The problem in Chapter F2 provided account balances for The Book Wermz on September 30, 2004, the end of the company’s fiscal year: Cash $4,238.72, Inventory of Books $235,892.35, Supplies $2,343.28, Equipment $43,297.00, Notes Payable $123,452.88, Investment by Owners $100,000, and Retained Earnings $62,318.47. Chapter F2 also listed summary transactions for October 2004:

Cash sales ..............$38,246.50

Cost of goods sold .......... 27,318.93

The Equipment account balance of $43,297.00 is net of accumulated depreciation of $12,353.00. Therefore, the Equipment balance before considering the effect of depreciation is $55,650.00.

Other transactions for the month ended October 31, 2004, include:

Cash paid for books purchased ..........$18,243.27

Cash paid for supplies ............. 1,750.92

Cost of supplies used in October ......... 2,129.48

Employee wages earned and paid in October .... 3,620.83

Employee wages earned in October but unpaid .... 527.12

Cash paid for portion of Notes Payable ....... 1,122.77

Cash paid for interest incurred on Notes Payable .... 823.02

Cash paid for October rent ........... 1,534.86

Depreciation on equipment for October ...... 721.62

In addition, The Book Wermz held classes on book binding for local civic organizations in October. The organizations agreed to a $500 fee for these services but did not make the payment in October.

Required

Add the transactions described above to those created in Chapter F2. Additional rows should be added to the spreadsheet for the transactions. Additional columns also will be needed for accounts not included in Chapter F2. The following accounts should be included in the spreadsheet in the order indicated: Cash, Accounts Receivable, Supplies, Inventory, Equipment, Accumulated Depreciation, Wages Payable, Notes Payable, Investment by Owners, Retained Earnings, Sales, Service Revenues, Cost of Goods Sold, Supplies Expense, Wages Expense, Rent Expense, Depreciation Expense, and Interest Expense. The beginning balance of all new accounts except Accumulated Depreciation is $0. The beginning balance of the Accumulated Depreciation account is $12,353 (note this is a negative amount because it is a contra account), and the beginning balance of the Equipment account should be changed to $55,650 (to permit Accumulated Depreciation to be included as a separate account). Column sums should be recalculated to determine totals at October 31. Make sure to close the revenue and expense accounts to Retained Earnings. Use October 31 as the date for all transactions.