create a T- Account for each account that is used in the Chart of Accounts and record the transactions and end with an ending balance on the normal side of the account. All ending balances should be on the normal side even if the account has a zero balance. After entering the balances into Blackboard, staple the T-Account spreadsheet to the inside back cover of the practice set. If there is a number that is uneven round to the nearest cent. You will need the ending balance in the cash account for the bank reconciliation. All instructions for Blackboard start on page 7. Transactions Date Deposit No. / Check No. Description 9/02/19 April Morales met with her lawyer and CPA for advice on starting the business. They decided that Ms. Morales would organize the business as a corporation. The lawyer told Ms. Morales to register the company name, AHH Boots, with the County of El Paso. In addition, Ms. Morales will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the Comptroller of Public Accounts. 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. Morales set up her accounting system. Ms. Morales opened a business checking account at Wells Fargo Bank by depositing $40,000. The corporation issued her a stock certificate for 5,000 shares of common stock with no par value. Ms. Morales signed a one-year rental agreement with RIA Realtors for warehouse space. She was required to pay $8,100 for rent for the months of September 1, 2019 - December 31, 2019. Arranged for a pener Arranged for a general business liability insurance policy and paid $7,200 to State Farm Insurance. This premium is for twelve months coverage. 9/02/19 Deposit #1 3. 9/03/19 Ck #1001 9/03/19 Ck #1002 4 Page ord the nine adjusting journal entries below Ulice all Uulldi elles dietelulueu lule pidclice set, record the nine adiusting lournal in the practice set and use September 30, 2019 as the dates for the transactions. The following are the adjusting journal entries for the month of September Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $200 of supplies remained on hand. b. $50 of shipping supplies remained on hand. C. $1,200 of wages for the part-time help from Irene's Temp Services for September 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 furniture and fixtures using Straight Line Depreciation. e. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. f. One month of the prepaid insurance has expired. B. One month of the prepaid rent has expired. h. $300 of prepaid advertising remains on hand i. Record the interest for the loan j. The interest on the computer has been recorded in journal entry #28 Make sure you prepare the journal entries and the adjusting entries, and write them in the practice set. All T-accounts with the proper balances should be prepared. There is a template 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 side of the account. Once all the balances are in the T-Accounts and 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 1. 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: 7 | Page 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. 2. 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 Dror Cr before each account number. See example below: Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 3. 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 debitor credit 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 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 5. When entering the ending balances for the T-Accounts enter the debitor credit first and the amount last. You do not need to enter the account number. See example below 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 set, the student will prepare a Bank Reconciliation for the month of January 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. 8 Page AHH Boots 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT AHH Boots Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 09/01/2019 September September 09/30/2019 $0 $83,125 $30,780 $52,345 Deposits Added 9/2/2019 Deposit 1 $40,000 9/5/2019 Deposit 2 $10,000 9/20/2019 Deposit 3 $10,825 9/23/2019 Deposit 4 $9,310 9/28/2019 Deposit 5 $12,990 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $8,100 1007 $500 1002 $7,200 1008 $500 1003 $12,000 1009 $250 1004 $600 1005 $700 DM $30 Check Printing Fee 1006 $900 * Any errors should be assumed to be made by the bank. 10 Page Transaction Account Date Account Name Debit No. Credit Dr 10000 10.000.00 11 Page 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 AHH Boots, Inc. in the back of the Practice Set and then enter 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 and then staple the T-Accounts to the inside back cover. In the fourth part, the student will complete a bank reconciliation using the bank statement in the practice set 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. The bank reconciliation will be stapled to the back cover. Part five consists of the student preparing an Adjusted Trial Balance, then completing an income Statement, 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 stapled to the front cover. Background AHH Boots is a boot retailer that started in September of 2019 by April Morales. 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. Morales set up her accounting system. He provided to Ms. Morales a chart of accounts 1xxx 151 17xxx Numbering System Current Asset Property, Plant & Equipment Brum Accumulated Depreciation Current Liabilities Long-term Liabilities Stockholders' Equity Revenues Cost of Goods Sold Operating Expenses 27xxx 39.00 4xccx 51K 2 Page Part One, Two, and Three Instructions Record the September 2019 transactions in the general journal (last section of this practice set) using the following events. Skip a line between each entry and number the entries to match the number of transactions. In the general journal record the transaction number, the date, and the account numbers. After all journal entries are entered into the practice set, enter the adjusting entries. Next, create a T- Account for each account that is used in the Chart of Accounts and record the transactions and end with an ending balance on the normal side of the account. All ending balances should be on the normal side even if the account has a zero balance. After entering the balances into Blackboard, staple the T-Account spreadsheet to the inside back cover of the practice set. If there is a number that is uneven round to the nearest cent. You will need the ending balance in the cash account for the bank reconciliation. All instructions for Blackboard start on page 7. Transactions Date Deposit No. / Check No. Description 9/02/19 April Morales met with her lawyer and CPA for advice on starting the business. They decided that Ms. Morales would organize the business as a corporation. The lawyer told Ms. Morales to register the company name, AHH Boots, with the County of El Paso. In addition, Ms. Morales will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the Comptroller of Public Accounts. 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. Morales set up her accounting system. Ms. Morales opened a business checking account at Wells Fargo Bank by depositing $40,000. The corporation issued her a stock certificate for 5,000 shares of common stock with no par value. Ms. Morales signed a one-year rental agreement with RIA Realtors for warehouse space. She was required to pay $8,100 for rent for the months of September 1, 2019 - December 31, 2019. Arranged for a pener Arranged for a general business liability insurance policy and paid $7,200 to State Farm Insurance. This premium is for twelve months coverage. 9/02/19 Deposit #1 3. 9/03/19 Ck #1001 9/03/19 Ck #1002 4 Page ord the nine adjusting journal entries below Ulice all Uulldi elles dietelulueu lule pidclice set, record the nine adiusting lournal in the practice set and use September 30, 2019 as the dates for the transactions. The following are the adjusting journal entries for the month of September Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $200 of supplies remained on hand. b. $50 of shipping supplies remained on hand. C. $1,200 of wages for the part-time help from Irene's Temp Services for September 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 furniture and fixtures using Straight Line Depreciation. e. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. f. One month of the prepaid insurance has expired. B. One month of the prepaid rent has expired. h. $300 of prepaid advertising remains on hand i. Record the interest for the loan j. The interest on the computer has been recorded in journal entry #28 Make sure you prepare the journal entries and the adjusting entries, and write them in the practice set. All T-accounts with the proper balances should be prepared. There is a template 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 side of the account. Once all the balances are in the T-Accounts and 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 1. 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: 7 | Page 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. 2. 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 Dror Cr before each account number. See example below: Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 3. 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 debitor credit 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 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 5. When entering the ending balances for the T-Accounts enter the debitor credit first and the amount last. You do not need to enter the account number. See example below 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 set, the student will prepare a Bank Reconciliation for the month of January 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. 8 Page AHH Boots 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT AHH Boots Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 09/01/2019 September September 09/30/2019 $0 $83,125 $30,780 $52,345 Deposits Added 9/2/2019 Deposit 1 $40,000 9/5/2019 Deposit 2 $10,000 9/20/2019 Deposit 3 $10,825 9/23/2019 Deposit 4 $9,310 9/28/2019 Deposit 5 $12,990 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $8,100 1007 $500 1002 $7,200 1008 $500 1003 $12,000 1009 $250 1004 $600 1005 $700 DM $30 Check Printing Fee 1006 $900 * Any errors should be assumed to be made by the bank. 10 Page Transaction Account Date Account Name Debit No. Credit Dr 10000 10.000.00 11 Page