Week 11: Journal Entries

To get you started in your new role, Mr. Smith has asked you to prepare the necessary journal entries (JEs) for the following transactions, which occurred in the month just ended. Use a perpetual inventory system. Your debits and credits should equal and the entries should have proper impact on the accounts that are being used.

Summit LLC operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. Terms for all credit sales are 2/10, n/30, unless otherwise stated.

May

1

Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use two lines to record the transaction. Charge 80% of the rent to Rent ExpenseSelling Space and the balance to Rent ExpenseOffice Space.)

2

Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).

2

Issued a $175 credit memorandum to Knox Co. for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725.

3

Received a $798 credit memorandum from Peyton Products for the return of merchandise purchased on April 29.

4

Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM.

5

Received payment from Knox Co. for the balance from the April 28 sale less the May 2 return and the discount.

8

Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and a 2% discount.

9

Sold store supplies to the merchant next door at their cost of $350 cash.

10

Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms n/10 EOM.

11

Received payment from Hensel Company for the May 2 sale less the discount.

11

Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.

12

Received an $854 credit memorandum from Gear Supply Co. for the return of defective office equipment received on May 10.

15

Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.

15

Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)

16

Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890).

17

Purchased $13,650 of merchandise from Fink Corp., invoice dated May 14, terms 2/10, n/60.

19

Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount.

22

Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, n/60.

23

Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount.

24

Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies, $630; and office supplies, $280. Invoice dated May 24, terms n/10 EOM.

25

Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, n/30.

26

Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).

26

Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.

29

The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use.

30

Received payment from Lee Services for the May 22 sale less the discount.

30

Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.

31

Cash sales for the last half of the month are $66,052 (cost is $42,500).

Week 12: Trial Balance, Adjustments, Closing Entries

Complete the columns for the below adjusting entries, income statement, and balance sheet. Also, record the required closing entries. Add any lines as necessary.

1. Expired insurance, $553.

2. Ending store supplies inventory, $2,632.

3. Ending office supplies inventory, $504.

4. Depreciation of store equipment, $567.

5.Depreciation of office equipment, $329.

Week 13: Financial Statement

Now that you have completed most of the steps in the accounting cycle, it is time to complete the cycle with the last steps. This week, you are to prepare the multiple-step income statement, statement of owners equity, and classified balance sheet. You should use the information completed in prior weeks.

Prepare the income statement, where net income will be carried through to the statement of owners equity as one of the adjustments to the final balance in the equity account. You will then need to prepare the balance sheet, where you will show the updated owners equity balance.

Prepare a May (xxxx) multiple-step income statement, a May (xxxx) statement of owner's equity, and a May 31, (xxxx), classified balance sheet.

Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable.

Week 12: Trial Balance, Adjustments, Closing Entries submit your work by the end of Week 13. Using the information from the Excel workbook from Week 5's submission, complete a worksheet using the following information for accounting adjustments. Complete the columns for the below adjusting entries, income statement, and balance sheet. Also, record the required closing entries. Add any lines as necessary. 1. Expired insurance, $553. 2. Ending store supplies inventory, $2,632. 3. Ending office supplies inventory, $504. 4. Depreciation of store equipment, $567. 5.Depreciation of office equipment, $329. Summit LLC operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. Terms for all credit sales are 2/10, n/30, unless otherwise stated. May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use two lines to record the transaction. Charge 80% of the rent to Rent Expense Selling Space and the balance to Rent Expense Office Space.) 2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for 56,100 (cost is $4,100) 2 Issued a $175 credit memorandum to Knox Co, for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725. 3 Received a $798 credit memorandum from Peyton Products for the return of merchandise purchased on April 29. 4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies, S574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM. 5 Received payment from Knox Co, for the balance from the April 28 sale less the May 2 retum and the discount. 8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and a 2% discount. 9 Sold store supplies to the merchant next door at their cost of $350 cash. 10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms w/10 EOM. 11 Received payment from Hensel Company for the May 2 sale less the discount. 11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30 12 Received an S854 credit memorandum from Gear Supply Co. for the retum of defective office equipment received on May 10 15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, S5,320, and office salaries, $3,150. Cashed the check and paid the employees. 15 Cash sales for the first half of the month are $59.220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.) 16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3.990 (cost is $1,890). 17 Purchased $13,650 of merchandise from Fink Corp., invoice dated May 14, terms 2/10, n/60 19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount 22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, 1/60 23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount 24 Purchased the following on credit from Gear Supply Co.: merchandise, S8,120; store supplies, S630; and office supplies, S280. Invoice dated May 24, terms n/10 EOM. 25 Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, 1/30 26 Sold merchandise on credit to Crane Corp. Invoice No. 8788, for $14,210 (cost is $8,230) 26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, S1,283. 29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use. 30 Received payment from Lee Services for the May 22 sale less the discount 30 Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees. 31 Cash sales for the last half of the month are $66,052 (cost is $42,500). Week 11: Journal Entries Complete this assignment using the Excel workbook provided, and submit your work by Week 12. To get you started in your new role, Mr. Smith has asked you to prepare the necessary journal entries (JES) for the following transactions, which occurred in the month just ended. Use a perpetual inventory system. Your debits and credits should equal and the entries should have proper impact on the accounts that are being used. Summit LLC operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. Terms for all credit sales are 2/10, n/30, unless otherwise stated. Week 13: Financial Statements Complete this assignment using the Excel workbook provided (add any necessary additional lines), and submit your work by the end of Week 14. Now that you have completed most of the steps in the accounting cycle, it is time to complete the cycle with the last steps. This week, you are to prepare the multiple-step income statement, statement of owners' equity, and classified balance sheet. You should use the information completed in prior weeks. Prepare the income statement, where net income will be carried through to the statement of owners' equity as one of the adjustments to the final balance in the equity account. You will then need to prepare the balance sheet, where you will show the updated owners' equity balance. Prepare a May (xxxx) multiple-step income statement, a May (xxxx) statement of owner's equity, and a May 31, (xxxx), classified balance sheet. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable