Omnis Mus Problem Junior 3 (--> use with JRBASE03.MDB)
General journal entries can be entered using either transaction analysis format or debit credit format. Transaction analysis format is the initial setting. This preference can be changed from the Forms (Main) Menu (click Options), and/or from the keyboard used to input numbers in a general journal transaction (click Format).
1. Enter the following transactions into the general journal.
All of the following may be dated June 12.
1a. Sales billed to customers on account: $35,000
1b. Cash collected from customers on account: $22,200
1c. Accounts receivable from customers was reduced by sales returns and allowances of $1,525
1d. Purchased goods for sale to customers from vendors on account: $31,000
1e. Transportation-in on purchases of goods from vendors: $1,450 (increase accounts payable).
1f. Cash payments to vendors on account: $22,000
1g. Accounts payable to vendors was reduced by purchase returns and allowances of $1,200
1h. A cash payment of $210 for previously accrued expenses. (decrease 20200 Accrued Expenses Payable).
1i. Paid $75 cash for a Miscellaneous expense.
1j. The company uses the allowance method of accounting for bad debts expense. Write-off a customer account balance of $4,000.
2. Enter the following transactions in the general journal.
All of the following may be dated June 30, the company's fiscal year-end.
2a. The company declared a 5% common stock dividend, to be distributed immediately. The market price of the common stock on June 30, the distribution date, was $15.
2b. An aging analysis was performed to estimate bad debts expense. There should be a $2,000 allowance for bad accounts as of June 30.
2c. The property and equipment is being depreciated on the straight-line method of depreciation. It has a 10 year life and $5,000 estimated salvage value. Compute depreciation expense for the year ending June 30.
2d. The preferred stock was issued two years ago on July 1 and is cumulative in nature. No dividends of any type were paid during the previous fiscal year. On June 30, the company declares total cash dividends of $8,000, payable on July 1, to its preferred and common stock. Record the total dividend of $8,000 in account 35009 (Dividends Declared, a contra-equity account). Record the amounts payable in the separate liability accounts 20010 (for preferred) and 20020 (for common).
2e. On April 1 the company paid $800 cash for a twelve month insurance policy. The entire $800 was recorded as insurance expense. Prepare the appropriate adjusting entry on June 30.
2f. On January 1 the company paid a $1,750 property tax bill for the twelve months ending December 31. The entire $1,750 was recorded as property tax expense. Prepare the appropriate adjusting entry on June 30.
2g. All purchases of supplies on hand were recorded as supplies expense. A physical count shows that there is $500 of supplies on hand on June 30.
2h. On January 1 the company paid $2,500 for rent expense for the twelve months ending December 31. The entire $2,500 was recorded as rent expense. Prepare the appropriate adjusting entry on June 30.
2i. The interest rate on the note payable is 10%. Accrue interest expense payable for the 6 month period ending June 30.
2j. Account 60200 (Other Revenue) includes $75 that was received and recorded in advance for a service that has not yet been performed as of June 30.
3. Close Accounts: Prepare Statements
The ending inventory must be estimated. The company has had an average gross profit equal to 35% of net sales. (Round your computation to the nearest dollar.)
Omnis Mus will ask for this figure when you close the accounts.
Open the general ledger, and click Options. Click Close Accounts.
Financial statements may be viewed after closing from the Report form.
Review the financial statements, and correct any errors as necessary. If you make any corrections, then you must Close Accounts again to have the financial statements updated for your corrections.
You may Close Accounts as often as you wish.
PLEASE NOTE:
Post Closing Entries will zero all revenue and expense accounts. Do not Post Closing Entries until you are certain that you are finished with your assignment(s). If in doubt, do not Post Closing Entries. You do NOT have to post Closing Entries to produce financial statements.