This is an example of a case project we completed in Accounting course where we were given a blank color coded workbook in week one of the course. Each week we were given a packet of required documentation that needed accounted for in the proper areas of record keeping. By week 7 we completed the work book providing closing documents such as bank reconciliations, adj. entries, and closing entries.
5. General Journal for Pleasant Breeze Fan Company
REQUIREMENT #1:
Prepare journal entries to record the December transactions in the General Journal below.
General Journal
Date Description(Account Name) Debit Credit
1-Dec Merchandise Inventory 980.00
Accounts Payable, Grand Blanc Fans 980.00
P.O. # 0512-001
1-Dec Merchandise Inventory 1848.00
Accounts Payable, Columbia Products 1848.00
P.O. # 0512-002
1-Dec Merchandise Inventory 3570.00
Accounts Payable, Santa Ana Gales Fans 3570.00
P.O. # 0512-003
1-Dec Merchandise Inventory 1100.00
Accounts Payable, Juarez Light Products 1100.00
P.O. # 0512-004
1-Dec Mortgage Payable 247.89
Interest Expense 482.85
Checking Account 730.74
Mortgage Payment
3-Dec Accounts Receivable, Remodeler's Supply 7840.00
Sales 7840.00
Costs of Sales 5690.00
Merchandise Inventory 5690.00
4-Dec Accounts Payable, Columbia Products 294.00
Accounts Payable, Juarez Light Products 55.00
Merchandise Inventory 349.00
Inventory Received - Short Count
5-Dec Telephone / Utilities Expense 710.00
Checking Account 710.00
$500 for utilities, $210 for Nov phone
7-Dec Payroll entries will be completed in Week 2.
You will fund the payroll check account with a check
and record it to this journal as a total.
Payroll Checking 5760.41
Checking Account 5760.41
Entry made in Week 2 - leave
8-Dec Accounts Receivable, Builder's Warehouse 13685.00
Sales 13685.00
Costs of Sales 9855.00
Merchandise Inventory 9855.00
8-Dec Depreciation Expense - Toyota 3250.00
Accum Dep - Toyota 3250.00
Depreciate Toyota to day of trade
Accum Dep - Toyota 10530.00
Gain / Loss on Asset Sales 2970.00
Checking Account 10500.00
Toyota Camry 24000.00
Record sale of Toyota
6. Company Cars - 2006 Honda 28000.00
Checking Account 2800.00
Notes Payable 25200.00
Purchase of Honda with down payment and note
9-Dec Accounts Receivable, Helpful Hardware Chain 10456.25
Sales 10456.25
Costs of Sales 7350.00
Merchandise Inventory 7350.00
Record credit sale to Helpful Hardware
10-Dec Accounts Payable. Grand Blanc Fans 980.00
Merchandise Inventory 9.80
Checking Account 970.20
Payment for PO 0512-001
12-Dec Merchandise Inventory 7600.00
Accounts Payable, Juarez Light Products 7600.00
P.O. # 0512-005
14-Dec Accounts Receivable, Bowery Super Warehouse 6720.00
Sales 6720.00
Costs of Sales 4695.00
Merchandise Inventory 4695.00
Record Sale to Bowery Super Warehouse
15-Dec Checking Account 7683.20
Sales Discounts 156.80
Accounts Receivable, Remodeler's Supply 7840.00
Invoice 12-0101
15-Dec FITW Payable 1454.53
Social Security Taxes Payable 1308.20
Medicare Taxes Payable 305.96
Checking Account 3068.69
Pay Nov Payroll Taxes
15-Dec Accounts Payable, Columbia Products 1554.00
Merchandise Inventory 31.08
Checking Account 1522.92
Payment for PO 0512-002
19-Dec Checking Account 13411.30
Sales Discounts 273.70
7. Accounts Receivable, Builder's Warehouse 13685.00
Received payment from Builder's Warehouse
20-Dec Accounts Payable, Santa Ana Gales Co. 3570.00
Merchandise Inventory 35.70
Checking Account 3534.30
Payment for PO 0512-003
22-Dec Payroll entries will be made on a separate journal page
You will fund the payroll check account with a check
and record it to this journal as a total.
22-Dec Payroll Checking 8622.08
Checking Account 8622.08
24-Dec Checking Account 10818.50
Accounts Receivable 10818.50
Invoice 11-24
23-Dec Sales Returns and Allowances 245.00
Accounts Receivable, Bowery Super Warehouse 245.00
Merchandise Inventory 140.00
Cost of Sales 140.00
Bowery Super Warehouse return - did not return light kits
26-Dec Checking Account 3172.75
Notes Receivable - Bowery 3237.50
Sales Discount 64.75
Accounts Receivable - Bowery Super Warehouse 6475.00
Bowery paid 1/2 of invoice and signed note for balance
30-Dec Professional Service Fees 400.00
Checking Account 400.00
31-Dec Accounts Payable, Juarez Light Products 1045.00
Checking Account 1045.00
Only received 95 on 12/1 shipment,
31-Dec Merchandise Inventory 770.00
Accounts Payable 770.00
Thomas Freight
31-Dec Travel Expense 430.00
Office Supplies Expense 110.00
Postage Expense 20.00
Checking Account 560.00
31-Dec Travel Expense 665.00
Postage Expense 137.00
Office Supplies Expense 58.00
Checking Account 860.00
31-Dec Joe Black, Drawing 8000.00
Checking Account 8000.00
8. Adjusting Entries General Journal
Date Description(Account Name) Debit Credit
31-Dec Interest Expense 481.82
Interest Payable 481.82
Mortgage Interest
31-Dec Interest Expense 48.30
Interest Payable 48.30
Car Note Interest (ordinary interest)
31-Dec Interest Receivable 3.60
Interest Revenue 3.60
5 days interest on Bowry Note
31-Dec Insurance Expense 2700.00
Prepaid Expenses 2700.00
Insurance Adjustment
31-Dec Office Supplies Expense 6445.00
Office Supplies (Prepaid) 6445.00
Office Supplies Adjustment
31-Dec Warehouse Expenses 1200.00
Prepaid Expenses 1200.00
Forklift Rent
31-Dec Salary Expense 4439.99
Salaries Payable 3685.68
FITW Payable 414.65
Social Security Taxes Payable 275.28
Medicare Taxes Payable 64.38
Wages adjustment for second half of December- Wages
31-Dec Employer Tax Expense 375.66
Social Security Taxes Payable 275.28
Medicare Taxes Payable 64.38
FUTA Payable 6.00
SUTA Payable 30.00
Wages adjustment for second half of December- Employer Payroll Taxes
Week 5 Entries
INVENTORY CORRECTIONS
31-Dec Cost of Sales 308.00
Inventory 308.00
ACCOUNT RECEIVABLE ENTRIES
31-Dec Allowance for Bad Debt 2318.75
Accounts Receivable 2318.75
Write off Account
31-Dec Bad Debt Expense 818.38
Allowance for Bad Debt 818.38
Bad Debt Adjustment
Week 6 Entries
31-Dec Warranty Expense 506.29
9. General Ledger
In order by Account number. This column is the: This column is the:
Balance Sheet Income Statement
ASSETS:
Account: Checking Account Account #: 1020 Account: Fan Revenue Account #: 4000
Balance Balance
Date Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 68,126.61 11/30 Beg Bal 454,315.00
12/1 730.74 67,395.87 12/3 7,840.00 462,155.00
12/5 710.00 66,685.87 12/8 13,685.00 475,840.00
12/7 5,760.41 60,925.46 12/9 10,456.25 486,296.25
12/8 10,500.00 71,425.46 12/14 6,720.00 493,016.25
12/8 2,800.00 68,625.46 12/31 closing 493,016.25 0.00
12/10 970.20 67,655.26 0.00
12/15 7,683.20 75,338.46
12/15 3,068.69 72,269.77
12/15 1,522.92 70,746.85 Account: Interest Revenue Account #: 4010
12/19 13,411.30 84,158.15 Balance
12/20 3,534.30 80,623.85 Date Explanation Debit Credit Debit Credit
12/22 8,622.08 72,001.77 11/30 Beg Bal 0.00
12/24 10,818.50 82,820.27 12/31 144.68 144.68
12/26 3,172.75 85,993.02 12/31 Adjustment 3.60 148.28
12/30 400.00 85,593.02 12/31 closing 148.28 0.00
12/31 1,045.00 84,548.02 0.00
12/31 560.00 83,988.02
12/31 860.00 83,128.02
12/31 8,000.00 75,128.02 Account: Sales Returns and Allowances Account #: 4050
12/31 5,371.29 69,756.73 Balance
12/31 Interest on Checking 144.68 69,901.41 Date Explanation Debit Credit Debit Credit
12/31 Bank Service Fees 160.00 69,741.41 11/30 Beg Bal 5,200.00
69,741.41 12/23 245.00 5,445.00
69,741.41 12/31 closing 5,445.00 0.00
69,741.41 0.00
69,741.41 0.00
Account: Payroll Checking Account #: 1025
Balance Account: Sales Discounts Account #: 4070
Date Explanation Debit Credit Debit Credit Balance
11/30 Beg Bal 0.00 Date Explanation Debit Credit Debit Credit
12/10 5,760.41 5,760.41 11/30 Beg Bal 8,600.00
12/10 5,760.41 0.00 12/15 156.80 8,756.80
12/22 8,622.08 8,622.08 12/19 273.70 9,030.50
12/22 8,622.08 0.00 12/26 64.75 9,095.25
12/31 0.00 12/31 closing 9,095.25 0.00
0.00 0.00
Account: Cost of Sales Account #: 5000
Account: Petty Cash Account #: 1030 Balance
10. Balance Date Explanation Debit Credit Debit Credit
Date Explanation Debit Credit Debit Credit 11/30 Beg Bal 272,952.00
11/30 Beg Bal 200.00 12/3 5,690.00 278,642.00
200.00 12/8 9,855.00 288,497.00
200.00 12/9 7,350.00 295,847.00
12/14 4,695.00 300,542.00
12/23 140.00 300,402.00
Account: Accounts Receivable Account #: 1100 12/31 Adjustment 308.00 300,710.00
Balance 12/31 closing 300,710.00 0.00
Date Explanation Debit Credit Debit Credit 0.00
11/30 Beg Bal 21,274.75
12/3 7,840.00 29,114.75
12/8 13,685.00 42,799.75 Account: Car Ops and Maintenance Account #: 5750
12/9 10,456.25 53,256.00 Balance
12/14 6,720.00 59,976.00 Date Explanation Debit Credit Debit Credit
12/15 7,840.00 52,136.00 Beg Bal 4,800.00
12/19 13,685.00 38,451.00 12/31 4,800.00 0.00
12/23 245.00 38,206.00 0.00
12/24 10,818.50 27,387.50
12/26 6,475.00 20,912.50
12/31 Write-off Howell Construction 2,318.75 18,593.75 Account: Salary and Wages Expense Account #: 6000
18,593.75 Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 64,550.00
Account: Allowance for Doubtful Accounts Account #: 1150 12/7 7,250.00 71,800.00
Balance 12/22 11,100.00 82,900.00
Date Explanation Debit Credit Debit Credit 12/31 Adjusting Entry 4,439.99 87,339.99
11/30 Beg Bal 2035.00 12/31 87,339.99 0.00
12/31 Howell Construction 2,318.75 -283.75 0.00
12/31 Adjustment 818.38 534.63
534.63
Account: Employer Tax Expense Account #: 6100
Balance
Account: Notes Receivable Account #: 1160 Date Explanation Debit Credit Debit Credit
Balance 11/30 Beg Bal 12,626.15
Date Explanation Debit Credit Debit Credit 12/7 590.63 13,216.78
11/30 Beg Bal 0.00 12/22 899.55 14,116.33
12/26 3,237.50 3,237.50 12/31 Adjusting Entry 375.66 14,491.99
3,237.50 12/31 14,491.99 0.00
3,237.50 0.00
Account: Interest Receivable Account #: 1165 Account: Telephone Utilities Expense Account #: 6300
Balance Balance
Date Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00 11/30 Beg Bal 6,000.00
12/31 Adjustment 3.60 3.60 12/10 500.00 6,500.00
3.60 12/10 210.00 6,710.00
12/24 6,710.00
12/31 6,710.00 0.00
11. Account: Office Supplies Account #: 1170 0.00
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 6,520.00 Account: Office Supplies Expense Account #: 6450
12/31 Adjustment 6,445.00 75.00 Balance
75.00 Date Explanation Debit Credit Debit Credit
75.00 11/30 Beg Bal 0.00
75.00 12/31 168.00 168.00
12/31 Adjusting Entry 6,445.00 6,613.00
12/31 6,613.00 0.00
Account: Fan Inventory Account #: 1200 0.00
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 30,752.00 Account: Travel Expense Account #: 6700
12/1 980.00 31,732.00 Balance
12/1 1,848.00 33,580.00 Date Explanation Debit Credit Debit Credit
12/1 3,570.00 37,150.00 11/30 Beg Bal 20,100.00
12/1 1,100.00 38,250.00 12/31 1,095.00 21,195.00
12/3 5,690.00 32,560.00 12/31 21,195.00 0.00
12/4 349.00 32,211.00 0.00
12/8 9,855.00 22,356.00 0.00
12/9 7,350.00 15,006.00
12/10 9.80 14,996.20
12/12 7,600.00 22,596.20 Account: Postage and Freight Account #: 6800
12/14 4,695.00 17,901.20 Balance
12/15 31.08 17,870.12 Date Explanation Debit Credit Debit Credit
12/20 35.70 17,834.42 11/30 Beg Bal 6,000.00
12/23 140.00 17,974.42 12/31 157.00 6,157.00
12/31 770.00 18,744.42 12/31 6,157.00 0.00
12/31 Adjustment 308.00 18,436.42 0.00
18,436.42
18,436.42
18,436.42 Account: Depreciation Expense Account #: 6850
Balance
Date Explanation Debit Credit Debit Credit
Account: Prepaid Expenses Account #: 1400 11/30 Beg Bal 0.00
Balance 12/8 3,250.00 3,250.00
Date Explanation Debit Credit Debit Credit 12/31 Adjusting Entry 14,514.00 17,764.00
11/30 Beg Bal 10,800.00 12/31 17,764.00 0.00
12/31 Adjustment 3,900.00 6,900.00 0.00
6,900.00
6,900.00
6,900.00 Account: Gain/Loss on Sale of Assets Account #: 6950
Balance
Date Explanation Debit Credit Debit Credit
Account: Land Account #: 1500 11/30 Beg Bal 0.00
Balance 12/7 2,970.00 2,970.00
Date Explanation Debit Credit Debit Credit 12/31 2,970.00 0.00
11/30 Beg Bal 40,000.00 0.00
40,000.00 0.00
12. 40,000.00
40,000.00
Account: Interest Expense Account #: 6960
Balance
Account: Building Account #: 1510 Date Explanation Debit Credit Debit Credit
Balance 11/30 Beg Bal 2,659.80
Date Explanation Debit Credit Debit Credit 12/1 482.85 3,142.65
11/30 Beg Bal 150,000.00 12/31 Adjusting Entry 530.12 3,672.77
150,000.00 12/31 3,672.77 0.00
150,000.00 0.00
150,000.00
Account: Professional & Bank Service Fees Account #: 6975
Account: Accum Dep - Building Account #: 1511 Balance
Balance Date Explanation Debit Credit Debit Credit
Date Explanation Debit Credit Debit Credit 11/30 Beg Bal 0.00
11/30 Beg Bal 8750.00 12/31 400.00 400.00
12/31 Adjustment 3,500.00 12250.00 12/31 160.00 560.00
12250.00 12/31 560.00 0.00
12250.00 0.00
Account: Company Cars Account #: 1515 Account: Warranty Expense Account #: 7000
Balance Balance
Date Explanation Debit Credit Debit Credit Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 74,000.00 11/30 Beg Bal 262.84
12/8 24,000.00 50,000.00 12/31 Adjustment 506.29 769.13
12/8 28,000.00 78,000.00 12/31 769.13 0.00
78,000.00 0.00 0.00
78,000.00
Account: Insurance Expense Account #: 7020
Account: Accum Dep - Company Cars Account #: 1516 Balance
Balance Date Explanation Debit Credit Debit Credit
Date Explanation Debit Credit Debit Credit 11/30 Beg Bal 0.00
11/30 Beg Bal 46000.00 12/31 Adjustment 2,700.00 2,700.00
12/8 3,250.00 49250.00 12/31 2,700.00 0.00
12/8 10,530.00 38720.00 0.00
12/31 Adjustment 7,990.00 46710.00
46710.00
Account: Warehouse Expense Account #: 7030
Balance
Account: Office and Shop Equip Account #: 1520 Date Explanation Debit Credit Debit Credit
Balance 11/30 Beg Bal 0.00
Date Explanation Debit Credit Debit Credit 12/31 Adjustment 1,200.00 1,200.00
11/30 Beg Bal 8,400.00 12/31 1,200.00 0.00
8,400.00 0.00
8,400.00
8,400.00
8,400.00 Account: Bad Debt Expense Account #: 7040
13. Balance
Date Explanation Debit Credit Debit Credit
Account: Accum Dep - Office and Shop Equip Account #: 1521 11/30 Beg Bal 0.00
Balance 12/31 Adjustment 818.38 818.38
Date Explanation Debit Credit Debit Credit 12/31 818.38 0.00
11/30 Beg Bal 840.00 0.00
12/31 Adjustment 3,024.00 3864.00
3864.00 Account: Income Summary Account #:
3864.00 Balance
3864.00 Date Explanation Debit Credit Debit Credit
12/31 revenue 493,164.53 493,164.53
12/31 expenses 493,011.51 153.02
LIABILITIES: 12/31 net income 153.02 0.00
Account: Accounts Payable Account #: 2000 0.00 0.00
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
12/1 980.00 980.00
12/1 1,848.00 2828.00
12/1 3,570.00 6398.00
12/1 1,100.00 7498.00
12/4 294.00 7204.00
12/4 55.00 7149.00
12/10 980.00 6169.00
12/12 7,600.00 13769.00
12/15 1,554.00 12215.00
12/20 3,570.00 8645.00
12/31 1,045.00 7600.00
12/31 770.00 8370.00
8370.00
8370.00
8370.00
8370.00
Account: Warranty Payable Account #: 2010
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 262.84
12/31 Adjustment 506.29 769.13
769.13
Account: Interest Payable Account #: 2020
Bal ance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
12/31 Adjustment 530.12 530.12
530.12
14. Account: Short Term Notes Payable Account #: 2100
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
0.00
0.00
0.00
0.00
Account: Salary and Wages Payable Account #: 2300
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
12/7 5,760.41 5760.41
12/7 5,760.41 0.00
12/22 8,622.08 8622.08
12/22 8,622.08 0.00
12/31 Adjusting Entry 3,685.68 3685.68
12/31 3685.68
3685.68
Account: Federal Income Taxes Payable Account #: 2330
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 1454.53
12/7 934.96 2389.49
12/15 1,454.53 934.96
12/22 1,628.77 2563.73
12/31 2,563.73 0.00
12/31 Adjusting Entry 414.65 414.65
414.65
Account: Social Security Taxes Payable Account #: 2335
Balance `
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 1308.20
12/7 899.00 2207.20
12/15 1,308.20 899.00
12/22 1,376.40 2275.40
12/31 2,275.40 0.00
12/31 Adjusting Entry 550.56 550.56
550.56
Account: Medicare Taxes Payable Account #: 2337
Balance
15. Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 305.96
12/7 210.26 516.22
12/15 305.96 210.26
12/22 321.90 532.16
12/31 532.16 0.00
12/31 Adjusting Entry 128.76 128.76
128.76
Account: FUTA Payable Account #: 2340
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 168.00
12/7 6.00 174.00
12/22 8.40 182.40
12/31 Adjusting Entry 6.00 188.40
188.40
Account: SUTA Payable Account #: 2360
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
12/10 30.00 30.00
12/22 42.00 72.00
12/31 Adjusting Entry 30.00 102.00
102.00
Account: L/T Notes Payable Account #: 2700
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 0.00
12/1 25,200.00 25200.00
25200.00
25200.00
25200.00
Account: Mortgage Payable Account #: 2800
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 115884.21
12/1 247.89 115636.32
16. 115636.32
115636.32
115636.32
Owners Equity:
Account: Joe Black, Capital Account #: 3920
Balance
Date Explanation Debit Credit Debit Credit
11/30 Beg Bal 270500.41 *** when u close the Income summary out you are going
12/31 net income 153.02 270653.43 to close it out to the capital acct (or retained earnings) you
12/31 closing withdrawls 96,000.00 174653.43 will list a credit entry here to match the debit entry from
174653.43 the income summary.
174653.43
19. Mortgage Amortization Schedule
Beginning Principal: $125,000.00
Interest Rate: 0.05
Payment Amount: ($730.74)
Payment Running
Pay # Amount Interest Principal Balance
Jul, 2004 $125,000.00
Aug $730.74 520.83 209.90 124,790.10
Sep $730.74 519.96 210.78 124,579.32
Oct $730.74 519.08 211.66 124,367.66
Nov $730.74 518.20 212.54 124,155.12
Dec $730.74 517.31 213.42 123,941.70
Jan, 2005 $730.74 516.42 214.31 123,727.38
Feb $730.74 515.53 215.21 123,512.18
Mar $730.74 514.63 216.10 123,296.07
Apr $730.74 513.73 217.00 123,079.07
May $730.74 512.83 217.91 122,861.16
Jun $730.74 511.92 218.82 122,642.34
Jul $730.74 511.01 219.73 122,422.62
Aug $730.74 510.09 220.64 122,201.97
Sep $730.74 509.17 221.56 121,980.41
Oct $730.74 508.25 222.49 121,757.92
Nov $730.74 507.32 223.41 121,534.51
Dec $730.74 506.39 224.34 121,310.17
Jan, 2006 $730.74 505.46 225.28 121,084.89
Feb $730.74 504.52 226.22 120,858.67
Mar $730.74 503.58 227.16 120,631.51
Apr $730.74 502.63 228.11 120,403.41
May $730.74 501.68 229.06 120,174.35
Jun $730.74 500.73 230.01 119,944.34
Jul $730.74 499.77 230.97 119,713.37
Aug $730.74 498.81 231.93 119,481.44
Sep $730.74 497.84 232.90 119,248.54
Oct $730.74 496.87 233.87 119,014.67
Nov $730.74 495.89 234.84 118,779.83
Dec $730.74 494.92 235.82 118,544.01
Jan, 2007 $730.74 493.93 236.80 118,307.20
Feb $730.74 492.95 237.79 118,069.41
Mar $730.74 491.96 238.78 117,830.63
Apr $730.74 490.96 239.78 117,590.85
May $730.74 489.96 240.78 117,350.08
Jun $730.74 488.96 241.78 117,108.30
Jul $730.74 487.95 242.79 116,865.51
Aug $730.74 486.94 243.80 116,621.71
Sep $730.74 485.92 244.81 116,376.90
Oct $730.74 484.90 245.83 116,131.07
Nov $730.74 483.88 246.86 115,884.21
Dec $730.74 482.85 247.89 115,636.32
20. PAYROLL REGISTER for December 7.
Cumul EARNINGS TAXES
Employee YTD Other Net
Name Earnings Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay
Fred Smythe 10150 1000 3650 4650 644.28 288.30 67.43 3650.00
Stan Redstone 34500 1250 600 1850 255.28 114.70 26.83 1453.19
Jan Brown 0 750 750 35.40 46.50 10.88 657.23
Emma Black 16500
0.00 7250.00 934.96 449.50 105.13 0.00 5760.41
PAYROLL REGISTER for Dec 22
Cumul EARNINGS TAXES
Employee YTD Other Net
Name Earnings Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay
Fred Smythe 14800 1000 900 1900 118.05 117.80 27.55 1636.60
Stan Redstone 36350 1250 3600 4850 1050.20 300.70 70.33 3428.77
Jan Brown 750 750 300 1050 82.90 65.10 15.23 886.78
Emma Black 16500 3300 3300 377.62 204.60 47.85 2669.94
8100.00 11100.00 1628.77 688.20 160.95 0.00 8622.08
INDIVIDUAL PAYROLL RECORD FOR:
INDIVIDUAL PAYROLL RECORD FOR: Fred Smythe
Hired: 10/1/2007
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings
Oct 1 - Oct 31 2000.00 2500.00 4500.00 606.78 279.00 65.25 3548.97 4500.00
Nov 1 - Nov 30 2000.00 3650.00 5650.00 894.28 350.30 81.93 4323.50 10150.00
Dec 7 1000.00 3650.00 4650.00 644.28 288.30 67.43 3650.00 14800.00
Dec 22 1000.00 900.00 1900.00 118.05 117.80 27.55 1636.60 16700.00
6000.00 9800.00 900.00 16700.00 2263.39 1035.40 242.15 0.00 13159.06
21. INDIVIDUAL PAYROLL RECORD FOR: Stan Redstone
Other Cumulative
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings
Jan 1 - Sep 30 22500.00 8550.00 31050.00 4036.50 1925.10 450.23 24638.18 31050.00
Oct 1 - Oct 31 2500.00 950.00 3450.00 448.50 213.90 50.03 2737.58 34500.00
Nov 1 - Nov 30 2500.00 900.00 3400.00 442.00 210.80 49.30 2697.90 37900.00
Dec 7 1250.00 600.00 1850.00 255.28 114.70 26.83 1453.19 39750.00
Dec 22 1250.00 3600.00 4850.00 1050.20 300.70 70.33 0.00 3428.77 44600.00
30000.00 11000.00 3600.00 44600.00 6232.48 2765.20 646.70 0.00
INDIVIDUAL PAYROLL RECORD FOR: Emma Black
Other Cumulative
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings
Jan 1 - Sep 30 13500.00 13500.00 1064.24 837.00 195.75 11403.01 13500.00
Oct 1 - Oct 31 1500.00 1500.00 118.25 93.00 21.75 1267.00 15000.00
Nov 1 - Nov 30 1500.00 1500.00 118.25 93.00 21.75 1267.00 16500.00
Dec 7 16500.00
Dec 22 3300.00 3300.00 377.62 204.60 47.85 2669.94 19800.00
16500.00 0.00 3300.00 19800.00 1678.36 1227.60 287.10 0.00
22. INDIVIDUAL PAYROLL RECORD FOR: Jan Brown
Hired: 12/1/07
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings
Jan 1 - Sep 30
Oct 1 - Oct 31
Nov 1 - Nov 30
Dec 7 750.00 750.00 35.40 46.50 10.88 657.23 750.00
Dec 22 750.00 300.00 1050.00 82.90 65.10 15.23 886.78 1800.00
1500.00 0.00 300.00 1800.00 118.30 111.60 26.10 0.00
INDIVIDUAL PAYROLL RECORD FOR: Joe Black
SS# 573-38-4729
Other Cumulative
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay Earnings
Jan 1 - Sep 30
Oct 1 - Nov 30
Week 3
Payroll Summary - Quarterly Summary of earnings and tax for 4th quarter.
Pay Period Regular Commission Other Gross FITW Soc Sec Medicare FUTA SUTA
Smythe 6000.00 9800.00 900.00 16700.00 2263.39 1035.40 242.15 56.00 280.00
Stan Redstone 7500.00 2450.00 3600.00 13550.00 2195.98 840.10 196.48 0.00
Emma Black 3000.00 0.00 3300.00 6300.00 614.12 390.60 91.35 0.00
Jan Brown 1500.00 0.00 300.00 1800.00 118.30 111.60 26.10 8.40 30.00
18000.00 12250.00 8100.00 38350.00 5191.79 2377.70 556.08 64.40 310.00
Week 4
23. PAYROLL REGISTER for Adjusting Entry
(In Practice the indivdiual records would be updated. Not required for this case)
Cumul EARNINGS TAXES
Employee YTD Other Net
Name Earnings Regular Commission Other Gross FITW Soc Sec Medicare Deductions Pay
24. Payroll Journal for Pleasant Breeze Fan Company
REQUIREMENT #1:
Prepare journal entries to record the December 22 payroll transactions in the Journal below.
1. Prepare the payroll forms
2. Total the paychecks for the payday.
3. In the general journal prepare a journal entry to fund the payroll checking account.
General Journal
Date Description(Account Name) Debit Credit
7-Dec Salary / Wages Expense 7250.00
Fed Income Tax With Payable 934.96
Social Security Taxes Payable 449.50
Medicare Taxes Payable 105.13
Salary / Wages Payable 5760.41
Record payroll
Payroll Checking 5760.41
Checking 5760.41
Transfer cash to payroll checking acct.
Salary / Wages Payable 5760.41
Payroll Checking 5760.41
Issue paychecks
Employer Tax Expense 590.63
Social Security Taxes Payable 449.50
Medicare Taxes Payable 105.13
FUTA Payable 6.00
SUTA Payable 30.00
Record employer tax liabilities
22-Dec Salary / Wages Expense 11100.00
Fed Income Tax With Payable 1628.77
Social Security Taxes Payable 688.20
Medicare Taxes Payable 160.95
Salary / Wages Payable 8622.08
Record payroll
Payroll Checking 8622.08
Checking 8622.08
Transfer cash to payroll checking acct.
Salary / Wages Payable 8622.08
Payroll Checking 8622.08
Issue paychecks
Employer Tax Expense 899.55
Social Security Taxes Payable 688.20
Medicare Taxes Payable 160.95
FUTA Payable 8.40
SUTA Payable 42.00
Record employer tax liabilities
25. REQUIREMENT: Complete the bank reconciliation and aging analysis on the forms below.
Use the journal provided to make any necessary entries for the bank reconciliationand aging analysis.
Pleasant Breeze Fan Company
Bank Reconciliation
Month Ended December 31, 2007
Bank Balance: $81,538.16 Book Balance: $69,756.73
Additions: Additions:
Deposit in Transit 3,172.75 Interest Earned 144.68
Total Additions 3,172.75 144.68
Subtractions: Subtractions:
Check # 1509 970.20 Service Charge 160.00
Check # 1512 3,534.30
Check # 1514 1,045.00
Check # 1515 560.00
Check # 1516 860.00
Check # 1517 8,000.00
Total Subractions 14,969.50 160.00
Adjusted Cash Balance $69,741.41 Adjusted Cash Balance $69,741.41
BANK RECONCILATION ENTRIES
General Journal
Date Descrip(Acct Name) Debit Credit
31-Dec Cash 144.68
Interest Revenue 144.68
31-Dec Service Charges 160.00
Cash 160.00
DON'T FORGET TO UPDATE YOUR LEDGER BALANCES AND THE WORKSHEET FOR THESE JOURNAL ENTRIES.
Pleasant Breeze Fan Company
Aging of Accounts Receivable
Month Ended December 31, 2007
26. Gentle Breeze Inventory Summary
Purchased Sold Beginning Ending
Date Quantity Cost Quantity Cost Units Balance Gentle Breeze 5320.00 1225.00
Beg Bal 152 35.00 152 5320.00 Tropical Wind 10752.00 4998.00
1-Dec 28 35.00 180 6300.00 Santa Ana 9180.00 2907.00
3-Dec 26 35.00 154 5390.00 Light Kits 5500.00 8613.00
8-Dec 70 35.00 84 2940.00 17743.00
9-Dec 25 35.00 59 2065.00 Other Perpetual Inventory Items:
14-Dec 30 35.00 29 1015.00 Thomas Freight 770.00
26-Dec -4 35.00 33 1155.00 Purchase Discounts -9.80
Correct Inventory 33 1155.00 -31.08
31-Dec 2 35.00 35 1225.00 -35.70
Total Other Items 693.42
Tropical Wind Total Inventory 30752.00 18436.42
Purchased Sold
Date Quantity Cost Quantity Cost Units Balance
Beg Bal 256 42.00 256 10752.00
1-Dec 44 42.00 300 12600.00
3-Dec 85 42.00 215 9030.00
4-Dec -7 42.00 208 8736.00
8-Dec 55 42.00 153 6426.00
14-Dec 30 42.00 123 5166.00
Correct Inventory 123 5166.00
31-Dec 4 42.00 119 4998.00
Santa Ana
Purchased Sold
Date Quantity Cost Quantity Cost Units Balance
Beg Bal 180 51.00 180 9180.00
1-Dec 70 51.00 250 12750.00
8-Dec 60 51.00 190 9690.00
9-Dec 100 51.00 90 4590.00
14-Dec 30 51.00 60 3060.00
Correct Inventory 60 3060.00
31-Dec 3 51.00 57 2907.00
Light Kits
Purchased Sold
Date Quantity Cost Quantity Cost Units Balance
30-Nov 500 11.00 500 5500.00
1-Dec 100 11.00 600 6600.00
3-Dec 110 11.00 490 5390.00
4-Dec -5 11.00 485 5335.00
8-Dec 185 11.00 300 3300.00
9-Dec 125 11.00 175 1925.00
12-Dec 800 9.50 975 9525.00
14-Dec 90 9.50 885 8670.00
Correct Inventory 8670.00
31-Dec 6 9.50 879 8613.00
Journal any necessary changes on the Adjusting Entries Journal
Any corrections use the active cost layer for the cost at December 31.
27. Financial Records for Depreciation Tax Records for Depreciation
Asset: Land Depreciation Method: Asset: Land Depreciation Method:
Est. Useful Life: Est. Useful Life:
Cost: 40000 Expect Salvage: Cost: 40000 Expect Salvage:
Date in Depreciation Accumulated Book Date in Depreciation Accumulated Book
Service Expense Depreciation Value Service Expense Depreciation Value
7/1/2004 40,000.00 7/1/2004 40,000.00
Asset: Building Depreciation Method: Straight line Asset: Building Depreciation Method: Mid Month Convention
Est. Useful Life: 39 Est. Useful Life: 39
Cost: 150000 Expect Salvage: 13500 Cost: 150000 Expect Salvage: 13500
Date in Depreciation Accumulated Book Date in Depreciation Accumulated Book
Service Expense Depreciation Value Service Expense Depreciation Value
7/1/2004 150,000.00 7/1/2004 150,000.00
12/31/2004 1,750.00 1,750.00 148,250.00 12/31/2004 1,765.50 1,765.50 148,234.50
12/31/2005 3,500.00 5,250.00 144,750.00 12/31/2005 3,846.00 5,611.50 144,388.50
12/31/2006 3,500.00 8,750.00 141,250.00 12/31/2006 3,846.00 9,457.50 140,542.50
12/31/2007 3,500.00 12,250.00 137,750.00 12/31/2007 3,846.00 13,303.50 136,696.50
Asset: 2004 Toyota Depreciation Method: Units
Est. Useful Life: 120000 miles
Cost: 24000 Salvage: 8400
Date in Depreciation Accumulated Book
Service Expense Depreciation Value
12/6/2004 24,000.00
12/31/2004 260.00 260.00 23,740.00
12/31/2005 3,900.00 4,160.00 19,580.00
12/31/2006 3,120.00 7,280.00 16,720.00
12/8/2007 3,250.00 10,530.00 13,470.00
Asset: 2005 Nissan Depreciation Method: Units
Est. Useful Life: 120000 miles
Cost: 25000 Salvage: 7000
Date in Depreciation Accumulated Book
Service Expense Depreciation Value
12/1/2005 25,000.00
12/31/2005 450.00 450.00 24,550.00
12/31/2006 4,800.00 5,250.00 19,750.00
12/31/2007 2,400.00 7,650.00 17,350.00
Asset: 2006 PT Cruiser Depreciation Method: Units
Est. Useful Life: 100000
Cost: 25000 Salvage: 5000
Date in Depreciation Accumulated Book
Service Expense Depreciation Value
12/18/2006 25,000.00
12/31/2007 4,400.00 4,400.00 20,600.00
Asset: 2007 Honda Depreciation Method: Units Asset: 2007 Honda Depreciation Method: MACRS Half Year
Est. Useful Life: 120000 miles Est. Useful Life: 5
Cost: 28000 Expect Salvage: 11200 Cost: 28000 Expect Salvage: 11200
Date in Depreciation Accumulated Book Date in Depreciation Accumulated Book
Service Expense Depreciation Value Service Expense Depreciation Value
12/8/2007 28,000.00 12/8/2007 28,000.00
12/31/2007 1,190.00 1,190.00 26,810.00 12/31/2007 3,060.00 3,060.00 24,940.00
Asset: Office/Shop Equip Depreciation Method: DDB Asset: Office/Shop Equip Depreciation Method: MACRS Half Year
Est. Useful Life: 5 Est. Useful Life: 5
Cost: 8400 Salvage: 2000 Cost: 8400 Salvage: 2000
Date in Depreciation Accumulated Book Date in Depreciation Accumulated Book
Service Expense Depreciation Value Service Expense Depreciation Value
9/26/2006 8,400.00 9/26/2006 8,400.00
12/31/2006 840.00 840.00 7,560.00 12/31/2006 1,680.00 1,680.00 6,720.00
12/31/2007 3,024.00 3,864.00 3,696.00 12/31/2007 2,688.00 4,368.00 4,032.00