Tucker Boats Chart of account from my previous post

101 Cash 111 Accounts Receivable 112 Allowance for doubtful accounts

121 Boat Inventory 122 Boat Accessory Inventory 131 Supplies 132 Prepaid Insurance

133 Prepaid Rent 141 Store, Office, & Boat Equipment 142 Accumulated depreciation 201 Accounts Payable

202 Accrued Salaries Payable 203 Accrued Interest Payable 204 Unearned Revenue 205 Dividends Payable

206 Current Maturities of long-term debt 207 Other Accrued expenses payable 210 Notes Payables

301 Common Stock - (no par) 305 Income Summary 311 Retained Earnings 401 Boat Sales

402 Accessory Sales 403 Boat Repair Revenue 501 Cost of Goods Sold - Boat Sales 502 Cost of Goods Sold - Accessory Sales

601 Salaries Expenses 602 Supplies Expenses 603 Insurance Expenses 604 Rent Expense 605 Depreciation expense

606 Utilities expense 607 Advertising expense 608 Interest expense 609 Doubtful Accounts expense

After you develop the journal entries for the above transactions, you should post the entries to T-accounts and calculate the account balances. These account balances can then be used in making adjusting entries. Using these account balances and additional adjustment information below, record adjusting journal entries. Note that some information needed for adjustments is obtained from the description of the original transaction. For example, Henry's wage rate is given in a Sept. 1 description.

Adjustment information as of September 30, 2013 not already given in original transactions:

Joe was very conscientious in checking his customers' credit history. However, while at the Nevada State Boat Show, he learned that it is customary within the pleasure boating industry for retail boat sales to suffer bad debt losses equal to 5% of credit sales. Joe decides that it is prudent to use the 5% industry-wide standard until he has more experience with his own business and customers. Round estimate to the nearest dollar.

As a control measure, Joe counts his inventory of skiing and fishing accessories at 9/30/2020. He determines that the cost of this merchandise on hand is $1,140.

Joe counts his Supplies after the close of business on the last day of the month and determines the cost of unused supplies to be $262.

Joe estimates that his office furniture and boat related equipment will last eight years with no salvage. Fixed assets purchased in the first half of the month are depreciated for the entire month, while fixed assets purchased in the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar.

Henry worked 20 days during September and did not work any overtime. Joe gets a monthly salary of $3,000.

On October 4, Tucker Boats received a $357 invoice from Desert Gas and Electric Company for utilities consumed during September.

QUESTIONS Please review previous post for DESCRIPTIONS OF EVENT OCCURRING Sept 1-30

- 3) The last tab in the Excel template is for you to prepare the unadjusted trial balance, as well as the adjusted trial balance. Note that you need to enter all the adjustments in the worksheet.

- 4) The last step of the project is to make the closing entries. You shall close the Revenue account(s) as well as the Expenses accounts to the income summary and the then close to the Retailed Earnings. Note that in the Excel template "trial balance" tab, the income summary account is not needed.

7 Sept. 6, 2013 Tucker Boats purchased, at a cost of $11,500, a Fast Glass model Swell craft ski boat for resale. Transportation cost from the Swellcraft factory to Tucker Boats was $550, which Tucker paid in cash. Tucker uses a perpetual inventory system for both boats and accessories. Payment terms to Swellcraft are net 60 days or within two days of the sale of the boat. Tucker Boats purchased on account a variety of accessory merchandise at a cost of $1,330 from Miller Ski Supplies. Transportation was paid by Miller. Terms are net 30 days. Tucker Boats purchased supplies costing $760, paying cash. 8 8 Sept. 7, 2013 9 Sept. 8, 2013 10 Sept. 9, 2013 John Phillips, a local ski enthusiast, provided Tucker Boats with its first sale when he bought a $490 slalom ski for cash. The ski had been included in the September 7 purchase and had cost Tucker $350. 11 Sept. 11, 2013 Albert Snell, another skier, brought his Manvader ski boat in to be "winterized." Henry changed both the engine and outdrive oil, drained the water from the engine, replaced the spark plugs, and tuned the engine. Albert, a long time friend DESCRIPTIONS OF EVENTS OCCURRING Sept. 1 - 30 Date Description of Event 1 Sept. 1, 2013 Joe, with the help and advice of his attorney, Jason Rutherford, issued to himself 5,000 shares of Tucker Boats, Incorporated common stock (no par) at a price of $20 per share. Joe transferred $100,000 cash from his personal bank account and deposited it in a checking account in the name of Tucker Boats, Incorporated Tucker Boats hired Henry at $10 per hour. Henry's typical work week will be 8 hours a day, 5 days per week. Joe and Henry are paid on the first of each month for the month just ended. 2 2 Sept. 1, 2013 3 3 Sept. 1, 2013 4 st Sept. 1, 2013 5 Sept. 4, 2013 6 Sept. 6, 2013 Tucker Boats paid Far West Insurance Agency a one-year general property and liability insurance premium of $2,196. Tucker Boats paid $2,400 to Ace Property Management Group for September's rent on the sales office and boat lot. Tucker Boats wrote a $900 check to Jason Rutherford to pay for his assistance in issuing the common stock. Tucker Boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5th of each month, beginning October 6. (The note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does September. The date the loan is signed bears interest. Interest is accrued to the nearest penny.) TUCKER BOATS Tucker Boats began business on September 1, 2013, as a retail sales outlet for Swellcraft water- ski and fishing boats. Tucker Boats is located on Oe outskirts of Las Vegas, Nevada, and the area provides skiers and fishermen with ample opportunities for boating recreation at nearby Lake Mead. Joe Tucker was excited that he was able to get his business established before the spring, so that he would have his operations running smoothly by the peak sales period during spring and early summer. Tucker Boats has adopted a September 30 as fiscal year end, just in time to stock new merchandise. On September 1, Joe and his attorney were involved with issuing the stock of this closely-held corporation. On this same date, he hired a recent graduate of a local trade school, Henry Webster, to be responsible for boat repairs. In the next few days of September, he rented a sales office, boat garage, and lot space. The store is open Monday through Saturday and Joe is there all six days. Henry works 8 hours per day, Monday through Friday. Both Henry and Joe are employees of the corporation. The next page shows Tucker Boat's chart of accounts. Following are descriptions of events occurring during September. After October begins, you are to close the accounts. Note: Since this is a new business, there are no beginning balances in your accounts. 7 Sept. 6, 2013 Tucker Boats purchased, at a cost of $11,500, a Fast Glass model Swell craft ski boat for resale. Transportation cost from the Swellcraft factory to Tucker Boats was $550, which Tucker paid in cash. Tucker uses a perpetual inventory system for both boats and accessories. Payment terms to Swellcraft are net 60 days or within two days of the sale of the boat. Tucker Boats purchased on account a variety of accessory merchandise at a cost of $1,330 from Miller Ski Supplies. Transportation was paid by Miller. Terms are net 30 days. Tucker Boats purchased supplies costing $760, paying cash. 8 8 Sept. 7, 2013 9 Sept. 8, 2013 10 Sept. 9, 2013 John Phillips, a local ski enthusiast, provided Tucker Boats with its first sale when he bought a $490 slalom ski for cash. The ski had been included in the September 7 purchase and had cost Tucker $350. 11 Sept. 11, 2013 Albert Snell, another skier, brought his Manvader ski boat in to be "winterized." Henry changed both the engine and outdrive oil, drained the water from the engine, replaced the spark plugs, and tuned the engine. Albert, a long time friend DESCRIPTIONS OF EVENTS OCCURRING Sept. 1 - 30 Date Description of Event 1 Sept. 1, 2013 Joe, with the help and advice of his attorney, Jason Rutherford, issued to himself 5,000 shares of Tucker Boats, Incorporated common stock (no par) at a price of $20 per share. Joe transferred $100,000 cash from his personal bank account and deposited it in a checking account in the name of Tucker Boats, Incorporated Tucker Boats hired Henry at $10 per hour. Henry's typical work week will be 8 hours a day, 5 days per week. Joe and Henry are paid on the first of each month for the month just ended. 2 2 Sept. 1, 2013 3 3 Sept. 1, 2013 4 st Sept. 1, 2013 5 Sept. 4, 2013 6 Sept. 6, 2013 Tucker Boats paid Far West Insurance Agency a one-year general property and liability insurance premium of $2,196. Tucker Boats paid $2,400 to Ace Property Management Group for September's rent on the sales office and boat lot. Tucker Boats wrote a $900 check to Jason Rutherford to pay for his assistance in issuing the common stock. Tucker Boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5th of each month, beginning October 6. (The note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does September. The date the loan is signed bears interest. Interest is accrued to the nearest penny.) TUCKER BOATS Tucker Boats began business on September 1, 2013, as a retail sales outlet for Swellcraft water- ski and fishing boats. Tucker Boats is located on Oe outskirts of Las Vegas, Nevada, and the area provides skiers and fishermen with ample opportunities for boating recreation at nearby Lake Mead. Joe Tucker was excited that he was able to get his business established before the spring, so that he would have his operations running smoothly by the peak sales period during spring and early summer. Tucker Boats has adopted a September 30 as fiscal year end, just in time to stock new merchandise. On September 1, Joe and his attorney were involved with issuing the stock of this closely-held corporation. On this same date, he hired a recent graduate of a local trade school, Henry Webster, to be responsible for boat repairs. In the next few days of September, he rented a sales office, boat garage, and lot space. The store is open Monday through Saturday and Joe is there all six days. Henry works 8 hours per day, Monday through Friday. Both Henry and Joe are employees of the corporation. The next page shows Tucker Boat's chart of accounts. Following are descriptions of events occurring during September. After October begins, you are to close the accounts. Note: Since this is a new business, there are no beginning balances in your accounts