Question

Part A: Jelly World, Inc., is a purveyor of artisan jellies and is known for its high quality merchandise. The business started up in January 2015 and has been quite successful. Complete the Journal Entries for all 2019 transaction and adjustment information listed below. You do not have to date your journal entries. Be sure to sum the debit and credit columns to confirm they balance. The first journal entry has been completed for you. (15 points-graded for accuracy and format, including proper use of Excel spreadsheet links and formulas) There is no Check Figure for Part A. 5 5 s Transaction and Adjustment Data: 7 1 Collected the $28,250 of accounts receivable due to them at year end 2018. 3 2 Paid the $297,899 owed on account at year end 2018. 3 Paid the interest of $24,975 that was payable at year end 2018. 4 Made a payment on the mortgage note of $11,000. 1 5 Paid $5,292 to renew their annual insurance policy on March 1, 2019. 2 6 Made a payment on the long-term note of $83,000. 7 Issued 1,600 shares of Common Stock on March 1, 2019 for $10 per share. 1 8 Paid the taxes owed of $49,885 at year end 2018. 9 Purchased additional Furniture & Equipment on April 1, 2019 costing $64,440 due to increased shipping activities for their growing online presence. - 10 Purchased inventory during the year that cost $1,678,222. The company owed $396,430 on these purchases at year end 2019. 11 Purchased a new computerized sales system on June 30, 2019 for $74,600 in cash. The system has a useful economic life of 4 years and will be depreciated monthly using the straight line method. The system has a salvage value of $8,000. 12 Sales of artisan jellies for 2019 were $2,645,320. At December 31, 2019, $52,832 of this amount was still listed as receivable. 13 The total cost of the goods sold during 2019 was $1,689,576. 14 Supplies inventory of $4,860 was purchased with cash during 2019. Total supplies inventory of $806 was still on hand at year end 2019. 15 Total Salaries Expense for the year was $137,242 and total interest expense was $20,745. Salaries of $7,058 and interest of $20,745 are still payable at year end 2019. 3 1 3 5 16 Depreciation expense needs to be recorded on ALL buildings, furniture and equipment, and the new computer system at year end 2019. All items are depreciated on a monthly basis using straight line depreciation. The building has a useful life of 30 years and the furniture and equipment is depreciated over 5 years--there is no salvage value on the buildings or the furniture and equipment. As noted above, the new sales system has a useful life of 4 years and has a salvage value of $8,000.

Answer 1

297899 In the books of Jelly world, Ine. Der er particulars I Almount Amount 1 Cash Ale - Dr. 28250 28250 To, Accounts Receivable Ale (Being cash collect from Debtors) 12. Accounts payble/creditors Ale br. 1297899 1. To, Cash/Bank Ale (Being paid to the creditors) 3. 1 outstanding Interst Ale br. 1/24, 975 To, cash Al - 094995 (Being outstanding Interst paid) Montage note Ale - Dr. 11,600 1. To, Cash Ale 11,000 (Being payment to mostage note) te) 15. Insurance premium Ale Dr. 5292 To, cash Ale 5292 | (Being insurance Priemion paid for I renewal of annual insurance policy) long term loan Alc - br. 1. To eash Ale 83,000 (Being repayment of loan) 17. Cash/Bank Ale - Dr. 16000 - TO, Eurity share capital Ale 16000 ( Being issued 1600 shares @ lo each) 8.1 outstanding taxes Ale - Dr. 49,885 TO Bank/eash Ale 49,885 (Being tax outsanding tankes paid 83,000

I Amount particuler Te Amount Furniture & Ellupment Ale 64, 440 TO Bank / cash Ale (Being Furniture & Equipment Pwieluses) | 64,440 1678222 1281792 396430 Purchased Ala fr. To, Cash Ale To, creditors Ale (Being Porchases Inventary on Cash $ 128 1792 and eye on credit $ 396430 computerized sales system Ale-Dro To, cash Ale (Being purchases computerized sales system on eash.) 1:44,600 74,600 52832 2592488 Debtoris Ale - - - Dr. Qash / Banke Ale -- - DDY To, sales Ale (Being sales on eash $ 2592488 credit on $32832) 2645320 and 961744 13. eash Al porofit & loss Ale - - DV To cross profit Ale | (Being cross profit= 245320- 1689546 = 961449 |96 ՀՀԿԿ 137242 20745 7058 20745 salaries Ale - Interst Ale - To outsanding salaries Al To, outsanding Interst Ale To, cash Ale (Being salaries and Interst expenses $ 130184 and rehmaining outsanding 130184 paid for future

Amount 4 16. 3666- 2325 particulers Depriciation on furniture Ale - Dr. Deprueltion on sales system Ale-Dr. To, fwrniture Ale To, computarized sales system Afe (Being Depreciation charged on Assates) 9666 8325 17-1 1323 1323 Prepaid Insurance to Dr. . no, Insurance Ale (5292x ) for 1st January 2020 to 31st March 2020 (Being Insurance for 3 months advaneed) 18. 80500 Income tare Ale To, outsanding Theome tone I (Being Income tase due) 20500 3,000 3,600 19. I Dividend . Ale - Dr. . To, Shavie halder Ale. (Being Dividend credited on Share halders named Share holders Alc - Dr. To, cash Ale (Being Dividend paid) 3000 3000 634 21. Destars Ale - To sales Ale 1 (Being Entry possed) provison for Bod debts Aic Dr. To, Bebtors Ale (634+51832) x Zoo - 1069.32 (Being provison for Rad debts created) 1069 1069

12888 In workings 16. Depriciation on furniture and equipmentin a Estimated life as years per year Depreciation = 64,440 x A APM 2019 to 31 Dec 201 - 9 months :. Dengüeiation = 12888x = 9666 Depricition on computarized sales systemt Cost of sales system = 74,600 less; salvorge value = 18,000) Useful life 4 years 66,600 2. per year dengüestiona 66,GOD - 166507 .. Depricition during year = 16650 x 6 = 8325t for 1 June 2015 - 31 Dec 2019 Depreciation of Buildings Building cost not given in gustions. 1