The Business This practice set is designed to be five parts. In the first part, the student will complete the journal entries by writing the journal entries for Carla's Candles, Inc. in the back of the Practice Set and then entering the entries into Blackboard. For part two, the student will write the adjusting journal entries in the back of the practice set and then enter them into Blackboard. For part three, students will enter all journal entries into the corresponding T-Accounts and then enter the balances into Blackboard. In the fourth and will then record the bank's reconciling cash journal entries. The answers to the bank reconciliation will be entered into Blackboard along with any journal entries written on behalf of the company. Part part, the student will complete a bank reconciliation using the bank statement in the practice set five consists of the student a Statement of Retained Earnings and then a Balance Sheet. After everything is complete, the student will turn in the practice set along with all financial statements in the correct order for credit preparing an Adjusted Trial Balance, then completing an Income Statement, Carla's Candles is a gift shop started in January of 2019 by Carla Cannel. She has saved over $40,000 to invest in the business. She has had a meeting with her lawyer and her Certified Public Accountant (CPA) and they have determined that the business should be organized as a corporation. The CPA has agreed to help Ms. Cannel set up her accounting system. He provided to Ms. Cannel a chart of accounts. Numbering System Current Asset boocK 15xo0 17xox 2xooox 27xxx 39hoox 4x00 Revenues Current Liabilities Long-term Liabilities Cost of Goods Sold 60xxx 41Page Part One, Two and Three Instructions Record the January 2019 transactions in the general journal (last section of this practice set) using the following events. Skip a line between each entry and number the entries to match the number of the transaction. In the general journal record the transaction number, the date, and the account numbers. After all create a T-Account for each account that is used in the Chart of Accounts and record the transactions and end with an ending balance. All ending balances should be on the normal balance side account has a zero balance. If there is a number that is uneven round to the nearest cent. You will need the ending balance in the cash account for the bank reconciliation. All instructions for Blackboard start on page 9. journal entries are entered into the practice set, enter the adjusting journal entries. Next, even if the Transactions Date Deposit No. Description 1. 1/02/19 Carla Cannel met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cannel would organize the business as a corporation. The lawyer told Ms. Cannel to register the company name, Carla's Candles, Inc., with the County of El Paso. In addition, Ms. Cannel will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. The lawyer agreed to prepare the Articles of Incorporation to be filed with the Secretary of State of Texas The CPA has agreed to help Ms. Cannel set up her accounting system. Ms. Cannel opened a business checking account at Wells Fargo Bank by depositing the personal check she gave her company for $40,000. The corporation issued her a stock certificate for 4,000 shares of common stock. 2. 1/02/19 Deposit #! 3. | 1/03/19 | ck #1001 Ms. Cannel I signed a one-year rental agreement with Reynolds Realtors for shop space. She was required to pay $3,000 for rent for the months of January 1, 2019 - March 31, 2019. | 1/03/19 | Ck #1002 | Arranged for a general business liability insurance policy and paid 4. $1,200 to State Penn Insurance. This premium is for one year of coverage. Purchased office equipment for a cost of $5,000 from Office Mart for use in the business. Ms. Cannel signed a six-month, 8% note payable for the cost of the system. The office 5. 1/03/19 has an 61Page put in the fund raiser program. Cost of the candles were $600 and the holders were $100. Ms. Cannel considers this an advertising expense 22. | 1/23/19 | Deposit #4 | Received paymentin full from UTEP. The payment was deposited in the bank 23. 1/23/19 Ck #1009 Ms. Cannel paid her credit card bill for the month. The total was $300 which $250 was for delivery charges to deliver both candelabras and $50 was for store supplies for the cellophane used for the Humane Society candelabra 24. | 1/23/19 25. | 1/23/19 | ck #1010 | Deposit #S | Purchased and paid for S50 of office supplies. | Internet and retail sales totaled S9.300 and sales taxes of S76725 was collected. The cost of the merchandise sold was $4,500 Candles $4,000; Holders $500). The money was deposited in the bank. 26. | 1/23/19 | Ck #1011 | Paid the balance due to Fantastic Flames. There are two invoices; one on 1/8/19 and the other on 1/18/19 27. | 1/25/19 | Deposit #6 | Collected sales of S3400. Sales tax collected was S280.50. An was deposited in the bank. The cost of the merchandise sold was $1,250. (Candles $1,000; Holders $250) Received but did not pay the electric bill for the month, $350. Paid the first monthly installment on the office equipment. The payment amount is $866.66. Of this amount, $33.33 is for interest and $833.33 is for principal. Make the check payable to Office Mart. 28. 29. 1/28/19 1/30/19 Ck #1012 30. | 1/30/19 | Deposit #7 | Recorded internet sales for the last week of the month. Sales were $2,570 and sales tax collected was $212.03, all was deposited in the bank. The cost of the merchandise sold was $1,350 (Candles $1,000 Holders $350) Paid all Accounts. 31. | 1/31/19 sales tax owed for January to the Comptroller of Public Ck #1013 Ck #1014 Declared and paid a cash dividend of $500 to Carla Cannel. 32. 1/31/19 Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2019. The following are the adjusting journal entries for the month of January Record Adjusting Entries: Record the following month end adjusting entries for the month of January. Write the journal entries in the practice set after the original journal entries and round to the nearest cent. $50 of store supplies remained on hand. $10 of office supplies remained on hand. a. b. 81Page