This Mini Practice Set will help you review all the key concepts of the accounting cycle for a merchandising company, along with the integration of payroll. Betty Loeb took over the business now known as The Corner Dress Shop on January 1, 2022. Betty purchased the business name and all assets except cash from her Aunt Marion, who had run it for over ten years. Certain liabilities were assumed by Betty's new business as part of the deal. You are the bookkeeper of The Corner Dress Shop and have gathered the following information. It is your task to complete the accounting cycle for March 2022. Balances in subsidiary ledgers as of February 28: Payroll is paid monthly, and employee claim codes are unchanged. The payroll register for January and February is provided on pages 582-583. In March, salaries are as follows (all deductions are the same unless indicated): The payroll register for January and February is provided on pages 582-583. In March, salaries areas follows (all deductions are the same unless indicated): Required a. Set up a general ledger, accounts receivable ledger, accounts payable ledger, auxiliary petty cash record, and payroll register. (Before beginning, be sure to update the ledger accounts on the basis of information given in the trial balance for February 28.) b. Journalize all transactions during March, using the special journals discussed in the text. Assume this company uses the perpetual inventory method. The practice set can be completed using either method of accounting for inventory. If no specific method is indicated by your instructor, use the perpetual method. Assume the cost of all inventory is 75% of its selling price. Questions, Classroom Demonstration Exereises, Exercises, and Problems c. Prepare the payroll register for March. d. Update the accounts payable and accounts receivable subsidiary ledgers for March. e. Post to the general ledger. f. Prepare a trial balance on a worksheet and complete the worksheet as of March 31, 2022. g. Prepare an income statement, statement of owner's equity, and classified balance sheet. h. Journalize the adjusting and closing entries. i. Post the adjusting and closing entries to the ledger. j. Prepare a post-closing trial balance. The chart of accounts for The Corner Dress Shop is provided on the next page. Questions, Classroom Demonstration Exercises, Exerclses, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems PAYROLL JOURNAL-JANUARY JANUARY (continued) PAYROLLJOURNAL-FEBRUARY FEBRUARY (continued) Questions. Classroom Damanttration Fvaraieae Fvarnieae and Dwahlame Questions, Classroom Demonstration Exercises, Exercises, and Problems \begin{tabular}{|l|l} \hline DI-01 & Q \$48 each + HST \\ 20 & Q $80 each + HST \\ \hline DS-01 & P \end{tabular} Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Additional Data a. Physical count of merchandise inventory is $6,500. b. Rental income earned, $300 (one month's rent from subletting; received in advance in February). c. Depreciation (straight-line): Hints for Bookkeeping 2 Take Home Project 1. The Corner Dress Shop - 579 Page of text 2. Blank Forms - Excel workbook Part 1 to 4. 3. Textbook correction - Page 579 Trial Balance should be HST Prepaid not GST Prepaid 4. Purchase Transactions - Page 583 Quantities x Price per item + HST use 13% 5. Petty Cash Transactions - Page 584 Mar. 4, 7, 11, \& 28 for reference only. Do not journalize until Mar. 29 when you replenish the petty cash fund. March 7 - Postage $12.00+ HST $0.60=$12.60. (HST on Postage is only 5% ) (no PST) 6. Omit Payroll \& Medical Premiums Transactions - Page 584 Do not journalize the following three transactions. Mar. 15 Paid CRA for Payroll remittance, CPP, EI and Income Tax (Chq. No. 125). Mar. 15 Paid Government of Ontario (Chq. No. 127). Mar. 29 Recorded and paid employees (Chq. No. 131, No. 132 and No. 133). 7. HST Transactions - Page 584 Mar. 15 paid CRA for HST remittance. Two steps required. See note on bottom of Page 584. Textbook correction on Step 1. (dene in the G/A) should be (done in the GJ) THE CORNER DRESS SHOP THE CORNER DRESS \&HOP CASH RECEIPTS JOURNAL THE CORNER DRESS SHOP PURCHABES JOURNAL. THE CORNER DRESS SHOP ACCOUNTS RECEIVABLE SUBSIDAARY LEDGER WAMF: SAl I WHE RTODE THE CORNER DRESS SHOP SCHEDULE OF ACCOUNTS RECEIVARLE MARCH 31. 2019 THE CORNER DRESS SHOP GENERAL LEDGER Format A1 BKII - Project 1 BK II - Prolect A B C POST-CLOSING TRIAL BALANCE MARCH 31, 2019 THE CORNER DRESS SHOP AFNEDAI INIDNAI Format B I U U A A1 fx BK II-Project Merge & Center v THE CORNER DRESS SHOP GENERAL LEDGER Format BKI - Project DEPRECIATION EXPENSE - COMPUTER AND OFFICE EQUIPMENT ACCOUNT NO. 5550 THE CORNER DRESS SHOP GENERAL LEDGER THE CORNER DRESS SHOP GENERAL LEDGER A1 fx BK-Project ACCUMULATED DEPRECIATION - COMPUTER SOFTWARE ACCOUNT NO. 1345 This Mini Practice Set will help you review all the key concepts of the accounting cycle for a merchandising company, along with the integration of payroll. Betty Loeb took over the business now known as The Corner Dress Shop on January 1, 2022. Betty purchased the business name and all assets except cash from her Aunt Marion, who had run it for over ten years. Certain liabilities were assumed by Betty's new business as part of the deal. You are the bookkeeper of The Corner Dress Shop and have gathered the following information. It is your task to complete the accounting cycle for March 2022. Balances in subsidiary ledgers as of February 28: Payroll is paid monthly, and employee claim codes are unchanged. The payroll register for January and February is provided on pages 582-583. In March, salaries are as follows (all deductions are the same unless indicated): The payroll register for January and February is provided on pages 582-583. In March, salaries areas follows (all deductions are the same unless indicated): Required a. Set up a general ledger, accounts receivable ledger, accounts payable ledger, auxiliary petty cash record, and payroll register. (Before beginning, be sure to update the ledger accounts on the basis of information given in the trial balance for February 28.) b. Journalize all transactions during March, using the special journals discussed in the text. Assume this company uses the perpetual inventory method. The practice set can be completed using either method of accounting for inventory. If no specific method is indicated by your instructor, use the perpetual method. Assume the cost of all inventory is 75% of its selling price. Questions, Classroom Demonstration Exereises, Exercises, and Problems c. Prepare the payroll register for March. d. Update the accounts payable and accounts receivable subsidiary ledgers for March. e. Post to the general ledger. f. Prepare a trial balance on a worksheet and complete the worksheet as of March 31, 2022. g. Prepare an income statement, statement of owner's equity, and classified balance sheet. h. Journalize the adjusting and closing entries. i. Post the adjusting and closing entries to the ledger. j. Prepare a post-closing trial balance. The chart of accounts for The Corner Dress Shop is provided on the next page. Questions, Classroom Demonstration Exercises, Exerclses, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems PAYROLL JOURNAL-JANUARY JANUARY (continued) PAYROLLJOURNAL-FEBRUARY FEBRUARY (continued) Questions. Classroom Damanttration Fvaraieae Fvarnieae and Dwahlame Questions, Classroom Demonstration Exercises, Exercises, and Problems \begin{tabular}{|l|l} \hline DI-01 & Q \$48 each + HST \\ 20 & Q $80 each + HST \\ \hline DS-01 & P \end{tabular} Questions, Classroom Demonstration Exercises, Exercises, and Problems Questions, Classroom Demonstration Exercises, Exercises, and Problems Additional Data a. Physical count of merchandise inventory is $6,500. b. Rental income earned, $300 (one month's rent from subletting; received in advance in February). c. Depreciation (straight-line): Hints for Bookkeeping 2 Take Home Project 1. The Corner Dress Shop - 579 Page of text 2. Blank Forms - Excel workbook Part 1 to 4. 3. Textbook correction - Page 579 Trial Balance should be HST Prepaid not GST Prepaid 4. Purchase Transactions - Page 583 Quantities x Price per item + HST use 13% 5. Petty Cash Transactions - Page 584 Mar. 4, 7, 11, \& 28 for reference only. Do not journalize until Mar. 29 when you replenish the petty cash fund. March 7 - Postage $12.00+ HST $0.60=$12.60. (HST on Postage is only 5% ) (no PST) 6. Omit Payroll \& Medical Premiums Transactions - Page 584 Do not journalize the following three transactions. Mar. 15 Paid CRA for Payroll remittance, CPP, EI and Income Tax (Chq. No. 125). Mar. 15 Paid Government of Ontario (Chq. No. 127). Mar. 29 Recorded and paid employees (Chq. No. 131, No. 132 and No. 133). 7. HST Transactions - Page 584 Mar. 15 paid CRA for HST remittance. Two steps required. See note on bottom of Page 584. Textbook correction on Step 1. (dene in the G/A) should be (done in the GJ) THE CORNER DRESS SHOP THE CORNER DRESS \&HOP CASH RECEIPTS JOURNAL THE CORNER DRESS SHOP PURCHABES JOURNAL. THE CORNER DRESS SHOP ACCOUNTS RECEIVABLE SUBSIDAARY LEDGER WAMF: SAl I WHE RTODE THE CORNER DRESS SHOP SCHEDULE OF ACCOUNTS RECEIVARLE MARCH 31. 2019 THE CORNER DRESS SHOP GENERAL LEDGER Format A1 BKII - Project 1 BK II - Prolect A B C POST-CLOSING TRIAL BALANCE MARCH 31, 2019 THE CORNER DRESS SHOP AFNEDAI INIDNAI Format B I U U A A1 fx BK II-Project Merge & Center v THE CORNER DRESS SHOP GENERAL LEDGER Format BKI - Project DEPRECIATION EXPENSE - COMPUTER AND OFFICE EQUIPMENT ACCOUNT NO. 5550 THE CORNER DRESS SHOP GENERAL LEDGER THE CORNER DRESS SHOP GENERAL LEDGER A1 fx BK-Project ACCUMULATED DEPRECIATION - COMPUTER SOFTWARE ACCOUNT NO. 1345