Accounts Receivable Fashion Decor Hotel Beritz, Jason and Waldon Accounts Payabl

Question

Accounts Receivable

Fashion Decor Hotel Beritz, Jason and Waldon

Accounts Payable:

Brandon, Inc, Kingston Fabrics, Magnuson Textiles, Tyson Manufacturing Company

The following transactions were completed during February of this year. Fabulous Furnishings does not track cash sales by customer. If you are using the forms-based approach with Quickbooks or using general ledger, select “cash sales” as the customer for all cash sales transactions.

Feb 1 Reversed the adjusting entry for accrued salaries, $620.

1 Sold merchandise on account to Hotel Beritz, $12520.86 invoice no 5221.

2 Issued Ck No 7216, $16593.46 to Kingston Fabrics, in payment of its invoice no D1739 for $16932.10 less 2 percent discount

5 Bought merchandise on account from Magnuson Textiles, $4874.80, invoice no RE275 dated February 2; terms 1/10, n/30; FOB Louisville; freight prepaid and added to the invoice, $158 (total, $5032.80).

5 Received on electric bill and paid Countywide Power ck NO 7217, $358

6 Received check from Jason and Waldon, $10780.51, in payment of account.

7 Issued ck no 7218, $9684.18 64 to Magnuson Textiles , in payment of its invoice no RE64 for $9782 less 1 percent discount.

9 Cash sales for February 1 through February 9, $9745.40.

12 Recorded the payroll In the payroll register* regular biweekly salaries for period ended February 12. Salaries: R. W Harris, $2840; T. L Newkirk, $2374. Income tax withholdings are $287 for Harris and $216 for Newkirk. Assume the following tax rates and taxable earnings limits (see the payroll register for beginning cumulative earnings in your Working Paper. This information is also provided in CengageNow, Quickbooks or general ledger):

-Social Security taxable earnings, $113700, with a rate of 6.2 percent for employees and employers.

-Medicare taxable earnings, all earnings, with a rate of 1.45 percent (for both employees and employers).

12 Recorded the payroll entry, crediting Salaries Payable.

12 Issued ck no. 7219, $2335.74 to R.W Harris. Issued ck no 7220, $1976.39, to T.L Newkirk. Use two lines and debit Salaries Payable.(verify these amounts.)

12 Recorded payroll taxes. Assume the following tax rates and taxable earnings

-Federal Unemployment taxable earnings $7000, with a rate of 0.6 percent.

-State Unemployment taxable earnings, $7000 with a rate of 5.4 percent.

12 Received a credit memo from Magnuson Textiles for defective merchandise, $692, credit memo no. 916.

14 Issued ck no 7221, $2900.80, to Mid State Bank for monthly deposit of January employees federal income tax withheld, $1285, and FICA taxes, $1615.80.

14 Sold merchandise on account to Jason and Waldon, $15781.30, invoice no. 5222.

14 Issued ck no. 7222, $4298.97, 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, $21375.20, invoice no.164M, dated February 14; terms 2/10, n/30; FOB Miami; freight prepaid and added to the invoice, $1242 (total, $22617.20).

18 Cash sales for February 10 through February 18, $7889.24.

19 Issued ck no. 7223 payable to Quicker Printing for invoice forms, $336 (not previously recorded).

19 Received check from Fashion Décor, $4830.65, in payment of account.

22 Issued check no 7224, $12540, to Tyson Manufacturing Company, in payment of its invoice no. 9264D.

22 Sold merchandise on account to Fashion Décor, $17435.32, invoice no. 5223.

24 Issued credit memo no. 214 to Fashion Décor, $185, for merchandise returned.

24 Bought merchandise on account from Kingston Fabrics, $16536.90, 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 $2840; T. L Newkirk, $2374. Incoming tax withholdings are $287 for Harris and $216 for Newkirk. Note:See the entry of February 12 for taxable earnings limits and tax rates. See the payroll registry this payrolls beginning cumulative earnings.

26 Recorded the payroll entry, crediting Salaries Payable.

26 Issued ck no. 7225, $2392.54 to R. W Harris, issued ck no 7226. $2023.87 to, 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:

-Federal unemployment taxable earnings, $7000, with a rate of 0.6 percent.

-State unemployment taxable earnings $7000 with a rate of 5.4 percent.

27 Issued ck no. 7228, $1035, to JIT Freight Line for transportation charge on merchandise purchased from Kingston Fabrics.

28 Issued ck no. 7229, $155.60, payable to Cash to reimburse the petty cash fund. Petty cash payments consist of Supplies, $130.24 and Miscellaneous Expense, $25.36.

28 Cash sales for February 19 through February 28, $8986.60.

28 Issued ck no. 7230, $2290, to Global Rental Agency for monthly rent.

28 M. L Langdon(owner) withdrew $5000 for personal use, ck no 7231.

Beginning balances:Cash $34641.34, Petty Cash $70, Accounts Receivable $15611.16, Merchandise Inventory $52640, Prepaid Insurance $2480, Equipment $9324, Accumulated Depreciation Equipment $5328, Accounts Payable $39254.10, Employees Income Tax Payable $1285, FICA taxes payable $1615.80, State unemployment tax payable $79.52, Salaries Payable $620, M.L. Langdon, capital $66047.32

Required:

1. Jouralize and post the transactions completed during February using either a general journal or special journals or both.

General Journal

a) Post daily all entries involving customer accounts to the accounts receivable ledger

b)Post daily all entries involving creditor accounts to the accounts payable ledger

c)Post daily the general journal entries to the ledger

2. Prepare a shedule of accounts receivable and a schedule of accounts payable

3. Complete the worksheet for February

(data for the month-end adjustments are as follows:

a-b. Merchandise inventory at February 28, $45484.

c. Salaries accrued at February 28, $2084

d. Insurance expired during February, $210

e. Depreciation of equipment during February, $1885

f. Supplies on hand, $100

4. Journalize the adjjusting entries

mprehensive Review Proble yos uar. Bes. This company is located in Dallas. To gain practice in completing the ingeaccounting cycle, assume that the fiscal period consists of one month. r transactions completed by Fabulous Furnishings during February of inning balances for the accounts listed below have been provided in your tou are to record Work CHART OF ACCOUNTs assets (100-199) Revenue (400-499) 411 Sales 412 Sales Returns and Allowances 111 Cash 112 Petty Cash Fund 113 Accounts Receivable Merchandise Inventory Cost of Goods Sold (500-599) 511 Purchases 512 Purchases Returns and 116 Supplies 118 Prepaid Insurance 12eepreciation, Equipment 513 Purchases scounts Allowances 123 Accumulated 514 Freight In Liabilities (200-299) 221 Accounts Payable 226 Employees' Income Tax Payable 227 FICA Tax Payable 228 State Unemployment Tax Payable 229 Federal Unemployment Tax Payable Expenses (600-699) 611 Salary Expense 612 Payroll Tax Expense 613 Rent Expense 614 Utilities Expense 616 Supplies Expense 617 Insurance Expense 618 Depreciation Expense, 230 Salaries Payable Owner's Equity (300-399) 311 M. L. Langdon, Capital 312 M. L. Langdon, Drawing Equipment 619 Miscellaneous Expense (Co 13 Income Summary

Explanation / Answer

Date Particular     Debit  Credit
Feb1 Accured Salary a/c Dr.    $620  
  To Salary a/c      $620
(Accrued Salary reversed.)

1 Hotal Beritz   ac Dr.    $12520.86
  To Sales a/c      $12520.86
(Merchandise sold to Hotel Bertiz.
  Invoice # 5221)

2 Kingston Fabrics a/c Dr.   $16932.10
  To Bank a/c      $16593.46
  To Discount Received     $338.64
(In payment of the invoice#D1739
CK#7216 issued to Kingston Fabrics and
  2%discount received)

5 Purchase a/c Dr     $4874.80
Freight a/c Dr.    $158
  To Magnuson Textiles     $5032.80

5 Electircity bill a/c Dr.   $358
  To Bank A/c      $358

6 Bank a/c Dr.     $10780.51
  To Jason and Waldon a/c     $10780.51

7 Magnuson Textiles a/c Dr.   $9782
  To Bank A/c      $9684.18
  To Discount Received     $97.82

9 Cash a/c dr.     $9745.40
  To Sales a/c      $9745.40

12 Salary a/c dr.     $2840
  To salary payable a/c    $2335.74
  To Income Tax withholding a/c    $287
  To Social Security tax a/c    $176.08
  To Medicare Tax      $41.18
(Salary $2840 Due to Harris, 6.2% social
tax, 1.45% Medicare tax and $287 IT
Deducted. )

12 Salary a/c dr.     $2374
  To salary payable a/c     $1976.39
  To Income Tax withholding a/c    $216
  To Social Security tax a/c    $147.19
  To Medicare Tax      $34.42
(Salary $2374 Due to T.L Newkirk, 6.2% social
tax, 1.45% Medicare tax and $216 IT
Deducted. )

12 Salary payable a/c dr.   $4312.13
  To Bank       $4312.13
(Due salary paid. ck#7219/7220)

12 Payroll tax a/c dr.    $420
  To Fed unemployment tax a/c dr.    $42
  To State Unemployment tax a/c dr.   $378

12 Megnuson Textiles a/c dr.   $692
  To Purchases Return a/c     $692

14 Fed Income tax witheld a/c dr.   $1285
FICA Taxes a/c dr.    $1615.80   
  To Mid State Bank a/c     $2900.80

14 Mid State Bank a/c Dr.    $2900.80
  To Bank a/c      $2900.80

14 Jason and Waldon a/c dr.   $15,781.30
  To sales      $15781.30

14 Magnuson Textiles a/c dr.   $4340.80
  To Discount a/c      $41.83
  To Bank a/c      $4298.97

18 Purchase a/c Dr     $21375.20
Freight a/c Dr.    $1242
  To Brandon, Inc.     $22617.20

18 Cash a/c Dr.     $7889.24
  To Sales a/c      $7889.24

19 Purchases a/c dr.    $336
  To Quicker Printing a/c     $336

19 Quicker Printing a/c dr.   $336
  To Bank a/c      $336

19 Bank a/c dr.     $4830.65
  To Fashion Decor a/c     $4830.65

22 Tyson Manufacturing co. a/c dr.   $12540
  To Bank a/c      $12540

22 Fashion decor a/c dr.    $17435.32
  To sales a/c      $17435.32
(Goods sold invoice#5223)

24 Sales Return a/c dr.    $185
  To Fashion decor a/c     $185

24 Purchases a/c dr.    $16536.90
  To Kingston Fabrics a/c     $16536.90

26 Salary a/c dr.     $2840
  To salary payable a/c     $2392.54
  To Income Tax withholding a/c    $287
  To Social Security tax a/c    $119.28
  To Medicare Tax      $41.18
(Salary $2840 Due to Harris, 6.2% social
tax, 1.45% Medicare tax and $287 IT
Deducted. )

26 Salary a/c dr.     $2374
  To salary payable a/c     $2023.87
  To Income Tax withholding a/c    $216
  To Social Security tax a/c    $99.71
  To Medicare Tax      $34.42
(Salary $2374 Due to T.L Newkirk, 6.2% social
tax, 1.45% Medicare tax and $216 IT
Deducted. )

26 Salary payable a/c dr.   $4416.41
  To Bank       $4416.41
(Due salary paid. ck#7225/7226)

26 Payroll tax a/c dr.    $420
  To Fed unemployment tax a/c dr.    $42
  To State Unemployment tax a/c dr.   $378

27 Transportation charges a/c dr.   $1035
  To Bank       $1035

28 Petty cash a/c dr.    $155.60
  To Bank a/c      $155.60

28 Cash a/c dr.     $8986.60
  To sales a/c      $8986.60
28 Rent a/c dr.     $2290
  To bank a/c      $2290
28 Drawing a/c dr.     $5000
  To bank a/c      $5000

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