Omnis Mus Problem Senior 3 (--> use with OMBASE03.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 $525.42 for previously accrued expense payable (account 20200).
1b. Reimbursed the Petty Cash fund $58.25 for a Miscellaneous expense (account 80400).
1c. Sold Treasury Stock having a cost of $2,000 for $1,500 cash.
1d. Received $500 cash for advising a customer.
1e. Declared a cash dividend of $1,000.00, 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 $58.30
1008 $76.54
1009 $28.00
1010 $69.75
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: Swan Games (12144)
Date: 6/12
Order type: phone
Items:
30 3023469877 Molly's Bridge
40 4655412007 Bridge Assistant
26 7800100100 Omar'sBridge
30 8077680800 Network Bridge
Order number 1012
Customer: Game Village (12142)
Date: 6/12
Order type: fax
Items:
100 2090515010 BridgeChamp
60 4098048900 CheckerBrain
40 5400922555 SpaceBridge
Order number 1013
Customer: Baron Games (12137)
Date: 6/12
Order Type: email
Items:
100 1713620500 BridgeBrain
100 2044590910 BetterBridge
Order number 1014
Customer: GameLady (12134)
Date: 6/12
Order Type: mail
Items:
40 6055044500 ValueBridge
100 6088805600 VisualBridge
24 6088806500 VisualChess
40 7034554666 Bridge Mus
Order number 1015 is for a new customer.
Before entering order 1015, close the orders form and open the accounts
receivable ledger. Add the new account as follows:
Account: 12150
Company: SpendMor
Street: 2000 Star St
City: Aliquippa
State: PA
Zip Code: 18075
Order number 1015
Customer: SpendMor (12150)
Date: 6/12
Order Type: email
Items:
30 1346720000 BridgeKnight
20 1521290900 PakMan Trilogy
20 1713620500 BridgeBrain
4. Receipts on Account
Open the Receipts on Account form.
a: Enter the following receipts.
Number: 1009
Customer: 12128 Nando's Funhouse
Date: 6/12
Credit: 250.00
Cash: 2,100.00
Number: 1010
Customer: 12142 Game Village
Date: 6/12
Credit: 175.49
Cash: 4,200.00
Number: 1011
Customer: 12131 Queen's
Date: 6/12
Credit: 0.00
Cash: 1,549.75
Number: 1012
Customer: 12137 Baron Games
Date: 6/12
Credit: 1,000.00
Cash: 6,000.00
Number: 1013
Customer: 12144 Swan Games
Date: 6/12
Credit: 0.00
Cash: 2,152.00
Number: 1014
Customer: 12135 Zap!
Date: 6/12
Credit: 10.86
Cash: 2,000.00
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: 20225 Best Bytes
Due date: 7/12
Invoice: 18900
Amount: 1,500.00
Freight: 50.00
Number 1008
Vendor: 20445 V's
Due date: 7/12
Invoice: 12322
Amount: 2,000.00
Freight: 100.00
Number 1009
Vendor: 50332 Electric House
Due date: 7/12
Invoice: 50098
Amount: 8,000.00
Freight: 250.00
Number 1010
Vendor: 54009 Pete's
Due date: 7/12
Invoice: j789
Amount: 502.00
Freight: 15.52
Number 1011
Vendor: 99444 PC Resources
Due date: 7/12
Invoice: g556
Amount: 4,500.00
Freight: 210.00
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 99444 PC Resources
Date 6/12
Credit 105.00
Cash 4,605.00
Number 1008
Vendor 83554 Card Games, Inc.
Date 6/12
Credit 0.00
Cash 1,783.00
Number 1009
Vendor 50332 Electric House
Date 6/12
Credit 250.00
Cash 4,000.00
Number 1010
Vendor 45098 Game Bits
Date 6/12
Credit 0.00
Cash 698.00
Number 1011
Vendor 08342 Bridgemeisters
Date 6/12
Credit 25.00
Cash 1,000.00
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 $102.39
1012 $ 75.49
1013 $212.55
1014 $122.25
1015 $ 45.00
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. Write-off of Account Balance
Customer 12102 has declared bankruptcy.
The company uses the allowance method of accounting for bad debts expense. Use the following procedure to write-off customer 12102's account balance on June 12.
1st: to reduce the account balance to zero open the Receipts on Account journal and enter a 'receipt' from customer 12102 by entering the entire balance due as the credit amount (cash received is 0).
Post the Receipts journal.
This reduces the balance in the Accounts Receivable subsidiary ledger to zero and also updates the general journal (for this particular item) as follows:
Increase (debit) 60009 Sales Returns & Allowances xxx
Decrease (credit) 10200 Accounts Receivable xxx
A 2nd entry is then made in the general journal to reclassify the Increase (debit) to account 60009 Sales Returns & Allowances
Format for second (general journal) entry:
Decrease (credit) 60009 Sales Returns & Allowances xxx
Increase or Decrease another account to balance xxx
(Choose the other account as you think appropriate.)
When the complete second entry is posted, the effect to 60009 Sales Returns & Allowances is reversed, and the decrease in Accounts Receivable has been reclassified in the general ledger as appropriate to the write-off.
9. Enter the following transactions in the general journal.
All of the following may be dated June 30
9a. Record the payroll for the month:
Salaries expense $16,750
Accrued Payroll $11,750
Accrued Payroll-Taxes $3,250
Accrued Payroll-Other $1,750
9b. The employer's Payroll Tax expense is 12% of gross salaries expense. Increase Accrued Payroll-Taxes.
9c. Bank Reconciliation
The company received a bank statement on June 30.
Reconciliation to the cash account determined these items:
Bank Service Charge, $50.35
Deposit in Transit, $500.00
Outstanding Checks, $300.00
Insufficient funds (NSF) check returned by bank, $4,000.00
Use account 80400 (Miscellaneous expense) to record the Bank Service Charge.
The NSF check was the cash amount recorded in receipt number 1003 in the Receipts on Account journal. Long-time customer 12118 (Polycarpou) was contacted on June 30 and promised to send another check in 10 days.
To restate this receivable, open the Receipts on Account journal and reverse receipt number 1003.
9d. Aging analysis was performed to estimate bad debts expense. There should be a $2,000 allowance for bad accounts as of June 30.
9e. 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 $10,000 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.
9f. The truck was purchased on January 1, and is being depreciated on the sum-of-the-years method of depreciation. It has a 4 year life and $1,000 estimated salvage value. Compute depreciation expense for the first (full) year; then enter 50% of this amount as depreciation expense for the 6 months ending June 30.
9g. Sale of Asset
The computer system (account 10520) was purchased 1 1/2 years ago on January 1. It has been depreciated using the straight-line method with a $1,000 salvage value and a 5 year useful life.
The computer system was sold on June 30 for $3,000.
Add a new general ledger account as follows to record the Loss on Disposal:
Account: 85000
Title: Loss on Disposal
Make the general journal entry to record the disposal.
9h. On April 1 the company paid $2,250 cash for a twelve month insurance policy. The entire $2,250 was recorded as insurance expense. Prepare the appropriate adjusting entry on June 30.
9i. On January 1 the company paid a $1,598 property tax bill for the twelve months ending December 31. The entire $1,598 was recorded as property tax expense. Prepare the appropriate adjusting entry on June 30.
9j. All purchases of supplies were recorded as supplies expense. A physical count shows that there is $6,500 of supplies on hand on June 30.
9k. On January 1 the company paid $4,500 for rent expense for the twelve months ending December 31. The entire $4,500 was recorded as rent expense. Prepare the appropriate adjusting entry on June 30.
9l. The interest rate on the note payable is 8%. Accrue interest expense payable for the 6 month period ending June 30.
9m. $2,184.05 of Unearned Revenue (account 20350) is earned as of June 30. Increase Other Revenue (account 60200).
10. Close Accounts: Prepare Statements
The ending inventory must be estimated.
The company has had an average gross profit equal to 68% of net sales (Sales less Sales Returns and Allowances). Round your computation of ending inventory 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.