question archive The books have been closed for the first year of business for Sanchez Computer Center
The books have been closed for the first year of business for Sanchez Computer Center
Subject:AccountingPrice: Bought3
The books have been closed for the first year of business for Sanchez Computer Center. The company ended up with a marginal profit for the first three months in operation. Tony expects faster growth as he enters a busy season.
Chart of Accounts
Assets Revenue
1000 Cash
1020 Accounts Receivable
1025 Prepaid Rent
1030
Shop Equipment
1081 Accum Supplies
1080 Computer. Depr. C. S. Equip.
1090 Office Equipment
1091 Accum. Depr. Office Equip.
Liabilities
2000 Accounts Payable
Owner’s Equity
3000 T. Freedman, Capital
3010 T. Freedman, Withdrawals
3020 Income Summary
Revenue
4000 Service Revenue
Expenses
5010 Advertising Expense
5020 Rent Expense
5030 Utilities Expense
5040 Phone Expense
5050 Supplies Expense
5060 Insurance Expense
5070 Postage Expense
5080 Depr. Exp. C. S. Equip
5090 Depr. Exp. Office Equip.
Following is a list of transactions for the month of October, 201X. Petty Cash account #1010 and Miscellaneous Expense account #5100 have been added to the chart of accounts.
Oct. 1 Paid rent for November, December, and January, $1,200 (check no. 8108).
Oct. 2 Established a petty cash fund for $100.
Oct. 4 Collected $3,600 from a cash customer for building five systems.
Oct. 5 Collected $2,600, the amount due from A. Pitale’s invoice no. 12674, customer on account.
Oct. 6 Purchased $25 worth of stamps using petty cash voucher no. 101.
Oct. 7 Withdrew $2,000 (check no. 8109) for personal use.
Oct. 8 Purchased $22 worth of supplies using petty cash voucher no. 102.
Oct. 12 Paid the newspaper carrier $10 using petty cash voucher no. 103.
Oct. 16 Paid the amount due on the September phone bill, $65 (check no. 8110).
Oct. 17 Paid the amount due on the September electric bill, $95 (check no. 8111).
Oct. 22 Performed computer services for Taylor Golf; billed the client $4,200 (invoice no. 12675).
Oct. 23 Paid $20 for computer paper using petty cash voucher no. 104.
Oct. 30 Took $15 out of petty cash for lunch, voucher no. 105.
Oct. 31 Replenished the petty cash. Coin and currency in drawer total $8.
Because Tony was so busy trying to close his books, he forgot to reconcile his last three months of bank statements. A list of all deposits and checks written for the past three months (each entry is identified by chapter, transaction date, or transaction letter) and the bank statements for July through September are provided. The statement for October won’t arrive until the first week of November.
Task
a. Record the transactions in general journal or petty cash format.
b. Post the transactions to the general ledger accounts.
c. Prepare a trial balance.
d. Compare the Computer Center’s deposits and checks with the bank statements and complete a bank reconciliation as of September 30, 201X.
DEPOSITS
|
Chapter |
Transaction |
Payer/Payee |
Amount |
|
1 |
a |
Tony Freedman |
$4,500 |
|
1 |
f |
Cash customer |
250 |
|
1 |
i |
Taylor Golf |
1,200 |
|
1 |
g |
Cash Customer |
200 |
|
2 |
p |
Cash Customer |
900 |
|
3 |
Sept. 2 |
Tonya Parker Jones |
325 |
|
3 |
Sept. 6 |
Summer Lipe |
220 |
|
3 |
Sept. 12 |
Jeannine Sparks |
850 |
|
3 |
Sept. 26 |
Mike Hammer |
140 |
Checks
|
Chapter |
Transaction |
Check Number |
Payor/Payee |
Amount |
|
1 |
b |
8095 |
Multi Systems, Inc |
$1,200 |
|
1 |
c |
8096 |
Office Furniture, Inc |
600 |
|
1 |
e |
8097 |
Capital Management |
400 |
|
1 |
j |
8098 |
Tony Freedman |
100 |
|
2 |
l |
8099 |
Insurance Protection, Inc. |
150 |
|
2 |
m |
8100 |
Office Depot |
200 |
|
2 |
n |
8101 |
Computer Edge Magazine |
1400 |
|
2 |
q |
8102 |
San Diego Electric |
85 |
|
2 |
r |
8103 |
U.S. Postmaster |
50 |
|
3 |
Sept. 1 |
8104 |
Capital Management |
1200 |
|
3 |
Sept. 8 |
8105 |
Pacific Bell USA |
15 |
|
3 |
Sept. 15 |
8106 |
Computer Connection |
200 |
|
3 |
Sept. 16 |
8107 |
Multi Systems, Inc. |
1200 |
Bank Statement
First Union Bank 322 Glen Ave. Escondido, CA 92025
Sanchez Computer Center Statement Date: July 22, 201X
|
Checks Paid: |
Deposits and Credits: |
||||
|
Date paid |
Number |
Amount |
Date received |
Amount |
|
|
7-4 |
8095 |
1,200.00 |
7-1 |
4,500.00 |
|
|
7-7 |
8096 |
600.00 |
7-10 |
250.00 |
|
|
7-15 |
8097 |
400.00 |
7-20 |
1,200.00 |
|
|
7-21 |
200.00 |
||||
|
Total 3 checks paid: $2,200.00 |
Total Deposits |
$6,150.00 |
|||
|
Ending balance on July 22: $3,950.00 |
|||||
|
Received statement: July 29, 201X. |
|||||
First Union Bank 322 Glen Ave. Escondido, CA 92025
Sanchez Computer Center Statement Date: August 21, 201X
|
Checks Paid: |
Deposits and Credits: |
||||
|
Date paid |
Number |
Amount |
Date received |
Amount |
|
|
8-2 |
8098 |
$100 |
8-12 |
$900 |
|
|
8-3 |
8099 |
$150 |
|||
|
8-10 |
8100 |
$200 |
|||
|
8-15 |
8101 |
$1400 |
|||
|
8-20 |
8101 |
$85 |
|||
|
Total 3 checks paid $1935 |
|||||
|
Received statement: July 29, 201X. |
Total Deposits |
$900 |
|||
|
Beginning balance on July 22: $3,950.00 |
Ending balance on August 21: $2,915.00 |
Received statement: August 27, 201X.
