Transactions: Jan.3 Record sales for the week.To make things easier,we are going

Question

Transactions:
Jan.3 Record sales for the week.To make things easier,we are going to only record cash sales weekly, though in real business sales would be recorded more often.Internet sales are done for cash through Paypal. Paypal sybtacts 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.   $1380
Instate 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 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 it for $400 in cash.
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 advertisingcampaigns.
Jan 7. Jay Finn, owner of Finns 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& Shipping $ 1,325
566 Whole Sale Video $3,800
Jan 9 Receieved check from Glen Beckendale for $80 and H & C 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 e ding 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 Elecronically transferred the amount due to the Federal government for withholding and FICA for December
Jan.10 Electronically transferred the amount due for the fourth quarter unemployment to the Federal government.
Jan 10. Electronically transferred the amount due to 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.Thud, 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 Topics Bell for telephone service for $212
Jan 14. Issued the following checks bill 568 KLD $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 $570
Jan 15. Processed employer payroll taxes for the first half of the amount. Details are below
FICA $1,083
Federal Unemployment $114
State Unemplyment $540
Jan 15. Issued checks 570 for net amount of payroll.Ammount is paid to a payroll account where checks are written for payroll.
Jan 17. Issued check 571 to USPS for shipping for the above sales.
Jan 19. Rerecieved $800 for payment on Helms Depot account and $300 for payment on Larry Flintwoods 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 2,5pp more shares of the 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 ellectomically transferred.
Jan 22. Cut checks 573 for $220 to Memix Computer Repairs for repairs done to computer.
Jan 22. Received a bill from Larry's Services for the month of January for $400.
Jan 23. Issued the following checks bills 574 City Enery $265. 575 Topics Bell $212.
Jan 24. Issued check 576 to USPS for $1,445 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& Shipping Supplies for $640 to pay off the account.
Jan.29 Issued check 578 for $400 to RJ. Holmes, CPA for accounting services for the month if 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 2,7pp units $2,800
Instate Internet Sales 230 units $2,400
In-store Sales 380 units $4,600
Jan 31. Issued Check 579 to USPS 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 Unemplyment $114
State Unemplyment $540
Jan 31. Issued check 580 for the 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. Bellow ate the receipts left in the fund.
Office Supplies $50
Janitorial Expense $40
Miscellaneous $90
Monthly adjusting Entries:
1) $200 for insurance has expired during January
2) $5,300 of shipping supplies remainded at the end of January.
3) $520 of office supplies remainded at the end of January
4) Riley estimates that the allowance for doubtful should have a balance of $600 at the end of January.
5) Monthly Depreciation for store equipment is $500
6) Monthly De depreciation for office Equipment is $250
Reposted Question.

   

131 14 11516 Directions: 1. Record the transactions for January. 2. Post the transactions for January 3. Prepare the Trial Balance (you may prepare the worksheet in 4. Record Adjusting Entries 5. Prepare an Adjusted rial Balance (On worksheet if you choose the worksheet) 6. Prepare the Schedule of Accounts Receivable and the Schedule of Accounts Payable 7. Prepare Income Statement, Balance Sheet, and Statement of Changes in Stockholders'Equity for stead of a formal Trial Belance). the month ended January 31, 2009 in good form.

Explanation / Answer

Solution:

Preparing the Journal entries for January Transactions:

Date General Journal Debit Credit Jan 3 Cash $2,058 Commission $28 Sales $2,080 Sales Tax $6 Jan 3 Rent $1,200 Bank $1,200 Jan 3 Frieght Out ward $365 Bank $365 Jan 3 Cash $400 Loss on sale of fixed Assets $800 Office Euipment $1,200 Jan 5 Advertisement $320 Morgan Country $320 Jan 6 Advertisement $1,250 Bank $1,250 Jan 7 Cash $120 Jason Cridal $120 Jan 7 Sales $1,500 Jay Finn $1,500 Jan 8 Office Supplies $650 Dan Office Supply $650 Jan 8 S&S Shiping Supplies $1,325 WholeSale Video $3,800 Bank $5,125 Jan 9 Cash $30,328 Commission $498 Sales $30,700 Sales Tax $126 Jan 10 Frieght Out ward $1,465 Bank $1,465 Jan 12 Cash $1,500 Fury Video $1,500 Jan 12 CK Video $3,800 Sales $3,800 Jan 13 Utilities $265 City Anergy $265 Jan 13 Telephone Charge $212 Topica Bell $212 Jan 14 KLD Video $18,000 Morgan Country   $320 Bank $18,320 Jan 15 Office Salaries $10,000 Wages Expenses $4,250 Federal Withholding $2,975 Fica Withholding $1,083 State Witholding $570 Bank $18,878 Jan 15 Rates & Taxes $1,737 Bank $1,737

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