Petunia Patch. Module 5. Adjusting and Closing Entries For the Quarter Ended June 30. Level 1. 1 st Web-Based Edition

Transcription

1 Petunia Patch Level 1 1 st Web-Based Edition Module 5 Adjusting and Closing Entries For the Quarter Ended June 30 Page 1

2 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the June 30 Trial Balance After Bank Reconciliation, and the information and financial data shown below, record the adjusting entries for the end of the quarter ended June 30, in the partial journal provided below the adjustment information. Note that: Insurance and depreciation expenses are recorded quarterly. A. A physical count of the merchandise inventory is $1, larger than the beginning balance in the Merchandise Inventory account. Debit the Merchandise Inventory account and credit the Income Summary account for the increase in the balance of the Merchandise Inventory account. B. The expired insurance for the quarter is $ C. The ending balance of the office supplies is $ D. The ending store supplies inventory is $ E. Depreciation of office equipment is $ for the quarter. Page 2

3 F. Depreciation of store equipment is $1, for the quarter. G. Record the adjustment for Uncollectible Accounts Expense. The ending balance of the Allowance for Doubtful Accounts should be 5% of the ending balance of the Accounts Receivable account. H. Debit Salaries and Wages Expense (601) and credit Salaries and Wages Payable (209) for the unpaid wages of $ for June 28 to June 30. Record the Adjusting Entries At the Data Entry, click the Adjust JE button. The recording of the adjusting entries will not require any documentation. Use a date of June 30 for the adjusting entries. When all of the adjusting entries have been entered: 1. print the Adjusted Trail Balance 2. print the Adjusting Entries in the General Journal 3. print the Check Figures for After Adjustments If your Adjusted Trial Balance does not match the After Adjustments check figures, find the adjusting entry error/s and follow the error correction procedures. Correct the errors using the Adjusting JE mode. If your Adjusted Trial Balance totals match the After Adjustments check figures, do the following: Page 3

4 Move the pointer to Journal/Ledgers/Statements and select Financial Statements. 1. Print the Income Statement 2. Print the Capital Statement 3. Print the Balance Sheet RECORD THE CLOSING ENTRIES FOR PETUNIA PATCH Before closing the books for Petunia Patch, be sure that you have printed all of the documents listed in instructions above. The financial statements cannot be printed after the closing entries have been recorded. 1. Move the pointer to the Data Entry on the Menu Bar, select the Closing JE button on the Menu Bar and click. The temporary accounts will be closed and balance Victoria Vincent Capital account will be updated for the total of net income or loss minus the amount of the Victoria Vincent Drawing account. 2. From the Journal/Ledgers/Statements option, move the pointer to General Ledger and click. Print a copy of the Post-Closing Trial Balance. 3. Print each of the following accounts: 101 Cash 105 Accounts Receivable 201 Accounts Payable 301 Victoria Vincent, Capital To print each account, select the account from the pull-down menu, click on Show Selected Account, then click on Print. 4. Click on Journal/Ledgers/Statements, select Subsidiary Ledgers, click on Accounts Receivable and Print the Schedule of Accounts Receivable. Click on All Customers and then click on Print. 5. Click on Journal/Ledgers/Statements, select Subsidiary Ledgers, click on Accounts Payable and print the Schedule of Accounts Payable. Click on All Vendors and then click on Print. Page 4

5 Complete the Final Evaluation Answer the questions directly on your printed copy of the Final Evaluation at the end of this module. Use your current printouts as reference. Complete the on-line version of the Final Evaluation by logging in to Petunia Patch, select Evaluations, and click on Final Evaluation. Click on OK and enter your answers to the questions in the spaces provided. Do not use $ signs or % signs in your answers! Note: You cannot score the evaluation until you SAVE your answers. Make sure your browser is set to allow pop-ups. Error Correction after Closing the Books If, after closing the books, you discover an error or wish to print a corrected copy of any of the financial statements, move the pointer to Support, then click on Restore to Adjusted Balances. To update the trial balance, from the Journal/Ledger/Statements option select General Ledger and the reinstated Adjusted Trial Balance will reappear on the monitor screen. This procedure will reopen your books for any required adjustment corrections. If the errors occurred prior to the adjusting entries, you must see your instructor/professor for assistance. Make the required correction entries using the Adjusting JE data entry mode. Print the required corrected documents, close the books, and print a new Post-Closing Trial Balance. When finished, return to the Home page for PKLSoftware.com and exit the program. Your Professor/Instructor may require you to the Final Evaluation. Page 5

6 FINAL EVALUATION Petunia Patch NAME CLASS DAY AND TIME DATE 1. What is the current balance of Accounts Receivable? 2. What is the number of the sales invoice paid by Laptop Town Mortuary on June 10? 3. What is the current balance of the Jen Humphrey s account? 4. What was the amount of Eric Whitmore s account that was written off on June 17? 5. What was the amount collected from Burn s Catering on June 22? 6. What is the current balance of Accounts Payable? 7. What is the invoice number of the unpaid balance of Roses Plantation? 8. What is the current balance of Cash? 9. What is the net realizable value of Accounts Receivable? 10. What is the balance of Total Current Liabilities? 11. What is the balance of Total Plant Assets? 12. What is the balance of Victoria Vincent, Capital? 13. What was the net increase in the Victoria Vincent, Capital account? 14. What is the book value of Office Equipment? 15. What is the amount of Net Sales? 16. What is the amount of Net Purchases? 17. What is the amount of Gross Profit on Sales? Page 6

7 FINAL PROJECT EVALUATION Petunia Patch 18. What is the amount of Total Operating Expenses? 19. What is the amount of Net Income From Operations? 20. What is the amount of Salaries and Wages Expense? 21. If Purchases Returns and Allowances were eliminated, what would have been the Cost of Merchandise Available for Sale? 22. If the ending merchandise inventory was overstated by $1,500, what would have been the Cost of Merchandise Sold? 23. If Sales Discounts were not given, what would have been the Gross Profit on Sales? 24. To the nearest tenth, Total Operating Expenses are what percent of Net Sales? 25. What is the total of the last account shown on the Post-Closing Trial Balance? % Page 7