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Template - Final Assignment-BUS102

The document provides transaction details for a small shoe store called The Shoe Horn for the month of December 2018. It lists various cash receipts, cash payments, purchases, sales, and other transactions. The required tasks are to: 1) Identify the appropriate journal for each transaction, 2) Post transactions to subsidiary ledgers, 3) Total the special journals and post to the general ledger, 4) Prepare an initial trial balance, 5) Make adjusting entries and post to journals, 6) Prepare an adjusted trial balance, and 7) Prepare key financial statements.

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212 views2 pages

Template - Final Assignment-BUS102

The document provides transaction details for a small shoe store called The Shoe Horn for the month of December 2018. It lists various cash receipts, cash payments, purchases, sales, and other transactions. The required tasks are to: 1) Identify the appropriate journal for each transaction, 2) Post transactions to subsidiary ledgers, 3) Total the special journals and post to the general ledger, 4) Prepare an initial trial balance, 5) Make adjusting entries and post to journals, 6) Prepare an adjusted trial balance, and 7) Prepare key financial statements.

Uploaded by

Pranto Saha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ASSIGNMENT

SUMMER 2020
BUS 102

Assume there is a small shoe store in your neighborhood with a single owner. The owner
started the business on December 1, 2018, and sells two types of shoes: a comfortable
sneaker that is something athletes would purchase, and a comfortable dress shoe that
looks dressy but has the comfort of a sneaker. The name of the business is The Shoe
Horn. Following is a list of all transactions that occurred during December 2018.

Jack Simmons, the owner contributed a $500,000 check from his


Dec. 1 personal account, which he deposited into an account opened in the
name of the business, to start the business.
He rented space that had previously been used by a shoe store and
Dec. 1
wrote check no. 100 for $9,000 for the first six month’s rent.
Dec. 2 He paid for installation and phone usage $300 (check no. 101)
He paid for advertising in the local paper $150 (check no. 102). The ads
Dec. 2
will all run in December.
Dec. 2 He purchased $500 of office supplies (check no. 103)
He paid $300 for insurance for three months (December 2018, January
Dec. 3
and February 2019 using check no, 104).
He purchased 800 pairs of sneakers at $40 a pair– on account from Nike
Dec. 4 (using purchase order no. 301). Payment terms were 2/10, net 30.
Assume the shoe store uses the perpetual inventory system.
He purchased 500 pairs of dress shoes from Footwear Corp. on account
Dec. 5 for $20 a pair (using purchase order no. 302). Payment terms were 2/10,
net 30
He made a sale on account of 20 pairs of sneakers at $100 a pair, to a
Dec. 10 local University – Highland University (sales invoice number 2000) for
their basketball team. Payment terms were 2/10 net 30.
He made a sale on account of 2 pairs of dress shoes at $50 a pair (sales
Dec. 11 invoice no. 2001) to a local charity, U.S. Veterans, that intended to raffle
them off at one of their events.
He made a sale on account to The Jenson Group of 300 pairs of dress
Dec. 12 shoes at $50 a pair, to use as part of an employee uniform. Payment
terms were 2/10 net 30.
He made a cash sale for 2 sneakers at $120 each and 1 pair of shoes for
Dec. 14
$60.
Dec. 14 He paid the amount owed to Footwear Corp (check no 105)
Highland University returned 2 pairs of sneakers they had previously
Dec. 17
purchased on account.
He received a check from Highland University in full payment of their
Dec. 18
balance.
He made a cash sale to Charles Wilson of three pairs of sneakers at $120
Dec. 20
each and 1 pair of dress shoes at $60.
Dec. 20 He made a partial payment to Nike for $20,000 (check number 106)
Dec. 23 Received a $400 utility bill which will be paid in January.
Dec. 27 Received a check from The Jenson Group in the amount of $9,000.
Dec. 28 He paid $2,000 of his balance to Nike (check number 107)

Required
1) For each of the transactions listed for the month of December 2018, identify the
journal to which the entry should be recorded. Your possible choices are as
follows: general journal (GJ), cash receipts journal (CR), cash disbursements
journal (CD), sales journal (SJ), or purchases journal (PJ).

2) Open up Accounts Receivable subsidiary ledger accounts for customers and


Accounts Payable subsidiary ledger accounts for vendors. Post each entry to the
appropriate subsidiary ledger on the date the transaction occurred.

3) Total the four special journals, and post from all of them to the general ledger
on the last day of December.

4) Prepare a trial balance

5) Prepare adjusting journal entries based on the following information given,


record the entries in the appropriate journal, and post the entries.

i) There were $100 worth of office supplies remaining at the end of


December.

ii) Make an adjusting entry relative to insurance.

iii) There was an additional bill received in the mail for utilities expense for
the month of December in the amount of $100 that is due by January
10, 2019. Jack Simmons intends to pay it in January.

6) Prepare an adjusted trial balance

7) Prepare an Income statement, Statement of Owner’s Equity, and Balance Sheet.

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