Use information provided on the following pages to manually complete the record keeping for this practice...

 

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Use information provided on the following pages to manually complete the record keeping for this practice set. This practice set will require you to use your financial accounting skills to: 1. Analyze each transaction shown below for the month of September 2. Refer to the chart of accounts for the appropriate account titles 3. Use detailed descriptions when recording transactions in journals and ledgers. 4. Leave a space after each entry in General Journal, Cash Receipts Journal and the Cash Payments Journals 5. Manually record (by hand using #2 lead pencil), and post each transaction in the appropriate journal (special and general); ledger (general and subsidiary); and financial report using the templates found in the Appendices of this manual. WEEK 2 TRANSACTIONS Sep-13 Paid balance owed on accounts payable to Pixley Grocery Store Outlet, Inv. 520 Sep-15 Secured a bank loan to purchase the building and land for $80,000. The building was valued at $65,000 and the land was valued at $15,000. It was financed by making a $20,000 down-payment and obtaining a mortgage for the balance at 5% for 20 years. The company estimates that the building will have a 25-year useful life and at the end of the 25 years, the building will have a $5,000 residual value. Sep-15 Purchased used delivery van, $20,000 cash. Estimated life for the delivery van was 6 years with no salvage value. Straight line depreciation was used for recording depreciation. Sep-15 Paid $600 cash for two grand opening advertisements in the local paper at $300 each. One ad will run this week and the other will run the first week of October.. Sep-15 Collected payment from Faith IGA for Inv. 1, sold Sept 5, Sep-16 Paid cash for semi-monthly payroll (Day 1 through Day 15), $1,808.75 (total payroll, $2,500.00, less deductions: employee income tax, $500.00; social security tax, $155.00; Medicare tax, $36.25). Sep-16 Purchased merchandise on account from Super Food Co. for $3,500, Inv. 707 Sep-18 Sales on account to Dee's Ice Creams, for $1,750, Inv. 4. Sep-19 Week 2 (Sept 13-18) cash sales totaled $6,456. Use information provided on the following pages to manually complete the record keeping for this practice set. This practice set will require you to use your financial accounting skills to: 1. Analyze each transaction shown below for the month of September 2. Refer to the chart of accounts for the appropriate account titles 3. Use detailed descriptions when recording transactions in journals and ledgers. 4. Leave a space after each entry in General Journal, Cash Receipts Journal and the Cash Payments Journals 5. Manually record (by hand using #2 lead pencil), and post each transaction in the appropriate journal (special and general); ledger (general and subsidiary); and financial report using the templates found in the Appendices of this manual. WEEK 2 TRANSACTIONS Sep-13 Paid balance owed on accounts payable to Pixley Grocery Store Outlet, Inv. 520 Sep-15 Secured a bank loan to purchase the building and land for $80,000. The building was valued at $65,000 and the land was valued at $15,000. It was financed by making a $20,000 down-payment and obtaining a mortgage for the balance at 5% for 20 years. The company estimates that the building will have a 25-year useful life and at the end of the 25 years, the building will have a $5,000 residual value. Sep-15 Purchased used delivery van, $20,000 cash. Estimated life for the delivery van was 6 years with no salvage value. Straight line depreciation was used for recording depreciation. Sep-15 Paid $600 cash for two grand opening advertisements in the local paper at $300 each. One ad will run this week and the other will run the first week of October.. Sep-15 Collected payment from Faith IGA for Inv. 1, sold Sept 5, Sep-16 Paid cash for semi-monthly payroll (Day 1 through Day 15), $1,808.75 (total payroll, $2,500.00, less deductions: employee income tax, $500.00; social security tax, $155.00; Medicare tax, $36.25). Sep-16 Purchased merchandise on account from Super Food Co. for $3,500, Inv. 707 Sep-18 Sales on account to Dee's Ice Creams, for $1,750, Inv. 4. Sep-19 Week 2 (Sept 13-18) cash sales totaled $6,456.

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Journal Entries Journalizing transactions is the first step in the accounting process The transactions that an organization enters into are recorded i... View the full answer