Hi, I need accounting assignment help please.? The Assignment have 3 parts (A, B, C). Part A is a make a balance. Part B is to make journal entries, and Part C is multiple choice questions.
Part B - Siesta Company
In this part of the Comprehensive Problem you will be making Journal Entries (JEs), a short
payroll problem and JE, Adjusting Journal Entries (AJEs) and a Bank Reconciliation (don?t
forget the JE for the Bank Reconciliation).
Transactions to record
(Some of the transactions require you to use the Quickbooks processes instead of making a
Journal Entry. This is noted in each transaction.)
Dec. 1, Purchased 200 shares of Chevron Corp. common stock for $93.50 per
share to be held as a short-term investment. In addition to the purchase price $40
in brokerage fees were paid to acquire the stock. Check #101 was issued
payment [enter ck #101 under ?Memo?] [note: for the $40, remember
cost incurred to acquire an asset must be recorded as a cost of that
freight-in on purchased inventory is debited to the inventory
the ?adjusting entry? box for all JEs you are recording.
Dec. 1, purchased a computer from Computer World for $2,000. Sales tax of
7.5% must also be paid. Payment was made by signing a 2-year note which
requires interest at an annual rate of 8% to be paid every quarter. The
is expected to last 3 years after which time it is expected to be sold
for $350. It
will be depreciated using the double declining method (due to the
obsolescence of computer hardware).
Dec. 1, paid $1,680 to National Insurance Company for a one-year insurance
policy which ?runs? from Dec. 1, 2015 ? November 30, 2016. Check #102 was
issued for payment.
Dec. 1, paid $3,600 to JB Commercial Properties for two months of building rent,
the months of December 2015 and January 2016. Check #103 was issued for
payment. Charge the December rent to ?Rent Expense? since that amount
used up in the current month.
Dec. 2, purchased $800 of supplies on credit under terms n/30 from Office
Supplies Inc. Since these items are not going to be resold by Siesta Company (i.e.
they are not inventory), sales tax at 7.5% must also be paid. Office Supplies Inc.
invoice #5450 was received at time of purchase (use in your description)
enter ?Office Supplies Inc. under the ?name? column and then add as a
Dec. 19, received a quarterly dividend check for $180 from Chevron Corporation.
Dec. 27, pay Mattress World invoice #MWI233 for $8,000 with check #105.
Note: Do not make a JE entry for this transaction. Rather complete the steps
under item #10 on p. 16 of Part A [i.e. click on ?Vendors?, ?pay bills? and
select the Mattress World invoice] and the system will automatically make the JE for
you. Realize what is occurring here => under item #10 in Part A the invoice from
Mattress World was received and entered into A/P but because terms were n/30
the invoice was not paid at that time, but now 30 days has almost passed.
Dec. 28, it was determined that the ?packaging machine? was not needed for the
business and thus it was sold for $8,000. Two entries are needed to record the
disposal of fixed assets, one to catch-up the depreciation to the date of
(thus one month of depreciation needs to be recorded) and the
second to record
the disposal. Use the information given under step #1 on p.
5 from the Part A
handout (related to the depreciation method to use, etc.) to
help you record the
two entries (use a reference of #12-8a and #12-8b when
recording the two
Dec. 28, sold 100 shares of the 200 shares of Chevron Corporation stock held as a
short-term investment for $104.25 per share. $40 in brokerage fees were incurred
to sell the stock. [hint: the $40 is a reduction in the ?proceeds from sale? (i.e.
reduces the amount of cash received); also, if ? of the shares purchased
? of the cost recorded under #1 above needs to be removed from the
Dec. 29, the BOD of Siesta Company declared and paid a $2,200 dividend
to stockholders. Check #106 was issued to the clearing house which tracks stock
ownership and makes the dividend payments for Siesta Company.
Dec. 30, Jane Doe, a customer, walked into the store and purchased a comfort bed
set (item #ComB1) for $1,800 and was also charged sales tax at 7.5%. Jane Doe
wrote out her check #170 for $1,935 for payment in full.
Do not make a JE here as when you perform the steps listed below the system
automatically generates the needed entry(s).
o You are to set-up Jane Doe as a customer (see step 4 on p. 9 of Part A)
o On the Sales Tax Setting tab for ?tax code? make sure ?tax? [taxable item]
is selected and that the ?tax item? is ?State of MN?
o Then issue the customer sales invoice #3 (see step 8 on p. 13 of Part A if
unsure of how to generate a sales invoice).
o Make sure you enter the appropriate quantity and item and a unit price of
$1,800. Note that the total invoice amount equals $1,935
o Normally the invoice would be printed and given to the customer at this
point (on the upper toolbar select ?print? and then ?preview?). Click save
and close, which will then cause the customer invoice to be in the system.
o But payment still needs to be received against the invoice and then the
check is to be deposited into the bank [otherwise an ?undeposited funds?
amount will appear on the trial balance]. If you do not remember how to
record a receipt and make the deposit into the bank follow the procedures
under step 9 on p. 15 of Part A.
Dec. 30, Remitted (made) payment to Office Supplies Inc. invoice #5433 for the
purchase of supplies made on credit on December 2 (transaction #5 above) by
issuing check #107 for $860. You can either make a JE here [when
A/P side of a JE under ?Name? you will need to pull down ?Office
Inc.?], or by issuing a check(pay bills) where the system
automatically makes the
entry for you [on the home page flow-chart click on
Dec. 30, the two employees are to be paid in cash for work performed during the month
of December. Complete the following table to determine the amounts to be recorded in
the two entries which are required =>
The ?employee entry? related to the gross and net pay [record two entries
here, one for each employee?s check, use 12-13(a) and 12-13(b) as
reference numbers for the JEs and check #108 for Joe
#109 or Real McCoy], and
McCoy and check
the ?employer entry? needed for the employer payroll taxes (FICA and
Unemployment Taxes) [record this entry as #12-13?].
All taxes will be paid on January 2, 2016.
Use the ?Payroll Taxes Payable? account for all taxes to be remitted to the
governments on January 2, 2016,
use the ?Wages Expense? account for gross pay, and
use the ?Payroll Tax Expense? account for the employer payroll taxes incurred.
(Use #13a and the check numbers, and #13b as references in your journal
Note: prior to performing step 14 below, you should verify that you have amounts
properly recorded. The following are check figures at December 31, 2015 for Siesta
Company prior to the recording of the AJE?s at December 31, 2015: [you can print-out or
view the trial balance or income statement & balance sheets to check your balances)
Check figures after you have completed steps #1 ? #13 above.
Cash = $96,749
Inventory = $4,340
Total liabilities = $3,969 (per the balance sheet)
Net income (loss) = $3,080
Total debits (and total credits) per the G/L trial balance = $179,264
Note: if your amounts do not agree with the above check figures the first
thing you should do is an:
?Analytical Review? Check - at this stage this should be a two-step process:
Run the trial balance, or a balance sheet & income statement, to determine
that all accounts have a proper ending ?normal balance? (remember that
all accounts have either a debit or credit ?normal balance?).
o For example, the account ?Supplies? is an asset account, and thus
must have a debit balance in it at the end of the period. If it has a
credit balance in it, an error(s) is present which should be
Review the ending balances for reasonableness (e.g. if cash is $1,000 and
A/R = $35,000, which appears disproportionate, an entry that should have
been posted to cash might have been posted to A/R).
Recording end-of-the-period adjusting entries (AJEs) in the general journal
(other than bank reconciliation entries)
Generally the first end-of-the-period procedure performed is to print out a copy of the
?unadjusted trial balance? and review accounts for ?appropriateness? (e.g. proper ending
balances) and to review accounts which normally need adjusting entries to be made to.
You will need to make general journal entries at December 31, 2015 related to the
following: (for the reference enter the letter given below for each transaction => the first
transaction will have a reference of #A). [You should now check the ?Adjusting entry?
box when making the entry (this designates the entry as an adjusting in reports you might
generate, such as the journal)].
Supplies (a physical count showed that $600, out of amount purchased on Dec. 2
remained on hand at 12/31/15).
possibly the Prepaid Rent account (depending upon how you recorded transaction
#4 above => if you did not charge the December rent to rent expense you will
need to adjust that amount out of the prepaid rent account)
Depreciation (on the pallet jack, fork lift and computer) for one month [you many
choose to make only one entry, with one dr. and 3 cr., or you may make 3
You will need to refer to p. 5 on the Part A handout for information needed to
compute depreciation as well as referring to the information which
The fork-lift was used a total 120 hours in December.
For the new computer, remember the capitalized cost = $2,150 and that the double
declining balance method of depreciation is used with an estimated useful life of 3
years (as you should know you should ignore the residual value of $350 which is
given under #2). Record the depreciation on the computer to the nearest
Accrued interest on the Note Payable (related to transaction #2) [round your
answer/accrual to the nearest whole dollar => remember many adjusting entry
amounts are based upon estimates, and that the materiality constraint
Utilities for December are estimated to be $150.
Complete the bank reconciliation for the month of December and enter the
appropriate JE [see 14 below; label your JE as ?bank rec?].
End-of-the-Year bank reconciliation.
An end-of-the-month ?closing procedure? that should be performed by all companies is a
bank reconciliation (?bank rec?), which you learned is an ?explanation? of any
difference that might exist between the balance in the G/L cash account at the end of the
period and the balance on the bank statement at the end of the period.
Normally the following three documents are needed to prepare a bank rec:
A print-out of the detailed G/L ?cash? account for the current month (there are
multiple ways to get the detail, the steps for one of which follows)
On the toolbar select ?Reports?, then
?Accountant & Taxes?
?Transaction Detail by Account?
Set the date to ?This Fiscal Year?
Under the ?Accounts? pull-down menu curse down and select ?Cash?
To print this detail out, on the toolbar select ?Print?
A copy of the bank statement from the bank (which is given to you below, and
which I suggest you print out in order to help you do the reconciliation).
A copy of the prior month?s bank rec (as o/s checks from the prior month might
still not have cleared the bank at the end of the current month).
Because this is the first month of business for Siesta Company, no prior month
bank rec is available.
Required ? follow the directions on the bank reconciliation template which is given on the last
page of this handout, and which was also made available to you in a separate file (and which I
suggest you print-out and complete long-hand first). This template is to be
you as a Word doc and then uploaded into the drop-box along with the
documents per the instructions given below.
Bank Statement for Siesta Company
Balance on November 30, 2015
total deposits & credits
total checks & debits
Balance on December 31, 2015
$40 Service charge
Final Check figures after you have completed steps #1 ? #14 above.
Cash = $96,724
Total assets = $157,285
Net income = $1,852
Total current assets = $120,974
Total liabilities = $4,133
Comprehensive Problem Part B
Per the directions given in item #14 of the problem, you are to complete the two-column
bank reconciliation given below. [Make sure you type in your name after ?Name:?
Make any necessary adjusting journal entry needed from this bank reconciliation in the
template given below the bank rec, and then enter this AJE into the general journal in
Quickbooks (use a posting reference of ?G? or ?rec?)
Save a copy and upload it into the drop-box along with the other required documents.
December 31, 2015
Balance per book
Balance per bank
Add: deposit in
Less: o/s checks
Adjusted balance per
Make any necessary AJE?s here (you should have one debit and two credits; the dr. entry has
been made for you)
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