Omnis Mus Problem Senior A2 (--> 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 $158.25 for previously accrued expenses payable (account 20200).
1b. A cash payment of $22.15 for a Miscellaneous expense (account 80400).
1c. Sold Treasury Stock having a cost of $2,200 for $3,000 cash.
1d. Received $250 cash for advising a customer.
1e. Declared a cash dividend of $1,200.00, 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 $ 34.25
1008 $ 54.20
1009 $ 46.79
1010 $142.36
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: Milly's Gameland (12111)
Date: 6/12
Order: type mail
Items:
60 1521290900 PakMan Trilogy
12 2022521015 MsBridge
100 3023469877 Molly's Bridge
24 6088806500 VisualChess
Order number 1012
Customer: M and M's (12140)
Date: 6/12
Order type: email
Items:
36 1713620500 BridgeBrain
50 2090515010 BridgeChamp
40 4509833100 BridgeStar
200 6055044500 ValueBridge
75 6088806500 VisualChess
Order number 1013
Customer: Game Emporium (12124)
Date: 6/12
Order type: fax
Items:
250 1713620500 BridgeBrain
142 2044590910 BetterBridge
200 2331275000 BridgePawn
240 5400922555 SpaceBridge
460 7034554666 Bridge Mus
Order number 1014
Customer: Playtime (12129)
Date: 6/12
Order type: phone
Items:
50 1346720000 BridgeKnight
125 1713621000 ChessBrain
200 2056988333 MrBridge
200 6088805600 VisualBridge
Order number 1015
Customer: Tillie's Shop (12110)
Date: 6/12
Order type: email
Items:
400 1713620500 BridgeBrain
250 1713621000 ChessBrain
500 4098048900 CheckerBrain
40 7800100100 Omar'sBridge
Order number 1016
Customer: Baron Games (12137)
Date: 6/12
Order type: fax
Items:
60 1346720000 BridgeKnight
60 1521290900 PakMan Trilogy
125 1713620500 BridgeBrain
150 6088806500 VisualChess
Order number 1017 is for a new customer.
Before entering order 1017, close the
orders form and open the accounts receivable
ledger. Add the new account as follows:
(Click Options to add a new account.)
Account: 12150
Company: PayMor
Street: 2000 Fish St
City: Lewisburg
State: PA
Zip Code: 18075
Order number 1017
Customer: PayMor (12150)
Date: 6/12
Order Type: email
Items:
10 1346720000 BridgeKnight
12 1521290900 PakMan Trilogy
20 1713620500 BridgeBrain
4. Purchases
Open the Purchases form.
a: Enter the following purchases.
Number 1007
Vendor: 17136 MollyWare
Due date: 7/12
Invoice: 001234
Amount: 8,000.00
Freight: 146.00
Number 1008
Vendor: 60003 Fred's Games
Due date: 7/12
Invoice: 9025
Amount: 4,602.28
Freight: 26.28
Number 1009
Vendor: 40980 NewWare
Due date: 7/12
Invoice: 123458
Amount: 9,500.00
Freight: 262.35
Number 1010
Vendor: 80776 Bytes are Fun
Due date: 7/12
Invoice: 1616
Amount: 8,456.00
Freight: 210.66
Number 1011
Vendor: 89234 Zig Zag
Due date: 7/12
Invoice: 45002
Amount: 15,025.00
Freight: 460.00
Number 1012
Vendor: 50332 Electric House
Due date: 7/20
Invoice: 43550
Amount: 6,244.00
Freight: 324.20
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.
5. Payments to Vendors
Open the Payments to Vendors form.
a: Enter the following payments.
Number 1007
Vendor: 89234 Zig Zag
Date: 6/18
Credit: 715.00
Cash: 9,000.00
Number 1008
Vendor: 60003 Fred's Games
Date: 6/18
Credit: 28.56
Cash: 4,600.00
Number 1009
Vendor: 23312 Fine Programs
Date: 6/18
Credit: 180.00
Cash: 5,600.00
Number 1010
Vendor: 40980 NewWare
Date: 6/18
Credit: 1,200.00
Cash: 4,600.00
Number 1011
Vendor: 08342 Bridgemeisters
Date: 6/18
Credit: 50.00
Cash: 2,000.00
Number 1012
Vendor: 15212 SpaceCat
Date: 6/18
Credit: 0.00
Cash: 688.00
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:
6. Order Processing
Open the Orders form.
a: Enter shipping charges for the following orders:
1011 $212.29
1012 $340.50
1013 $515.75
1014 $420.65
1015 $220.45
1016 $189.82
1017 $ 25.00
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.
7. Receipts on Account
Open the Receipts on Account form.
a: Enter the following receipts.
Number 1009
Customer: 12111 Milly's Gameland
Date: 6/18
Credit: 275.00
Cash: 12,600.79
Number 1010
Customer: 12124 Game Emporium
Date: 6/18
Credit: 0.00
Cash: 25,000.00
Number 1011
Customer: 12140 M and M's
Date: 6/18
Credit: 639.50
Cash: 15,000.00
Number 1012
Customer: 12137 Baron Games
Date: 6/18
Credit: 301.07
Cash: 27,000.00
Number 1013
Customer: 12129 Playtime
Date: 6/18
Credit: 217.44
Cash: 20,500.00
Number 1014
Customer: 12110 Tillie's Shop
Date: 6/18
Credit: 2,524.50
Cash: 24,400.45
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.
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 21.
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 as follows:
Increase (debit) 60009 Sales Returns & Allowances xxx
Decrease (credit) 10200 Accounts Receivable xxx
2nd: An 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 $14,000
Accrued Payroll $11,000
Accrued Payroll-Taxes $2,250
Accrued Payroll-Other $750
9b. The employer's payroll tax expense is 13% of gross salaries expense. Increase Payroll Taxes expense and Accrued Payroll-Taxes
9c. An aging analysis was performed to estimate bad debts expense. There should be a $2,670 allowance for bad accounts as of June 30.
9d. The equipment 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.
9e. The truck is depreciated on the sum-of-the-years method of depreciation. It has a 5 year life and $4,000 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 estimate of supplies on hand at June 30 is $2,400.
9g. The interest rate on the note payable is 8%. Accrue interest expense for the 6 month period ending June 30.
9h. Purchase of Land
The company purchased land, paying $12,000 cash. In addition, the company paid $500 of delinquent property taxes on the land and also paid title/registration fees of $350, all in cash.
Before entering this transaction, close the general journal and open the general ledger. Add an account as follows:
(Switch to record mode to add a record.)
Account: 12500
Title: Land
Make the general journal entry to record the purchase. Capitalize the appropriate cost; charge miscellaneous expense for any amount(s) that you do not capitalize.
9i. 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.
9i1. Advertising expense $225.50
9i2. Rent expense $1,250.00
9i3. Utilities expense $875.12
9i4. Miscellaneous expense $75.25
9i5. Shipping expense $850.20
9i6 Insurance expense $500.00
10. Close Accounts: Prepare Statements
The ending inventory must be estimated. The company has had an average gross profit equal to 40% of net sales (Sales less Sales Returns & 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.