TOWNE CLEANERS TRIAL BALANCE NOVEMBER 30, 20XX DEBIT CREDIT 101 Cash $13,942.00 102 Cash - Payroll Account 0 103 Change Fund 100.00 105 Petty Cash Fund 50.00 110 Accounts Receivable 530.00 115 Office Supplies 68.00 120 Cleaning Supplies 83.00 125 Prepaid Insurance 404.00 150 Delivery Van 18,000.00 151 Accum. Deprec., Delivery Van $8,750.00 160 Furniture & Fixtures 6,000.00 161 Accum. Deprec., Furniture & Fixtures 3,935.00 165 Cleaning Equipment 24,000.00 166 Accum. Deprec., Cleaning Equipment 9,788.00 170 Office Equipment 4,000.00 171 Accum. Deprec., Office Equipment 1,462.00 201 Accounts Payable 698.00 210 Wages Payable 0 215 Employees' Federal Income Tax Payable 310.12 216 Employees' State Income Tax Payable 77.50 220 FICA Social Security Tax Payable 621.26 225 FICA Medicare Tax Payable 145.29 230 Employees' Medical Insurance Payable 120.00 235 Federal Unemployment Tax Payable 4.50 240 State Unemployment Tax Payable 30.25 245 Note Payable, Delivery Van 4,080.00 301 Patricia Towne, Capital 26,096.00 350 Patricia Towne, Drawing 27,200.00 370 Income Summary 0 0 401 Cleaning Services Income 183,606.00 402 Alterations Income 25,444.00 410 Tuxedo Rental Income 14,230.00 411 Interest Income 39.97 501 Wages Expense 149,881.00 505 Payroll Tax Expense 12,569.89 508 Rent Expense, Building 6,600.00 510 Utilities Expense 2,580.00 515 Advertising Expense 468.00 517 Cash Short/(Over) 84.00 520 Cleaning Equipment Repair Expense 592.00 521 Office Equipment Repair Expense 384.00 530 Contributions Expense 120.00 535 Insurance Expense 660.00 555 Deprec. Expense, Delivery Van 2,750.00 560 Deprec. Expense, Furniture & Fixtures 935.00 565 Deprec. Expense, Cleaning Equipment 2,285.00 570 Deprec. Expense, Office Equipment 465.00 576 Delivery Expense 72.00 577 Delivery Van Operating Expense 1,420.00 580 Interest Expense 648.00 590 Office Supplies Expense 302.00 591 Cleaning Supplies Expense 2,176.00 599 Miscellaneous Expense 69.00 CONTROL TOTALS $279,437.89 $279,437.89 TOWN CLEANERS DECEMBER TRANSACTIONS Date 11/30 Record Trial Balance amounts from page 4 in the Individual General Ledger Accounts 12/01 Receive invoice from Harbor Cleaning Supplies for cleaning supplies, $125 12/02 Receive and pay for office typewriter repairs by Johns Typewriter for $35, check #321 12/03 Receive invoice from the Chronicle for newspaper advertising, $42 12/04 Contribute $15 to Ventura Holiday Fund, (contributions expense) check #322 12/05 Paid $188 to Harbor Cleaning Supplies for supplies purchased on 11/18, check #323 12/05 Deposit weekly receipts for: - Cleaning services $1,648.00 - Alterations $226.00 - Tuxedo rentals $493.00 12/06 Receive and deposit $365 from Thai Restaurant for November linen cleaning services previously billed 12/06 Receive invoice from California Power for November gas and electricity, $188 12/06 Owner withdrawal of $400 for personal use, check #324 12/08 Purchase office supplies on account from City Stationers, $38 12/09 Receive and pay invoice from Thrifty Gasoline for November delivery van operating costs, $114, check #325 12/10 Petty cash disbursement of $5.75 for delivery, Voucher #90 12/11 Receive and deposit $165 from Sandra Gallager for alterations previously billed 12/11 Make partial payment on 11/22 invoice to Moores Office Equipment for prior purchase on account, $175, check #326 Date 12/12 Deposit weekly receipts for: Cleaning services $1,726.00 Alterations $318.00 Tuxedo rentals $85.00 NOTE: Above amounts represent cash register totals. The actual deposit was for only $2,120, cash on hand, thus there must be a shortage. 12/13 Owner withdrawal of $500 for personal use, check #327 12/13 Remit federal payroll taxes (income taxes and FICA taxes) in the amount of the credit balances in ledgers for November payrolls. Check #328 payable to America Bank West 12/15 Remit monthly note payment on delivery van of $455 ($400 principal; $55 interest) to Car Cal Credit, check #329 12/15 Prepare Payroll Register and Employees Earnings Records for the two week period ended December 12 and journalize entry. Prior Pay Medical Name Cumulative Hours Rate Insurance B. Jones $6,600.00 40 $7.00 $15.00 K. Smith $8,256.00 47 $8.00 $15.00 J. Perry $19,825.00 82 $10.00 $15.00 W. Johnson $115,200.00 80 $60.00 $15.00 All hours worked in excess of 40 per week (or 80 in a two week period) are paid at the rate of 1.5 times the normal hourly rate. (Assume any hours worked less than 80 do not qualify for overtime pay.) Unemployment taxes are computed on the basis of .6% of the first $7,000 in earnings (Federal); 3.4% of the first $7,000 in earnings (State) FICA taxes are computed on the basis of 6.2% of the first $118,500 in earnings for Social Security; 1.45% of all earnings for Medicare Federal Income Taxes should be determined by using the marital status and number of withholding allowances information on the Employees Individual Earnings Records and the Federal Income Tax Withholding Table (See Schedule A-1) State Income Taxes are based upon 25% of the Federal Income Tax Payroll is paid through a special payroll bank account Date 12/15 Compute and record employers payroll tax expense, based on above information. 12/16 Record transfer of funds from regular bank account to special payroll bank account for payment of employees, check # 330 12/16 Record the automatic transfer of funds from the CashPayroll account to the employees personal bank accounts. (Auto-pay system) 12/16 Petty cash disbursement for office supplies, $4.20, Voucher #91 12/16 Receive and pay invoice from Carters Repair Services for $48 for repair of cleaning equipment, check #331 12/17 Pay balance of 11/22 invoice to Moores Office Equipment for prior purchase on account $55, check #332 12/18 Invoice Thai Restaurant for linen cleaning services for first half of December, $140 12/18 Pay 12/03 invoices to the Chronicle for newspaper advertising $42, check #333 12/19 Deposit weekly receipts: -Cleaning Services $1,910.00 -Alterations $273.00 -Tuxedo rentals $230.00 12/19 Purchase cleaning supplies on account from Harbor Cleaning Supplies for $106 12/20 Owner withdrawal of $600 for personal use, check #334 12/22 Receive and pay November telephone bill of $46 from American Telephone, check #335 12/23 Petty cash disbursement of $10 to owner for personal use, Voucher #92 12/23 Receive and pay invoices from Samniis Tire for $19 for services on delivery van, check #336 12/24 Rent tuxedos on account to Tri County Choral for holiday presentation, $765 12/24 Petty cash contribution of $8 to Big Brothers, Voucher #93 12/24 Deposit of weekly receipts for: -Cleaning services $1,240.00 -Alterations $286.00 -Tuxedo rentals $425.00 Date 12/26 Pay 12/01 invoice to Harbor Cleaning Supplies, $125, check #337 12/26 Pay 12/08 invoice to City Stationers, $38, check #338 12/27 Pay monthly rent to J.D. Smith, Co. for building space, $600, check #339 12/28 Receive annual insurance premium on delivery van from Insurers International for $340 12/28 Receive and deposit $140 from Thai Restaurant in payment of invoice dated 12/18 12/29 Prepare Payroll Register and Employees Individual Earnings Records for the two week pay period ended December 26 and journalize entry: Prior Pay Medical Name Cumulative Hours Rate Insurance B. Jones (Bring forward 44 $7.00 $15.00 K. Smith from employees 46 $8.00 $15.00 J. Perry earnings record) 84 $10.00 $15.00 W. Johnson 80 $60.00 $15.00 Compute taxable earnings, FICA taxes and Federal and State Income Tax deductions based upon the information provided with the 12/12 payroll (prepared on 12/15) 12/29 Compute and record employers payroll tax expense based upon the tax rate information provided with the 12/12 payroll and above earnings. 12/30 Record the transfer of funds from the regular bank account to the special payroll bank account for payment to employees, check #340. 12/30 Record the automatic transfer of funds from the CashPayroll account to the employees personal bank accounts. (Auto-pay system) 12/30 Petty cash disbursement of $9.45 for dry cleaning solution, Voucher #94 12/31 Owner withdrawal of $800 for personal use, check #341 12/31 Reimburse Petty Cash (K. Smith) for transactions recorded in the Petty Cash Payments Record, check #342. Date 12/31 Remit employees medical insurance withholdings of $120 for month of November to Big Blue, check #343 12/31 Deposit final receipts for December: - Cleaning services $2,106.00 - Alterations $487.00 - Tuxedo rentals $234.00 12/31 Invoice Thai Restaurant for linen cleaning services for last half of December, $159 12/31 Complete a Bank Reconciliation based upon the information provided, journalize and post the appropriate entries. TOWNE CLEANERS CHART OF ACCOUNTS No. Account Name No. Account Name ASSETS OWNERS EQUITY 101 Cash 301 Patricia Towne, Capital 102 Cash Payroll Account 350 Patricia Towne, Drawing 103 Change Fund 370 Income Summary 105 Petty Cash Fund 110 Accounts Receivable 370 Income Summary 115 Office Supplies REVENUE 120 Cleaning Supplies 125 Prepaid Insurance 401 Cleaning Service Income 150 Delivery Van 402 Alterations Income 151 Accumulated Depreciation, 410 Tuxedo Rental Income Delivery Van 411 Interest Income 160 Furniture & Fixtures 161 Accumulated Depreciation, EXPENSES Furniture & Fixtures 165 Cleaning Equipment 501 Wages Expense 166 Accumulated Depreciation, 505 Payroll Tax Expense Cleaning Equipment 508 Rent Expense, Building 170 Office Equipment 510 Utilities Expense 171 Accumulated Depreciation, 515 Advertising Expense Office Equipment 517 Cash Short/(Over) 520 Cleaning Equipment Repair Expense LIABILITIES 521 Office Equipment Repair Expense 530 Contributions Expense 201 Accounts Payable 535 Insurance Expense 210 Wages Payable 555 Depreciation Expense, Delivery Van 215 Employees Federal Income 560 Depreciation, Tax Payable Furniture & Fixtures 216 Employees State Income 565 Depreciation Expense, Tax Payable Cleaning Equipment 220 FICA Social Security Payable 570 Depreciation Expense, 225 FICA Medicare Tax Payable Office Equipment 230 Employees Medical 576 Delivery Expense Insurance Payable 577 Delivery Van Operating Expense 235 Federal Unemployment 580 Interest Expense Tax Payable 590 Office Supplies Expense 240 State Unemployment Tax Payable 591 Cleaning Supplies Expense 245 Note Payable, Delivery Van 599 Miscellaneous Expense Directions:Prepare journal , journalize them and post to general journal then post them to the general ledger accounts.