TOWNE CLEANERS
TRIAL BALANCE
NOVEMBER 30, 20XX
DEBIT
CREDIT
101
Cash
$13,942.00
102
Cash - Payroll Account
0
103
Change Fund
100.00
105
Petty Cash Fund
50.00
110
Accounts Receivable
530.00
115
Office Supplies
68.00
120
Cleaning Supplies
83.00
125
Prepaid Insurance
404.00
150
Delivery Van
18,000.00
151
Accum. Deprec., Delivery Van
$8,750.00
160
Furniture & Fixtures
6,000.00
161
Accum. Deprec., Furniture & Fixtures
3,935.00
165
Cleaning Equipment
24,000.00
166
Accum. Deprec., Cleaning Equipment
9,788.00
170
Office Equipment
4,000.00
171
Accum. Deprec., Office Equipment
1,462.00
201
Accounts Payable
698.00
210
Wages Payable
0
215
Employees' Federal Income Tax Payable
310.12
216
Employees' State Income Tax Payable
77.50
220
FICA Social Security Tax Payable
621.26
225
FICA Medicare Tax Payable
145.29
230
Employees' Medical Insurance Payable
120.00
235
Federal Unemployment Tax Payable
4.50
240
State Unemployment Tax Payable
30.25
245
Note Payable, Delivery Van
4,080.00
301
Patricia Towne, Capital
26,096.00
350
Patricia Towne, Drawing
27,200.00
370
Income Summary
0
0
401
Cleaning Services Income
183,606.00
402
Alterations Income
25,444.00
410
Tuxedo Rental Income
14,230.00
411
Interest Income
39.97
501
Wages Expense
149,881.00
505
Payroll Tax Expense
12,569.89
508
Rent Expense, Building
6,600.00
510
Utilities Expense
2,580.00
515
Advertising Expense
468.00
517
Cash Short/(Over)
84.00
520
Cleaning Equipment Repair Expense
592.00
521
Office Equipment Repair Expense
384.00
530
Contributions Expense
120.00
535
Insurance Expense
660.00
555
Deprec. Expense, Delivery Van
2,750.00
560
Deprec. Expense, Furniture & Fixtures
935.00
565
Deprec. Expense, Cleaning Equipment
2,285.00
570
Deprec. Expense, Office Equipment
465.00
576
Delivery Expense
72.00
577
Delivery Van Operating Expense
1,420.00
580
Interest Expense
648.00
590
Office Supplies Expense
302.00
591
Cleaning Supplies Expense
2,176.00
599
Miscellaneous Expense
69.00
CONTROL TOTALS
$279,437.89
$279,437.89
TOWN CLEANERS
DECEMBER TRANSACTIONS
Date
11/30 Record Trial Balance amounts from page 4 in the IndividualGeneral Ledger Accounts
12/01 Receive invoice from Harbor Cleaning Supplies for cleaningsupplies, $125
12/02 Receive and pay for office typewriter repairs by JohnâsTypewriter for $35, check #321
12/03 Receive invoice from the Chronicle for newspaperadvertising, $42
12/04 Contribute $15 to Ventura Holiday Fund, (contributionsexpense) check #322
12/05 Paid $188 to Harbor Cleaning Supplies for suppliespurchased on 11/18, check #323
12/05 Deposit weekly receipts for:
- Cleaning services $1,648.00
- Alterations $226.00
- Tuxedo rentals $493.00
12/06 Receive and deposit $365 from Thai Restaurant for Novemberlinen cleaning services previously billed
12/06 Receive invoice from California Power for November gas andelectricity, $188
12/06 Owner withdrawal of $400 for personal use, check #324
12/08 Purchase office supplies on account from City Stationers,$38
12/09 Receive and pay invoice from Thrifty Gasoline for Novemberdelivery van operating costs, $114, check #325
12/10 Petty cash disbursement of $5.75 for delivery, Voucher#90
12/11 Receive and deposit $165 from Sandra Gallager foralterations previously billed
12/11 Make partial payment on 11/22 invoice to Mooreâs OfficeEquipment for prior purchase on account, $175, check #326
Date
12/12 Deposit weekly receipts for:
Cleaning services $1,726.00
Alterations $318.00
Tuxedo rentals $85.00
NOTE: Above amounts represent cash register totals. The actualdeposit was for
only $2,120, cash on hand, thus there must be a shortage.
12/13 Owner withdrawal of $500 for personal use, check #327
12/13 Remit federal payroll taxes (income taxes and FICA taxes)in the amount of the credit
balances in ledgers for November payrolls. Check #328 payable toAmerica Bank West
12/15 Remit monthly note payment on delivery van of $455 ($400principal; $55 interest) to Car Cal Credit, check #329
12/16 Record transfer of funds from regular bank account tospecial payroll bank account for payment of employees, check #330
12/16 Record the automatic transfer of funds from theCashâPayroll account to the employeesâ personal bank accounts.(Auto-pay system)
12/16 Petty cash disbursement for office supplies, $4.20,Voucher #91
12/16 Receive and pay invoice from Carterâs Repair Services for$48 for repair of cleaning equipment, check #331
12/17 Pay balance of 11/22 invoice to Mooreâs Office Equipmentfor prior purchase on account $55, check #332
12/18 Invoice Thai Restaurant for linen cleaning services forfirst half of December, $140
12/18 Pay 12/03 invoices to the Chronicle for newspaperadvertising $42, check #333
12/19 Deposit weekly receipts:
-Cleaning Services $1,910.00
-Alterations $273.00
-Tuxedo rentals $230.00
12/19 Purchase cleaning supplies on account from Harbor CleaningSupplies for $106
12/20 Owner withdrawal of $600 for personal use, check #334
12/22 Receive and pay November telephone bill of $46 fromAmerican Telephone, check #335
12/23 Petty cash disbursement of $10 to owner for personal use,Voucher #92
12/23 Receive and pay invoices from Samniiâs Tire for $19 forservices on delivery van, check #336
12/24 Rent tuxedos on account to Tri County Choral for holidaypresentation, $765
12/24 Petty cash contribution of $8 to Big Brothers, Voucher#93
12/24 Deposit of weekly receipts for:
-Cleaning services $1,240.00
-Alterations $286.00
-Tuxedo rentals $425.00
Date
12/26 Pay 12/01 invoice to Harbor Cleaning Supplies, $125, check#337
12/26 Pay 12/08 invoice to City Stationers, $38, check #338
12/27 Pay monthly rent to J.D. Smith, Co. for building space,$600, check #339
12/28 Receive annual insurance premium on delivery van fromInsurers International for $340
12/28 Receive and deposit $140 from Thai Restaurant in paymentof invoice dated 12/18
12/30 Record the transfer of funds from the regular bank accountto the special payroll bank account for payment to employees, check#340.
12/30 Record the automatic transfer of funds from theCashâPayroll account to the employeesâ personal bank accounts.(Auto-pay system)
12/30 Petty cash disbursement of $9.45 for dry cleaningsolution, Voucher #94
12/31 Owner withdrawal of $800 for personal use, check #341
12/31 Reimburse Petty Cash (K. Smith) for transactions recordedin the Petty Cash Payments Record, check #342.
Date
12/31 Remit employeesâ medical insurance withholdings of $120for month of November to Big Blue, check #343
12/31 Deposit final receipts for December:
- Cleaning services $2,106.00
- Alterations $487.00
- Tuxedo rentals $234.00
12/31 Invoice Thai Restaurant for linen cleaning services forlast half of December, $159
12/31 Complete a Bank Reconciliation based upon the informationprovided, journalize and post the appropriate entries.
TOWNE CLEANERS
CHART OF ACCOUNTS
No. Account Name No. Account Name
ASSETS OWNERâS EQUITY
101 Cash 301 Patricia Towne, Capital
102 Cash â Payroll Account 350 Patricia Towne, Drawing
103 Change Fund 370 Income Summary
105 Petty Cash Fund
110 Accounts Receivable
370 Income Summary
115 Office Supplies REVENUE
120 Cleaning Supplies
125 Prepaid Insurance 401 Cleaning Service Income
150 Delivery Van 402 Alterations Income
151 Accumulated Depreciation, 410 Tuxedo Rental Income
Delivery Van 411 Interest Income
160 Furniture & Fixtures
161 Accumulated Depreciation, EXPENSES
Furniture & Fixtures
165 Cleaning Equipment 501 Wages Expense
166 Accumulated Depreciation, 505 Payroll Tax Expense
Cleaning Equipment 508 Rent Expense, Building
170 Office Equipment 510 Utilities Expense
171 Accumulated Depreciation, 515 Advertising Expense
Office Equipment 517 Cash Short/(Over)
520 Cleaning Equipment Repair Expense
LIABILITIES 521 Office Equipment Repair Expense
530 Contributions Expense
201 Accounts Payable 535 Insurance Expense
210 Wages Payable 555 Depreciation Expense, Delivery Van
215 Employeesâ Federal Income 560 Depreciation,
Tax Payable Furniture & Fixtures
216 Employeesâ State Income 565 Depreciation Expense,
Tax Payable Cleaning Equipment
220 FICA Social Security Payable 570 Depreciation Expense,
225 FICA Medicare Tax Payable Office Equipment
230 Employeesâ Medical 576 Delivery Expense
Insurance Payable 577 Delivery Van Operating Expense
235 Federal Unemployment 580 Interest Expense
Tax Payable 590 Office Supplies Expense
240 State Unemployment Tax Payable 591 Cleaning SuppliesExpense
245 Note Payable, Delivery Van 599 Miscellaneous Expense
Directions:Prepare journal , journalize them and post to generaljournal (If you can when you post them make them close enough sothat i can read them)
TOWNE CLEANERS
YEAR-END TRANSACTIONS FOR DECEMBER
Record the Trial Balance section of the Work Sheet using theGeneral Ledger Account Balances.
Record the following adjustments on the Work Sheet, adding newaccounts as necessary:
(Adjustments through November have been previously posted)
Office Supplies inventory is $42 as of December 31
Cleaning Supplies inventory is $115 as of December 31
Depreciation, Delivery Van, for the month of December, $250
Depreciation, Furniture and Fixtures, for the month of December,$85
Depreciation, Cleaning Equipment, for the month of December,$208
Depreciation, Office Equipment, for the month of December,$42
Expired Insurance, for the month of December, $60
Accrued wages for the fast five days of December are $1,072
An Accounts Receivable in the amount of $416 for earned butunbilled cleaning services in December was overlooked and notrecorded in the accounting records
Complete the Work Sheet
Prepare the Financial Statements:
Income Statement for year ended December31
Statement of Ownerâs Equity for the year ended December 31
Balance Sheet as of December 31
Journalize and post the Adjusting Entries.
Journalize and post the Closing Entries.
Prepare the Post-Closing Trial Balance as of December 31.
TOWNE CLEANERS | |||||
TRIAL BALANCE | |||||
NOVEMBER 30, 20XX | |||||
DEBIT | CREDIT | ||||
101 | Cash | $13,942.00 | |||
102 | Cash - Payroll Account | 0 | |||
103 | Change Fund | 100.00 | |||
105 | Petty Cash Fund | 50.00 | |||
110 | Accounts Receivable | 530.00 | |||
115 | Office Supplies | 68.00 | |||
120 | Cleaning Supplies | 83.00 | |||
125 | Prepaid Insurance | 404.00 | |||
150 | Delivery Van | 18,000.00 | |||
151 | Accum. Deprec., Delivery Van | $8,750.00 | |||
160 | Furniture & Fixtures | 6,000.00 | |||
161 | Accum. Deprec., Furniture & Fixtures | 3,935.00 | |||
165 | Cleaning Equipment | 24,000.00 | |||
166 | Accum. Deprec., Cleaning Equipment | 9,788.00 | |||
170 | Office Equipment | 4,000.00 | |||
171 | Accum. Deprec., Office Equipment | 1,462.00 | |||
201 | Accounts Payable | 698.00 | |||
210 | Wages Payable | 0 | |||
215 | Employees' Federal Income Tax Payable | 310.12 | |||
216 | Employees' State Income Tax Payable | 77.50 | |||
220 | FICA Social Security Tax Payable | 621.26 | |||
225 | FICA Medicare Tax Payable | 145.29 | |||
230 | Employees' Medical Insurance Payable | 120.00 | |||
235 | Federal Unemployment Tax Payable | 4.50 | |||
240 | State Unemployment Tax Payable | 30.25 | |||
245 | Note Payable, Delivery Van | 4,080.00 | |||
301 | Patricia Towne, Capital | 26,096.00 | |||
350 | Patricia Towne, Drawing | 27,200.00 | |||
370 | Income Summary | 0 | 0 | ||
401 | Cleaning Services Income | 183,606.00 | |||
402 | Alterations Income | 25,444.00 | |||
410 | Tuxedo Rental Income | 14,230.00 | |||
411 | Interest Income | 39.97 | |||
501 | Wages Expense | 149,881.00 | |||
505 | Payroll Tax Expense | 12,569.89 | |||
508 | Rent Expense, Building | 6,600.00 | |||
510 | Utilities Expense | 2,580.00 | |||
515 | Advertising Expense | 468.00 | |||
517 | Cash Short/(Over) | 84.00 | |||
520 | Cleaning Equipment Repair Expense | 592.00 | |||
521 | Office Equipment Repair Expense | 384.00 | |||
530 | Contributions Expense | 120.00 | |||
535 | Insurance Expense | 660.00 | |||
555 | Deprec. Expense, Delivery Van | 2,750.00 | |||
560 | Deprec. Expense, Furniture & Fixtures | 935.00 | |||
565 | Deprec. Expense, Cleaning Equipment | 2,285.00 | |||
570 | Deprec. Expense, Office Equipment | 465.00 | |||
576 | Delivery Expense | 72.00 | |||
577 | Delivery Van Operating Expense | 1,420.00 | |||
580 | Interest Expense | 648.00 | |||
590 | Office Supplies Expense | 302.00 | |||
591 | Cleaning Supplies Expense | 2,176.00 | |||
599 | Miscellaneous Expense | 69.00 | |||
CONTROL TOTALS | $279,437.89 | $279,437.89 | |||
TOWN CLEANERS
DECEMBER TRANSACTIONS
Date
11/30 Record Trial Balance amounts from page 4 in the IndividualGeneral Ledger Accounts
12/01 Receive invoice from Harbor Cleaning Supplies for cleaningsupplies, $125
12/02 Receive and pay for office typewriter repairs by JohnâsTypewriter for $35, check #321
12/03 Receive invoice from the Chronicle for newspaperadvertising, $42
12/04 Contribute $15 to Ventura Holiday Fund, (contributionsexpense) check #322
12/05 Paid $188 to Harbor Cleaning Supplies for suppliespurchased on 11/18, check #323
12/05 Deposit weekly receipts for:
- Cleaning services $1,648.00
- Alterations $226.00
- Tuxedo rentals $493.00
12/06 Receive and deposit $365 from Thai Restaurant for Novemberlinen cleaning services previously billed
12/06 Receive invoice from California Power for November gas andelectricity, $188
12/06 Owner withdrawal of $400 for personal use, check #324
12/08 Purchase office supplies on account from City Stationers,$38
12/09 Receive and pay invoice from Thrifty Gasoline for Novemberdelivery van operating costs, $114, check #325
12/10 Petty cash disbursement of $5.75 for delivery, Voucher#90
12/11 Receive and deposit $165 from Sandra Gallager foralterations previously billed
12/11 Make partial payment on 11/22 invoice to Mooreâs OfficeEquipment for prior purchase on account, $175, check #326
Date
12/12 Deposit weekly receipts for:
Cleaning services $1,726.00
Alterations $318.00
Tuxedo rentals $85.00
NOTE: Above amounts represent cash register totals. The actualdeposit was for
only $2,120, cash on hand, thus there must be a shortage.
12/13 Owner withdrawal of $500 for personal use, check #327
12/13 Remit federal payroll taxes (income taxes and FICA taxes)in the amount of the credit
balances in ledgers for November payrolls. Check #328 payable toAmerica Bank West
12/15 Remit monthly note payment on delivery van of $455 ($400principal; $55 interest) to Car Cal Credit, check #329
12/16 Record transfer of funds from regular bank account tospecial payroll bank account for payment of employees, check #330
12/16 Record the automatic transfer of funds from theCashâPayroll account to the employeesâ personal bank accounts.(Auto-pay system)
12/16 Petty cash disbursement for office supplies, $4.20,Voucher #91
12/16 Receive and pay invoice from Carterâs Repair Services for$48 for repair of cleaning equipment, check #331
12/17 Pay balance of 11/22 invoice to Mooreâs Office Equipmentfor prior purchase on account $55, check #332
12/18 Invoice Thai Restaurant for linen cleaning services forfirst half of December, $140
12/18 Pay 12/03 invoices to the Chronicle for newspaperadvertising $42, check #333
12/19 Deposit weekly receipts:
-Cleaning Services $1,910.00
-Alterations $273.00
-Tuxedo rentals $230.00
12/19 Purchase cleaning supplies on account from Harbor CleaningSupplies for $106
12/20 Owner withdrawal of $600 for personal use, check #334
12/22 Receive and pay November telephone bill of $46 fromAmerican Telephone, check #335
12/23 Petty cash disbursement of $10 to owner for personal use,Voucher #92
12/23 Receive and pay invoices from Samniiâs Tire for $19 forservices on delivery van, check #336
12/24 Rent tuxedos on account to Tri County Choral for holidaypresentation, $765
12/24 Petty cash contribution of $8 to Big Brothers, Voucher#93
12/24 Deposit of weekly receipts for:
-Cleaning services $1,240.00
-Alterations $286.00
-Tuxedo rentals $425.00
Date
12/26 Pay 12/01 invoice to Harbor Cleaning Supplies, $125, check#337
12/26 Pay 12/08 invoice to City Stationers, $38, check #338
12/27 Pay monthly rent to J.D. Smith, Co. for building space,$600, check #339
12/28 Receive annual insurance premium on delivery van fromInsurers International for $340
12/28 Receive and deposit $140 from Thai Restaurant in paymentof invoice dated 12/18
12/30 Record the transfer of funds from the regular bank accountto the special payroll bank account for payment to employees, check#340.
12/30 Record the automatic transfer of funds from theCashâPayroll account to the employeesâ personal bank accounts.(Auto-pay system)
12/30 Petty cash disbursement of $9.45 for dry cleaningsolution, Voucher #94
12/31 Owner withdrawal of $800 for personal use, check #341
12/31 Reimburse Petty Cash (K. Smith) for transactions recordedin the Petty Cash Payments Record, check #342.
Date
12/31 Remit employeesâ medical insurance withholdings of $120for month of November to Big Blue, check #343
12/31 Deposit final receipts for December:
- Cleaning services $2,106.00
- Alterations $487.00
- Tuxedo rentals $234.00
12/31 Invoice Thai Restaurant for linen cleaning services forlast half of December, $159
12/31 Complete a Bank Reconciliation based upon the informationprovided, journalize and post the appropriate entries.
TOWNE CLEANERS
CHART OF ACCOUNTS
No. Account Name No. Account Name
ASSETS OWNERâS EQUITY
101 Cash 301 Patricia Towne, Capital
102 Cash â Payroll Account 350 Patricia Towne, Drawing
103 Change Fund 370 Income Summary
105 Petty Cash Fund
110 Accounts Receivable
370 Income Summary
115 Office Supplies REVENUE
120 Cleaning Supplies
125 Prepaid Insurance 401 Cleaning Service Income
150 Delivery Van 402 Alterations Income
151 Accumulated Depreciation, 410 Tuxedo Rental Income
Delivery Van 411 Interest Income
160 Furniture & Fixtures
161 Accumulated Depreciation, EXPENSES
Furniture & Fixtures
165 Cleaning Equipment 501 Wages Expense
166 Accumulated Depreciation, 505 Payroll Tax Expense
Cleaning Equipment 508 Rent Expense, Building
170 Office Equipment 510 Utilities Expense
171 Accumulated Depreciation, 515 Advertising Expense
Office Equipment 517 Cash Short/(Over)
520 Cleaning Equipment Repair Expense
LIABILITIES 521 Office Equipment Repair Expense
530 Contributions Expense
201 Accounts Payable 535 Insurance Expense
210 Wages Payable 555 Depreciation Expense, Delivery Van
215 Employeesâ Federal Income 560 Depreciation,
Tax Payable Furniture & Fixtures
216 Employeesâ State Income 565 Depreciation Expense,
Tax Payable Cleaning Equipment
220 FICA Social Security Payable 570 Depreciation Expense,
225 FICA Medicare Tax Payable Office Equipment
230 Employeesâ Medical 576 Delivery Expense
Insurance Payable 577 Delivery Van Operating Expense
235 Federal Unemployment 580 Interest Expense
Tax Payable 590 Office Supplies Expense
240 State Unemployment Tax Payable 591 Cleaning SuppliesExpense
245 Note Payable, Delivery Van 599 Miscellaneous Expense
Directions:Prepare journal , journalize them and post to generaljournal (If you can when you post them make them close enough sothat i can read them)
TOWNE CLEANERS
YEAR-END TRANSACTIONS FOR DECEMBER
Record the Trial Balance section of the Work Sheet using theGeneral Ledger Account Balances.
Record the following adjustments on the Work Sheet, adding newaccounts as necessary:
(Adjustments through November have been previously posted)
Office Supplies inventory is $42 as of December 31
Cleaning Supplies inventory is $115 as of December 31
Depreciation, Delivery Van, for the month of December, $250
Depreciation, Furniture and Fixtures, for the month of December,$85
Depreciation, Cleaning Equipment, for the month of December,$208
Depreciation, Office Equipment, for the month of December,$42
Expired Insurance, for the month of December, $60
Accrued wages for the fast five days of December are $1,072
An Accounts Receivable in the amount of $416 for earned butunbilled cleaning services in December was overlooked and notrecorded in the accounting records
Complete the Work Sheet
Prepare the Financial Statements:
Income Statement for year ended December31
Statement of Ownerâs Equity for the year ended December 31
Balance Sheet as of December 31
Journalize and post the Adjusting Entries.
Journalize and post the Closing Entries.
Prepare the Post-Closing Trial Balance as of December 31.