Omnis Mus Problem Junior 4 (--> use with JRBASE04.MDB)
(Sole Proprietor, Doe)
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: $62,000
1b. Cash collected from customers on account: $48,500
1c. Accounts receivable from customers was reduced by sales returns and allowances of $4,500
1d. Purchased goods for sale to customers from vendors on account: $32,800
1e. Transportation-in on purchases of goods from vendors: $950 (increase accounts payable)
1f. Cash payments to vendors on account: $38,200
1g. Accounts payable to vendors was reduced by purchase returns and allowances of $4,500
1h. The owner, Doe, invested an additional $2,500 cash in the business.
1i. Purchase of supplies on hand for $500 cash.
1j. The owner, Doe, withdrew $500 of cash from the business.
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 $12,000
Accrued Payroll $9,000
Accrued Payroll-Taxes $2,000
Accrued Payroll-Other $1,000
2b. The employer's payroll tax expense is 10% of gross salaries expense. Increase accounts 80020 Payroll Taxes expense and 20120 Accrued Payroll-Taxes
2c. $300 of Unearned Revenue (account 21000) is earned as of June 30. Increase Other Revenue (account 60200).
2d: Depreciation expense for the month: $525
2e. An aging analysis was performed to estimate bad debts expense. There should be a $3,000 allowance for bad accounts as of June 30.
2f. Supplies on hand were counted and found to be $2000 at June 30.
2g. Accrue the following expenses.
Increase account 20200 Accrued Expense Payable for each of these items. If an expense has a prepaid balance, properly reflect the reduction of the prepaid balance in your journal entry.
2g1: Rent expense $2,500
2g2: Interest expense $360
2g3: Utilities expense $700
2g4: Miscellaneous expense $200
2g5: Insurance expense $250
3. Close Accounts: Prepare Statements
The cost of the ending inventory is $37,500.
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.
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.