Question

AC 320 Ch. 3-Accounting Information Systems Case Introduction: You will compiete an entire accounting cycle for a retail company using both paper records and Excel spreadsheets. Just a word of caution, be sure to complete the assignment on your own It is okay to discuss with athers in the class; just make sure vou are the one actually completing your case inciding the Excel spreadsheets Too often instructors discover copying because students peroeive it is easy to do in Excel; hawever, there are ways of detecting that. So please be conscientious and do your own work. The Bell Wholesale Company began operations on August 1, 2015. The following transactions took place during the month of August. a. Owners invested $45,000 cash in the corporation in exchange for 5,000 shares of b. Equipment is purchased for $20,000 cash. d. Merchandise inventory costing $38,000 is purchased on account. The company uses the e 30,000 is borrawed from a local bank, and a nate payable is signed e $15,000 is collected on account from customers. common stock. On the first day of August, $6,000 rent on a building is paid for the months of August and September perpetual inventory system. Credit sales for the month are $40,000. The cost of merchandise sold is $22,000. h. $20,000 is paid on account to suppliers of merchandise. Salaries of $7,000 are paid to employees for August A bill for $2,000 is recelved from the local utility company for the month of August $20,000 cash was loaned A customer prepaid $3,000 case for merchandise to be delivered in September, k. to another company, evidenced by a note receivable October, and November. m. The corporation paid Its shareholders a cash dividend of $1,000 Required (Note: journal and ledger paper are provided on subsequent pages. An Excel template for requirement #3 is filed in DocSharine Students are to create from scratch an Excel spreadsheet for the preparation of financial statements as directed in requirement N4.) Work through the case as directed so that your experience the sequence of the accounting cycle. 1 Prepare a journal entry for each transaction. 2 Post to general ledger accounts. An Excel version of a working trial balance is posted in DocSharing. Complete the Unadjusted Trial Balance on the Excel spreadsheet. The debit and credit columns should totall $138,000. 3. Complete a month-end working trial balance on an Excel spreadsheet as of August 31, 2015. (See Farel template in AC320 DesSharing falder.J The working trial balance enables the accountant to problem-solve for the adjustments and complete the finsncial statements before formally recording adjustine entries into the accounting records. You will formally record the adjusting entries in requirement 6. Solve for Bell's adjusting entries using the following information, then complete your spreadsheet through the adjusted trial balance columns a. The comparry anticipates that of the $25,000 in Accounts Receivable from customers, $2,500 will not be collected b. The nate payable requires the entire $30,000 in principal plus interest at 10% to be paid on July 31, 2016. The date of the loan is August 1, 2015.

Answer 1

Please find the answer of part 1 and 2

1	Journal Entries
S.No	Particulars	Dr.	Cr
a	Cash	45000
	Common Stock		45000
b	Equipment	20000
	Cash		20000
c	Rent Expense	3000
	Prepaid expense	3000
	Cash		6000
d	Inventory	35000
	Creditors		35000
	Purchases	35000
	Change in stock		35000
e	Cash	30000
	Note payables		30000
f	AR	40000
	Sales		40000
	Change in stock	22000
	Inventory		22000
g	Cash	15000
	AR		15000
h	Creditors	20000
	Cash		20000
i	Salary expense	7000
	Salary payable		7000
	Salary payable	7000
	Cash		7000
j	Utility expense	2000
	Creditors		2000
k	Loan given	20000
	Cash		20000
l	Cash	3000
	Advance from customer		3000
m	Dividend	1000
	Cash		1000
2	Trial balance
	Particulars	Dr	Cr
	Cash	19000
	AR	25000
	Inventory	13000
	Equipment	20000
	Loan given	20000
	Prepaid expense	3000
	Creditors		17000
	Advance from customer		3000
	Common stock		45000
	Note payables		30000
	Sales		40000
	Dividend	1000	0
	Purchases	35000
	Salary expense	7000
	Rent expense	3000
	Utility expense	2000
	change in stock		13000
		148000	148000