JW's Lock & Key is owned and operated by Jake Walters and is located in Odessa,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
JW's Lock & Key is owned and operated by Jake Walters and is located in Odessa, TX. Jake is a locksmith and provides locksmith services and has a store that sells everything from keys to safes. You have just been hired as the accountant as of December 1, 2020. Required 1. The general ledger contains the current balances for all accounts as of November 30, 2020. The subsidiary ledgers for A/R and A/P also contain the current balances as of November 30, 2020. Review the information in these accounts before beginning the project. 2. Journalize the December transactions in the general journal. Descriptions are not required. 3. Post daily to the Accounts Receivable Subsidiary Ledger and the Accounts Payable Subsidiary Ledger. Place a checkmark in the Post Reference column of the General Ledger next to the GL account number3B i.e. 201/. The checkmark denotes that you have posted to the Subsidiary Ledger account. On December 31, post to the General Ledger. 4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: Office supplies on hand on December 31 are $1,058. b. a. A physical count of inventory showed an ending inventory cost of $44,500. Recorded depreciation on equipment for the month, $4,200. Insurance expired during December is $300. Earned $1,500 worth of the unearned service revenue. Sales refunds estimated for the year $10,000 Cost of estimated returns for the year $2,000 C. d. e. f. 9 5. Journalize and post the adjusting entries. 6. Prepare JW's Lock & Key's financial statements for the year ended December 31, 2020. Note: Jake Walter's Capital at January 1, 2020 was $262,643. 7. Journalize and post the closing entries. 8. Prepare a Post-Closing Trial Balance. Note: This is a group project and you may work in groups up to 4 members. In the Accounting Project Module you will find group signup sheets. Once a group is full, please join the next available group. Every group member needs to turn in a completed set of project documents to his or her own drop box Since the project results should be the same for each group member in a respective group, I will grade the groups' project once and up load the grading sheet to the individual drop box for each member. The project needs to be scanned if you are using the pdf documents and turned in through Blackboard JW's Lock & Key Chart of Accounts Assets Liabilities 101 Cash 201 Accounts Payable 203 Refunds Payable 205 Unearned Service Revenue 105 Accounts Receivable 110 Inventory 112 Estimated Returns Inventory 115 Office Supplies 117 Prepaid Insurance 120 Equipment 121 Accum. Depreciation - Equipment Owner's Equity Jake Walters, Capital Jake Walters, Withdrawal 301 311 Expenses Cost of Merchandise Sold 502 Advertising Expense 505 Depreciation Expense Insurance Expense 508 Office Supplies Expense 509 Salary Expense Rent Expense 512 Telephone Expense 513 Utilities Expense 525 Miscellaneous Expense Revenues 401 Service Revenue 501 405 Sales Revenue 410 Sales Discounts Forfeited 507 Other Misc. 999 Income Summary 511 JW's Lock & Key had the following transactions in December Dec. 1 Paid December's rent, check # 6287, $3.500. 2 Paid annual premiums on property and casualty insurance policies, check # 6288, $3,600. 3 Performed locksmith services on new house, sent invoice # 601 to the homeowner, Sam Mason, $2,000. 4 Issued Invoice # 602 to Hastings who purchased a new safe on account, $3,800 Cost of Merchandise Sold was $1,250. 5 Purchased office supplies, check # 6289, $620. 6 Purchased inventory from Key Supplies Co., $5,500. terms 1/10, n/30 7 Paid UPS $317 cash for delivery of the inventory purchased on December 6. 7 Jake deposited an additional $8,000 cash in the business. 8 Retumed damaged inventory to Key Supplies Co., $500 8 Received $2,500 cash, an advance payment for locksmith services. 9 Unlocked a safe for a customer and received $1,000 cash. 9 Bought a new computer (equipment) from Office Depot on account, $1,967. 10 Sold 2 safes and received cash, $2,200. Cost of Merchandise Sold was $800 11 Purchased 5 safes to restock inventory on account from Brinks Co. $4,187 terms, 2/5, n/45. 12 Customer returned one of the safes purchased on December 10, refunded the customer $1,000 cash. Cost of Merchandise Sold was $475. 13 Paid Verizon for wireless telephone services, $559, check # 6290. 14 Paid Key Supplies Co for the purchase on December 6, less return and discount, check # 6291. 14 Received cash on account, $1,500, From Nathan Dean. Dean did not pay his November invoice #590 within the credit terms 2/10. The discount was forfeited. 15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of Merchandise Sold was $4,783. 16 Received $1,900 from Hastings on account. 17 Paid Office Depot on account, $500, check # 6292. 18 Performed locksmith services on account for Larry Contractor, $700. 19 Paid electricity bill for December, check # 6293, $1,835. 19 Paid for Domino's pizza delivery for the December office party, check #6294, $175 20 Jake withdrew $13,000 for a vacation. 25 Paid the water bill for December, check # 6295, $120. 25 Paid Brinks Co. on account, $2,500, check # 6296. 26 Paid part time employees their salary, $3,850. 27 Received cash on account from Larry Contractor, $700. JW's Lock & Key is owned and operated by Jake Walters and is located in Odessa, TX. Jake is a locksmith and provides locksmith services and has a store that sells everything from keys to safes. You have just been hired as the accountant as of December 1, 2020. Required 1. The general ledger contains the current balances for all accounts as of November 30, 2020. The subsidiary ledgers for A/R and A/P also contain the current balances as of November 30, 2020. Review the information in these accounts before beginning the project. 2. Journalize the December transactions in the general journal. Descriptions are not required. 3. Post daily to the Accounts Receivable Subsidiary Ledger and the Accounts Payable Subsidiary Ledger. Place a checkmark in the Post Reference column of the General Ledger next to the GL account number3B i.e. 201/. The checkmark denotes that you have posted to the Subsidiary Ledger account. On December 31, post to the General Ledger. 4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: Office supplies on hand on December 31 are $1,058. b. a. A physical count of inventory showed an ending inventory cost of $44,500. Recorded depreciation on equipment for the month, $4,200. Insurance expired during December is $300. Earned $1,500 worth of the unearned service revenue. Sales refunds estimated for the year $10,000 Cost of estimated returns for the year $2,000 C. d. e. f. 9 5. Journalize and post the adjusting entries. 6. Prepare JW's Lock & Key's financial statements for the year ended December 31, 2020. Note: Jake Walter's Capital at January 1, 2020 was $262,643. 7. Journalize and post the closing entries. 8. Prepare a Post-Closing Trial Balance. Note: This is a group project and you may work in groups up to 4 members. In the Accounting Project Module you will find group signup sheets. Once a group is full, please join the next available group. Every group member needs to turn in a completed set of project documents to his or her own drop box Since the project results should be the same for each group member in a respective group, I will grade the groups' project once and up load the grading sheet to the individual drop box for each member. The project needs to be scanned if you are using the pdf documents and turned in through Blackboard JW's Lock & Key Chart of Accounts Assets Liabilities 101 Cash 201 Accounts Payable 203 Refunds Payable 205 Unearned Service Revenue 105 Accounts Receivable 110 Inventory 112 Estimated Returns Inventory 115 Office Supplies 117 Prepaid Insurance 120 Equipment 121 Accum. Depreciation - Equipment Owner's Equity Jake Walters, Capital Jake Walters, Withdrawal 301 311 Expenses Cost of Merchandise Sold 502 Advertising Expense 505 Depreciation Expense Insurance Expense 508 Office Supplies Expense 509 Salary Expense Rent Expense 512 Telephone Expense 513 Utilities Expense 525 Miscellaneous Expense Revenues 401 Service Revenue 501 405 Sales Revenue 410 Sales Discounts Forfeited 507 Other Misc. 999 Income Summary 511 JW's Lock & Key had the following transactions in December Dec. 1 Paid December's rent, check # 6287, $3.500. 2 Paid annual premiums on property and casualty insurance policies, check # 6288, $3,600. 3 Performed locksmith services on new house, sent invoice # 601 to the homeowner, Sam Mason, $2,000. 4 Issued Invoice # 602 to Hastings who purchased a new safe on account, $3,800 Cost of Merchandise Sold was $1,250. 5 Purchased office supplies, check # 6289, $620. 6 Purchased inventory from Key Supplies Co., $5,500. terms 1/10, n/30 7 Paid UPS $317 cash for delivery of the inventory purchased on December 6. 7 Jake deposited an additional $8,000 cash in the business. 8 Retumed damaged inventory to Key Supplies Co., $500 8 Received $2,500 cash, an advance payment for locksmith services. 9 Unlocked a safe for a customer and received $1,000 cash. 9 Bought a new computer (equipment) from Office Depot on account, $1,967. 10 Sold 2 safes and received cash, $2,200. Cost of Merchandise Sold was $800 11 Purchased 5 safes to restock inventory on account from Brinks Co. $4,187 terms, 2/5, n/45. 12 Customer returned one of the safes purchased on December 10, refunded the customer $1,000 cash. Cost of Merchandise Sold was $475. 13 Paid Verizon for wireless telephone services, $559, check # 6290. 14 Paid Key Supplies Co for the purchase on December 6, less return and discount, check # 6291. 14 Received cash on account, $1,500, From Nathan Dean. Dean did not pay his November invoice #590 within the credit terms 2/10. The discount was forfeited. 15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of Merchandise Sold was $4,783. 16 Received $1,900 from Hastings on account. 17 Paid Office Depot on account, $500, check # 6292. 18 Performed locksmith services on account for Larry Contractor, $700. 19 Paid electricity bill for December, check # 6293, $1,835. 19 Paid for Domino's pizza delivery for the December office party, check #6294, $175 20 Jake withdrew $13,000 for a vacation. 25 Paid the water bill for December, check # 6295, $120. 25 Paid Brinks Co. on account, $2,500, check # 6296. 26 Paid part time employees their salary, $3,850. 27 Received cash on account from Larry Contractor, $700.
Expert Answer:
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these finance questions
-
You have just been hired as the accountant for Fan-Tastic Sports Gear, a wholesaler of sporting goods and apparel. The previous accountant left abruptly, and an accounting intern has been drafting...
-
You have just been hired as a loan officer at Fairfield State Bank. Your supervisor has given you a file containing a request from Hedrick Company, a manufacturer of auto components, for a $1,000,000...
-
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company...
-
Smart Sets manufactures headphone cases. During September 2016, the company produced 108,000 cases and recorded the following cost data: Requirements 1. Compute the cost and efficiency variances for...
-
Identify and discuss three criticisms of using the duration gap model to immunize the portfolio of a financial institution.
-
The unadjusted trial balance for Garden Designs at its year end, April 30, 2021, is as follows: Additional information: 1. $500 of the unearned revenue is to be recognized because the related...
-
Rewrite the following as fractions: 1. \(31 \%\) 2. \(93 \%\)
-
During requirements modeling for the new system, Susan Park met with fitness center managers at several Personal Trainer locations. She conducted a series of interviews, reviewed company records,...
-
Ashley Robertson works for MRK all year and earns a monthly salary of $12,200. There is no overtime pay. Ashley's income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Ashley...
-
Let us consider the a small village. The power network of the village is shown in Figure 1. Load demands at Zone A, Zone B and Zone C, are 5MVA (0.95pf lagging), 7MVA (0.94pf lagging) and 7MVA...
-
Ef Background: You are acting as a consultant to an individual who is 45 years old, in good health, and has plans to retire in 15 years. Your client is a manager at the local office of a large...
-
Based on the historical movement ofAUD/EUR exchange rate, predict what the rate will be on 31 December. a) Discuss the effect of Interest Rate Parity on AUD/EUR exchange rate on 31 December 2021
-
7. (1 point) Express the function y = x+6 as a composition y = f(g(x)) of two simpler functions y = f(u) and u = g(x). Generated by WeBWorK, http://webwork.maa.org, Mathematical Association of...
-
4. Examine Southwest Airlines by providing a detailed analysis of their financials ( (at a minimum, cover one ratio each from profitability, liquidity, leverage, and activity ratios). Compare...
-
Question 4: Anurika Ranches has a May 31, 2021 year end and purchases $100,000 bond investment at a price of 109 on February 2, 2021 using cash. The bond pays cash interest at 9% at a time when...
-
According the Medical Health Association (MHA) data the number of non-government not-for-Profit community hospitals comprising of 2946 and entrepreneurial investor-owned for-profits comprising of...
-
Jonathan Ltd acquired all the issued shares (ex-div.) of ThomasLtd on 1 July 2020 for $246??000. At this date the equity of ThomasLtd consisted of:Share capital $ 130??000General reserve 5 2 answers
-
1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today? 2. Is it legal for Auger's firm to make a payment of $100,000 to help ensure this...
-
The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of merchandise sold and beginning and ending inventories...
-
Malta Co. is a travel agency. The nine transactions recorded by Malta during February 2006, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each...
-
Baron Company, which operates a chain of 30 electronics supply stores, has just completed its fourth year of operations. The direct write-off method of recording bad debt expense has been used during...
-
Correctly apply the order of operations to compute the following: \(4-25 \times 6 / 10 \times 3^{2}+7 \times 2^{3}\).
-
Calculate \(4 \times 8^{3}\).
-
Calculate \(2+3^{2} \times 4\).
Study smarter with the SolutionInn App