Directions: 1. Record the transactions for January. Transactions for January: Ja
ID: 2426049 • Letter: D
Question
Directions:
1. Record the transactions for January.
Transactions for January:
Jan. 3. Record sales for the week. To make things easier, we are going to only record cash sales weekly, though in a real business sales would be recorded more often. Internet sales are done for cash through PayPal. PayPal subtracts a fee from the amount that is received depending how the client paid PayPal’s. In store sales are paid with cash. Remember a 6% sales tax is charged on all instate sales.
Out-of-State Internet Sales 150 units $1,380
Instate Internet sales 10 units $ 100
In-Store Sales 55 units $ 600
PayPal fee $28
Jan. 3 Issued check 562 for $1,200 to pay rent for January.
Jan. 3 Issued check 563 to USPS for $365 for shipping for the above sales.
Jan. 3 Sold old computer(Office Equipment) costing $2,000 and having $800 of accumulated depreciation attached to it for $400 in cash.
Jan. 5 Received order of 5,000 DVDs from KLD Video. Invoice amount was for $18,367.35 which included shipping and handling. Terms of the order is 2/10, n/30. Riley policy is to take advantage of all discounts offered and records all purchases at the net amount, less the discount. If Riley fails to pay within the discounted period, the extra amount paid is charged to Discounts Lost and expensed as a finance charge.
Jan. 5 Issue check 564 to Custom DVD for the amount due on account.
Jan. 5 Received a $320 bill (Invoice number 312) from Morgan County Journal for advertising in this week’s newspaper.
Jan. 6 Electronically transferred $1,250 to Google for a variety of internet advertising campaigns. (Confirmation # 1234G234)
Jan 7. Received $120 from Jason Cridal for amount owed on account.
Jan 7. Jay Finn, owner of Finn’s Variety Shop stopped by the store to pick up more videos to be sold at his store. He purchased 250 DVDs on account for $1,500. Issued him invoice number 3321. Since Finn is buying the product to resale, he does not have to pay sales tax
Jan. 8 Purchased $650 of office supplies from Dan’s Office Supply Company on account.
Jan 8 Issued the following checks to pay amounts owed on account.
565 S & S Shipping Supplies $1,325
566 Wholesale Video $3,800
Jan 9 Received a check from Glen Beckendale for $80 and H & C Groceries for $980 for payments on account.
Jan. 9 Purchased shipping supplies costing $640 from S & S Shipping Supplies on Account.
Jan. 10 Record sales for the week ending January 10.
Out-of-State Internet Sales 2,800 units $22,800
Instate Internet sales 230 units $ 2,100
In-Store Sales 559 units $ 5,800
PayPal fee $498
Jan. 10 Issued check 567 to USPS for $1,465 for shipping for the above sales.
Jan. 10 Electronically transferred the amount due to the federal government for withholdings and FICA for December.
Jan. 10 Electronically transferred the amount due to the state for withholdings and sales taxes from December.
Jan. 10 Electronically transferred the amount due for the fourth quarter unemployment to the federal government.
Jan. 10 Electronically transferred the amount due for the fourth quarter unemployment to the state.
Jan. 12 Received payment on account from Fury Video, $1,500.
Jan. 13 Delivered 500 videos to CK Video and delivered the invoice for $3,800. CK Video purchases the videos for resale. Thus, there is no sales tax.
Jan. 13 Received and recorded bill from City Energy for utilities for $265.
Jan. 13 Received and recorded bill from Topica Bell for telephone service for $212.
Jan. 14 Issued the following checks for bills:
568 KLD Video $18,000
569 Morgan County Journal $ 320
Jan. 15 Processed payroll for the first half of the month. Details follow:
Officers’ Salaries $10,000
Wage Expense $ 4,250
Federal Withholdings 2,975
FICA Withholdings 1,083
State Withholdings 570
Jan. 15 Processed employer payroll taxes for the first half of the month. Details are below:
FICA $1,083
Federal Unemployment 114
State Unemployment 540
Jan. 15 Issued check 570 for net amount of payroll. Amount is paid to a payroll account where checks are written for payroll.
Jan. 17 Record sales for the week ending January 17.
Out-of-State Internet Sales 2,600 units $20,800
Instate Internet sales 180 units $ 1,900
In-Store Sales 400 units $ 3,800
PayPal fee $448
Jan. 17 Issued check 571 to USPS for $1,265 for shipping for the above sales.
Jan. 19 Received $800 for payment on Helm’s Depot account and $300 for payment on Larry Flintwood’s account.
Jan. 19 Found out that Sterofonics declared bankruptcy and that you will most likely collect nothing and found out that Mary VanStruckle left the state. Decide to write off both accounts.
Jan. 20 Issued check 572 for new computer (Office Equipment) $2,600.
Jan. 21 Issued 2,500 more shares of the $1 par value stock for future store expansion at $25 per share.
Jan. 21 Took the $62,500 of cash from sale of stock and invested it into a variety of marketable equity securities. The cash was electronically transferred.
Jan. 22 Cut check 573 for $220 to Memix Computer Repairs for repairs done to computer.
Jan. 22 Received a bill from Larry’s Janitorial Services for the month of January for $400.
Jan. 23 Issued the following checks for bills:
574 City Energy $265
575 Topica Bell 212
Jan. 24 Record sales for the week ending January 24.
Out-of-State Internet Sales 3,200 units $27,400
Instate Internet sales 120 units $ 1,200
In-Store Sales 320 units $ 3,300
PayPal fee $558
Jan. 24 Issued check 576 to USPS for $1,455 for shipping for the above sales.
Jan. 26 Received a check from Albert Finney for payment on his account for $215.
Jan. 27 Issued check 577 to S & S Shipping Supplies for $640 to pay off the account.
Jan. 29 Issued check 578 for $400 to R.J. Holmes, CPA for accounting services for the month of January.
Jan. 31 $500 was electronically transferred out of the checking account to pay interest for the month of January on the Note Payable.
Jan. 31 Record sales for the week ending January 24.
Out-of-State Internet Sales 2,700 units $28,000
Instate Internet sales 230 units $ 2,400
In-Store Sales 380 units $ 4,600
PayPal fee $538
Jan. 31 Issued check 579 to USPS for $1,223 for shipping for the above sales.
Jan. 31 Processed payroll for the second half of the month. Details follow:
Officers’ Salaries $10,000
Wage Expense $ 4,250
Federal Withholdings 2,975
FICA Withholdings 1,083
State Withholdings 570
Jan. 31 Processed employer payroll taxes for the first half of the month. Details are below:
FICA $1,083
Federal Unemployment 114
State Unemployment 540
Jan. 31 Issued check 580 for net amount of payroll. Amount is paid to a payroll account where checks are written for payroll.
Jan. 31 Issued check 581 for $180 to replenish Petty Cash. Below are the receipts left in the fund.
Office Supplies $50
Janitorial Expense $40
Miscellaneous $90
Monthly Adjusting Entries
1. $200 of insurance has expired during January.
2. $5,300 of shipping supplies remained at the end of January.
3. $520 of office supplies remained at the end of January.
4. Riley estimates that the allowance for doubtful accounts should have a balance of $600 at the end of January.
5. Monthly Depreciation for Store Equipment is $500
6. Monthly Depreciation for Office Equipment is $250
Explanation / Answer
Date Particulars L.F. Amount Dr. Amount Cr. 03-Jan Cash A/C Dr. 2,058 Commission A/C 28 To Sales A/C 2,080 To Sales Tax A/C 6 (Goods Sold for cash and sales tax collected and commsion paid to pay pal) 03-Jan Rent A/C Dr. 1,200 To Bank A/C 1,200 (Rent paid by cheque for January) 03-Jan Frieght Out ward A/C Dr. 365 To Bank A/C 365 03-Jan Cash A/C Dr. 400 Loss on sale of fixed Assets A/C 800 To Office Euipment A/C 1,200 05-Jan Advertisement A/C Dr 320 To Morgan Country Journal A/C 320 06-Jan Advertisement A/C Dr 1250 To Bank 1250 07-Jan Cash A/C Dr. 120 To Jason Cridal 120 07-Jan Sales A/C Dr. 1500 To Jay Finn A/C 1500 08-Jan Office Supplies A/C Dr. 650 To Dan Office Supply 650 08-Jan S&S Shiping Supplies A/C Dr. 1325 WholeSale Video A/C Dr. 3800 To Bank A/C 5125 09-Jan Purchase A/C Dr. 640 To S&S Supplies A/C 640 10-Jan Cash A/C Dr. 30,328 Commission A/C 498 To Sales A/C 30,700 To Sales Tax A/C 126 (Goods Sold for cash and sales tax collected and commsion paid to pay pal) 10-Jan Frieght Out ward A/C Dr. 1,465 To Bank A/C 1,465 12-Jan Cash A/C Dr. 1500 To Fury Video A/C 1500 12-Jan CK Video A/C dr. 3800 To Sales A/C 3800 13-Jan Utilities A/C Dr. 265 To City Anergy A/C 265 13-Jan Telephone Charge A/C Dr. 212 To Topica Bell A/C 212 14-Jan KLD Video A/C Dr. 18000 Morgan Country Journal A/C Dr. 320 To Bank A/C 18320 15-Jan Office Salaries A/C Dr. 10,000 Wages Expenses A/C Dr. 4,250 Federal Witholdig A/C Dr. 2,975 Fica Withholding A/C Dr. 1,083 State Witholding A/C Dr. 570 To Bank A/C 18,878 15-Jan Rates & Taxes A/C Dr. 1737 To Bank A/C 1737
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