Using the transactions listed below post entries to the General Journal

A B 4 5 6 7 8 9 20 1 2 -3 Jimmy Seals and Dash Crofts create a retail travel supplies business, organized as an S Corp. The Corporation is named: Seals and Crofts, Inc. It has no income tax liability, The following transactions took place in January 20XX, the first month of operations. January 2 Jimmy Seals invested $36,000 cash in exchange for 2,400 shares of $5 par common stock. CR 2 Dash Crofts CR invested $24,000 cash in exchange for 1,600 shares of $5 par common stock 2 Paid Evan Williams Mgmt one month's rent, $750 check # 100 CD 5 -6 7 -8 9 CO 1 2 3 PJ 2 Purchased equipment on account from James Beam Co. $14,000 Cost Termsn/60 5 year life $2,000 Salvage Value SL method PJ o un No lo 00N 2 Purchased a van from from Boones Farm Auto Sales: $30,000 Cost 5 year life $3,000 Salvage Value DDB method The purchase was financed on a note with terms of: 24 months 8% annual Interest rate The monthly payments on the van are $1,356.82 The payments will be made on the first day of the month starting with February CD 101 7 Spent $900 at Elijah Craig Suppliers for office and store supplies to be used over the next few months. (record as an asset) check # Paid George Dickels Ads $300 to advertise during January check # 102 CD 7 48 9 40 11 -2 13 9 Used purchase order #1000 to order merchandise from Jack Daniels, Ltd. $25,000 N/A Jack Daniels, Ltd. PJ 10 Received the merchandise and invoice for the merchandise ordered from The perpetual inventory method is used to account for inventory transactions. CR 15 -6 7 18 9 10 Merchandise was sold for cash to customers in the store: $2,500 Total Sales $1,000 Cost of Goods Sold SJ ONM 11 Sold merchandise on account to Peter Yarrow Terms 2/10 net 30 $24,000 Total Sales $9,600 Cost of Goods Sold 14 B PAY -5 -6 -7 11 Prepared checks to pay the payroll for the biweekly through January 11. Employees work a 5 day week, Monday thru Friday. (They were paid for New Year's Day) Jimmy Seals OLD 00 60 51 52 53 married with 3 withholding allowances $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 103 Dash Crofts single with 2 withholding allowances $2,500.00 bi-weekly salary $287.56 Federal Income Taxes $155.00 Social Security Taxes $36.25 Medicare Taxes $2,021.19 Net pay check # 104 PAY 11 The the business records payroll taxes on the above payroll of: $403.00 Social Security Taxes $94.25 Medicare Taxes $39.00 Federal Unemployment Taxes (FUTA) $175.50 State Unemployment Taxes (SUTA) SJ 16 Sold travel products on account to Paul Stookey Terms net 30. $18,000 Total Sales $7,200 Cost of Goods Sold 18 Received a check from Peter Yarrow for all that is owed CR 55 16 7 58 59 "0 1 2 3 14 5 6 7 "8 9 0 1 2 33 54 55 96 37 58 59 0 1 2 3 14 5 16 7 18 19 00 01 02 03 14 22. Received (not paid) the electric bill from Jonathan Walker Power $300.00 PJ 23 Paid the internet bill from Maker's Mark Wireless $160.00 check # 105 CD SJ 24 sold travel products on account to Mary Traverse $10,000 Total Sales $4,000 Cost of Goods Sold Terms 2/10 net 30 24 Paid the balance due to Jack Daniels, Ltd. $25,000.00 check # 106 CD 25 Prepared checks to pay the payroll for the biweekly period ending January 25. PAY Jimmy Seals $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 107 Dash Crofts $2,500.00 bi-weekly salary A B 25 Prepared checks to pay the payroll for the biweekly period ending January 25, PAY Jimmy Seals 5 06 17 8 19 DO 01 02 03 04 05 06 07 08 09 $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 107 Dash Crofts $2,500.00 bi-weekly salary $287.56 Federal Income Taxes $155.00 Social Security Taxes $36.25 Medicare Taxes $2,021.19 Net pay check # 108 PAY 25 The the business records payroll taxes on the above payroll. $403.00 Social Security Taxes $94.25 Medicare Taxes $39.00 Federal Unemployment Taxes (FUTA) $175.50 State Unemployment Taxes (SUTA) 25 Purchased merchandise inventory from Jack Daniels, Ltd. $12,000 PJ 29 Partially paid the balance due to James Beam Co $7,000.00 check # 109 CD SJ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 29 issued a credit memo to Mary Traverse for return of $2,000.00 of the travel merchandise we sold her on January 24 because it was the wrong merchandise. The cost of the goods was $800.00 CR 29 Merchandise was sold for cash to customers in the store: $6,000 Total Sales $2,400 Cost of Goods Sold CD 31 Paid a a cash dividend to the owners. Dividend per share is $2.00 Jimmy Seals Dash Crofts check # check # 110 111 31 Prepared Adjusting Entries. (No adjusting entry is made for Payroll Taxes). GJ 31 Prepared closing entries. (Assume this S Corp had a 1/31/xx fiscal year-end). G] GENERAL JOURNAL PAGE 1 Account Titles Post Credits Date Jan Acct # 180 280 Debits 30,000.00 2 Van Notes Payable 30,000.00 11 711.75 615 221 222 230 235 Payroll Tax Expense Social Security Payable Medicare Payable FUTA Payable SUTA Payable 403.00 94.25 39.00 175.50 25 711.75 615 221 222 230 235 Payroll Tax Expense Social Security Payable Medicare Payable FUTA Payable SUTA Payable 403.00 94.25 39.00 175.50 31 640 190 Adjusting Entries Depreciation Expense Accumulated Depreciation-Eq 31 640 195 Depreciation Expense Accumulated Depreciation Van 31 810 250 Interest Expense Interest Payable 31 650 130 Supplies Expense Supplies 31 500 120 Cost of Goods Sold Merchandise Inventory 31 610 210 Salaries Expense Salaries Payable 31 660 111 Bad Debt expense Allowance for Bad Debts GENERAL JOURNAL PAGE 2 PR Debits Credits Date Jan Account Titles CLOSING ENTRIES Sales Income Summary 31 400 399 31 399 450 460 500 600 610 615 630 640 650 660 810 Income Summary Sales Returns Sales Discount Cost of Goods Sold Rent Expense Salaries Expense Payroll Tax Expense Utilities Expense Depreciation Expense Supplies Expense Bad Debt expense Interest Expense 31 399 350 Income Summary Retained Earnings 31 350 360 Retained Earnings Dividends A B 4 5 6 7 8 9 20 1 2 -3 Jimmy Seals and Dash Crofts create a retail travel supplies business, organized as an S Corp. The Corporation is named: Seals and Crofts, Inc. It has no income tax liability, The following transactions took place in January 20XX, the first month of operations. January 2 Jimmy Seals invested $36,000 cash in exchange for 2,400 shares of $5 par common stock. CR 2 Dash Crofts CR invested $24,000 cash in exchange for 1,600 shares of $5 par common stock 2 Paid Evan Williams Mgmt one month's rent, $750 check # 100 CD 5 -6 7 -8 9 CO 1 2 3 PJ 2 Purchased equipment on account from James Beam Co. $14,000 Cost Termsn/60 5 year life $2,000 Salvage Value SL method PJ o un No lo 00N 2 Purchased a van from from Boones Farm Auto Sales: $30,000 Cost 5 year life $3,000 Salvage Value DDB method The purchase was financed on a note with terms of: 24 months 8% annual Interest rate The monthly payments on the van are $1,356.82 The payments will be made on the first day of the month starting with February CD 101 7 Spent $900 at Elijah Craig Suppliers for office and store supplies to be used over the next few months. (record as an asset) check # Paid George Dickels Ads $300 to advertise during January check # 102 CD 7 48 9 40 11 -2 13 9 Used purchase order #1000 to order merchandise from Jack Daniels, Ltd. $25,000 N/A Jack Daniels, Ltd. PJ 10 Received the merchandise and invoice for the merchandise ordered from The perpetual inventory method is used to account for inventory transactions. CR 15 -6 7 18 9 10 Merchandise was sold for cash to customers in the store: $2,500 Total Sales $1,000 Cost of Goods Sold SJ ONM 11 Sold merchandise on account to Peter Yarrow Terms 2/10 net 30 $24,000 Total Sales $9,600 Cost of Goods Sold 14 B PAY -5 -6 -7 11 Prepared checks to pay the payroll for the biweekly through January 11. Employees work a 5 day week, Monday thru Friday. (They were paid for New Year's Day) Jimmy Seals OLD 00 60 51 52 53 married with 3 withholding allowances $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 103 Dash Crofts single with 2 withholding allowances $2,500.00 bi-weekly salary $287.56 Federal Income Taxes $155.00 Social Security Taxes $36.25 Medicare Taxes $2,021.19 Net pay check # 104 PAY 11 The the business records payroll taxes on the above payroll of: $403.00 Social Security Taxes $94.25 Medicare Taxes $39.00 Federal Unemployment Taxes (FUTA) $175.50 State Unemployment Taxes (SUTA) SJ 16 Sold travel products on account to Paul Stookey Terms net 30. $18,000 Total Sales $7,200 Cost of Goods Sold 18 Received a check from Peter Yarrow for all that is owed CR 55 16 7 58 59 "0 1 2 3 14 5 6 7 "8 9 0 1 2 33 54 55 96 37 58 59 0 1 2 3 14 5 16 7 18 19 00 01 02 03 14 22. Received (not paid) the electric bill from Jonathan Walker Power $300.00 PJ 23 Paid the internet bill from Maker's Mark Wireless $160.00 check # 105 CD SJ 24 sold travel products on account to Mary Traverse $10,000 Total Sales $4,000 Cost of Goods Sold Terms 2/10 net 30 24 Paid the balance due to Jack Daniels, Ltd. $25,000.00 check # 106 CD 25 Prepared checks to pay the payroll for the biweekly period ending January 25. PAY Jimmy Seals $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 107 Dash Crofts $2,500.00 bi-weekly salary A B 25 Prepared checks to pay the payroll for the biweekly period ending January 25, PAY Jimmy Seals 5 06 17 8 19 DO 01 02 03 04 05 06 07 08 09 $4,000.00 bi-weekly salary $355.01 Federal Income Taxes $248.00 Social Security Taxes $58.00 Medicare Taxes $3,338.99 Net pay check # 107 Dash Crofts $2,500.00 bi-weekly salary $287.56 Federal Income Taxes $155.00 Social Security Taxes $36.25 Medicare Taxes $2,021.19 Net pay check # 108 PAY 25 The the business records payroll taxes on the above payroll. $403.00 Social Security Taxes $94.25 Medicare Taxes $39.00 Federal Unemployment Taxes (FUTA) $175.50 State Unemployment Taxes (SUTA) 25 Purchased merchandise inventory from Jack Daniels, Ltd. $12,000 PJ 29 Partially paid the balance due to James Beam Co $7,000.00 check # 109 CD SJ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 29 issued a credit memo to Mary Traverse for return of $2,000.00 of the travel merchandise we sold her on January 24 because it was the wrong merchandise. The cost of the goods was $800.00 CR 29 Merchandise was sold for cash to customers in the store: $6,000 Total Sales $2,400 Cost of Goods Sold CD 31 Paid a a cash dividend to the owners. Dividend per share is $2.00 Jimmy Seals Dash Crofts check # check # 110 111 31 Prepared Adjusting Entries. (No adjusting entry is made for Payroll Taxes). GJ 31 Prepared closing entries. (Assume this S Corp had a 1/31/xx fiscal year-end). G] GENERAL JOURNAL PAGE 1 Account Titles Post Credits Date Jan Acct # 180 280 Debits 30,000.00 2 Van Notes Payable 30,000.00 11 711.75 615 221 222 230 235 Payroll Tax Expense Social Security Payable Medicare Payable FUTA Payable SUTA Payable 403.00 94.25 39.00 175.50 25 711.75 615 221 222 230 235 Payroll Tax Expense Social Security Payable Medicare Payable FUTA Payable SUTA Payable 403.00 94.25 39.00 175.50 31 640 190 Adjusting Entries Depreciation Expense Accumulated Depreciation-Eq 31 640 195 Depreciation Expense Accumulated Depreciation Van 31 810 250 Interest Expense Interest Payable 31 650 130 Supplies Expense Supplies 31 500 120 Cost of Goods Sold Merchandise Inventory 31 610 210 Salaries Expense Salaries Payable 31 660 111 Bad Debt expense Allowance for Bad Debts GENERAL JOURNAL PAGE 2 PR Debits Credits Date Jan Account Titles CLOSING ENTRIES Sales Income Summary 31 400 399 31 399 450 460 500 600 610 615 630 640 650 660 810 Income Summary Sales Returns Sales Discount Cost of Goods Sold Rent Expense Salaries Expense Payroll Tax Expense Utilities Expense Depreciation Expense Supplies Expense Bad Debt expense Interest Expense 31 399 350 Income Summary Retained Earnings 31 350 360 Retained Earnings Dividends