ACCT 305 Practice Set : Fail 2022 Practice Set Part 3 Computer Solutions: success in the fourth quarter of 2021 has attracted the attention of David Wright, who considered investing in the company. A price of 515 per share was offered by Ramona, which David accepted (a great way to start out the new year). The following transactions occurred between January 1 and March 31, 2022 and need to be recorded in the general journal: Jan. 4 The company paid cash to Lyn Addie for eight days: work at the rate of $150 per day. Five of the eight days relate to wages payable that were accrued in the prior year. 5 Based on the initial success of Computer Solutions, David Wright invested an additional $15,000 cash in the company in exchange for 1,000 shares of the Company's 310 par value common stock. T The company purchased 812,000 of merchandise from Super Duper Soware. with terms of 1110, nr'30, FOE shipping point, invoice dated January T. 0 The company received $2,?50 cash from Gomez Co. as full payment on its open account balance. 11 The company completed a veday project for Alexis Engineering Co. and billed it $5,000, which is the total price of 39,000 less the advance payment of $3,000. 13 The company sold merchandise with a retail value of $6,500 and a cost of $4,500 to Dream lnc., invoice dated January 13. 15 The company paid $200 cash for freight charges on the merchandise purchased on January T. 15 The company received $4,000 cash from Delta Co. for computer services provided. 1? The company paid Super Duper Software for the invoice dated January 7, net of the discount. 20 Dream inc. returned 5400 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a 5225 cost, was discarded. 25 The company received the balance due from Dream Inc 25 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $313. 20 The company purchased 30,400 of merchandise from Kansas Corp. with terms of ii 10, nr'30, FOB destination. invoice dated January 26. 20 The company sold merchandise with a 54,340 cost for $7,200 on credit to KC, Inc, invoice dated January 25. 31 The company paid cash to Lyn Addie for 10 days' work at 8150 per day. Feb. 1 The company paid 53,3?5 cash to Hilltop Mail for another three months' rent in advance. Received payment of $3,200 from Dream, Inc. for December 31 invoice. 3 The company paid Kansas Corp. for the balance due, net of the cash discount less the $313 amount in the credit memorandum. 5 The company paid ST00 cash to the lo-I newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid $3,000 cash in dividends. _'|. F Feb. 23 The company sold merchandise with a 82,600 cost for $3,220 on credit to Delta Co, invoice dated Febmary 23. 25 Sold computer equipment on account with a 33.500 cost to West Leasing for $12,?50, invoice dated February 25. 20 The company paid cash to Lyn Addie for eight days: went at $150 per day. 20 Accepted returned computer equipment from West Leasing (invoice of February 23) with a retail value of 30000 and cost of 33,600. The returned merchandise was put back into Computer Solutions' inventory as the equipment was returned for damages. 2? The company reimbursed Ramona Santana for business automobile mileage (000 miles at 30.32 per mile). Mar. 1 Paid Richmond County Bank December 2, 2021 note payable in full. 1 Received payment of $6,000 from Gomez Co. representing advance payment for computer services for the period March 1 April 30, 2022. 8 The company purchased 81,230 of computer supplies from Ham's Ofce Products on credit. invoice dated March 8. Q The company received the balance due from Delta Co. for merchandise sold on Febmary 23. 10 The company purchased merchandise with a cost of 510360 from Kansas Corp. with terms of 010, nr'30. FOB shipping point, invoice dated March 10. 11 Received notice of IFM Cd's banknrptcy; determined outstanding balance of $3,000 to be uncollectable and requiring writeoff. 11 The company paid $000 cash for minor repairs to the company's computer. 10 The company received $6,000 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 and March 8. 20 The company sold merchandise with a 82,302 cost for $4,800 on credit to Wildcat Services, invoice dated March 20. 24 The company billed West Leasing for 88.045 of computing services provided. 20 The company received the balance due from Wildcat Services for merchandise sold on March 20. 30 The company sold merchandise with a 81,048 cost for $2,220 on credit to Dream Co, invoice dated March 30. 31 Sold Computer Equipment from the initial October 1 transaction {setting up the company) that was recorded at 810,000 to Escambia County Schools for $9,250 cash. (Remember: Computer equipment was deemed to have a ve- year life with no salvage value) 31 The company reimbursed R. Santana for business automobile mileage (400 miles at $0.32 per mile}. Please perform the following tasks: 1 Prepare the unadjusted trial balance in the \"2022 Triat Balance' worksheet based on the General Ledger that you have received with this packet. Required: 1. {1 point} Open your le YourName_ACCT305_PS2 and save as YourName_ACCT305_P83. 2. (2 points} Before starting Part 3 you should ensure that your general ledger balances agree with the December 31, 2021 balances provided. Important Note: If necessary. update your general ledger to ensure balances agree with these check gures. Do this by using Dec 31. 2021 as the date. Adjusted Balance as the item, and enter the correct balance in the balance column. 3. {12 points} For January through March 2022. prepare the journal entries to record each of the above transactions for Computer Solutions in the 2022 General Journal worksheet and then post to the General Ledger. (Remember a \"new\" general ledger is not started because it is a new year. The closing entries prepare the books for the new accounting period.) (CHECK FIGURES: Cash (Jan) 110.020; (Feb) 10T.?00; (Mar) 03.0T4; Computer Services Revenue (Jan) 13,000; (Feb) 13000; (Mar) 21905; Cost of goods sold (Jan) 0.840; (Feb) 15,400; {Mar} 18,?50. 4. {T points} Transfer balances from the General Ledger to the 33122 Trial Balance worksheet's Unadjusted Trial Balance columns {5 points). Once again use SUM formulas to total columns and ensure your trial balance is in balance. If columns do not balance search for errors and correct! [2 points}. Note: if your unadjusted trial balance does not agree with your general ledger balances you will not receive credit for this portion of the assignment. 5. Upload the completed le to Canvas. post-closing trial balance No. Account Debit Credit 101 Cash 103,550 106.1 A/R - Alex's Engineering Co. 106.2 A/R -Wildcat Services 106.3 A/R -West Leasing 106.4 A/R-IFM Co. 3,000 106.5 A/R -Liu Corp. 106.6 A/R -Gomez Co. 2,750 106.7 A/R-Delta Co. 106.8 A/R -KC, Inc. 4,200 106.9 A/R -Dream, Inc. 3,200 107 Allowance for Doubtful Accounts 1,315 119 Merchandise inventory 7,425 126 Computer supplies 850 128 Prepaid insurance 3,285 131 Prepaid rent 1,125 163 Office equipment 5,000 164 Accumulated depreciation-Office equipment 125 167 Computer equipment 39,000 168 Accumulated depreciation-Computer equipment 1,950 201 Accounts payable 1,100 203 Interest Payable 250 210 Wages payable 750 236 Unearned computer services revenue 3,000 240 Short-Term Notes Payable 50,000 245 Notes Payable 307 Common stock 102,000 318 Retained earnings 12,895 319 Dividends 103 Computer services revenue 413 Sale 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment 513 Depreciation expense-Computer equipment 623 Wages Expense 633 Interest Expense 537 Insurance Expense 640 Rent Expense 652 Computer Supplies Expense 655 Advertising Expense 656 Bad Debt Expense 676 Mileage Expense 677 Miscellaneous Expenses 584 Repairs Expense -Computer 705 Gain on Sale of Equipment 308 Loss on Sale of Equipment 901 Income Summary Totals 173,385 173,385Paste BIUV A Merge & Center $ ~ 9 .00 Conditional Format as Cell Insert Delete Format Fill ~ Sort & Find & Analyze Formatting Table Styles v Clear Filter > Select Data Undo Clipboard Font Alignment Number Styles Cells Editing Analysis Insert Pie or Doughnut Chart ~ J5 VIX fx A B D E G H M N O GENERAL JOURNAL POST. 2 GJ # DATE DESCRIPTION REF. DEBIT CREDIT 3 15 16 8 9 10 11 12 13 14 2021 General Journal 2022 General Journal 3-31-22 Trial Balance (2) General Ledger 12-31-21 Trial BalancePaste B IUV v A FE Merge & Center $ ~ % 9 .00 Conditional Format as Cell Insert Delete Format Fill ~ Sort & Find & Analyze Formatting Table Styles v Clear Filter ~ Select Data Undo Clipboard Font Alignment Number Styles Cells Editing Analysis Insert Pie or Doughnut Chart A30 IX V fx 318 A B C D E F G H K M N O P Q R S U V unadjusted trial balance adjusting entries adjusted trial balance closing entries post-closing trial balance No. Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit A W N 101 Cash 106.1 A/R - Alex's Engineering Co 106.2 A/R -Wildcat Services 106.3 A/R-West Leasing 106.4 A/R -IFM Co. 0 00 106.5 A/R-Liu Corp. 106.6 A/R -Gomez Co. 10 106.7 A/R -Delta Co. 106.8 A/R-KC, Inc 106.9 A/R -Dream, Inc. 107 Allowance for Doubtful Accounts 14 119 Merchandise inventory 15 126 Computer supplies 128 Prepaid insurance 17 131 Prepaid rent Co 163 Office equipment 164 Accumulated depreciation-Office equipment 20 16 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 203 Interest Payable 210 Wages payable 236 Unearned computer services revenue 240 Short-Term Notes Payable 245 Notes Payable 28 307 Common stock 29 311 Paid-In-Capital in excess of par value 30 318 Retained earnings 31 319 Dividends 32 403 Computer services revenue 33 413 Sales 2021 General Journal 2022 General Journal 3-31-22 Trial Balance (2) General Ledger | 12-31-21 Trial Balance | ... +Paste B A FE Merge & Center $ ~ % 9 Conditional Format as Cell Insert Delete Format Fill Sort & Find & Analyze Formatting Table Styles Clear Filter ~ Select Data Undo Clipboard Font Alignment Number Styles Cells Editing Analysis Insert Pie or Doughnut Chart ~ A30 vix fx 318 B C D E F G H M N O P Q R 20 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 203 Interest Payable 210 Wages payable 236 Unearned computer services revenue 240 Short-Term Notes Payable 245 Notes Payable 28 307 Common stock 29 311 Paid-In-Capital in excess of par value 30 318 Retained earnings 319 Dividends 32 403 Computer services revenue 33 413 Sales 414 Sales returns and allowances 35 415 Sales discounts 36 502 Cost of goods solo 37 612 Depreciation expense-Office equipment 38 613 Depreciation expense-Computer equipment 39 623 Wages Expense 40 633 Interest Expense 41 637 Insurance Expense 42 640 Rent Expense 652 Computer Supplies Expense 44 655 Advertising Expense 45 656 Bad Debt Expense 46 676 Mileage Expense 677 Miscellaneous Expenses 48 684 Repairs Expense-Computer 49 705 Gain on Sale of Equipment 50 808 Loss on Sale of Equipment 901 Income Summary Totals 2021 General Journal 2022 General Journal 3-31-22 Trial Balance (2) General Ledger | 12-31-21 Trial Balance | ... +Page 1 of 4 O - ZOOM + The Chart of Accounts (modeled after the sample Chart of Accounts in handout) established by Computer Solutions is as follows: No. Account No. Account 101 Cash 307 Common stock 106.1 A/R - Alex's Engineering Co. 311 Paid In Capital in excess of par value 106.2 A/R -Wildcat Services 318 Retained earnings 106.3 A/R -West Leasing 319 Dividends 106.4 A/R -IFM Co. 403 Computer services revenue 106.5 A/R -Liu Corp. 413 Sales 106.6 A/R -Gomez Co. 414 Sales returns and allowances 106.7 A/R -Delta Co. 415 Sales discounts 106.8 A/R-KC, Inc. 502 Cost of goods sold 106.9 A/R -Dream, Inc. 612 Depreciation expense-Office equipment 107 Allowance for Doubtful Accounts 613 Depreciation expense-Computer equipment 119 Merchandise inventory 623 Wages expense 126 Computer supplies 633 Interest expense 128 Prepaid insurance 637 Insurance expense 131 Prepaid rent 640 Rent expense 163 Office equipment 652 Computer supplies expense 164 Accumulated depreciation-Office equipment 655 Advertising expense 167 Computer equipment 656 Bad Debt Expense 168 Accumulated depreciation-Computer equipment 676 Mileage expense 201 Accounts payable 677 Miscellaneous expenses 203 Interest Payable 684 Repairs expense-Computer 210 Wages payable 705 Gain on Sale of Equipment 236 Unearned computer services revenue 808 Loss on Sale of Equipment 240 Short-Term Notes Payable 901 Income Summary 245 Notes PayablePage