ACC 1021 Mini Practice Set Project transactions Spring 2023 (Use the working papers provided by your instructor to work this project.) Scoops Ahoy Ice Cream Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Scoops Ahoy Ice Cream Co. are indicated in the working papers. Below are a series of transactions for Scoops Ahoy Ice Cream Co. for the month of May. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 43% of the sales price. Round all numbers to whole dollars. May. Sell merchandise on account to L. Sinclair $12,850, invoice no. 215, and to J. Hopper $15,225, invoice no. 216. 5 Purchase merchandise from B. Newby $15,000 and M. Brenner $22,500, terms n/30. 7 Receive checks from D. Henderson $16,400 and M. Wheeler $7,500 after the discount period has lapsed Pay freight on merchandise purchased $575. 9 Send checks to M. Mayfield for $19,000 less 2% cash discount, and to B. Hargrove for $22,000 less 1% cash discount. 9 Issue credit of $5,200 to J. Hopper for merchandise returned. 10 Summary daily cash sales total $29,250. 11 Sell merchandise on account to J. Byers $16,600, invoice no. 217, and to D. Henderson $12,900, invoice no. 218. 12 Pay rent of $10,000 for May and June. 13 Receive payment in full from L. Sinclair and J. Hopper less cash discounts. 15 Withdrawal of $9,000 cash by R. Buckley for personal use. Post all entries to the subsidiary ledgers. 16 Purchase merchandise from B. Hargrove $15,090, terms 1/10, n/30; M. Mayfield $14,200, terms 2/10, n/30; and B. Newby $21,500, terms n/30. 17 Pay $1,200 cash for office supplies. 18 Summary daily cash sales total $30,100. 20 Return $1,450 of merchandise to M. Mayfield and receive credit. 21 Issue $23,000 note, maturing in 90 days, to S. Harrington in payment of balance due. 21 Receive payment in full from D. Henderson less cash discount. 22 Sell merchandise on account to L. Sinclair $22, 700, invoice no. 219, and to J. Byers $34,200, invoice no. 220. Post all entries to the subsidiary ledgers. 23 Send checks to B. Hargrove and M. Mayfield in full payment less cash discounts. 25 Sell merchandise on account to M. Wheeler $55,250, invoice no. 221, and to J. Hopper $36, 100, invoice no. 222 27 Purchase merchandise from B. Hargrove $14,500, terms 1/10, n/30; M. Brenner $12,400, terms n/30; and B. Newby $15,400, terms n/30. Post all entries to the subsidiary ledgers. 28 Pay $500 on account for office supplies. 31 Summary daily cash sales total $28,500. 31 Pay salaries and wages of $9,500. (continued) Page 1 of 2Instructions: (a) Record the May transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at May 31, 2023, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at May 31 total $700. 2. Insurance coverage expires on May 31, 2023. The insurance was originally purchased on January 1st and has been adjusted every month of this year. 3. Annual depreciation on the equipment is $4,100. Round to nearest dollar. 4. Interest of $250 has accrued on the note payable. 5. Inventory on hand as of May 31 was actually $10,420. (d) Prepare a multiple-step Income Statement and an Owner's Equity Statement for May and a classified Balance Sheet at the end of May. (e) Prepare and post adjusting and closing entries. (f) Prepare a Post-Closing Trial Balance, and determine whether the subsidiary ledgers agree with the control accounts in the General Ledger. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of May 3. Gross Profit Rate 4. Working Capital Page 2 of 2ACC 1021 MP Set Project Spring 2023 100 points 1. Use the working papers for this problem I've posted on our class in D2L: Be careful to print all 16 sheets! 2. This project must be completed by hand, in pencil or erasable pen. You will need to scan your project into D2L or drop it off at my office. 3. This company uses the perpetual system of inventory. 4. Check figures: Cash Receipts Journal, total Cash DR: $ 146,810 Cash Payments Journal, total Cash CR: 98,020 Net Income: 133,468 Total Assets: 345,948 Total Post Closing Trial Balance: 352,289 5. Legibility, neatness, and correct use of posting references will count towards total points. 6. DUE DATE: Saturday, April 8 @ 11:59pm. Late submissions will automatically lose 25 points per day it is late. Submissions will not be accepted after Apr 11. NO EXCEPTIONS!! You may turn MP Sets in before the 8th. You can also drop off at my office on the Centennial Campus in F-300 before the 8th.Name Lindsey Morrison Section Date 04 / 03 2023 Scoops Ahoy Ice Cream Co. (a) Sales Journal S1 Accounts Account Invoice Receiv. Dr. COGS Dr. Date Debited No. Ref. Sales Cr. Inventory Cr. 5/3 L. Sinclair 215 12, 850 5,526 5 /3 J. Hopper 216 15,225 6.547 5 / 11 J. Byers 217 16, 60 0 7,138 5/11 D. Henderson 218 12 90 0 5 547 5/22 L. Sinclair 219 22,700 9 761 5/ 22 1 Byers 220 34, 200 14:706 5/25 M . Wheeler 221 55, 250 23 756 5/25 J. Hopper 222 36, 10 0 115.523 205 ,825 88, 50L Purchases Journal P1 Account Date Inventory (Dr.) Credited Terms Ref. Acc. Pay (Cr.) 5/5 B . Newby N/ 30 5 /5 15, 000 M. Brenner 5/ 16 N / 30 B. Hargrove 22, 50 0 1 / 10 N / 30 5 / 16 M. Mayfield 15,00 0 5 / 16 12/ 10 N / 30 14, 200 B. Newby 5 / 27 N/30 B. Hargrove 21, 50 0 1/10 / 30 5127 M. Brenner 14.500 5 /27 N/ 30 13. Newby 12400 N / 30 15, 400 130, 500Name Lindsey Morrison Section Scoops Ahoy Ice Cream Co. Date 04 /03 / 2023 (a) (Continued) Cash Receipts Journal CR1 Sales Accounts Other COGS Dr. Account Cash Discounts Receivable Sales Accounts Inventory Date Credited Ref. Dr. Cr. Cr. Cr. 5/7 Duttenderson 16 400 6 4100 517 M. wheeler 7.500 7,500 5/10 29250 129 250 12 57 7 5/43 B. Sinclair 12, 593 257 12.850 5/ 13 J. Hopper 9 8 25 200 10 025 5/18 30,100 130, 100 12, 943 5 /21 D. Henderson 12. 642 258 12, 900 5/31 28, 500 28, 500 12 , 255 146.810 715 5675 87850 372 5Name Lindsey Morrison Section Date 04 /03 /23 Scoops Ahoy Ice Cream Co. (a) (Continued) Cash Payments Journal CP1 Other Accounts Merchandise Account Accounts Payable Inventory Cash Date Debited Ref. Dr. Dr. Cr. Cr. Inventory 575 575 519 M. Mayfield 19,00 0 380 18, 620 5 / 9 3. Hargrove 22,000 220 21, 780 5/12 rent expense 10, 00 0 10, 0 0 0 5/15 owners drawing 9,ooo 9,00 0 5/ 17 Supplies 1200 1 20 0 5/23 B. Hararove 5,00 0 150 141, 850 5/23 M. mansfield 12,750 255 121495 5/ 31 Salaries and wades 9, 50 0 9500 30.275 168 750 1005 198 020Name Lindsey Morrison Section Date 0:4 / 03 23 (a) (Continued) and (e) General Journal G1 Date Account Titles Ref Debit Credit 5/9 Sales return 5, 200 Accounts recievable - J. Hopper 5, 200 Inventory 2,236 COGS 2,236 5/20 Accounts payable - M. Mayfield 450 inventory 1450 5/21| Accounts payable-S. Herringtor 23,000 Notes parable 23,000 5/28 Office supplies 500 Accounts Payable 500 Adjusting Entries 5/3 Office supplies expense 200 0 office supplies 2000 5 31 Insurance expense 12,000 Prepaid insurance 12,00 0 5 31 Depreciation Expense Acc Depreciation - Equip 5/3 Interest Expense 250 Interest payable 250 5/31 Inventory 4 of 16Name Section Date Scoops Ahoy Ice Cream Co. (e) (Continued) General Journal G2 Date Account Titles Re Debit Credit 5 of 16Name Lindsey Morrison Section Date 04 / 03 / 20 23 Scoops Ahoy Ice Cream Co. (b) and (e) General Ledger No. 101 Cash Explanation Ref. Credit Balance Date Debit May. 1 Balance V 36,330 146, 810 183,140 98,020 85 120 No. 112 Accounts Receivable Date Explanation Ref. Debit Credit Balance May. 1|Balance 40,600 205, 825 246, 425 59, 675 186. 750 5.200 181550 Notes Receivable No. 115 Date Explanation Ref. Debit Credit Balance May. 1| Balance V 42,000 Inventory No. 120 Date Explanation Ref. Debi Credit Balance May. 1|Balance V 18,000 5/8 575 18575 519 2,236 20, 811 5 / 20 450 19 361 5 / 31 130, 500 149, 86 5 /31 1005 148 856 5/311 88.504 607 352 5/31 1 37,775 22, 577 Office Supplies No. 125 Date Explanation Ref Debit Credit Balance May. 1|Balance 5/ 17 1,000 20 0 5/ 28 2, 200 500 2,700 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance May. 1 Balance V may 31 8,000 8,000 O 6 of 16Date Scoops Ahoy Ice (b) and (e) (Continued) Equipment No. 157 Date Explanation Ref Debit Credit Balance May. 1 Balance 20,500 Accumulated Depreciation - Equipment No. 158 Date Explanation Ref Debit Credit Balance May. 1 Balance V 6,000 5/31 342 6342 Notes Payable No. 200 Date Explanation Ref. Debit Credit Balance 5 / 21 23, 000 23,000 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance May. 1 Balance V 64,000 5/20 1450 65, 450 5/ 21 23, 000 88, 450 5/31 68, 750 157, 200 5/31 130, 500 261700 5128 50 0 26, 200 Interest Payable No. 202 Date Explanation Ref. Debit Credit Balance 5 31 250 R. Buckley, Capital No. 301 Date Explanation Ref. Debit Credit Balance May. 1 Balance V 96,430 R. Buckley, Drawings No. 306 Date Explanation Ref. Debit Credit Balance 5/ 15 9, 00 0 7 of 16(b) and (e) (Continued) No. 350 Income Summary Date Explanation Ref. Debit Credit Balance No. 401 Sales Date Explanation Ref. Debit Credit Balance 5/31 205,825 205, 825 81,850 293, 675 Sales Returns and Allowances No. 412 Date Explanation Ref Debit Credit Balance 59 2,200 5, 200 Sales Discounts No. 414 Date Explanation Ref. Debit Credit Balance 5 / 31 715 715 Cost of Goods Sold No. 505 Date Explanation Ref. Debit Credit Balance 5 /31 88 5UL 5/31 88 SUL 37,776 519 126,280 2236 124,049 Salaries and Wages Expense No. 627 Date Explanation Ref Debit 5/31 Credit Balance 950 0 9500 Depreciation Expense No. 711 Date Explanation Ref Debit Credit 5/31 Balance 1709 8 of 16Name Section Date Scoops Ahoy Ice Cream Co. (b) and (e) (Continued) Interest Expense No. 718 Date Explanation Ref. Debit Credit Balance may 250 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance Supplies Expense No. 728 Date Explanation Ref. Debit Credit Balance 5 17 700 128 4200 50 0 1700 Rent Expense No. 729 Date Explanation Ref Debit Credit 5/ 12 Balance 10,00 0 10,000Name Section Scoops Ahoy Ice Cream Co. Date (b) (Continued) Accounts Receivable Subsidiary Ledger J. Byers Date Explanation Ref. Debit Credit Balance may 1 Balance 16.700 5/ 1 1 16,600 5 / 22 34, 200 J. Hopper Date Explanation Ref. Debit Credit Balance 5 /3 15,225 5 /25 36, 10 0 5,200 M. Wheeler Date Explanation Ref Debit Credit Balance Balance 1500 5 / 25 55,250 D. Henderson Date Explanation Ref Debit Credit may 1 Balance Balance 5/11 12, 900 16, 400 L. Sinclair Date Explanation Ref. 5 / 3 Debit Credit Balance 5122 12,850 22,700 12, 850Section Date Scoops Ahoy Ice Cream Co. (b) (Continued) Accounts Payable Subsidiary Ledger M. Brenner Date Explanation Ref. Debit Credit Balance 15 /5 22, 500 22, 500 5 / 27 12, 40 0 34, 900 M. Mayfield Date Explanation Ref./ Debit Credit Balance may Balance 19,00 0 5/9 19,000 5/94 14, 2010 5/23 14,200 S. Harrington Date Explanation Ref. Debit Credit Balance may Balance 23.000 5/ 21 23,000 B. Hargrove Date Explanation Ref. Debit Credit Balance mau Balance 5/12 22,000 5 127 15,00 0 5 / 2 2 14, 50 0 22,000 5/ 23 15, 00 0 B. Newby Date Explanation Ref. Debit 5 /5 Credit Balance 5 /16 15, 00 0 15,000 5/27 21, 500 36,500 15, 400 51,900Scoops Ahoy Ice Cream Co. Work Sheet For the Month Ended May 31, 2023 Adjusted Trial Balance Adjustments Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Dr. Dr. Cr Dr. Cr. Cash 85, 120 85, 120 85, 120 Accounts Receivable 181.550 181550 181,550 Notes Receivable 42.000 42,000 42,000 Inventory 22 57 12, 157 10, 420 10,420 Office Supplies 2,700 21000 700 700 Prepaid Insurance 8,000 8000 Prepaid Rent 10,000 5.000 5, 000 5 , 0 00 Equipment 20, 500 20.500 20,500 Accumulated Depreciation - Equip. 600 0 342 6:342 6342 Notes Payable 23,000 23,000 23 000 Accounts Payable 26,200 26. 200 26, 200 Interest Payable 250 250 R. Buckley, Capital 96 430 250 96,430 R. Buckley, Drawings 9,00 0 96 430 9,000 Sales Sales Returns and Allowances 5200 5.200 5, 200 Sales Discounts 715 715 715 Cost of Goods Sold 124, 044 124, 04 4 Salaries & Wages Expense 9. 500 9 500 9500 Supplies Expense Rent Expense 51 000 5,000 5,000 Totals Insurance Expense Depreciation Expense 1,709 1709 1709 250 Interest Expense 250 250 Totals Net TotalsDate Scoops Ahoy Ice Cream Co. Income Statement For the Month Ended May 31, 2023 Revenues service revenues Expenses sales returns and allowances 5.200 sales discounts 715 cost of goods sold 124. 044 Salaries and wages 9, 500 Rent expense 5:000 office supplies expense 2, 000 Insurance expense 800 0 Depreciation expense 170 9 Interest expense 250 Total expenses 56 418 Total net income 133 468(d) (Continued) Scoops Ahoy Ice Cream Co. Owner's Equity Statement For the Month Ended May 31, 2023 Scoops Ahoy Ice Cream Co. Balance Sheet May 31, 2023 Current Assets cash Accounts Recievable office supplies Inventory Totay Current Assets Equipment Less. Acc Dep - Equipment Total ona term investment Notes Receivable Total long term investment Total Assets 345, 948 14 of 16Date Scoops Ahoy Ice Cream Co. Scoops Ahoy Ice Cream Co. Post-Closing Trial Balance May 31, 2023 Debit Credit Cash Notes Receivable Accounts Receivable Inventory office supplies Prepaid insurance equipment A Co Depretiation - Equipment Notes Payable Accounts Payable Interest Payable Total 352.289 Accounts Receivable balance from the control account in the General Ledger: Subsidiary account balances: J. Byers J. Hopper M. Wheeler L. Sinclair Total Accounts Payable balance from the control account in the General Ledger: Subsidiary account balances: M. Brenner B. Hargrove B. Newby Total 15 of 16Ratios Calculate the following ratios for the month of May. Include the written formula in words, as well as your calculations and final answers. Round your final answer to 2 decimal points. Be sure to show your work! 1. Inventory Turnover Inventory Turnover: 2. Days in Inventory (note the time period covered by this month): 3. Gross Profit Rate 4. Working Capital