Spa-tacular has the following chart of accounts:AssetsRevenue111 Cash411 SpaServices113Accounts...

Question

Spa-tacular has the following chart of accounts:AssetsRevenue111 Cash411 SpaServices113Accounts Receivable (A/R)412 Spa Merchandise Sales115 Allowance for Doubtful Accounts413 Sales Discounts118Office Supplies414 Sales Returns & Allowances121 Spa Merchandise Inventory131 Spa SuppliesCost of Goods Sold133 Prepaid Insurance511 Purchases141 Spa Equipment512 Freight-In142Accum. Deprec. -Spa Equip.513PurchasesReturns & Allowances514 Purchases DiscountLiabilitiesExpenses211 Accounts Payable (A/P)611 Wages Expense212Wages Payable612 Rent Expense231 Sales Tax Payable613 Office Supplies Expense614 Spa Supplies ExpenseOwner’s Equity615 Laundry Expense311 L. Nash, Capital616 Advertising Expense312 L. Nash, Drawing617 Utilities Expense313 Income Summary618 Insurance Expense620 Depreciation Expense-Equip625 Bad Debt Expense630 MiscellaneousExpenseThe following transactions were completed by Spa-tacular during the month of August. Tax rate on all sales is 8%.Aug1Nash deposited an additional $10,000 in thebusiness’ bank account.1Paid August rent $1,650,check number 1044.1Bought logo merchandise from Giftco $4,100 plus $180 freight; bill number 416, dated August 1st; terms 2/10, N/30.1Bought bath and beauty products from Spa Magic $3,562 plus $155 freight; bill number 5235, dated August 1st; terms 2/10, n/30.2Sold spa services on account to the Bryant family $650 (before tax), invoice number 20; terms 2/10, N/45.2Paid advertising expense for an August photo ad $455,check number 10453Bought a silk flower arrangement for the salon (MiscellaneousExpense)$87.90,check number 1046.3Paid Spa Magic for their bill 5033, $2,721 dated June 2, check number 1047.3Deposited Tory Ligman’s payment on her account, $164.4Bought 5 cases of bottled water for clients (Spa Supplies) $45,check number 1048.4Bought a digital camera (Miscellaneous Expense) $482,check number 1049.4Purchased bulk office supplies on account from Office Supplies Warehouse $486,bill number 1417; terms N/30.5Deposited a partial payment of $87.50 from Jill Anson on her account.6Paid Giftco for their bill no. 316, dated July 5, $1,309, check number 1050.7Deposited 1stweek’s cash sales: spa merchandise $1,630; spa services $3,350; sales tax collected $398.40.7Paid week’s wages $1,850,check number 1051.8Bought spa accessories from Spa Goods $1,120 plus $110 freight; bill number 387, dated August 8th; terms 2/10, N/30.9Sold spa services to Hunter Condos$1,294on account(before tax), invoice number 21; terms 2/10, N/45.10Deposited Grayson’s Lodge payment on their account for $351 and Hunter Condos payment on their account for $367.47.11Paid Golden Spa Supplies for their bill no. 1836, dated July 1, $490, check number 1052.12Paid Giftco for bill number 416 dated August 1st$4,198(paid in full less applicable discount), check number 1053.13Sold spa services to Grayson Lodge $356(before tax) on account, invoice number 22; terms 2/10, N/45.14Purchased 3 new tanning beds (Spa Equipment) from Superior Equipment $5,685; bill number 1140, dated August 12th; terms N/30.14Deposited 2ndweek’s cash sales: spa merchandise $1,330;spa services $2,340; sales tax collected $293.60.14Paid week’s wages $1,853,check number 1054.15Nash withdrew cash for personal use $1,500,check number 1055.16Paid August telephone bill $235,check number 1056.17Received payment in full from Hunter Condos, Invoice 21 dated August 9,less applicable discount $1,371.64.18Sold spa merchandise on account to Bryant family $375, invoice number 23; terms 2/10, N/45.18Paid Superior Equipment for their bill no. 3608, dated July 5, $420, check number 1057.20Boughtlogo merchandise from Logo Harbor Products $2,451 plus $144.00 freight; bill number 1680, dated August 20th; terms2/10, N/30.21Paid week’swages $1,847.50 check number 1058.21Deposited 3rdweeks cash sales; spa merchandise $2,220; spa services $2,810; sales tax collected $402.40.22Paid month’s laundry bill $95,check number 1059.23 Paid last month’s sales tax collected$2,720, check number 1060.25Paid on account to Logo Harbor Products,bill number 1680 dated August 20, less applicable discount $2,545.98,check number 1061.26Received payment in fullfrom Grayson Lodge $384.48 for invoice no. 22.27Issued Credit Memo No. 1 to Bryant Family,$88 for damaged goodsand $7.04 for sales tax.28Paid week wages $1,850,check number 1062.29Paid August utilities bill $255 check number 1063.30Paid Spa Magic,bill number 5235,in full $3,717 check number 1064.30Received credit memo 95 for damage spa accessories from Spa Goods $123.31Deposited end of month’scash sales: spa merchandise $2,030; spa services $4,176; sales tax collected $496.48.Instructions1.Record each transaction in the appropriate journal in date order. Note you should only use the general journal for transactions that do not belong on one of the four special journals. 2.In the special journals, post the column totals and each amount in the “Other Accounts” column to the appropriate account in the General Ledger (and subsidiary ledgers [A/R Ledger and A/P Ledger], if applicable). 3.Post the individual entries from the general journal to the general ledger and to the subsidiary ledgers (if applicable).4.Prepare the schedule of accounts receivable and the schedule of accounts payable as of August 31. 5.Copy the ending account balances in the general ledger to the trial balance column of the worksheet.6.Complete the Adjustments section of the worksheet using the following information:a.On August 31, a physical count of the spa merchandise inventory was taken, and the inventory was valued at $13,110.b.On August 31 a count of the spa supplies remaining in hand was valued at $345. Record an adjustment for the amount of spa supplies usedduring August.c.On August 31 a count of the office supplies remaining on hand was valued at $90. Record an adjustment for the amount of office supplies used during August.d.A review of the insurance records determined that $100 in liability insurance coverage has been used during August.e.Accrued wages as of August 31 was $1,425.f.The company’s spa equipment is depreciated using the 150% declining balance method. The spa equipment’s useful life is 5 years. The equipment has a salvage value of $1,000. Record the adjustment for depreciation for one month.g.Spa-tacular uses the percent of credit sales method to estimate the amount of uncollectible accounts. Record an adjustment for this estimate as 2.5% of this month’s credit sales. 7.Complete the remaining columns on the worksheet and determine the amount of net income (or net loss). 8.Prepare a multi-step income statement, the statement of owner’s equity, and a balance sheet as of August 31. 9.Journalize and post the adjusting and closing entries.10.Prepare a post-closing trial balance as of August 31. 11.Complete the analyses (horizontal, vertical, and ratios) on the income statement and balance sheet.

Kiran · Accepted Answer

Cash Receipts Journal
	SPA - TACULAR
	CASH RECEIPTS JOURNAL										PAGE	8
		
DATE		
ACCOUNT CREDITED	
POST.
REF.	
CASH
DEBIT	SALES
DISCOUNTS
DEBIT	ACCOUNTS
RECEIVABLE
CREDIT	SPA SERVICES
CREDIT	SPA MERCHANDISE
SALES
CREDIT	SALES TAX
PAYABLE
CREDIT	OTHER
ACCOUNTS
CREDIT
	1	 20--											1
	2	Aug	1	Capital	311	10,000.00						10,000.00	2
	3		3	A/R - Tory Lingman		164.00		164.00					3
	4		5	A/R - Jill Anson		87.50		87.50					4
	5		7	Cash Sales		5,378.40			3,350.00	1,630.00	398.40		5
	6		10	A/R - Grayson's Lodge		351.00		351.00					6
	7		10	A/R - Hunter Condos		367.47		367.47					7
	8		14	Cash Sales		3,963.60			2,340.00	1,330.00	293.60		8
	9		17	A/R - Hunter Condos		1,371.64	25.88	1,397.52					9
	10		21	Cash Sales		5,432.40			2,810.00	2,220.00	402.40		10
	11		26	A/R - Grayson's Lodge		384.48		384.48					11
	12		31	Cash Sales		6,702.48			4,176.00	2,030.00	496.48		12
	13												13
	14												14
	15												15
	16		31	Totals		34,202.97	25.88	2,751.97	12,676.00	7,210.00	1,590.88	10,000.00	16
	17												17
	18					111	413	113	411	412	231		18
									DEBITS		CREDITS
									$34,202.97		$ 2,751.97
									25.88		12,676.00
											7,210.00
											1,590.88
											10,000.00
									$34,228.85		$34,228.85
Cash Payments Journal
	SPA - TACULAR(continued)
	CASH PAYMENTS JOURNAL								PAGE	8		 
		
DATE		
CK.
NO.	
ACCOUNT DEBITED	
POST.
REF.	OTHER
ACCOUNTS
DEBIT	ACCOUNTS
PAYABLE
DEBIT	PURCHASES
DISCOUNTS
CREDIT	
CASH
CREDIT
	1	 20--									1
	2	Aug	1	1044	Rent Expense		1,650.00			1,650.00	2
	3		2	1045	Advertising Expense		455.00			455.00	3
	4		3	1046	Miscelleneous Expense		87.90			87.90	4
	5		3	1047	A/P - Spa Magic			2,721.00		2,721.00	5
	6		4	1048	Miscelleneous Expense		45.00			45.00	6
	7		4	1049	Miscelleneous Expense		482.00			482.00	7
	8		6	1050	A/P - Gifco			1,309.00		1,309.00	8
	9		7	1051	Wages Expense		1,850.00			1,850.00	9
	10		11	1052	A/P - Golden Spa Supplies			490.00		490.00	10
	11		12	1053	A/P - Giftco			4,280.00	82.00	4,198.00	11
	12		14	1054	Wages Expense		1,853.00			1,853.00	12
	13		15	1055	L. Nash, Drawing		1,500.00			1,500.00	13
	14		16	1056	Miscelleneous Expense		235.00			235.00	14
	15		18	1057	A/P - Superior Equipment			420.00		420.00	15
	16		21	1058	Wages Expense		1,847.50			1,847.50	16
	17		22	1059	Laundry Expense		95.00			95.00	17
	18		23	1060	Sales Tax Payable		2,720.00			2,720.00	18
	19		25	1061	A/P - Logo Harbor Products			2,595.00	49.02	2,545.98	19
	20		28	1062	Wages Expense		1,850.00			1,850.00	20
	21		29	1063	Utilities Expense		255.00			255.00	21
	22		30	1064	A/P - Spa Magic			3,717.00		3,717.00	22
	23										23
	24										24
	25										25
	26		31		Totals		14,925.40	15,532.00	131.02	30,326.38	26
	27										27
	28							211	512	111	28
						DEBITS		CREDITS
						$14,925.40		$30,326.38
						15,532.00		131.02
						$30,457.40		$30,457.40
Purchases and Sales Journals
	SPA - TACULAR(continued)
	PURCHASES JOURNAL          														PAGE	8
		
DATE		
SUPPLIER'S NAME		
BILL
NO.	
BILL
DATE		
TERMS	
POST.
REF.	ACCOUNTS
PAYABLE
CREDIT		
FREIGHT IN
DEBIT			
PURCHASES
DEBIT
	1	 20--															1
	2	Aug.	1	Giftco		416	Aug. 1		2/10, N/30		4,280.00		180.00			4,100.00	2
	3		1	Spa Magic		5235	Aug. 1		2/10, N/30		3,717.00		155.00			3,562.00	3
	4		8	Spa Goods		387	Aug.8		2/10, N/30		1,230.00		110.00			1,120.00	4
	5		20	Logo Harbor Products		1680	Aug. 20		2/10, N/30		2,595.00		144.00			2,451.00	5
	6		31	Totals							11,822.00		589.00			11,233.00	6
	7																7
	8										211		514			511	8
										  DEBITS			CREDITS
										$   589.00			$11,822.00
										11,233.00
										$11,822.00			$11,822.00
	SALES JOURNAL										PAGE	8
		
DATE		
INV.
NO.	
CUSTOMER'S NAME			
POST.
REF.	ACCOUNTS
RECEIVABLE
DEBIT	SALES TAX
PAYABLE
CREDIT		SPA MERCHANDISE
SALES
CREDIT		SPA SERVICES
CREDIT
						TERMS
	1	 20--
	2	Aug	2	20	Bryant family	2/10,N/45			702.00	52.00		650.00
	3		9	21	Hunter Condos	2/10,N/45			1,397.52	103.52		1,294.00
	4		13	22	Grayson Lodge	2/10,N/45			384.48	28.48		356.00
	5		18	23	Bryant family	2/10,N/45			405.00	30.00		375.00
	6
	7
	8		31		Totals				2,889.00	214.00		2,675.00		0.00
	9
	10								113	231		412
										  DEBITS			CREDITS
										$2,889.00			$  214.00
													$  2675.00
													$  — 0
										$2,889.00			$2,889.00
General Journal
	SPA - TACULAR(continued)
	GENERAL JOURNAL										PAGE	8
		
DATE		
DESCRIPTION						POST.
REF.	
DEBIT	
CREDIT
	1	 20--											1
	2	Aug	4	Office Supplies							486.00		2
	3				A/P - Office Supplies Warehouse							486.00	3
	4												4
	5		14	Spa Equipment							5,685.00		5
	6				A/P - Superior Equipment							5,685.00	6
	7												7
	8		27	Sales Return & Allowances							88.00		8
	9			Sales Tax Payable							7.04		9
	10				A/R - Bryant Family							95.04	10
	11												11
	12		30	A/P - SPA GOODS							123.00		12
	13				Purchase return & Allowances							123.00	13
	14												14
	15												15
	16												16
	17												17
	18												18
	19												19
	20												20
	21												21
	22												22
	23												23
	24												24
	25												25
	26												26
GL 1
	SPA - TACULAR(continued)
	GENERAL LEDGER
	ACCOUNT		Cash					ACCOUNT NO.	111
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			44,969.26
			31	CRJ		34,202.97		79,172.23
			31	CPJ			30,326.38	48,845.85
GL 2
	SPA - TACULAR(continued)
	ACCOUNT		Accounts Receivable					ACCOUNT NO.	113
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			1,865.06
			31	CRJ			2,751.97		886.91
			31	SJ		2,889.00		2,002.09
			27	GJ			95.04	1,907.05
	ACCOUNT		Allowance for Doubtful Accounts					ACCOUNT NO.	115
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
	ACCOUNT		Office Supplies					ACCOUNT NO.	118
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		Aug.	1	Balance	ü			248.00
			4	GJ		486.00		734.00
	ACCOUNT		Spa Merchandise Inventory					ACCOUNT NO.	121
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		Aug.	1	Balance	ü			22,248.00
GL 3
	SPA - TACULAR(continued)
	ACCOUNT		Spa Supplies					ACCOUNT NO.	131
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			695.00
	ACCOUNT		Prepaid Insurance					ACCOUNT NO.	133
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			800.00
	ACCOUNT		Spa Equipment					ACCOUNT NO.	141
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			1,570.00
			14	GL		5,685.00		7,255.00
	ACCOUNT		Accumulated Depreciation, Spa Equipment					ACCOUNT NO.	142
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü				10.00
GL 4
	SPA - TACULAR(continued)
	ACCOUNT		Accounts Payable					ACCOUNT NO.	211
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü				14,485.00
		Aug.	31	CPJ		15,532.00		1,047.00
			31	PJ			11,822.00		10,775.00
			4	GJ			486.00		11,261.00
			14	GJ			5,685.00		16,946.00
			30	GJ		123.00			16,823.00
	ACCOUNT		Wages Payable					ACCOUNT NO.	212
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
	ACCOUNT		Sales Tax Payable					ACCOUNT NO.	231
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü				2,720.00
			23	CPJ		2,720.00			— 0
			27	GJ		7.04		7.04
			31	CRJ			1,590.88		1,583.84
			31	SJ			214.00		1,797.84
GL 5
	SPA - TACULAR(continued)
	ACCOUNT		L. Nash, Capital					ACCOUNT NO.	311
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü				57,572.67
			1	Cash			10,000.00		67,572.67
	ACCOUNT		L. Nash, Drawing					ACCOUNT NO.	312
		
DATE		
ITEM	POST.
REF.	
DEBIT	
CREDIT	BALANCE
								DEBIT	CREDIT
		 20--
		 Aug.	1	Balance	ü			2,500.00
			15	CPJ		1,500.00		4,000.00
	ACCOUNT		Income Summary					ACCOUNT NO.

Spa-tacular has the following chart of accounts:AssetsRevenue111 Cash411 SpaServices113Accounts Receivable (A/R)412 Spa Merchandise Sales115 Allowance for Doubtful Accounts413 Sales Discounts118Office...

Answer To: Spa-tacular has the following chart of accounts:AssetsRevenue111 Cash411 SpaServices113Accounts...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment