what is the ending balance/ t- accounts & bank reconcilation
Bank Statement Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 79998-2345 Connie's Cookie Bouquet 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT Connie's Cookie Bouauet $0 Balance, beginning Deposits and other credits 06/01 $43,040 $24,366 $18,674 June Checks and other debits June Balance on statement date 06/30 Deposits Added Deposit 1 Deposit 2 $35,000 $10,000 $6,480 $4,000 $7,560 6/2 6/5 6/20 6/23 6/28 Deposit 3 Deposit 4 Deposit 5 Wells Fargo Bank Statement $2,400 1007 $2,700 1008 $16,000 1012 Checks Paid and other Debts 1001 $400 $300 1002 1003 $636 1004 $600 $500 DM 1005 Check Printing Fee $30 1006 $800 e that any errors have been made by the bank. 12 ACCOUNTING OCTETY Part One, Two and Three Instructions Record the June transacttions in the general lournal (last section of this practice set) using the following events. No explanation is required for each journal and adjusting journal entry. Skip a line between each entry and number the entries to match the number of transactions, After all journal entries are written in the practice set, then write the adiustine lournal entries into the practice set. On an excel spreadsheet or sheet of paper, show each account in the Chart of Accounts as a T-account with an ending balance. You will need the endingg balance in the cash account for the bank reconciliation. Transactions Description Date Deposit No. /Check No. 6/02 1. Connie Cooper met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cooper would organize the business as a corporation. The lawyer told Ms. Cooper to register the company name Connie's Cookie Bouquet with the County of E Paso. In addition, Ms. Cooper will get an employer identification. number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. 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. Cooper set up her accounting system. Ms. Cooper opened a business checking account at Wells Fargo Bank by depositing $35,000. The corporation issued her a stock certificate for 35,000 shares of common stock with no par value. 2. 6/02 Deposit #1 Ms. Cooper signed a one-year rental agreement with Reynolds Realtors for warehouse space. She was required to pay $2,400 for rent for the months of June 1-September 30. Ck #1001 3. 6/03 Arranged for a general business liability insurance policy and paid. $2,700 to State Penn Insurance. This premium is for twelve months 6/03 Ck #1002 4. Coverage. Signed a note payable to borrow $10,000 from Wells Fargo Bank. 5. 6/05 Deposit #2 Interest is 9% annually and the note is to be repaid with interest in six months. Purchased a delivery van for $16,000 from Marvin's Motors. The 6. 6/05 Ck #1003 estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Delivery Van and depreciated accordingly. Paid $600 to have Connie's logo painted on the side of the van. This 6/06 Ck # 1004 7. 61Pag CCOUNTING OCTETY should be added to the cost of the van and depreciated over the life of the van. Paid $500 for business cards, flyers, and posters. This will be recorded as prepaid advertising. 8. 6/06 Purchased $6,200 of merchandising inventory (cookies) from Connie's Cookies on account. The vendor extended credit terms of 2/15, n/30. Purchased $2,900 of merchandise inventory (baskets) from Bonnie's Baskets on account. The vendor extended credit terms of 2/15, n/30 Ck #1005 9. 6/08 10. 6/08 Ms. Cooper received and paid the $800 charge from her lawyer. Connie's Cookie Bouguet is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8.25% sales tax. Wholesale customers are not charged a sales tax in the state of Texas. Ms. Cooper will allow major customers to put their purchases on 11. 6/13 12. 6/14 Ck #1006 Purchased $300 of supplies consisting of cellophane, ribbon and sticks to use in baskets on account. Purchased shipping supplies of $400 for cash. Sold cookies to UTEP for Graduation Ceremonies for $4,000. The cost of the cookies is $1.700; the cost of the baskets is $500. supplies $50. UTEP does not have to pay sales tax on this purchase and they paid on account. account. 13. 6/14 14. 6/14 15. 6/14 Ck #1007 16. 6/16 Purchased additional cookies on account for $5,500. Credit terms were 2/15, n/30* Recorded internet sales for the first five days of operation. Sales totaled $6,000. The sales tax collected totaled $480. The $6,480 17. 6/20 Deposit #3 was deposited in the bank. The cost of merchandise sold was $4,200 (cookies were $3,900; baskets $300). Received and paid the $300 invoice for supplies (cellophane and ribbon) purchased on 6/14. Ms. Cooper donated a cookie arrangement to the Humane Society fund raiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was put in the fund raiser program. Cost of the cookies were the baskets were $100. Ms. Cooper considers this an advertising 18. 6/22 Ck #1008 19. 6/23 $600 and expense. 71Par CCOUNTING OCTETY 20. 6/23 Deposit 84 Received payment in full from UTEP. The paymvent was deposited in the bank 21. 6/23 Ck #1009 Ms. Cooper paid her credit card bill for the month. The total was. $350. $300 was for gas and $50 was for the decorative ribbon used in the Humane Society arrangement. Paid for the baskets purchased from Bonnie's Baskets on 6/08. Internet and retail sales totaled $7,000 plus sales taxes of $560. The 6/23 22. Ck M1010 23. 6/23 Deposit #s cost of the merchandise sold was $4,500 (cookies $3,500; baskets $1,000). The money was deposited in the bank 24 6/23 Ck #1011 Paid the balance due to Connie's Cookies for the cookies. There are two invoices on 6/8 and 6/16. 6/25 25. Deposit #6 Collected and deposited $2,484 of payments on account from retail. credit customers of which $184 was sales tax. COGS is $1,900 and cookies are $1,680 and baskets are $220. 26. 6/28 Received but did not pay the phone bill for the month, $120. 27. 6/30 Ck #1012 Paid the first monthly installment on the computer equipment. The payment amount is $336, Of this amount, $36 is for interest and $300 is for principal on the note payable, Make the check payable to Office Mart. 28. 6/30 Purchased cookies on account for $3,400, terms 2/15, n/30. 29. 6/30 Ck #1013 Paid all sales tax owed for June to the Comptroller of Public Accounts. 30. 6/30 Ck # 1014 Assume all terms will be met for the discount. Declared and paid a cash dividend of $100 to Connie Cooper. Once all journal entries are recorded in the practice set, record the nine adjusting journal entries below in the practice set. The following are the adjusting journal entries for the month of June. Record Adjusting Entries: Record the following month end adjusting entries for the month of June. Write the journal entries in the practice set after the original journal entries. Here round all answers to mse orwollol bodd awns the nearest cent. a. $115 of supplies remained on hand. b. $90 of shipping supplies remained on hand. c. $1,000 of wages for the part-time help from Irene's Temp Services for June 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 van using Straight Line Depreciation. 8 | Pa
