Do journal entries From June 3rd to June 16th. Make sure it's accurate because if not will offset my answers.

June 3: Record a cabinet installation

A cabinet component was installed for a cash customer. The installment fee was for 3 hours at $120.00 per hour. Sales tax is not charged on installation fees. Invoice Number: B3450.

June 3 101 Cash 360.00 405 Installation Revenue

FOLLOW THESE INSTRUCTIONS:

360.00

1. At the date prompt enter 03 for the day and press the Tab key (do not use the Enter key). If the date has been entered incorrectly, use the backspace key and reenter the date.

2. At the account prompt type 101 and press the Tab key. To record the debit to Cash enter 360.00 in the debit amount column. Do not use dollar signs or commas. If the account or amount is incorrect, click on the appropriate item and reenter. Tab to the next position.

3. At the account prompt type 405 and press the Tab key. Move to the credit column and enter 360.00 as the credit to Installation Revenue. Click on the Verify Journal button. The equality of debits and credits will be automatically verified. If any part of the journal entry is incorrect at this point, click on the Clear Screen button and reenter the transaction.

4. At the invoice prompt enter B3450 as the sales invoice number. The alphabet letters may be entered in upper or lower case for all documents (Invoices, Debit Memos, and Credit Memos).

5. Check the entry carefully. If you wish to make a correction to any document, click on the document box and enter the correct number. If the entry is correct, click on the Verify Documents button. The verification checks for 5-character entries and does not guarantee the correctness of the numbers entered. Verification is required before the entry can be posted.

6. Click on the Post Ledger button. The entry will be recorded in the General Journal and posted to the General Ledger.

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Brandon’s Cabinet Shop – Module 1

Heads Up:

In this module you will be required to record: (1) a correcting entry, and (2) the declaration of a cash dividend. ______________________________________________________________________________ June 3: Record a correcting entry

It has been discovered that an entry on June 1 for $35.45 was debited in error to the Miscellaneous Expense account rather than to the correct account of Advertising Expense. The date of the original cash transaction entry is June 1. Invoice Number: AD006.

2. 3. 4. 5.

NOTE: NOTE:

The entry correction procedure for the Brandon’s Cabinet Shop accounting system requires that an error entry be backed out (reversed) and reentered correctly. Using the June 1 date, debit the Cash (101) account and credit the Miscellaneous Expense (629) account for the 35.45. Click on the Verify Journal button.

At the invoice prompt enter AD006 as the invoice number. Click on the Verify Documents button. Click on Post Ledger to post the entry.

Enter the transaction correctly with a June 1 date, a debit to Advertising Expense (605), and a credit to Cash (101) for 35.45. Click on the Verify Journal button.

When the check number prompt appears enter ERROR to indicate that this is an error correction entry and a new check is not being issued.

Enter the AD006 invoice number at the invoice number prompt. Click on the Verify Documents button. Click on Post Ledger to post the entry.

This error correction procedure must be followed. It leaves a clear audit trail of all corrections and is to be followed throughout this business simulation.

If at any time you wish to view the journal entries that you have entered, click on Journal/Ledgers/Statements, and select General Journal. You may scroll through the journal entries or print a copy of the journal. To exit the General Journal, click on Data Entry.

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Brandon’s Cabinet Shop – Module 1

USE THE CHART OF ACCOUNTS FOR REFERENCE WHEN JOURNALIZING

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June 3: Record a purchase of equipment and supplies on credit

Shop equipment listed at $1,268.00 and shop supplies listed at $125.40 were purchased on account from Albert Machinery. Sales taxes are included in the listed prices of these assets. Albert Machinery offers net 10 credit terms. Invoice number: A9850. Vendor Number: 20300.

1. At the date prompt, enter 03 for the day and press the Tab key.

2. Click on the down arrow at the end of the Account Numbers and Titles row.

3. Select account number 135, Shop Equipment, and the account number and title will automatically be entered in the account title column of the general journal. Tab to the Debit column and enter 1268.00. Tab to the next row.

4. Click on the down arrow at the end of the Account Number and Titles row. Now select account number 603, Shop Supplies Expense. Enter the second debit amount of 125.40. Tab to the next row.

5. Click on the down arrow at the end of the Account Number and Titles row and select account number 201, Accounts Payable. Tab to the credit amount column and enter 1,393.40.

6. At the invoice prompt enter A9850 as the invoice number and press the Tab key.

7. At the Vendor Number prompt click on the down arrow and select Albert Machinery, the first vendor on the list. On future entries involving Accounts Payable or Accounts Receivable, use the scroll bar to select the correct vendor or customer. Vendor and customer numbers can also be entered directly.

Click on Verify Documents. When all of the data displayed is correct click on Post Ledger.

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Brandon’s Cabinet Shop – Module 1

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June 4: Record the sale of a cabinet component for cash

Cabinet components were sold for $3,600.00 plus sales tax of 7%. Invoice Number: B3451.

June 4 101 Cash

401 Cabinet Sales 205 Sales Tax Payable

3852.00

3600.00 252.00

After you have recorded this sale, the program will automatically record and post a debit to the Cost of Goods Sold and a credit to Merchandise Inventory for $2,571.43, which is the cost of the cabinet components.

The markup on cabinet components is 40% on cost or 28.6% on selling price. ______________________________________________________________________________

June 4: Record the payment of an expense

A check was issued for $155.00 to a freight company for special delivery of cabinet components from a vendor to Brandon’s Cabinet Shop. (This is not a delivery expense!) Enter the date as 04. After the check number and invoice number have been entered, click on the Verify Documents button. If the transaction is complete and correct, click on the Post Ledger button. Check Number: 45001. Invoice Number: F1069.

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June 6: Record the collection of an account receivable

A check was received from Brown’s Custom Cabinet as payment in full for sales invoice B3448. Move the pointer to Journal/Ledgers/Statements, select Subsidiary Ledgers, and select Accounts Receivable Ledger. Click on Customer, from the textbox select account 10450, and then click on Show AR Ledger. Examine the account to determine the amount due from Brown’s Custom Cabinet. Return to Data Entry. Click on the Daily JE button. Invoice Number: B3448. Customer Number: 10450.

Note that the last journal entry of June 4 is shown on the screen. Click on OK then click on Clear Screen.

Record the receipt of cash from customer Brown’s Custom Cabinet.

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Brandon’s Cabinet Shop – Module 1

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Move the pointer to Journal/Ledgers/Statements and select General Journal. Click on the Print button and print the General Journal. Take a moment to compare the General Journal to the transactions recorded from June 3 to June 6. Note the document detail provided with each entry. If there are any errors, follow the correcting entry procedures. Do not make correcting entries for incorrect check or invoice numbers. For those types of errors, simply make note of them on the printout. Click on the X in the upper right hand corner to close print screens.

Move the pointer to Data Entry and click. Click on the Daily JE button.

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June 6: Record a cabinet installment on credit

Cabinets were installed for credit customer Charles Hook. The installation work took 2.5 hours. Sales tax is not charged on installation fees. Invoice Number: B3452. Customer Number: 10740.

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June 6: Record the payment of an account payable

A check was issued to Connor Plywood for payment of the May 28 invoice for $9,500.00. The credit terms are 2/10, n/30. Check Number: 45002. Invoice Number: CP754. Vendor Number: 22700.

At the date prompt type D, instead of 06. When a transaction has the same date as the previous transaction, use of the D key will automatically record the date of the previous transaction.

June 6 201 Accounts Payable

101 Cash

115 Merchandise Inventory

9500.00

9310.00 190.00

Discounts earned for paying within discount periods of vendor credit terms are credited to the Merchandise Inventory account.

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June 8: Record the credit purchase of merchandise inventory

Record the purchase of precut and unassembled cabinet components from Bright-Way Cabinets The list price of the components is $9,450.00. Purchased unassembled cabinet components are classified as merchandise inventory. Invoice Number: BW250. Vendor Number: 21500.

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Brandon’s Cabinet Shop – Module 1

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June 9: Record a declared cash dividend

The board of directors of Brandon’s Cabinet Shop declared a cash dividend of $5,000.00 to be paid on June 25. Invoice Number: DIVDC (dividend declared).

Brandon’s Cabinet Shop

Module 2

Transactions For June 10-16

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Brandon’s Cabinet Shop – Module 2

Heads Up:

In this module you will be required to record: (1) unearned revenue and (2) a sales return of merchandise by a customer. ______________________________________________________________________________ June 10: Record a bank credit card sale

Cabinet components were sold for $3,600.00 plus 7% sales tax. The customer paid for the cabinet components with a bank credit card. When a customer uses a bank credit card to purchase cabinet components, the sale is recorded as a cash sale. Invoice Number: B3453.

The program will automatically record and post a debit to the Cost of Goods Sold and a credit to Merchandise Inventory for the cost of the cabinet components.

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June 11: Record the collection of an account receivable

A check was received from Lakespur Homes for payment of sales invoice B3422. Examine the Lakespur Homes Cabinet account to determine the amount owed to Brandon’s Cabinet Shop.

Record the receipt of the check. Invoice Number: B3422. Customer Number: 11375 ______________________________________________________________________________

June 11: Record the sale of merchandise and installation service on credit

Record the sale of cabinet components with a list price of $4,200.00, plus 7% sales tax, and 4 hours of installation fees to customer Ralph Morehead. Invoice Number: B3454. Customer Number: 11625.

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June 11: Record the payment for an advertisement

A check was issued to Better Abodes for an advertisement in its June 17th weekly edition. The invoice from Better Abodes was for $314.00. Check Number: 45003. Invoice Number: BA699

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June 13: Record the sale of cabinet components

A customer purchased $1,200.00 of cabinet components, plus sales tax. The sales invoice was paid with cash. Invoice Number: B3455.

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June 13: Record installation fees paid in advance

Installation of the cabinets purchased in the previous transaction was estimated at 3 hours and was paid in advance by the customer who used a bank credit card. Installation fees paid in advance are credited to Unearned Revenue. Invoice Number: B3456.

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Brandon’s Cabinet Shop – Module 2

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June 14: Record the maintenance of a delivery vehicle

A check for $234.70 was issued to a local automobile dealer for periodic maintenance of a Brandon’s Cabinet Shop delivery vehicle. Check Number: 45004. Invoice Number: D3499.

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June 15: Record a sales return and allowance

One of the cabinets delivered by Brandon’s Cabinet Shop to Ralph Morehead on June 11 was slightly damaged. A credit memo for $214.00, which included 7% sales tax, was issued to the customer, who refused to accept the cabinet. Invoice Number: B3454. Credit Memo: CM006. Vendor Number: 11625. (To determine the selling price of the cabinet, divide the total of the credit memo by 1.07.)

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June 16: Record salaries and wages expense

A check was issued for $935.67 for salaries and wages expenses for the two-week period of June 3 to June 16. Check Number: 45005. Invoice Number: PAYRL (payroll).

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June 16: Record the purchase of shop supplies on credit

Brandon’s Cabinet Shop purchased a supply of varnishes, on credit, from Visionary Finishes. The invoice totaled $650.00 and will be charged as Shop Supplies Expense. Invoice Number: VF806. Vendor Number: 28500.