Jenny’s Designs is a bridal shop. Instructions: Journalize the following transactions completed during October of the current year. Source documents are abbreviated as follows: memorandum, M; debit memorandum, DM. Transactions: Oct. 5. Bought store supplies on account from Displays Warehouse, $275.00. M39. 9. Returned merchandise to Hendrix Products,$640.00. DM25. 13. Bought offi ce supplies on account from Offi ce Express, $215.00. M40. 18. Returned merchandise to T-J Designs,$390.00. DM26. 25. Bought store supplies on account from Classic Fixtures, $180.00. M41.
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List the following steps of the accounting cycle in their proper order. Use the form provided in your working papers or a separate sheet of paper. Analyzing business transactions, Collecting and verifying source documents, Completing the work sheet, Journalizing business transactions, Journalizing and posting adjusting entries, Journalizing and posting closing entries, Posting journal entries to ledgers, Preparing financial statements, Preparing a post-closing trial balance, Preparing a trial balance
For each of the total gross earnings amounts recorded in the past five pay weeks for Hot Suds Car Wash, determine these taxes: -employer’s FICA taxes (social security 6.2%, Medicare 1.45%) -federal unemployment tax (.8%) -state unemployment tax (5.4%). Use the form provided in the working papers. None of the employees has reached the taxable earnings limit. Total gross earnings: 1. $914.80 2.$1,113.73 3. $2,201.38 4.$791.02 5. $1,245.75
Cleary’s Music Center has nine employees. The employees are paid weekly with overtime after 40 hours per week. The overtime rate is times the regular rate of pay. Payroll information for the week ending June 12 follows:
Prepare a form similar to the one that follows. Calculate regular earnings, overtime earnings, and gross earnings for each employee.
Juanita Ortega runs Outback Guide Service. The accounts she uses to record and report business transactions are listed below.
For each transaction: 1. In your working papers, prepare a T account for each account. 2. Analyze and record each of the following business transactions in the appropriate T accounts. Identify each transaction by number. 3. After recording all transactions, compute and record the account balance on the normal balance side of each T account. 4. Add the balances of those accounts with normal debit balances. 5. Add the balances of those accounts with normal credit balances. 6. Compare the two totals. Are they the same?