Description
I need help completing the My Place, House of Decor Practice Set. I have attached the instructions and also added the check figures on the last page.
Explanation & Answer
Dear rhperez,Please find enclosed the complete practice set.
Running head: “MY PLACE, HOUSE OF DECOR” PRACTICE SET
“My Place, House of Decor” Practice Set
Name of student
Name of instructor
Course code
Course title
Name of Univesity
Date
1
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
2
January Analysis
Adjusted Trial Balance
1) Trial balance totals
$96000
Schedule of Accounts Receivable
2) Schedule of accounts receivable total
$18000
Income Statement
3) Total revenue for the period (January)
$36000
4) Total expenses
$16840
5) Net income
$19160
Retained Earnings Statement
6) Ending retained earnings amount transferred to balance sheet
$19160
Balance Sheet
7) Total assets as of January 31, 2016
$79160
8) Total liabilities and stockholder’s equity as of January 31, 2016
$66000
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
3
Journal
Date
5
5
5
6
Description
Cash received
Shares issued, $5 each
Property insurance
Rented office and furniture
Post ref
7
7
10
12
Supplies purchase
Advertising
Sales - Roxana Perini
AR – Maribel Thompson
Check 102
Check 103
20
25
Sales - Frederick Mombart
AR – Roberto Andriani
30
30
30
30
30
Adjusting
entry Jan
Adjusting
entry Jan
Utilities bills
Telephone bill
Postage
Automobile expenses
Staff salary
Expired insurance
Supplies on hand
Check 100
Check 101
Credit
60000
6000
6000 (2000
month rent,
2000
deposit,
2000 last
month rent)
1600
7000
10000
(6000 due
on Feb 11)
8000
(12000 due
on Mar 24)
Net 30
Net 60
Check 104
Check 105
Check 106
Check 107
Check 108
Debit
60000
190
300
200
450
5600
500
1000
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
Unadjusted trial balance (January 31st)
Account No.
Account title
1001
Petty cash
1002
Cash-checkings account
1004
Accounts receivable
1005
Allowance for doubtful accounts
1007
Merchandise inventory
1009
Supplies
1011
Prepaid insurance
1013
Prepaid rent
1015
Deposits
2001
Accounts payable
2002
Notes payable (short term)
2003
Accrued salaries
2004
Cash dividends payable
2005
FICA tax payable
2006
SUCA tax payable
2007
FUCA tax payable
2008
WH income tax payable
2009
Income tax payable
2020
Notes payable (long term)
3001
Capital stock
3007
Retained earnings
3008
Cash dividends
3010
Income summary
4001
Decorating fees
4002
Sales – furniture
4003
Sales – discount
4004
Sales – returns and allowances
5001
Cost of merchandise sold
5004
Salaries expense – Administrative
5005
Rent expense
5006
Advertising expense
5007
Automobile expense
5008
Supplies expense
5009
Insurance expense
5010
Utilities expense
5011
Telephone expense
5012
Postage expense
5013
Depreciation expense
5014
Dues and subscriptions expense
5015
Uncollectible accounts expense
5018
Payroll taxes expense
6001
Interest income
7001
Interest expense
8001
Income tax expense
TOTAL
4
Credit
Debit
60000
18000
1600
5500
2000
2000
60000
18000
5600
2000
7000
450
500
190
300
200
96000
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
Adjusted trial balance (January 31st)
Account No.
Account title
1001
Petty cash
1002
Cash-checkings account
1004
Accounts receivable
1005
Allowance for doubtful accounts
1007
Merchandise inventory
1009
Supplies
1011
Prepaid insurance
1013
Prepaid rent
1015
Deposits
2001
Accounts payable
2002
Notes payable (short term)
2003
Accrued salaries
2004
Cash dividends payable
2005
FICA tax payable
2006
SUCA tax payable
2007
FUCA tax payable
2008
WH income tax payable
2009
Income tax payable
2020
Notes payable (long term)
3001
Capital stock
3007
Retained earnings
3008
Cash dividends
3010
Income summary
4001
Decorating fees
4002
Sales – furniture
4003
Sales – discount
4004
Sales – returns and allowances
5001
Cost of merchandise sold
5004
Salaries expense – Administrative
5005
Rent expense
5006
Advertising expense
5007
Automobile expense
5008
Supplies expense
5009
Insurance expense
5010
Utilities expense
5011
Telephone expense
5012
Postage expense
5013
Depreciation expense
5014
Dues and subscriptions expense
5015
Uncollectible accounts expense
5018
Payroll taxes expense
6001
Interest income
7001
Interest expense
8001
Income tax expense
TOTAL
5
Credit
Debit
60000
18000
600
5000
2000
2000
60000
18000
5600
2000
7000
450
500
190
300
200
96000
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
Schedule of accounts receivable (at January 31st)
Name
Due date
Maribel Thompson
Feb 12
Roberto Andriani
Mar 25
6
Debit
6000
12000
Income statement (for the month ended January 31st)
Credit
INCOME
Sales – Roxana Perini
Sales – Frederick Lombart
AR – Maribel Thompson (net 30)
AR – Roberto Andriani (net 60)
Total
EXPENSES
Salaries expense – Administrative
Rent expense
Advertising expense
Automobile expense
Supplies expense
Insurance expense
Utilities expense
Telephone expense
Postage expense
Total
10000
8000
6000
12000
36000
5600
2000
7000
450
600
500
190
300
200
16840
19160
NET INCOME
Retained earnings statement (for the month ended January 31st)
Net income
Dividends payed
Previous retained earnings (December 31th)
Balance sheet (for the month ended January 31st)
Assets
Liabilities & Stock
Cash checkings account
60000
Capital stock
Accounts receivable
18000
Insurance and Gen Liab
Sales
18000
Expenses
-16840
Total assets
79160
Total Liabilities & Stock
Debit
19160
0
0
60000
6000
66000
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
7
February Analysis
Adjusted Trial Balance
1) Trial balance totals
$122600
Schedule of Accounts Receivable
2) Schedule of accounts receivable total
$15500
Income Statement
3) Total revenue for the period (two months, ended February 28th)
$62600
4) Total expenses (two months, ended February 28th)
$32070
5) Net income (two months, ended February 28th)
$30530
Retained Earnings Statement
6) Ending retained earnings amount transferred to balance sheet
$30530
Balance Sheet
7) Total assets as of February 28, 2016
$90530
8) Total liabilities and stockholder’s equity as of February 28, 2016
$66000
Prepare a brief paragraph stating why there is a need for adjusting and closing entries in the
accounting cycle:
Compiling and preparing financial statements usually necessitates making adjustments to general
ledger account balances. No matter how diligent and efficient the accountants, adjustments will be
needed to correct certain account balances.
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
Journal
Date
4
6
7
11
15
22
25
27
27
27
27
27
Adjusting
entry Feb
Adjusting
entry Feb
Remaining
AR from
Jan
8
Description
Advertising
Office rent
Sales – Premier Corp
Sales – Maribel Thompson
Sales – Floyd and Peterson Law firm
Sales – Roberto Andriani
AR – Riviera’s Café
Post ref
Check 109
Check 110
Utilities bills
Telephone bill
Postage
Automobile expenses
Staff salary
Expired insurance
Check 111
Check 112
Check 113
Check 114
Check 115
Credit
5500
2000
Debit
10300
6000
4800
8000
(11500 due
on Apr 24)
Net 60
225
350
230
500
5600
500
Supplies on hand
675
AR – Roberto Andriani
(4000 due
on Mar 24)
“MY PLACE, HOUSE OF DECOR” PRACTICE SET
Unadjusted trial balance (two months, ended February 28th)
Account No.
Account title
1001
Petty cash
1002
Cash-checkings account
1004
Accounts receivable
1005
Allowance for doubtful accounts
1007
Merchandise inventory
1009
Supplies
1011
Prepaid insurance
1013
Prepaid rent
1015
Deposits
2001
Accounts payable
2002
Notes payable (short term)
2003
Accrued salaries
2004
Cash dividends payable
2005
FICA tax payable
2006
SUCA tax payable
2007
FUCA tax payable
2008
WH income tax payable
2009
Income tax payable
2020
Notes payable (long term)
3001
Capital stock
3007
Retained earnings
3008
Cash dividends
3010
Income summary
4001
Decorating fees
4002
Sales – furniture
4003
Sales – discount
4004
Sales – returns and allowances
5001
Cost of merchandise sold
5004
Salaries expense – Administrative
...