ACCOUNTING
mod 4 questions.pdf

mod 4 questions.pdf - Granite Bay Jet Ski Incorporated...

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Unformatted text preview: Granite Bay Jet Ski, Incorporated Level II 5’” Edition Transactions For June 24-3 0 Page 1 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 TRANSACTIONS FOR JUNE 24-30 June 24 Issued the following checks as payment in full for miscellaneous billings: Check 31230 to Edwards Auto Service for vehicle service and truck repairs totaling $363.70 (invoice 67676). Check 31231 to SurferWaves magazine for advertising to be featured in current and fi1t11re issues. The invoice balance is for $1,375.00 (invoice W3200). Check 31232 for $505.00 to Phillips Accountancy, Inc., for accounting services received (invoice P1764). Check 31233 for $1,800.00 to the Rebel Ridge Insurance Company for increased liability insurance coverage (invoice number 66633). ***:1:************************************************** June 24 Purchased on account fiom Kawasaki USA (invoice number K5050), merchandise with an invoice list price of $2,150.00. Kawasaki USA offers credit terms of 2/10, n/30. Remember that all purchases are recorded net. Merchandise listed on the purchase invoice: Stock Item Quantity Net Cost Number Per Unit KW001 J S BATTERY 30 $29.40 KW003 NOZZEL EXTENSION 10 $122.50 Page 2 Granite Bay Jet Ski, Inc., Level II — Module 4 Student Analysis 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 TRANSACTIONS FOR JUNE 24-30 Student Analysis June 25 Sold a Kawasaki Jet Ski Personal Watercraft and a Starlight trailer at an out-the-door price of $9,099.00 (including sales tax of $674.00). The customer paid using a Bank Credit Card. The sales invoice number is G4022. (Divide the OTD price by 1.08) Merchandise listed on the sales invoice: Stock Itfl Quantity Net Cost Number Per Unit AS888 JET SKI 800 SS 1 $4,760.00 AL900 STARLIGHT QUAD 1 $1,980.00 ****************************************************** June 25 Received a certified check from customer Charles Grubonski as payment in full of the balance of his past-due account. The original invoice number on this account was G3906. A partial payment was received from Mr. Grubonski on June 16. ****************************************************** June 26 Sold accessory items on account to customer Chris Nelson, (invoice G4023). A11 accessory items carry a markup of 100% on cost (50% on selling price). Calculate the total selling price and be sure to include the 8% sales tax (rounded to the nearest cent if necessary). Merchandise listed on the sales invoice: Stock Item Quantity Net Cost Number Per Unit KW001 J S BATTERY 3 $29.40 C0300 STAINLESS IMP. 900 2 $78.40 Page 3 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 TRANSACTIONS FOR JUNE 24-30 June 27 Issued check 31234 to the State Board of Equalization for the balance of the sales tax collected through the close of the work day on June 23. The Sales Tax Payable ledger card or the "Check It Out" box for June 23, the end of week three, lists the correct balance of this account. At the invoice prompt enter TAXES. ****************************************************** June 27 Issued check 31235 to Andregg Supply as payment in filll on invoice A4435 of May 28. To verify the amount due, return to the Main Menu, select the Subsidiary Ledger, and call the Andregg Supply account to the screen. ****************************************************** June 28 Received a check for $700 from the Dobbins High School Water Ski Club for storage fees on their club watercraft and equipment (invoice G4024). The check covers the club storage fees for six months beginning July 1. ****************************************************** June 28 To fill a ski club special order, Granite Bay Jet Ski purchased, on credit, four additional personal watercraft trailers from Starlight Sports. The invoice list price is $2,000.00 m for the trailers. Credit terms of 1/10, n/30 are offered by Starlight Sports and the total net purchase price (invoice S3488) is $7,920. This order has been shipped FOB destination. Merchandise listed on the sales invoice: Stock Item Quantity Net Cost Number Per Unit AL900 STARLIGHT QUAD 4 $ Student Analysis Calculate the net cost per unit and compare your answer to the amount listed by the program when the inventory data is entered. Page 4 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 TRANSACTIONS FOR JUNE 24-30 Student Analysis June 28 Through a telephone order, sold two Jet Craft III personal watercraft at an out-the—door selling price of $14,701.50 (includes sales tax of $1,089.00. The customer, Bridge Marina at Lake Oroville, paid for the watercraft with a Western National Credit Card. The sales invoice number is G4025. Merchandise listed on the sales invoice: Stock Item Quantity Net Cost Number Per Unit AA003 JET CRAFT III 2 $5,445.00 ****************************************************** June 28 Shipped the Jet Craft III personal watercrafi to the telephone order customer fiom Lake Oroville. Charged the $287.00 fieight costs to our account with Jacoby, Incorporated, a local carrier (invoice number J 1400). ****************************************************** June 28 Customer Barbara Bettencourt paid $280.80 (sales tax included) for 4.0 hours of service work on her Jet Ski personal watercraft. Barbara paid in full using her Bank Credit Card. The sales invoice for this transaction is G4026. ****************************************************** June 28 Received a check for $12,100 fiom customer Chris Nelson as payment in fi111 of invoice G3995 of May 29. Page 5 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 TRANSACTIONS FOR JUNE 24-30 June 29 Issued check number 31236 to Kim Booker, the part-time repair and sales person for the business. Kim is paid $11.30 per hour and worked 36.2 hours during the past two-week period ended June 28. At the invoice prompt enter WAGES. ****************************************************** June 30 Issued check 31237 for $98.05 to replenish the $100 Petty Cash Fund. A total of $1.95 is all that remains in the petty cash box at this time. Be sure to account for the overage or shortage. At the invoice prompt enter PCASH. All of the receipts have been accounted for and the summary below shows the following expenditures have been made fiom the fund: Store & Shop Supplies $87.50 Miscellaneous Expense $7.50 ****************************************************** June 30 Sold all 1,000 shares of the PKL Corporation common stock that has been held as a short-term investment. The selling price of the stock was 11 1/2, less a commission of $275.00. The original purchase price for these shares was $8,000.00. At the invoice prompt enter INVST for investment. ****************************************************** June 30 Customer Chris Nelson returned one of the batteries which he purchased on credit June 26 for a retail price of $58.80 plus sales tax (sales invoice number G4023). The returned battery inventory stock number is KW001 and has a wholesale cost of $29.40. Issued credit memo number CM602, credited Mr. Nelson’s account, and returned the item to inventory. Page 6 Granite Bay Jet Ski, Inc., Level II — Module 4 Student Analysis 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 Now that you have completed entering the transactions for the last seven days of the internship program, June 24-30, it is time to check the accuracy of your work. The "Check It Out" box below has the correct balances of key accounts that you have been working with this period. If any of your account balances do not agree with the check figures, apply the necessary audit procedures used in this accounting system and make the necessary correction/s. Click on Journals/Ledgers/Statements, select Subsidiary Ledgers, then select Inventory. The correct value of the perpetual inventory at the close of business, June 30, is $159,956.82. This total is the perpetual inventory and should match the balance of the Merchandise Inventory account shown on the trial balance. When all of your totals match the check figures, continue to the Bank Reconciliation. “CHECK IT OUT” 101 Cash $81,841.77 105 Accounts Receivable 30,195.07 107 Accounts Rec., Credit Card Companies 15,394.05 109 Notes Receivable 10,000.00 121 Prepaid Insurance 6,175.00 127 Store and Shop Supplies 3,786.92 201 Accounts Payable 16,856.12 203 Notes Payable 0.00 205 Sales Tax Payable 1,818.30 221 Unearned Storage Fees 15,640.00 401 Watercraft and Accessory Sales 304,888.55 402 Sales Returns and Allowances 2,254.20 411 Service Fees Earned 9,112.75 501 Cost of Goods Sold 222,412.80 505 Transportation-In 604.00 604 Advertising Expense 3,558.50 606 Delivery Expense 953.10 607 Credit Card Expense 1,355.72 629 Professional Expense 908.00 631 Cash Short & Over 21.05 731 Gain on Short-Term Investments 5,485.00 TRIAL BALANCE TOTAL $746,962.31 Page 7 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 BANK RECONCILIATION Before entering your adjusting entries, complete the bank reconciliation (page 9) for June 30, the statement date, and the last workday of the month. Enter the cash balance from the trial balance as the book balance, and $70,919.23 as the bank statement balance. Additional information needed to complete the reconciliation is listed below: 1. A late deposit of $11,225.00 was not listed on the bank statement. 2. Accrued interest earned on the checking account totals $63.80 3. The debit memo from the bank for miscellaneous account services (charged to Bank Service Charges) totals $45.60 4. During the month of June, customers purchased $11,278.44 in merchandise and services using their bank credit cards. A debit memo with the bank statement charges Granite Bay Jet Ski 3% of the total of these sales receipts as a credit card fee (Credit Card Expense). On all calculations remember to round your answer to the nearest cent. 5. Checks 31235, 31236, and 31237 were not returned with the bank statement. Using the Journalize Daily Entries option, record the required transactions resulting from the bank reconciliation. Since the entries are updating the balance of the cash account and no check is being issued, when the system asks for a check number, enter BKS06. When an invoice number is requested for the interest earned, or bank service charge, also enter BKS06 (Bank Statement for June). 4:****************************************************************************** Print a copy of the Trial Balance! THIS IS THE TRIAL BALANCE THAT WILL BE USED WHEN RECORDING THE ADJUSTING ENTRIES FOR THE BUSINESS! DO YOUR TOTALS MATCH THESE FINAL CHECK FIGURES? 1. The June 30 Trial Balance After the Bank Reconciliation balance is $747,026.11. 2. The new balance of the Cash account is $81,521.62. 3. Bank Service Charges totals $120.60, Interest Earned totals $280.80, and Credit Card Expense totals $1,694.07. If your balances match all of the check figures, you are ready to record the adjusting entries for June 30, the end of the quarter. Page 8 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 BANK RECONCILIATION NAME GRANITE BAY JET SKI INCORPORATED SECTION DATE BANK RECONCILIATION GRANITE BAY JET SKI INCORPORATED JUNE 30 Book Balance: Reconciled Book Balance Bank Balance: Reconciled Bank Balance Page 9 Granite Bay Jet Ski, Inc., Level II — Module 4 5th Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved. Last Revised: April 29, 2011 ...
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  • Accounting, Credit card, invoice, Granite Bay Jet Ski, Granite Bay Jet, Bay Jet Ski

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