Budgeting & Cost Control

HHH Appliance Assignment 3A - Bookkeeping

Directions: As part of your consulting fee, HHH has asked you to take care of the monthly bookkeeping.

Record January 1-15 transactions listed below in the excel template provided in blackboard.You will need Assignment 1 to complete the transactions below.Here are some helpful hints:

1.Record sales transactions in the daily sales ledger before journalizing.The owner uses this information to manage the business operations.

2.Record all inventory transactions in the inventory ledger.Remember that HHH Appliance uses the FIFO method of inventory accounting.The price of one inventory item changes during the month and instructions will be provided by your instructor on how to handle this in the ledger.

3.Journalize all transactions in the general journal.Do not put spaces between entries and do not put notes below entries.Make sure to use the journal page number when posting to the general ledger.

4.Post all transactions in the general ledger.A trial balance will automatically update when you post.Make sure you balance after each transaction and fix errors as you go.

5.A payroll register has been provided to use when completing the payroll transactions.Use the withholding tables provided in assignment 1.

Jan 1

Helen invests life savings into business: $21,762, opened a business checking account, orders business checks for $130 that will come out of her account automatically later in the month and a business credit card at the bank

Jan 1

Purchased office supplies on account: $422.93

Jan 1

Helen pays for her business licenses with a check: $219.48 and office expenses of $129.41

Jan 1

Advertising costs bought on account: Phone book, newspaper, radio $2,972.58

Jan 1

Purchased point of sale system for $1,100 including installation on account, terms 2/10 n 30

Jan 1

Purchase a van for $24,750 with 20% down and a 6.25% loan for 4 years.The first payment is due in February.

Jan 1

Purchased furniture and fixtures for $2,999.99 on the business credit card.This will be paid when the bill comes due at the end of the month.

Jan 1

Liability insurance: purchased January 1 for $3,600, this is a 2 -year policy.Auto insurance: 1-year policy purchased on January 1st for $1,800

Jan 1

Purchase inventory: 4-R1, 2 R1A, 3-F1, 2-F1A, 4-W1, 2-W1A, 4-D1, 2-D1A, 4-S1, 2-S1A, 2-S1CON ACCOUNT

Jan 1

Record the following cash sales: 1-R1

Jan 2

Record the following cash sales: 1-R1A, 2-W1A, 2-D1A, and 1-F1A

Jan 3

Bought postage for the month:$29.99 cash (Other Expense)

Jan 3

Record the following credit sales: 1-W1, 1-D1, 1-S1, and 1-R1A

Jan 4

Record the following cash sales: 1-F1, 2-S1, and 1-S1C

Jan 4

Record service revenue - 14.25 hours cash + sales tax

Jan 5

Record the following credit sales: 2-W1, 1-D1, 1-S1C, and 1-S1 (Customer wanted D1A but they were out of stock)

Jan 6

Record the following cash sales: 3-R1, 1-W1, 2-D1, and 1-F1A

Jan 6

Business check charge for $130 was taken out of the business checking account for the purchase on Jan 1 (Office expense)

Jan 7

Record service revenue - 12.5 hours cash plus sales tax

Jan 7

Purchase: 6-R1, 6-R1A, 5-F1, 8-F1A, 5-W1, 5-W1A, 6-D1, 6-D1A, 12-S1, 1-S1A, 2-S1CON ACCOUNT (F1 cost increased $25 from vendor)

Jan 7

Record the following cash sales: 2-F1A, 3-W1A, 3-D1A, 2-S1A, 2-S1C and 1-F1

Jan 7

Collected all accounts receivables outstanding from January 1-6

Jan 8

Record the following credit sales: 2-W1, 2-D1, 1-S1, and 4-R1A

Jan 10

Record the following cash sales: 2-F1, 3-F1A, and 5-S1

Jan 13

Record service revenue - 8.25 hours cash plus sales tax

Jan 13

Record the following credit sales: 1-W1, 1-D1, 1-S1, and 1-R1A

Jan 14

Record the following cash sales: 2-F1A, 1-W1A, 1-D1A, and 1-F1

Jan 14

Paid the balance in Accounts Payable as of January 7

Jan 15

Collected all accounts receivables outstanding from

January 7-13

Jan 15

Purchase: 6-R1A, 4-F1, 7-F1A, 3-W1, 4-W1A, 4-D1A,

3-S1, 4-S1A, 2-S1C ON ACCOUNT

Jan 15

Record the following credit sales: 2-R1A, 2-R1, 1-S1C, and 1-F1A

Jan 15

Pay the balance of Sales Tax Payable to Wisconsin Department of Revenue

Jan 15

Record and pay payroll: 76 hours for technician and 68 hours for PT employee, record employer payroll taxes (assume FIT for the technician is $50 and $66.60 for the PT employee)