MINI PRACTICE SET. Go Fly a Kite Inc. CHART OF ACCOUNTS. REVENUE 401 Sales 405 Sales Discounts 410 Sales Returns and Allowances

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1 MINI PRACTICE SET CHART OF S ASSETS 101 Cash in Bank 10 Accounts Receivable 110 Merchandise Inventory 11 Supplies 120 Prepaid Insurance 12 Office Equipment 130 Store Equipment LIABILITIES 201 Accounts Payable 20 Federal Corp. Income Tax Payable 210 Sales Tax Payable STOCKHOLDERS EQUITY 301 Capital Stock 30 Retained Earnings 310 Income Summary REVENUE 401 Sales 40 Sales Discounts 410 Sales Returns and Allowances COST OF MERCHANDISE 01 Purchases 0 Transportation In 10 Purchases Discounts 1 Purchases Returns and Allowances EXPENSES 60 Advertising Expense 610 Bankcard Fees Expense 61 Insurance Expense 620 Miscellaneous Expense 62 Rent Expense 630 Salaries Expense 63 Supplies Expense 640 Utilities Expense 60 Federal Corp. Income Tax Expense Accounts Receivable Subsidiary Ledger BES Best Toy LAR Lars Specialties SER Serendipity Shop SMA Small Town Toys TOY The Toy Store Accounts Payable Subsidiary Ledger BRA Brad Kites Ltd. CRE Creative Kites Inc. EAS Easy Glide Co. RED Reddi-Bright Manufacturing STA Stars Kites Outlet TAY Taylor Office Supplies Mini Practice Set 01

2 Mini Practice Set (textbook p. 778) Instructions: Use the following source documents to record the transactions for this practice set. Reddi-Bright MANUFACTURING 127 Hill Street, #000 Druid Hills, GA TO INVOICE NO. 410 : Dec. 16, 20 ORDER NO.: SHIPPED BY: TERMS: Taylor Office Supplies 212 Morningside Drive Atlanta, GA 3030 TO INVOICE NO. 830 : December 17, 20 ORDER NO.: SHIPPED BY: TERMS: QTY. ITEM UNIT PRICE TOTAL General merchandise $1,47.00 QTY. ITEM UNIT PRICE TOTAL 2 Calendar/Planner $40.00 $80.00 PAY TO THE ORDER OF December United States Treasury $ 1,00.00 One thousand fifty and 00 /100 Sanwa Bank MEMO Qtrly. fed. inc. tax Michael Ramspart DOLLARS RECEIPT No. 38 December RECEIVED FROM Best Toys $ 1,96.60 One thousand nine hundred sixty-five and 60 /100 DOLLARS FOR Sales slip #479 for $2,003.40, less $37.80 discount RECEIVED BY Michael Ramspart PAY TO THE ORDER OF Brad Kites, Ltd. MEMO #112 $2600 less disc December $ 2,48.00 Two thousand five hundred forty-eight and 00 /100 Sanwa Bank Michael Ramspart DOLLARS : December 19, Best Toys SOLD TO NO. 484 CLERK CASH CHARGE TERMS UNIT QTY. PRICE AMOUNT 26 Kites $ $2, PAY TO THE ORDER OF Sanwa Bank Four thousand seven hundred fifty and 00 /100 Sanwa Bank MEMO Monthly payroll December $ 4,70.00 Michael Ramspart DOLLARS Thank You! SUBTOTAL $2, SALES TAX TOTAL $2, Mini Practice Set

3 RECEIPT No. 39 December RECEIVED FROM Lars Specialties $ 1, One thousand seven hundred sixteen and 00 /100 DOLLARS FOR Payment of sales slip #480 for $1,749, less $33 discount RECEIVED BY Michael Ramspart TO Brad Kites, Ltd. 633 Louise Street Atlanta, GA INVOICE NO. 21 : Dec. 20, 20 ORDER NO.: SHIPPED BY: TERMS: QTY. ITEM UNIT PRICE TOTAL 0 Kites $31.20 $1,60.00 : December 23, Lars Specialties SOLD TO NO. 48 CLERK CASH CHARGE TERMS QTY. UNIT PRICE AMOUNT 100 Kites $1.80 $1,80 00 Thank You! SUBTOTAL $1,80 00 SALES TAX TOTAL $1, RECEIPT No. 360 PAY TO THE ORDER OF Creative Kites, Inc. December $ December RECEIVED FROM Serendipity Shop $ Three hundred and 00 /100 DOLLARS FOR Payment on account RECEIVED BY Michael Ramspart Three hundred seventy-five and 00 /100 MEMO on account Sanwa Bank December 21, : Best Toys NAME: ADDRESS: Katie Sims CUSTOMER SIGNATURE Michael Ramspart MEMORANDUM QTY. ORIGINAL SALES 1 Kite REASON FOR RETURN damaged THE TOTAL SHOWN AT THE RIGHT WILL BE ED TO YOUR. ORIGINAL SALES SLIP APPROVAL Dec. 19, M.R. SUB TOTAL SALES TAX TOTAL DOLLARS NO. 44 $ $ $ MDSE RET AMOUNT PAY TO THE ORDER OF Easy Glide Co. MEMO #326 $1890 less disc December $ 1,82.20 One thousand eight hundred fifty-two and 20 /100 Sanwa Bank Michael Ramspart DOLLARS RECEIPT No. 361 December RECEIVED FROM The Toy Store $ 1, One thousand one hundred two and 40 /100 DOLLARS FOR Sales slip #483 for $1,123.60, less $21.20 discount RECEIVED BY Michael Ramspart Mini Practice Set 03

4 MEMORANDUM No. 28 Date: December 26, Invoice No.: 21 PAY TO THE ORDER OF Stars Kites Outlet December $ 1,62.00 To: Brad Kites, Ltd. 633 Louise Street Atlanta, GA This day we have debited your account as follows: Quantity Item Unit Price Total 1 misc. merchandise $10.00 $10.00 One thousand six hundred twenty-five and 00 /100 Sanwa Bank MEMO on account Michael Ramspart DOLLARS EASY GLIDE CO. TO 124 Merric Blvd., #2A Atlanta, GA INVOICE NO. 33 : Dec. 26, 20 ORDER NO.: SHIPPED BY: TERMS: QTY. ITEM UNIT PRICE TOTAL Specialty kites $1, : December 29, The Toy Store SOLD TO NO. 486 CLERK CASH CHARGE TERMS UNIT QTY. PRICE AMOUNT 0 Kites Variety Pack $39.80 $1, Thank You! SUBTOTAL $1, SALES TAX TOTAL $2, PAY TO THE ORDER OF Daily Examiner One hundred twenty and 00 /100 Sanwa Bank MEMO monthly advertising December $ Michael Ramspart DOLLARS RECEIPT No. 362 December RECEIVED FROM Small Town Toys $ Four hundred fifty and 00 /100 DOLLARS FOR Payment on account RECEIVED BY Michael Ramspart PAY TO THE ORDER OF MEMO on account December Reddi-Bright Manufacturing $ Seven hundred and 00 /100 Sanwa Bank : December 30, Serendipity Shop SOLD TO Michael Ramspart NO. 487 CLERK CASH CHARGE TERMS UNIT QTY. PRICE AMOUNT 28 Kites $20.00 $ DOLLARS Thank You! SUBTOTAL SALES TAX TOTAL $ $ Mini Practice Set

5 $ No. 618 Date December To For Dollars Cents Balance brought forward Less Bank Svc. Chg. Less Bankcard fee Total Less this check Balance carried forward PAY TO THE ORDER OF Remote Trucking Co. December $ Fifty-one and 60 /100 Sanwa Bank MEMO transport. charges Michael Ramspart DOLLARS $ No. 619 Date December To For Dollars Cents Balance brought forward Add deposits 12/31/ (T41) 12/31/ (T41) 4, ,840 4 Total Less this check Balance carried forward Dec 31 Tape 41 3,99.10 CA TX 4, TTL 1, CA TX 1,840.4 TTL Mini Practice Set 0

6 Notes 06 Mini Practice Set

7 (1), (4) SALES JOURNAL PAGE SALES SLIP NO. CUSTOMER S ED SALES SALES TAX PAYABLE S RECEIVABLE Dec Best Toys Lars Specialties Serendipity Shop Small Town Toys The Toy Store Mini Practice Set 07

8 CASH RECEIPTS JOURNAL PAGE 23 DOC. NO. NAME GENERAL SALES SALES TAX PAYABLE S RECEIVABLE SALES DISCOUNTS Dec. 2 R31 Best Toys R32 Store Equipment R33 Lars Specialties R34 Serendipity Shop R3 Small Town Toys R36 The Toy Store R37 Supplies T40 Cash Sales T40 Bankcard Sales CASH IN BANK Mini Practice Set

9 PURCHASES JOURNAL PAGE 21 INVOICE OR S ED NO. S PAYABLE PURCHASES GENERAL ED Dec. 3 CL213 Creative Kites Inc Taylor Office Supplies 1200 Office Equipment Brad Kites Ltd Stars Kites Outlet Easy Glide Co Mini Practice Set 09

10 CASH PAYMENTS JOURNAL PAGE 24 DOC. NO. NAME GENERAL S PAYABLE PURCHASES DISCOUNTS Dec Rent Expense Brad Kites Ltd Stars Kites Outlet Transportation In Creative Kites Inc Easy Glide Co Reddi-Bright Mfg Utilities Expense Taylor Office Supplies CASH IN BANK Mini Practice Set

11 (1), (13), (14) GENERAL JOURNAL PAGE 12. Dec. 3 Purchases Merchandise Inventory Memo 30 Sales Returns and Allowances Sales Tax Payable Accts. Rec./Small Town Toys Credit Memo Accts. Pay./Reddi-Bright Mfg Purchases Returns and Allowances Debit Memo Mini Practice Set 11

12 (1) GENERAL JOURNAL. PAGE (2) Name Best Toys S RECEIVABLE SUBSIDIARY LEDGER Address Midway Road, Dallas, TX 7244 Dec. 1 Balance CR S Mini Practice Set

13 S RECEIVABLE SUBSIDIARY LEDGER Name Lars Specialties Address 601 O Hara Road, Arlington, TX Dec. 1 Balance CR S Name Serendipity Shop Address 83 Coronado Drive, Corpus Christi, TX Dec. 1 Balance CR S Name Small Town Toys Address 103 Cedar Park, Dallas, TX 7244 Dec. 1 Balance G CR S Mini Practice Set 13

14 S RECEIVABLE SUBSIDIARY LEDGER Name The Toy Store Address 70 South Washington Street, Fort Worth, TX Dec. 1 Balance CR S S PAYABLE SUBSIDIARY LEDGER Name Brad Kites Ltd. Address 633 Louise Street NW, Atlanta, GA Dec. 1 Balance CP P Name Creative Kites Inc. Address 1900 Talman Avenue North, Chicago, IL Dec. 1 Balance P CP Mini Practice Set

15 S PAYABLE SUBSIDIARY LEDGER Name Easy Glide Co. Address 124 Merric Blvd. #2A, Atlanta, GA Dec. 1 Balance CP P Name Reddi-Bright Manufacturing Address 127 Hill Street #000, Druid Hills, GA Dec. 1 Balance G CP Name Stars Kites Outlet Address 10 Vista Avenue, St. Louis, MO Dec. 1 Balance CP P Mini Practice Set 1

16 Name Taylor Office Supplies S PAYABLE SUBSIDIARY LEDGER Address 212 Morningside Drive, Atlanta, GA 3030 Dec. 4 P CP (3) GENERAL LEDGER Cash in Bank NO. 101 Dec. 1 Balance Accounts Receivable NO. 10 Dec. 1 Balance G Merchandise Inventory NO. 110 Dec. 1 Balance G Mini Practice Set

17 Supplies NO. 11 Dec. 1 Balance CR Prepaid Insurance NO. 120 Dec. 1 Balance Office Equipment NO. 12 Dec. 1 Balance P Store Equipment NO. 130 Accounts Payable NO. 201 Dec. 1 Balance G Dec. 1 Balance CR Mini Practice Set 17

18 Federal Corporate Income Tax Payable NO. 20 Sales Tax Payable NO. 210 Dec. 1 Balance 8980 G Capital Stock NO. 301 Dec. 1 Balance Retained Earnings NO. 30 Income Summary NO. 310 Dec. 1 Balance Mini Practice Set

19 Sales NO. 401 Dec. 1 Balance Sales Discounts NO. 40 Dec. 1 Balance Sales Returns and Allowances NO. 410 Dec. 1 Balance 1740 G Purchases NO. 01 Dec. 1 Balance G Mini Practice Set 19

20 Transportation In NO. 0 Dec. 1 Balance CP Purchases Discounts NO. 10 Dec. 1 Balance 417 Purchases Returns and Allowances NO. 1 Dec. 1 Balance G Advertising Expense NO. 60 Dec. 1 Balance Bankcard Fees Expense NO. 610 Dec. 1 Balance Mini Practice Set

21 Insurance Expense NO. 61 Miscellaneous Expense NO. 620 Dec. 1 Balance 2472 Rent Expense NO. 62 Dec. 1 Balance CP Salaries Expense NO. 630 Dec. 1 Balance Supplies Expense NO. 63 Mini Practice Set 21

22 Utilities Expense NO. 640 Dec. 1 Balance CP Federal Corporate Income Tax Expense NO. 60 Dec. 1 Balance (6) 22 Mini Practice Set

23 (7) (7) Mini Practice Set 23

24 (8), (9) ACCT. NO. NAME TRIAL ADJUSTMENTS Mini Practice Set

25 ADJUSTED TRIAL INCOME STATEMENT SHEET Mini Practice Set 2

26 (11) (12) 26 Mini Practice Set

27 (10) Mini Practice Set 27

28 (1) Analyze: Mini Practice Set

29 MINI PRACTICE SET Audit Test Directions: Use your completed solutions to answer the following questions. Write the answer in the space to the left of each question. Answer 1. What is the total of debits and credits in the Sales journal at the end of December? 2. What is the total of debits and credits in the Cash Receipts journal at the end of December? 3. What is the total of debits and credits in the Purchases journal at the end of December? 4. What is the total of debits and credits in the Cash Payments journal at the end of December?. For the first transaction on December 26, which account was credited? 6. What amount was credited to the Merchandise Inventory account as an adjustment to inventory? 7. What amount was debited to the Income Summary account to close the expense accounts for the month? 8. What is the ending balance of the Best Toys accounts receivable subsidiary ledger account? 9. What is the ending balance for the Accounts Receivable general ledger account? Does the balance agree with the total of the subsidiary ledger accounts? 10. What is the ending balance for the Reddi-Bright Manufacturing accounts payable subsidiary ledger account? Mini Practice Set 29

30 11. What is the ending balance for the Accounts Payable general ledger account? Does the balance agree with the total of the subsidiary ledger accounts? 12. How many transactions during the month of December affected the Cash in Bank account? 13. Has the amount owed to Stars Kites Outlet been paid off by the end of December? 14. How many checks were issued by the business in December? 1. What was the total amount credited to Sales for the month? 16. What was the date of the trial balance? 17. How many accounts were affected by adjusting entries? 18. What was the total of operating expenses for the period? 19. What is the ending balance for Retained Earnings for the period? 20. What is the amount of total assets for the business at December 31? 21. How many accounts are listed on the trial balance? 22. How many accounts on the trial balance have debit balances? 23. Which account on the trial balance has the largest balance? 24. What is the amount of total liabilities for the business at December 31? 2. How many accounts are listed on the post-closing trial balance? 30 Mini Practice Set