Please include bank reconciliation and adjusted trial balance

Part One, Two, and Three Instructions Record the September 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 transactions. In the general journal record the transaction number, the date, and the account numbers. After all journal entries are entered into the practice set, enter the adjusting entries. Next, 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 on the normal side of the account. All ending balances should be on the normal side even if the account has a zero balance. After entering the balances into Blackboard, staple the T-Account spreadsheet to the inside back cover of the practice set. 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 7. Transactions Deposit No. Check No. Date Description April Morales met with her lawyer and CPA for advice on starting 1. 9/02/19 the business. They decided that Ms. Morales would organize the business as a corporation. The lawyer told Ms. Morales to register the company name, AHH Boots, with the County of El Paso. In addition, Ms. Morales will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the Comptroller of Public Accounts. 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. Morales set up her accounting system. Ms. Morales opened a business checking account at Wells Fargo 2. Deposit #1 9/02/19 Bank by depositing $40,000. The corporation issued her a stock certificate for 5,000 shares of common stock with no par value. Ms. Morales signed a one-year rental agreement with RIA Realtors for warehouse space. She was required to pay $8,100 for rent for the months of September 1, 2019-December 31, 2019. 3. 9/03/19 Ck #1001 Arranged for a general business liability insurance policy and paid $7,200 to State Farm Insurance. This premium is for twelve months 4. 9/03/19 Ck #1002 coverage. ni Purchased a new computer system that cost $4,500 from Office 9/03/19 5. Mart for use in the business. Ms. Morales signed a 6 month note, 12% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $300. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly. Only record the transaction at this time. Depreciation will be recorded as an adjusting entry. Signed a note payable to borrow $10,000 from Wells Fargo Bank. Interest is 12 % annually and the note is to be repaid with interest in 6. 9/05/19 Deposit #2 twelve months. Interest will be an adjusting journal entry at the end of the month.. 9/05/19 7. Ck # 1003 Paid $12,000 for furniture and fixtures. The estimated service life of these assets is 7 years. The residual (salvage) value is $200. These items will be recorded as Furniture and Fixtures and depreciated accordingly. Depreciation will be an adjusting entry at the end of the month. 8. 9/06/19 Ck #1004 Arranged for Sun City Motors to make the delivery and installation of the computer system and paid the invoice of $600. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. Paid $700 for business cards, flyers, and posters. This will be 9. 9/06/19 Ck #1005 recorded as prepaid advertising. Purchased $10,000 of inventory-BN boots from Betty's Boots on account. The vendor extended credit terms of 2/15, n/30. 10. 9/08/19 11. 9/08/19 Purchased $11,000 of inventory-BLK boots from Sassy Shoes on account. The vendor extended credit terms are 2/15 n/30. 12. 9/13/19 13. 9/14/19 Ms. Morales received and paid the $900 charge from her lawyer. Ck # 1006 AHH Boots is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8.25% sales tax. Ms. Morales will allow major customers to charge their purchases on account. Purchased $500 of office supplies on account. Purchased shipping supplies of $500 for cash. Sold boots to Carly's Crazy Shoes for $8,600 and the sales tax collected is $710. The cost of the brown boots are $2,250 and the cost of the black boots are $2,400. They bought it on account and 14. 9/14/19 15. 9/14/19 16. 9/14/19 Ck # 1007 we will bill them. 17. 9/16/19 18. 9/20/19 Deposit #3 19. 9/22/19 Ck #1008 20. 9/23/19 21. 9/23/19 Deposit #4 22. 9/23/19 Ck #1009 23. 9/23/19Ck #1010 24. 9/23/19 Deposit #5 Purchased additional brown boots on account for $3,500 from Betty's Boots. Credit terms are 2/15, n/30. Recorded internet sales for the first five days of operation Sales totaled $10,000. The sales tax collected totaled $825. The $10,825 was deposited in the bank. The cost of merchandise sold was $3,900 (brown boots cost $3,500; black boots cost $400). Received and paid the $500 invoice for supplies purchased on 9/14/19. Ms. Morales donated two pairs of boots to ChildFund a national children's charity for a fundraiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was put in the fund raiser program. Cost of the brown boots were $250 and the black boots were $200. Ms. Morales considers this an advertising expense. Received payment in full from Carly's Crazy Shoes. The payment was deposited in the bank. Ms. Morales paid her credit card bill for the month. The total was $520 which was for incidentals for the office. Paid for the boots purchased from Sassy Shoes on 9/08/19. Internet and retail sales totaled $12,000 and sales taxes of $990 was collected. The cost of the merchandise sold was $5,700 (Brown boots $4,500; black boots $1,200). The money was deposited in the bank. Paid the balance due to Betty's Boots. There are two invoices; one on 9/8/19 and the other on 9/16/19. Sales of $5,000 was deposited from online customers and $413 of sales tax was collected. The cost of the merchandise was $500 for brown boots and $2,000 for black boots. Received but did not pay the electric bill for the month, $265. Paid the first monthly installment on the computer equipment. The payment amount is $420. Of this amount, $45 is for interest and $375 is for principal. Make the check payable to Office Mart. Recorded internet sales for the last week of the month. Sales of $4,500 were deposited. The cost of the merchandise sold was $2,250 (Brown boots $250; Black boots $2,000). Sales tax collected is $371 Paid all sales tax owed for September to the Comptroller of Public Accounts 25. 9/23/19 Ck #1011 26. 9/25/19 Deposit #6 27. 9/28/19 28. 9/30/19 Ck #1012 29. 9/30/19 Deposit #7 30. 9/30/19 Ck #1013 Declared and paid a cash dividend of $250 to April Morales. 31. 9/30/19 Ck #1014 Once all journal entries are recorded in the practice set, record the nine adjusting journal entries below in the practice set and use September 30, 2019 as the dates for the transactions. The following are the adjusting journal entries for the month of September. Record Adjusting Entries: Record the following month end adjusting entries for the month of September. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent. a. $200 of supplies remained on hand. $50 of shipping supplies remained on hand. $1,200 of wages for the part-time help from Irene's Temp Services for September should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle b. c. these. d. Make the necessary adjusting entries for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. Make the necessary adjusting entry for one month's depreciation for the computer equipment using Straight Line Depreciation. One month of the prepaid insurance has expired. g. One month of the prepaid rent has expired. h. $300 of prepaid advertising remains on hand f. i. Record the interest for the loan The interest on the computer has been recorded in journal entry #28 i. Make sure you prepare the journal entries and the adjusting entries, and write them in the practice set. All T-accounts with the proper balances should be prepared. There is a template of how to set up the T- Accounts in Excel at the end of the practice set. Make surre to include alll accounts even if they have a zero balance and make sure that the zero is on the normal side of the account. Once all the balances are in the T-Accounts and answers have been inputted into Blackboard please staple your T-Account page to the back cover of the practice set. Blackboard Instructions: When entering the journal entries into Blackboard please follow the examples below exactly. Enter each transaction on one line. First the debit and then the credit. Do NOT enter any account names only account numbers, Use Dr for Debit and Cr for Credit with no period. Also 1. please put the cents even if it is zero. See example below: ai Dr 10000 $50,000.00 Cr 39003 $50,000.00 (Debit Account # Amount Credit Account # Amount) Notice that the account numbers do NOT have commas and the dollar amounts have commas and dollar signs and all dollar amounts have the cents even if it is zero. 2. If there is more than one debit enter the debit first with the smallest account number(s) listed first and then the credits with the smallest account number listed first. Make sure that you enter Dr or Cr before each account number. See example below: Dr 12000 $8,000.00 Cr 10000 $1,000.00 Cr 20000 $7000.00 For all sales, list the Sale entry first then the Cost of Goods Sold entry second. The entire entry for both should be on one line. First the sale, as shown below, then the cost of the inventory. 3. Again, put the smallest account number first if there are more than one debit or credit. Dr 10000 $30,000.00 Cr 23300 $500.00 Cr 40000 $29,000.00 Dr 50000 $15,000.00 Cr 12000 $8,000.00 Cr 12100 $7,000.00. Both entries should all be on one line. If there is no journal entry and you only need to put in a number please enter the amount as the dollar amount or as a number as the example below. 4. $15,000.00 or 15,000 When entering the ending balances for the T-Accounts enter the debit or credit first and the amount last. You do not need to enter the account number. See example below. 5. Dr $10,000.00 or Cr $10,000.00 If there is no journal entry to be written please write No JE for no journal entry. See below for example. 6. No JE Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Start by using the ending balance in your cash account for the cash for your books and the ending balance on the bank statement for the bank balance. Requirements 1. Correct Errors: Correct any errors that you made on the iournal entries. Both the debits and the credits must equal each other. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you 3. must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation. 4. Assume that any errors are made by the bank. After preparing the bank reconciliation answer the questions in Blackboard and then staple the 5. bank reconciliation to the inside back cover. Part Five Instru ctions Prepare an Adjusted Trial Balance, then an Income Statement, Statement of Retained Earnings and a Balance Sheet and staple them to the inside front cover of the practice set in the correct order as listed here. These statements should be done in Word or Excel. Wells Fargo Bank Page 1 PO Box 12345 El Paso, Texas 12345-2345 ots 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT ots 09/01/2019 September September 09/30/2019 Balance, beginning $0 $83,125 $30,780 Deposits and other credits Checks and other debits $52,345 Balance on statement date Deposits Added Deposit 1 $40,000 Deposit 2 $10,000 9/20/2019 Deposit 3 $10,825 9/23/2019 Deposit 4 9/28/2019 Deposit 5 $12,990 9/2/2019 9/5/2019 $9.310 Wells Fargo Bank Statement - Checks Paid and other Debits $500 $500 $250 $8,100 1007 $7,200 1008 $12,000 1009 $600 $700 DM $900 1001 1002 1003 1004 Check Printing Fee $30 1005 1006 *Any errors should be assumed to be made by the bank