You are to record transactions completed by Fabulous Furnishings during February of this year. Beginning balances for
Question:
You are to record transactions completed by Fabulous Furnishings during February of this year. Beginning balances for the accounts listed below have been provided in your Working Papers. This Company is located ts located in Dallas. To gain practice in completing the steps in the accounting cycle, assume that the fiscal period consists of one month.
Feb 14 Issued Ck. No. 7221, $2.500.80 to Mid-State Bank for monthly deposit of January employees? federal income taxes, $1,615.80.
14 Sold merchandise on account to Jason and Waldon, $15,781.30, invoice no. 5222.
14 Issued Ck. No. 7222. $4.298.97, to Magnuson Textiles, in payment of its invoice no. RE275 less the credit Memo for defective merchandise and less the discount ($41.83).
18 Bought merchandise on account from Brandon, Inc., $21,375.20, invoice no. 164M, dated February 14; terms 2/10, n/30; FOB Miami; freight prepaid and added to the invoice. $1,242 (total $22,617.20)
18 Cash sales for February to through February 18, $7,889.24.
19 Issued Ck. No. 7223 payable to Quicker Printing for invoice forms, $336 (not previously recorded).
19 Received check from Fashion Decor, $4,830.65, in payment of account.
22 Issued Ck. No. 7224, $12,540, to Tyson Manufacturing Company, in payment of its invoice no. 9264D.
22 Sold merchandise on account to Fashion Decor, $17,435.32, invoice no. 5223.
24 Issued credit memo no. 214 to Fashion Decor, $185, for merchandise returned.
24 Bought merchandise on account from Kingston Fabrics, $16,536.90, invoice no. D1797, dated February 22; terms 2/10, n/30; FOB Dallas.
26 Recorded the payroll in the payroll register for regular biweekly salaries for period ended February 26. Salaries: R. W. Harris, $2,840; T. L. Newkirk. $2,374. Income tax withholdings are S287 for Harris and $216 for Newkirk. Note See the entry of February 12 for taxable earnings limits and tax rates. See the payroll register this payroll's beginning cumulative earnings.
26 Recorded the payroll entry, crediting Salaries .Payable.
26 Issued Ck. No. 7225, $2,392.54, to R. W. Harris. Issued Ck. No. 7226, $2.025.87, to T. L. Newkirk. Use two lines and debit salaries Payable.
26 Ck. No, 7227 voided.
26 Recorded payroll taxes. Assume the following tax rates and taxable earnings
?Fedora/ unemployment taxable earnings. $7,000 with rate of 0.8 percent.
? Stale unemployment taxable earnings $7,000 with a rate of 0.8 percent.
27 Issued Ck. No. 7228. $1,035, to JIT Freight for transportation charge on merchandise purchased from Kingston Fabrics.
28 Issued Ck. No. 7229, $155.60, payable Cash to reimburse the petty cash fund. Petty cash payments consist of Supplies, S130.24, and Miscellaneous Expense. $25.36.
28 Cash sales for February 19 through February 28, $8,986.60.
28. Issued Ck. No. 7230, $2,290 to Global Rental Agency for monthly rent.
28. M. L. Langdon (owner) withdrew S5,000 for personal use Ck. No. 7231.
Required
Prepare a schedule of account receivable and a schedule of account payable.
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren