Question

TUCKER BOATS Tucker Boats began business on September 1, 2013, as a retail sales outlet for Swellcraft water- ski and fishing boats. Tucker Boats is located on Oe outskirts of Las Vegas, Nevada, and the area provides skiers and fishermen with ample opportunities for boating recreation at nearby Lake Mead. Joe Tucker was excited that he was able to get his business established before the spring, so that he would have his operations running smoothly by the peak sales period during spring and early summer. Tucker Boats has adopted a September 30 as fiscal year end, just in time to stock new merchandise. On September 1, Joe and his attorney were involved with issuing the stock of this closely-held corporation. On this same date, he hired a recent graduate of a local trade school, Henry Webster, to be responsible for boat repairs. In the next few days of September, he rented a sales office, boat garage, and lot space. The store is open Monday through Saturday and Joe is there all six days. Henry works 8 hours per day, Monday through Friday. Both Henry and Joe are employees of the corporation. The next page shows Tucker Boat's chart of accounts. Following are descriptions of events occurring during September. After October begins, you are to close the accounts. Note: Since this is a new business, there are no beginning balances in your accounts.

Adjustment information as of September 30, 2013 not already given in original transactions:

1. Joe was very conscientious in checking his customers' credit history. However, while at the Nevada State Boat Show, he learned that it is customary within the pleasure boating industry for retail boat sales to suffer bad debt losses equal to 5% of credit sales. Joe decides that it is prudent to use the 5% industry-wide standard until he has more experience with his own business and customers. Round estimate to the nearest dollar.
2. As a control measure, Joe counts his inventory of skiing and fishing accessories at 9/30/2020. He determines that the cost of this merchandise on hand is $1,140.
3. Joe counts his Supplies after the close of business on the last day of the month and determines the cost of unused supplies to be $262.
4. Joe estimates that his office furniture and boat related equipment will last eight years with no salvage. Fixed assets purchased in the first half of the month are depreciated for the entire month, while fixed assets purchased in the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar.
5. Henry worked 20 days during September and did not work any overtime. Joe gets a monthly salary of $3,000.
6. On October 4, Tucker Boats received a $357 invoice from Desert Gas and Electric Company for utilities consumed during September.

• 1) prepare the journal entries for all the transactions(with description) listed in the project description file.Preview the document The Chart of Accounts in the file has all the accounts listed. And then, you shall

- 2) prepare the T-accounts. To complete the journal entries, do not forget that you need to make the adjusting entries per the descriptions of transactions in the project document.

- 3) The last tab in the Excel template is for you to prepare the unadjusted trial balance, as well as the adjusted trial balance. Note that you need to enter all the adjustments in the worksheet.

- 4) The last step of the project is to make the closing entries. You shall close the Revenue account(s) as well as the Expenses accounts to the income summary and the then close to the Retailed Earnings.

Answer 1

			General Journal
Date	Transaction #	Journal Entry #	Account #			Debit	Credit
9/1/13	1	1	101	Cash		100,000
			301	Common Stock - (no par)			100,000
				initial investment in Tucker Boats
9/1/13	3	2	132	Prepaid Insurance		2,196
			101	Cash			2,196
				to record payment of annual insurance
9/1/13	4	3	604	Rent Expense		2,400
			101	Cash			2,400
				to record payment of rent
9/4/13	5	4	301	Common Stock - (no par)		900
			101	Cash			900
				to record payment for issuance of common stock
9/6/13	6	5	141	Store, Office, & Boat Equipment		26,880
			101	Cash			6,880
			210	Notes Payables			20,000
				to record acquisition of equipment
9/6/13	7	6	121	Boat Inventory		12,050
			101	Cash			550
			201	Accounts Payable			11,500
				to record receipt of inventory
9/7/13	8	7	122	Boat Accessory Inventory		1,330
			201	Accounts Payable			1,330
				to record receipt of inventory
9/8/13	9	8	131	Supplies		760
			101	Cash			760
				to record purchase of supplies
9/9/13	10	9	101	Cash		490
			502	Cost of Goods Sold - Accessory Sales		350
			402	Accessory Sales			490
			122	Boat Accessory Inventory			350
				to record sale of accessories to John Phillips
9/11/13	11	10	111	Accounts Receivable		220
			403	Boat Repair Revenue			220
				invoice to Albert Snell for boat repair
9/11/13	12	11	111	Accounts Receivable		410
			502	Cost of Goods Sold - Accessory Sales		225
			402	Accessory Sales			410
			122	Boat Accessory Inventory			225
				to record sale of accessories to Frank Featherstone
9/13/13	13	12	122	Boat Accessory Inventory		900
			201	Accounts Payable			860
			101	Cash			40
				to record receipt of inventory
9/13/13	14	13	607	Advertising expense		180
			101	Cash			180
				to record payment for advertising
9/14/13	15	14	201	Accounts Payable		130
			122	Boat Accessory Inventory			130
				to record return of merchandise
9/15/13	16	15	101	Cash		335
			502	Cost of Goods Sold - Accessory Sales		222
			402	Accessory Sales			335
			122	Boat Accessory Inventory			222
				to record sale of accessories to Art Jensen
9/15/13	17	16	121	Boat Inventory		8,110
			101	Cash			310
			201	Accounts Payable			7,800
				to record receipt of inventory
9/18/13	19	17	607	Advertising expense		300
			101	Cash			300
				to record payment for advertising
9/20/13	20	18	101	Cash		18,999
			501	Cost of Goods Sold - Boat Sales		12,050
			401	Boat Sales			18,999
			121	Boat Inventory			12,050
				to record sale to Lance Layitover
9/21/13	21	19	201	Accounts Payable		11,500
			101	Cash			11,500
				to record payment of vendor invoices
9/21/13	22	20	101	Cash		1,755
			403	Boat Repair Revenue			1,755
				to record repair revenues
9/22/13	23	21	607	Advertising expense		180
			101	Cash			180
				to record payment for advertising
9/23/13	24	22	121	Boat Inventory		12,615
			101	Cash			515
			201	Accounts Payable			12,100
				to record receipt of inventory
9/23/13	25	23	101	Cash		704
			502	Cost of Goods Sold - Accessory Sales		425
			402	Accessory Sales			704
			122	Boat Accessory Inventory			425
				to record ski accessory sales
9/24/13	26	24	101	Cash		580
			204	Unearned Revenue			580
				to record prepaid services
9/24/13	27	25	201	Accounts Payable		730
			101	Cash			730
				to record payment of vendor invoices
9/25/13	28	26	111	Accounts Receivable		770
			502	Cost of Goods Sold - Accessory Sales		545
			402	Accessory Sales			770
			122	Boat Accessory Inventory			545
				to record sale of accessories to Frank Hammons
9/25/13	29	27	122	Boat Accessory Inventory		850
			101	Cash			23
			201	Accounts Payable			827
				to record receipt of inventory
9/27/13	30	28	111	Accounts Receivable		2,329
			403	Boat Repair Revenue			2,329
				to record invoice to James Murphy for repair services
9/28/13	31	29	311	Retained Earnings		1,500
			205	Dividends Payable			1,500
				to record dividends payable
9/30/13		A1	609	Doubtful Accounts expense		186
			112	Allowance for doubtful accounts			186
				to record estimate for bad debts ($3729 x .05)
9/30/13		A2	502	Cost of Goods Sold - Accessory Sales		43
			122	Boat Accessory Inventory			43
				to reconcile physical inventory to GL ($1183-1140)
9/30/13		A3	602	Supplies Expenses		498
			131	Supplies			498
				to record supplies used during the month ($760-262)
9/30/13		A4	605	Depreciation expense		280
			142	Accumulated depreciation			280
				to record depreciation ($26,880/96)
9/30/13		A5	601	Salaries Expenses		4,600
			202	Accrued Salaries Payable			4,600
				to accrue salary expense for the month (20x8x10 + 3000)
9/30/13		A6	606	Utilities expense		357
			207	Other Accrued expenses payable			357
				to record utilities expense for the month
9/30/13		A7	603	Insurance Expenses		183
			132	Prepaid Insurance			183
				to amortize prepaid insurance (2196/12)
9/30/13		A8	608	Interest expense		133
			203	Accrued Interest Payable			133
				to accrue interest due on note payable ((20,000 x .096)/12 = 160 x 25/30)
9/30/13		A9	210	Notes Payables		5,000
			206	Current Maturities of long-term debt			5,000
				to record current portion of note payable (20,000/4)