Problem Senior 2

Omnis Mus Problem Senior 2 (--> use with OMBASE02.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. A cash payment of $225.25 for previously accrued expenses payable.

1b. Purchase of supplies for $1,250 cash.

1c. Sold Treasury Stock having a cost of $2,000 for $2,500 cash.

1d. Received $250 cash for advising a customer.

1e. Declared a cash dividend of $3,000, payable July 31.


2. Order Processing

Open the Orders form. The orders form functions as a sales journal. Orders become sales when the order is shipped and shipping charges are entered into the order.

a: Enter shipping charges for the following orders:

(Click Options, Edit Order in Record mode Shortcut: double-click the shipping field)

1007 $22.00

1008 $15.75

1009 $25.00

1010 $28.75

b: Post Sales (shipped orders)

To post orders, click Options and then click Post.

Only the following orders will be posted:

-Those with shipping charges (meaning that the order is shipped).

-Those not previously posted.

Posting will:

- update the accounts receivable subsidiary ledger

- update the general ledger with summary data.


3. Order Processing - Additional Transactions

Enter the following items into the Orders form.

None of these orders have been shipped.

Order number 1011

Customer: Electric Hobby Shop (12107)

Date: 6/12

Order type: fax

Items:

250 1346720000 BridgeKnight

250 1713620500 BridgeBrain

Order number 1012

Customer: Deuces Wild (12136)

Date: 6/12

Order type: email

Items:

500 4098048900 CheckerBrain

200 6088806500 VisualChess

Order number 1013

Customer: Arrow Electronic (12139)

Date: 6/12

Order Type: mail

Items:

10 6088806500 VisualChess

25 8077680800 Network Bridge

Order number 1014

Customer: Video Boutique (12103)

Date: 6/12

Order Type: phone

Items:

100 0834210205 BridgeGuest

120 8923405000 BridgePrince

Order number 1015

Customer: Bridge Things (12145)

Date: 6/12

Order Type: fax

Items:

250 6088805600 VisualBridge

250 8077680800 Network Bridge

200 9944402033 MasterBridge


4. Receipts on Account

Open the Receipts on Account form.

a: Enter the following receipts.

Number: 1009

Customer: 12143 Gameware

Date: 6/12

Credit: 0.00

Cash: 50.00

Number: 1010

Customer: 12135 Zap!

Date: 6/12

Credit: 0.00

Cash: 2,010.86

Number: 1011

Customer: 12128 Nando's Funhouse

Date: 6/12

Credit: 150.00

Cash: 1,200.00

Number: 1012

Customer: 12120 Wonderful Times

Date: 6/12

Credit: 0.00

Cash:770.50

b: Post Receipts

To post receipts, click Options and then click Post.

Posting will:

update the accounts receivable subsidiary ledger

update the general ledger with summary data.

Only receipts not previously posted will be posted.


5. Purchases

Open the Purchases form.

a: Enter the following purchases.

Number: 1007

Vendor: 30234 Hollin Company

Due date: 7/12

Invoice: 456000

Amount: 550.00

Freight: 12.50

Number 1008

Vendor: 45098 Game Bits

Due date: 7/12

Invoice: 3433

Amount: 1,000.00

Freight: 25.00

Number 1009

Vendor: 60888 Kiss Software

Due date: 7/12

Invoice:111

Amount: 250.00

Freight: 10.00

Number 1010

Vendor: 99444 PC Resources

Due date: 7/12

Invoice: 4566

Amount: 1,555.00

Freight: 35.35

b: Post Purchases

To post purchases, click Options and then click Post.

Posting will:

update the accounts payable subsidiary ledger

update the general ledger with summary data.

Only purchases not previously posted will be posted.


6. Payments to Vendors

Open the Payments to Vendors form.

a: Enter the following payments.

Number 1007

Vendor 08342 Bridgemeisters

Date 6/12

Credit 0.00

Cash 1,025.00

Number 1008

Vendor 15212 SpaceCat

Date 6/12

Credit 38.00

Cash 650.00

Number 1009

Vendor 45098 Game Bits

Date 6/12

Credit 0.00

Cash 698.00

Number 1010

Vendor 23312 Fine Programs

Date 6/12

Credit 280.00

Cash 5,500.00

b: Post Payments

To post payments, click Options and then click Post.

Posting will:

update the accounts payable subsidiary ledger

update the general ledger with summary data.

Only payments not previously posted will be posted:


7. Order Processing

Open the Orders form.

a: Enter shipping charges for the following orders:

1011 $19.00

1012 $48.25

1013 $52.00

1014 $18.25

1015 $125.00

b: Post Sales (shipped orders)

To post orders, click Options and then click Post.

Only the following orders will be posted:

-Those with shipping charges (meaning that the order is shipped).

-Those not previously posted.


8. Enter the following transactions in the general journal.

All of the following may be dated June 30

8a. Record the payroll for the month:

Salaries expense $15,000

Accrued Payroll $12,000

Accrued Payroll-Taxes $2,250

Accrued Payroll-Other $750

8b. The employer's payroll tax expense is 10% of gross salaries expense.  Increase Payroll Taxes expense and Accrued Payroll-Taxes

8c. An aging analysis was performed to estimate bad debts expense.  There should be a $2,500 allowance for bad accounts as of June 30.

8d. 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.

8e. The truck was purchased 2 1/2 years ago on January 1, and is being depreciated on the sum-of-the-years method of depreciation.  It has a 4 year life and $2,000 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.

8f. The estimate of supplies on hand at June 30 is $1,250.

8g. The prepaid insurance account consists of a two year policy that was purchased on January 1 of this year. Record insurance expense for the 6 month period ending June 30.

8h. The interest rate on the note payable is 6%. Accrue interest expense for the 6 month period ending June 30.

8i. 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.

8i1. Advertising expense $525.30

8i2. Rent expense $1,500.00

8i3. Utilities expense $875.12

8i4. Miscellaneous expense $75.25

8i5. Shipping expense..$650.20


9. Close Accounts: Prepare Statements

The ending inventory must be estimated. The company has had an average gross profit equal to 35% of net sales (Sales less Sales Returns and Allowances).  (Round your computation to the nearest dollar.)

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.