Omnis Mus Problem Junior 2 (--> use with JRBASE02.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 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: $80,000
1b. Cash collected from customers on account: $28,400
1c. Accounts receivable from customers was reduced by sales returns and allowances of $2,000
1d. Purchased goods for sale to customers from vendors on account: $50,000
1e. Cash payments to vendors on account: $24,700
1f. Accounts payable to vendors was reduced by purchase returns and allowances of $2,000
1g. Issued 200 shares of common stock for cash of $8 per share.
1h. Purchase of supplies on hand for $250 cash.
1i. Paid $125 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 $1,000.
2. Enter the following transactions in the general journal.
All of the following may be dated June 30.
2a. Record the payroll for the month:
Salaries expense $15,000
Accrued Payroll $12,000
Accrued Payroll-Taxes $2,250
Accrued Payroll-Other $750
2b. The employer's payroll tax expense is 15% of gross salaries expense. Increase accounts 80020 Payroll Taxes expense and 20120 Accrued Payroll-Taxes
2c. An aging analysis was performed to estimate bad debts expense. There should be a $750 allowance for bad accounts as of June 30.
2d. The equipment was purchased 2 1/2 years ago on January 1, and is being depreciated on the double-declining balance method of depreciation. It has a 10 year life and $5,000 estimated salvage value. Compute depreciation expense for the third (full) year; then enter 50% of this amount as depreciation expense for the 6 months ending June 30.
2e. The truck is being depreciated using the straight-line method of depreciation, with a 4 year useful life and $800 estimated salvage value. Compute depreciation expense for the 6 months ending June 30.
2f. The estimate of supplies on hand at June 30 is $200.
2g. The prepaid insurance account consists of a two year policy that was purchased on January 1, 1 1/2 years ago, for $1,600. Record insurance expense for the 6 month period ending June 30.
2h. The interest rate on the note payable is 6%. Accrue interest expense for the 6 month period ending June 30.
2i. Accrue the following expenses.
Increase account 20200 Accrued Expense for each of these items. If an expense has a prepaid balance, properly reflect the reduction of the prepaid balance in your journal entry.
2i1: Advertising expense $500
2i2: Rent expense $1,500
2i3: Utilities expense $950
2j. Declared a cash dividend of $1 per share of common stock, payable July 31. (35009 Dividends Declared is a contra-equity account)
3. Close Accounts: Prepare Statements
The ending inventory cost must be estimated. The company has had an average gross profit equal to 40% of net sales.
Omnis Mus will ask you to enter 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.