BOA 1111 Bookkeeping Course Project Chapters 5 - 7 Spa-tacular has the following chart of accounts: Assets Revenue 111 Cash 411 Spa Services 113 Accounts Receivable (A/R) 412 Spa Merchandise Sales 115 Allowance for Doubtful Accounts 413 Sales Discounts 118 Office Supplies 414 Sales Returns & Allowances 121 Spa Merchandise Inventory 131 Spa Supplies Cost of Goods Sold 133 Prepaid Insurance 511 Purchases 141 Spa Equipment 512 Freight-In 142 Accum. Deprec. - Spa Equip. 513 Purchases Returns & Allowances 514 Purchases Discount Liabilities Expenses 211 Accounts Payable (A/P) 611 Wages Expense 212 Wages Payable 612 Rent Expense 231 Sales Tax Payable 613 Office Supplies Expense 614 Spa Supplies Expense Owner's Equity 615 Laundry Expense 311 L. Nash, Capital 616 Advertising Expense 312 L. Nash, Drawing 617 Utilities Expense 313 Income Summary 618 Insurance Expense 620 Depreciation Expense-Equip 625 Bad Debt Expense 630 Miscellaneous ExpenseThe following transactions were completed by Spo-toculcrr during the month ofAugust. Tax rate on all sales Is 3%. N18 1 Nash deposited an additional $10,000 in the business' bank account. 1 Paid August rent $1,650, check number 1044. 1 Bought logo merchandise from Giftco 54,100 plus $180 freight; bill number 416. dated August 1"; terms 2110, N130. 1 Bought bath and beauty products from Spa Magic $3,562 plus $155 freight; bill number 5235, dated August 1\"; terms 2.110. n/30. 2 Sold spa services on account to the Bryant family $650 [before tax), invoice number 20; terms 2/10, NI45. 2 Paid advertising expense for an August photo ad 5455, check number 1045 3 Bought a silk ower arrangement for the salon (Miscellaneous Expense] $07.90, check number 1046. Paid Spa Magic for their bill 5033, $2,721 dated June 2, check number 1047. Deposited Tory Ligman's payment on her account, 5164. Bought 5 cases ofbottled waterfor clients (Spa Supplies] $45, check number 1048. Bought a digital ramem [Miscellaneous Expense] $482, check number 1049. Babb-IN Purchased bulk office supplies on account from Office Supplies Warehouse 3486, bill number 1417; terms N130. u! Deposited a partial payment of $37.50 from Jill Anson on heracoount. 6 Paid Giitco for their bill no. 318, dated July 5, $1,309, check number 1050. 7 Deposited 1St week's cash sales: spa merchandise $1,630; spa services 53,350; sales tax collected $398.40. 7 Paid week's wages $1,850, check number 1051. 8 Bought spa accessories from Spa Goods $1,120 plus $110 freight; bill number 357, dated August 3"; terms 2/10, N130. 9 Sold spa services to Hunter Condos $1,294 on account (before tax), invoice number 21; terms 2/10, N/45. 10 Deposited Grayson's Lodge payment on their account for $351 and Hunter Condos payment on their account for $367.47. 11 Paid Golden Spa Supplies for their bill no. 1836. dated July 1. 5490. check number 1052. 12 Paid Giftco for bill number416 dated August 1" $4,190 (paid in full less applicable discount), check number 1053. 13 Sold spa services to Grayson Lodge 5356 (before tax] on account, invoice number 22; terms 2f10, N/45. 14 Purchased 3 new tanning beds (Spa Equipment] from Superior Equipment $5,685; bill number 1140, dated August 12'\"; terms N130. 14 Deposited 2"\" week's cash sales: spa merchandise $1,330; spa services $2,340; sales tax collected $293.60. 14 Paid week's wages $1.853. check number 1054. 15 Nash withdrew cash for personal use $1,500, check number 1055. 16 Paid August telephone bill $235, d-Ieck number 1056. 17 Received payment in full from Hunter Condos, Invoice 21 dated August 9, less applicable discount $1,371.64. 18 Sold spa merchandise on account to Bryant family $375, invoice number 23; terms 2f10, N/45. 18 Paid Superior Equipment for their bill no. 3608, dated July 5, 5420, check number 1057. 20 Bought logo merchandise from Logo Harbor Products 52,451 plus $144.00 freight; bill number 1680, dated Augu 20'\"; terms 2/10, N130. 21 Paid week's wages $1,847.50 check number 1058. 21 Deposited 3''1 weeks cash sales; spa merchandise $2,220,- spa services $2,810; sales tax collected $402.40. 22 Paid month's laundry bill $95, check number 1059. 23 Paid last month's sales tax collected $2,720, check number 1060. 25 Paid on account to Logo Harbor Products, bill number 1630 dated August 20, less applicable discount $2,545.98, check number 1061. 20 Received payment In full from Grayson Lodge $384.48 for Invoice no. 22. 27 Issued Credit Memo No. 1 to Bryant Family, 588 for damaged goods and $7.04 for sales tax. 28 Paid week wages 51.850, check number 1062. 29 Paid Augu utilities bill $255 check number 1063. 30 Paid Spa Magic, bill number 5235, in full $3,717 check number 1064. 30 Received credit memo 95 for damage spa accessories from Spa Goods 5123. 31 Deposited end of month's ash sales: spa merchandise $2,030; spa services $4,176; sales tax collected $496.48. instructions 1. Record each transaction In the appropriate journal In date order. Note you should only LEE the general journal for transactions Hurt do not belong on one oflefour specloljournols. 2. In the special journals, post the column totals and each amount In the "Clther Accounts\" column to the appropriate account in the General Ledger {and subsidiary ledgers [AIR Ledger and AIP Ledger], if applicable}. 3. Post the individual entries from the general journal to the general ledger and to the subsidiary ledgers (if applicable}. 4. Prepare the schedule of accounts receivable and the schedule of accounts payable as of August 31. Copy the ending account balances In the general ledger to the trial balance column of the worksheet. 6. Complete the Adjustments section of the worksheet using the following information: a. On August 31, a physioal count of the spa merchandise inventory was taken, and the Inventory was valued at 513,110. b. On August 31 a count of the spa supplies remaining in hand was valued at $345. Record an adjustment for the amount of spa supplies used during August. c. On August 31 a count of the office supplies remaining on hand was valued at $30. Record an adjustment for the amount of office supplies used during August. d. A review of the Insurance records determined that 51th:! In liability insurance coverage has been used during August. e. Accrued wages as of August 31 was $1,425. f. 1he company's spa eqqument is deprecIated using the 150% declining balance method. The spa equipment's useful life is 5 years. The equipment has a salvage value of $1,000. Record the adjustment for depreciation for one month. g. Spa-tacular uses the percent of credit sales method to estimate the amount of uncollectible accounts. Record an adjustment for this estimate as 2.5% of this month's credit sales. 1 Complete the remaIning columns on the worksheet and determine the amount of net income [or net loss}. 3. Prepare a multi-step income statement, the statement of owner's equity, and a balance sheet as of August 31. 9. Joumalize and post the closing entries. 10. Prepare a post-closing trial balance as of August 31. E\