Wizard Computers is a retail business dealing in sales of computers and equipment. In addition, the company provides installation and servicing of computer systems. The dientele includes wholesale and retail businesses, number of investors from Inman, South Carolina, with John Jopes as the controlling investor professionals, and private individuals. It is both a merchandising and a service business. It is owned by a small The following joumals should be included in your accounting for the company: Wizard Computer Sales and Services, Inc. bales fourt tone Cash Receipts Jourst one Durchases Joumal. Don E-Payments format Dore Generalfomat Done The trial balance for November is included. The accounts receivable and accounts payable ledgers for November are also included. Cash sales are recorded at the end of each week. All sales on account are subject to terms of 2/10, 1/30. All purchases on account are subject to terms of 3/15, 1/30. Totals of the Special Joumals should be posted to the General Ledger weekly Instructions Post the balances from the trial balance to the appropriate General Ledger accounts Post the balances from the accounts receivable and accounts payable totals for Nov. to the ledgers. Post all transactions for December to the appropriate mals and ledgers 4. Prepare a trial balance for December 5. Prepare a schedule of accounts receivable and accounts payable for the end of December 6. Joumalize and post the adjusting entries based on the following information 7. a. Allowance for Doubtful accounts should be 10% of total accounts receivable for the year b. Inventory at December 31 is: Computers $123.879.41 Other computer equipment 97,359.22 Office supplies 539.42 Store supplies 2,768.39 3,275.00 c. Insurance expired December 31 d. Depreciation is straight line Building 16,750,00 3.111.00 Office Equipment 247.00 Store Equipment 3,147.00 Sales Salaries Officers' Salaries 1,500.00 220.00 Office Salaries Accrued Salaries: 8. Prepare financial statements for year end 9. Journalize and post-closing entries 10. Prepare a post-closing trial balance Trial Balance November 30, 20XX $149,372.55 400.00 21,761.00 1.232.00 Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Inventory - Computers Inventory - Other Computer Equipment Store Supplies Office Supplies Prepaid lusurance Land Building Accumulated Depreciation - Building Office Equipment 150,732.00 100,997.47 1.502.00 273.00 10,373.00 40,000.00 150,000.00 22.479.00 10,964.22 4,792.00 1.562.00 947.00 9,444.00 50,000.00 270,000.00 80,000.00 50,000.00 46,206.75 14,700.00 Accumulated Depreciation - Office Equipment Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Salaries Payable Federal Income Tax Payable FICA Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Cash Dividend Payable Notes Payable Common Stock, S10 PAR 27 OUo Stock Preferred Stock, S100 PAR SOUS-ok Paid In Excess - Common Stock Paid In Excess-Preferred Stock Retained Famings Cash Dividends Sales - Computers Sales - Other Computer Equipment Sales - Computer Services Sales Returns & Allowances Sales Discounts Purchases - Computers Purchases - Other Computer Equipment Purchase Returns and Allowances Purchase Discounts Freight Expense Sales Salaries Expense omicers' Salaries Expense Office Salaries Expense Advertising Expense Depreciation Expense - Building Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment 379,374.00 422,978.00 110,947.00 398.53 1.957.63 397,532.97 214,125.79 273.00 975.42 943.47 63,753.00 44,000.00 12,870.00 22.473.00 102.00 201.00 Office Supplies Expense Store Supplies Expense Payroll Taxes Expense Utilides Expense Repairs & Maintenance Expense Property Taxes Expense Bad Debt Expense Insurance Expense Professional Fees Expense Interest Expense 13,253.92 6,934.22 3,793.00 9,672.40 5,000.00 Accounts Receivable Schedule November, 20XX Akins Builders Ortega Investments / 2-7 Shore Properties, Inc. 12-1 Daniel Grayson, Attomey at Law Johnson Construction Company/2-7 Kenya & Sons Developers 12-6 Orlando Professional Plaza /2-9 Silk Preparatory School 2-6 Mark Taylor, JD 2-12 527.00 3,127.00 3,200.00 521.00 5.700.00 2,100.00 749.00 4,100.00 1,737.00 Accounts Payable Schedule November 20xx Southeast Computers 12-1 Orlando Tabloid2 73-9 2,030.00 3,275.00 675.00 3,464.00 Arthur Gotts, CPA Digital Supplies, Inc. December Transactions Record each of the following transactions in the appropriate journal. Ter CPS SS Sourcps $3,200.00, levs discount 604 PJ Seca 2 cps Aver cps Touca ces Wea. S Doc3 Dec 3 Bee Deca cps Deca si Received a check for $3,136.00 from Share Drogeries, Inc. in payment of our towalce of Nov 22 for Sold merchandise on accoul McBooks Booksore, Invoices 70, computers, 5740.00peripherals, comed check 1102 for $1. AD to Southeast Computers in payment of their Now invoice of $2.000 for 40.66 Purchased stor si on account from Ching Store Supplies & Equipment Color 2916 card check 1103 for $6 to Jefferson tosunce Agency for the premium on a 540,000 policy for one year beginning December 1. Issued check 1 104 for $1,297 to Bellevue Advertising for store advertising materials. Issued check #1105 for $3,275 to the Ortando Tabloid for newspaper advertising for the month of Nov. Sold computers on account to Botero Exporters, Inc, invoice 703, for $575 Issued check 1106 for $9,399 to Joe's Furniture for the purchase of new office equipment for the office Received an involce for $747 from Wee, Chestum & Howe, Atlomeys for legal services. PS Purchased computers on account for 57,449 from Southeast Computers Purchased peripherals on account from Computer Supply, Inc. for SSLAG Cash sales for Dec 1-3 were as follows: peripherals, 510,432; computers, 57,257. Received a check for 52,058 from Kenya & Sons Developers in payment of our invoice of Nov. 25 for $2,100, less discount Sold computers an account to Shore Properties Inc., Invoice 1709. for 5979. beck Declared dividends, payable on Dec 20,to stockholders of record on Dec 13. as follows gs a. Quarterly cash dividends of $1.00 per share on common stock outstanding b. Quarterly cash dividends of $3.00 per share on preferred stock outstanding Dec Issued check 1 107 for $7.480 to Hal Computers for the purchase of computers. "cps Deco Purchased 5865 of office supplies and S1,734 of store suglies on account from Office Staples Issued check 1108 for $842 to Larry's Roofing Inc for roof repair and maintenance ) Received a check for 54,108 from Silk Preparatory School in payment of our invoice of Nov 29 for 8 Completed servicing and installing computers for Ortega Investments and billed them $12,493, Invoice #710, for professional services. Received a check for $5.586 from Johnson Construction Company in payment of our favolor of Nov 30 for $5,700, less discount 114 es 50 Sold computers on account to McBooks Bookstore, invoice #711.for $1,550, cps Issued check 1109 for $279 to Nhung Tran for plumbing repair Received a check for 579 from Orlando Professional Plaza in payment of our invoice of Nov 14 Deck cp) Loco Si PS lect Deco CPS 54,100, less discount Josep Joect CPS Dec 9 PS Received a check for $130 from Office Staples for the fun of office supplies previously purchased for Jences Jocs so Foco cps Tecto Sales Salaries Dec 10cps Dee 10 FUTA tax bec 10cps Sold computer servicing services on account to Papel Associates, Invoice 712 for $1.542 Issued check #1110 for $6751) Arthur Gots for accounting Services for the month of Nov, Record the biweekly payroll in the general journa, details as follows: $3,590 Office Salaries 585 Officers' Salaries 2,000 Income Tax withheld 1,850 FICA tax withheld 432.25 Issued check #1111 for $3,892.75 to Payroll Bank Account in payment of the net payroll. Record the employer's payroll taxes 95 FICA X $432.25 SUTA Lax 168.22 19.42 Issued check 1112 to the Metro National Bank in payment of payroll xex FICA tax 5864.50 Employees' FTT 1,850 Cash sales for the week ended Dec 10 were as follows: computer, 56,947, peripherals, $783, servicing $947 Received a check for $1.737 from Mark Taylor, JDin payment of our invloe of Nov 15 for $1,757 aces Received a check for $1,396.52 from McBooks Bookstore in payment of our invoice for $1,404, less discount. 28.48 Ve 120 ps Received a play for $536, 50 from Botero Experts in payment of our invoice for 55475, less discount Degrasi Sold computers on account to Kenya & Sons, invoice #712.for $4,319, er 13 CPS Issued check 1.113 for $373.2260 Orlando Power and Light for electricity betes) sold an additional 10,000 shares of common stock for$230,000. e 14 ps Purchased computers on account from Southeast Computers for 59,310. Issued check 1114 for $13922 to Bell Telephone Company Dec 15C ES Issued check #1115 for $63.22 to Orlando Water for water and sewer charges Deeve PS Received a check for $979 from Share Properties, Inc. in payment of our invoice, no discount Cash sales for the week ended Dec 17 were as follows computers, 57.492: peripherals, 51.532; Dec 17 Sj servicing $737. bo C Pj Received a check for $1 519 froen McBooks Bookstore in payment of our invoice for $1.580, les Dec 19CPtasud check #1116 for $175 10 Sam's Janitorial Services for cleaning Issued check #1117 to the Metro National Bank for the cash dividends previously declared Konces) TERCAS Free Ize Dec e 140p) Leczo cij gu Record the biweekly payroll details as follows: Sales Salaries $3,674 Office Salaries Officers Salaries 2,000 FIT withheld FICA withheld 585 1,422 434 Dec 24CPS houed check 118 for $4,403 to Payroll Bank Account in payment of net payroll. Dec 24 Record the employer's payroll taxes gJ Dec 24 HICA Tax $434 SUTA Tax 92.75 FUTA Tax 13.42 Issued check w1119 to the Metro National Bank in payment of payroll taxes: cps FICA taxes $868 Employees' FIT 1.422 Dec 24 Sy Cash sales for the week ended Dec 24 were as follows: computers, 56, 621; peripherals, $1.327. Cash sales for the week ended Dec 31 were as follows: computers, 51,573; peripherals, 5679 Dec 31 Issued check 1120 for $312.49 to replenish the petty cash fund. Payments from the fund are as follows: Store Supplies, 5142.99, Office Supplies, $152.27; Freight In. $17. Dec 31 ) Wizard Computers is a retail business dealing in sales of computers and equipment. In addition, the company provides installation and servicing of computer systems. The dientele includes wholesale and retail businesses, number of investors from Inman, South Carolina, with John Jopes as the controlling investor professionals, and private individuals. It is both a merchandising and a service business. It is owned by a small The following joumals should be included in your accounting for the company: Wizard Computer Sales and Services, Inc. bales fourt tone Cash Receipts Jourst one Durchases Joumal. Don E-Payments format Dore Generalfomat Done The trial balance for November is included. The accounts receivable and accounts payable ledgers for November are also included. Cash sales are recorded at the end of each week. All sales on account are subject to terms of 2/10, 1/30. All purchases on account are subject to terms of 3/15, 1/30. Totals of the Special Joumals should be posted to the General Ledger weekly Instructions Post the balances from the trial balance to the appropriate General Ledger accounts Post the balances from the accounts receivable and accounts payable totals for Nov. to the ledgers. Post all transactions for December to the appropriate mals and ledgers 4. Prepare a trial balance for December 5. Prepare a schedule of accounts receivable and accounts payable for the end of December 6. Joumalize and post the adjusting entries based on the following information 7. a. Allowance for Doubtful accounts should be 10% of total accounts receivable for the year b. Inventory at December 31 is: Computers $123.879.41 Other computer equipment 97,359.22 Office supplies 539.42 Store supplies 2,768.39 3,275.00 c. Insurance expired December 31 d. Depreciation is straight line Building 16,750,00 3.111.00 Office Equipment 247.00 Store Equipment 3,147.00 Sales Salaries Officers' Salaries 1,500.00 220.00 Office Salaries Accrued Salaries: 8. Prepare financial statements for year end 9. Journalize and post-closing entries 10. Prepare a post-closing trial balance Trial Balance November 30, 20XX $149,372.55 400.00 21,761.00 1.232.00 Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Inventory - Computers Inventory - Other Computer Equipment Store Supplies Office Supplies Prepaid lusurance Land Building Accumulated Depreciation - Building Office Equipment 150,732.00 100,997.47 1.502.00 273.00 10,373.00 40,000.00 150,000.00 22.479.00 10,964.22 4,792.00 1.562.00 947.00 9,444.00 50,000.00 270,000.00 80,000.00 50,000.00 46,206.75 14,700.00 Accumulated Depreciation - Office Equipment Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Salaries Payable Federal Income Tax Payable FICA Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Cash Dividend Payable Notes Payable Common Stock, S10 PAR 27 OUo Stock Preferred Stock, S100 PAR SOUS-ok Paid In Excess - Common Stock Paid In Excess-Preferred Stock Retained Famings Cash Dividends Sales - Computers Sales - Other Computer Equipment Sales - Computer Services Sales Returns & Allowances Sales Discounts Purchases - Computers Purchases - Other Computer Equipment Purchase Returns and Allowances Purchase Discounts Freight Expense Sales Salaries Expense omicers' Salaries Expense Office Salaries Expense Advertising Expense Depreciation Expense - Building Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment 379,374.00 422,978.00 110,947.00 398.53 1.957.63 397,532.97 214,125.79 273.00 975.42 943.47 63,753.00 44,000.00 12,870.00 22.473.00 102.00 201.00 Office Supplies Expense Store Supplies Expense Payroll Taxes Expense Utilides Expense Repairs & Maintenance Expense Property Taxes Expense Bad Debt Expense Insurance Expense Professional Fees Expense Interest Expense 13,253.92 6,934.22 3,793.00 9,672.40 5,000.00 Accounts Receivable Schedule November, 20XX Akins Builders Ortega Investments / 2-7 Shore Properties, Inc. 12-1 Daniel Grayson, Attomey at Law Johnson Construction Company/2-7 Kenya & Sons Developers 12-6 Orlando Professional Plaza /2-9 Silk Preparatory School 2-6 Mark Taylor, JD 2-12 527.00 3,127.00 3,200.00 521.00 5.700.00 2,100.00 749.00 4,100.00 1,737.00 Accounts Payable Schedule November 20xx Southeast Computers 12-1 Orlando Tabloid2 73-9 2,030.00 3,275.00 675.00 3,464.00 Arthur Gotts, CPA Digital Supplies, Inc. December Transactions Record each of the following transactions in the appropriate journal. Ter CPS SS Sourcps $3,200.00, levs discount 604 PJ Seca 2 cps Aver cps Touca ces Wea. S Doc3 Dec 3 Bee Deca cps Deca si Received a check for $3,136.00 from Share Drogeries, Inc. in payment of our towalce of Nov 22 for Sold merchandise on accoul McBooks Booksore, Invoices 70, computers, 5740.00peripherals, comed check 1102 for $1. AD to Southeast Computers in payment of their Now invoice of $2.000 for 40.66 Purchased stor si on account from Ching Store Supplies & Equipment Color 2916 card check 1103 for $6 to Jefferson tosunce Agency for the premium on a 540,000 policy for one year beginning December 1. Issued check 1 104 for $1,297 to Bellevue Advertising for store advertising materials. Issued check #1105 for $3,275 to the Ortando Tabloid for newspaper advertising for the month of Nov. Sold computers on account to Botero Exporters, Inc, invoice 703, for $575 Issued check 1106 for $9,399 to Joe's Furniture for the purchase of new office equipment for the office Received an involce for $747 from Wee, Chestum & Howe, Atlomeys for legal services. PS Purchased computers on account for 57,449 from Southeast Computers Purchased peripherals on account from Computer Supply, Inc. for SSLAG Cash sales for Dec 1-3 were as follows: peripherals, 510,432; computers, 57,257. Received a check for 52,058 from Kenya & Sons Developers in payment of our invoice of Nov. 25 for $2,100, less discount Sold computers an account to Shore Properties Inc., Invoice 1709. for 5979. beck Declared dividends, payable on Dec 20,to stockholders of record on Dec 13. as follows gs a. Quarterly cash dividends of $1.00 per share on common stock outstanding b. Quarterly cash dividends of $3.00 per share on preferred stock outstanding Dec Issued check 1 107 for $7.480 to Hal Computers for the purchase of computers. "cps Deco Purchased 5865 of office supplies and S1,734 of store suglies on account from Office Staples Issued check 1108 for $842 to Larry's Roofing Inc for roof repair and maintenance ) Received a check for 54,108 from Silk Preparatory School in payment of our invoice of Nov 29 for 8 Completed servicing and installing computers for Ortega Investments and billed them $12,493, Invoice #710, for professional services. Received a check for $5.586 from Johnson Construction Company in payment of our favolor of Nov 30 for $5,700, less discount 114 es 50 Sold computers on account to McBooks Bookstore, invoice #711.for $1,550, cps Issued check 1109 for $279 to Nhung Tran for plumbing repair Received a check for 579 from Orlando Professional Plaza in payment of our invoice of Nov 14 Deck cp) Loco Si PS lect Deco CPS 54,100, less discount Josep Joect CPS Dec 9 PS Received a check for $130 from Office Staples for the fun of office supplies previously purchased for Jences Jocs so Foco cps Tecto Sales Salaries Dec 10cps Dee 10 FUTA tax bec 10cps Sold computer servicing services on account to Papel Associates, Invoice 712 for $1.542 Issued check #1110 for $6751) Arthur Gots for accounting Services for the month of Nov, Record the biweekly payroll in the general journa, details as follows: $3,590 Office Salaries 585 Officers' Salaries 2,000 Income Tax withheld 1,850 FICA tax withheld 432.25 Issued check #1111 for $3,892.75 to Payroll Bank Account in payment of the net payroll. Record the employer's payroll taxes 95 FICA X $432.25 SUTA Lax 168.22 19.42 Issued check 1112 to the Metro National Bank in payment of payroll xex FICA tax 5864.50 Employees' FTT 1,850 Cash sales for the week ended Dec 10 were as follows: computer, 56,947, peripherals, $783, servicing $947 Received a check for $1.737 from Mark Taylor, JDin payment of our invloe of Nov 15 for $1,757 aces Received a check for $1,396.52 from McBooks Bookstore in payment of our invoice for $1,404, less discount. 28.48 Ve 120 ps Received a play for $536, 50 from Botero Experts in payment of our invoice for 55475, less discount Degrasi Sold computers on account to Kenya & Sons, invoice #712.for $4,319, er 13 CPS Issued check 1.113 for $373.2260 Orlando Power and Light for electricity betes) sold an additional 10,000 shares of common stock for$230,000. e 14 ps Purchased computers on account from Southeast Computers for 59,310. Issued check 1114 for $13922 to Bell Telephone Company Dec 15C ES Issued check #1115 for $63.22 to Orlando Water for water and sewer charges Deeve PS Received a check for $979 from Share Properties, Inc. in payment of our invoice, no discount Cash sales for the week ended Dec 17 were as follows computers, 57.492: peripherals, 51.532; Dec 17 Sj servicing $737. bo C Pj Received a check for $1 519 froen McBooks Bookstore in payment of our invoice for $1.580, les Dec 19CPtasud check #1116 for $175 10 Sam's Janitorial Services for cleaning Issued check #1117 to the Metro National Bank for the cash dividends previously declared Konces) TERCAS Free Ize Dec e 140p) Leczo cij gu Record the biweekly payroll details as follows: Sales Salaries $3,674 Office Salaries Officers Salaries 2,000 FIT withheld FICA withheld 585 1,422 434 Dec 24CPS houed check 118 for $4,403 to Payroll Bank Account in payment of net payroll. Dec 24 Record the employer's payroll taxes gJ Dec 24 HICA Tax $434 SUTA Tax 92.75 FUTA Tax 13.42 Issued check w1119 to the Metro National Bank in payment of payroll taxes: cps FICA taxes $868 Employees' FIT 1.422 Dec 24 Sy Cash sales for the week ended Dec 24 were as follows: computers, 56, 621; peripherals, $1.327. Cash sales for the week ended Dec 31 were as follows: computers, 51,573; peripherals, 5679 Dec 31 Issued check 1120 for $312.49 to replenish the petty cash fund. Payments from the fund are as follows: Store Supplies, 5142.99, Office Supplies, $152.27; Freight In. $17. Dec 31 )
