Tucker BoatsPractice Problem

General JournalDate Transaction # Journal Entry # Account # Debit Credit

9/1/05 1 1 101 Cash 100,000301 Common Stock - (no par) 100,000

initial investment in Tucker Boats

9/1/05 3 2 132 Prepaid Insurance 2,196101 Cash 2,196

to record payment of annual insurance

9/1/05 4 3 604 Rent Expense 2,400101 Cash 2,400

to record payment of rent

9/4/05 5 4 301 Common Stock - (no par) 900101 Cash 900

to record payment for issuance of common stock

9/6/05 6 5 141 Store, Office, & Boat Equipment 26,880101 Cash 6,880210 Notes Payables 20,000

to record acquisition of equipment

9/6/05 7 6 121 Boat Inventory 12,050101 Cash 550201 Accounts Payable 11,500

to record receipt of inventory

9/7/05 8 7 122 Boat Accessory Inventory 1,330201 Accounts Payable 1,330

to record receipt of inventory

9/8/05 9 8 131 Supplies 760101 Cash 760

to record purchase of supplies

Tucker BoatsPractice Problem

9/9/05 10 9 101 Cash 490502 Cost of Goods Sold - Accessory Sales 350402 Accessory Sales 490122 Boat Accessory Inventory 350

to record sale of accessories to John Phillips

9/11/05 11 10 111 Accounts Receivable 220403 Boat Repair Revenue 220

invoice to Albert Snell for boat repair

9/11/05 12 11 111 Accounts Receivable 410502 Cost of Goods Sold - Accessory Sales 225402 Accessory Sales 410122 Boat Accessory Inventory 225

to record sale of accessories to Frank Featherstone

9/13/05 13 12 122 Boat Accessory Inventory 900201 Accounts Payable 860101 Cash 40

to record receipt of inventory

9/13/05 14 13 607 Advertising expense 180101 Cash 180

to record payment for advertising

9/14/05 15 14 201 Accounts Payable 130122 Boat Accessory Inventory 130

to record return of merchandise

9/15/05 16 15 101 Cash 335502 Cost of Goods Sold - Accessory Sales 222402 Accessory Sales 335122 Boat Accessory Inventory 222

to record sale of accessories to Art Jensen

9/15/05 17 16 121 Boat Inventory 8,110

Tucker BoatsPractice Problem

101 Cash 310201 Accounts Payable 7,800

to record receipt of inventory

9/18/05 19 17 607 Advertising expense 300101 Cash 300

to record payment for advertising

9/20/05 20 18 101 Cash 18,999501 Cost of Goods Sold - Boat Sales 12,050401 Boat Sales 18,999121 Boat Inventory 12,050

to record sale to Lance Layitover

9/21/05 21 19 201 Accounts Payable 11,500101 Cash 11,500

to record payment of vendor invoices

9/21/05 22 20 101 Cash 1,755403 Boat Repair Revenue 1,755

to record repair revenues

9/22/05 23 21 607 Advertising expense 180101 Cash 180

to record payment for advertising

9/23/05 24 22 121 Boat Inventory 12,615101 Cash 515201 Accounts Payable 12,100

to record receipt of inventory

9/23/05 25 23 101 Cash 704502 Cost of Goods Sold - Accessory Sales 425402 Accessory Sales 704122 Boat Accessory Inventory 425

to record ski accessory sales

Tucker BoatsPractice Problem

9/24/05 26 24 101 Cash 580204 Unearned Revenue 580

to record prepaid services

9/24/05 27 25 201 Accounts Payable 730101 Cash 730

to record payment of vendor invoices

9/25/05 28 26 111 Accounts Receivable 770502 Cost of Goods Sold - Accessory Sales 545402 Accessory Sales 770122 Boat Accessory Inventory 545

to record sale of accessories to Frank Hammons

9/25/05 29 27 122 Boat Accessory Inventory 850101 Cash 23201 Accounts Payable 827

to record receipt of inventory

9/27/05 30 28 111 Accounts Receivable 2,329403 Boat Repair Revenue 2,329

to record invoice to James Murphy for repair services

9/28/05 31 29 311 Retained Earnings 1,500205 Dividends Payable 1,500

to record dividends payable

9/30/05 A1 609 Doubtful Accounts expense 186112 Allowance for doubtful accounts 186

to record estimate for bad debts ($3729 x .05)

9/30/05 A2 502 Cost of Goods Sold - Accessory Sales 43122 Boat Accessory Inventory 43

to reconcile physical inventory to GL ($1183-1140)

Tucker BoatsPractice Problem

9/30/05 A3 602 Supplies Expenses 498131 Supplies 498

to record supplies used during the month ($760-262)

9/30/05 A4 605 Depreciation expense 280142 Accumulated depreciation 280

to record depreciation ($26,880/96)

9/30/05 A5 601 Salaries Expenses 4,600202 Accrued Salaries Payable 4,600

to accrue salary expense for the month (20x8x10 + 3000)

9/30/05 A6 606 Utilities expense 357207 Other Accrued expenses payable 357

to record utilities expense for the month

9/30/05 A7 603 Insurance Expenses 183132 Prepaid Insurance 183

to amortize prepaid insurance (2196/12)

9/30/05 A8 608 Interest expense 133203 Accrued Interest Payable 133

to accrue interest due on note payable ((20,000 x .096)/12 = 160 x 25/30)

9/30/05 A9 210 Notes Payables 5,000206 Current Maturities of long-term debt 5,000

to record current portion of note payable (20,000/4)

Tucker Boats Practice Problem

101 Cash 111 Accounts Receivable 112 Allowance for doubtful accounts 121 Boat Inventory 0 0 BB 0 0 BB 0 0 BB 0 0 BB

100,000 1 220 10 12,050 62,196 2 410 11 8,110 162,400 3 770 26 12,050 18

900 4 2,329 28 12,615 226,880 5

550 6760 8

490 940 12

180 13335 15

310 16300 17

18,999 1811,500 19

1,755 20180 21515 22

704 23580 24

730 2523 27

122,863 27,464 3,729 0 0 0 32,775 12,05095,399 0 3,729 0 0 0 20,725 0

Adjustments 186 A1

0 0 0 0 0 186 0 095,399 0 3,729 0 0 186 20,725 0

122 Boat Accessory Inventory 131 Supplies 132 Prepaid Insurance 133 Prepaid Rent 0 0 BB 0 0 BB 0 0 BB 0 0 BB

1,330 7 760 8 2,196 2350 9225 11

900 12130 14222 15425 23545 26

850 27

3,080 1,897 760 0 2,196 0 0 01,183 0 760 0 2,196 0 0 0

Adjustments 43 A2 498 A3 183 A7

Tucker Boats Practice Problem

0 43 0 498 0 183 0 01,140 0 262 0 2,013 0 0 0

141 Store, Office, & Boat Equipment 142 Accumulated depreciation 201 Accounts Payable 202 Accrued Salaries Payable 0 0 BB 0 0 BB 0 0 BB 0 0 BB

26,880 5 11,500 61,330 7

860 12130 14

7,800 1611,500 19

12,100 22730 25

827 27

26,880 0 0 0 12,360 34,417 0 026,880 0 0 0 0 22,057 0 0

Adjustments 280 A4 4,600 A5

0 0 0 280 0 0 0 4,60026,880 0 0 280 0 22,057 0 4,600

203 Accrued Interest Payable 204 Unearned Revenue 205 Dividends Payable 206 Current Maturities of long-term debt 0 0 BB 0 0 BB 0 0 BB 0 0 BB

580 24 1,500 29

0 0 0 580 0 1,500 0 00 0 0 580 0 1,500 0 0

Adjustments 133 A8 5,000 A9

0 133 0 0 0 0 0 5,0000 133 0 580 0 1,500 0 5,000

207 Other Accrued expenses payable 210 Notes Payables 301 Common Stock - (no par) 311 Retained Earnings 0 0 BB 0 0 BB 0 0 BB 0 0 BB

20,000 5 100,000 1 1,500 29900 4

Tucker Boats Practice Problem

0 0 0 20,000 900 100,000 1,500 00 0 0 20,000 0 99,100 1,500 0

Adjustments 357 A6 5,000 A9

0 357 5,000 0 0 0 0 00 357 0 15,000 0 99,100 1,500 0

401 Boat Sales 402 Accessory Sales 403 Boat Repair Revenue 501 Cost of Goods Sold - Boat Sales 0 0 BB 0 0 BB 0 0 BB 0 0 BB

18,999 18 490 9 220 10 12,050 18410 11 1,755 20335 15 2,329 28704 23770 26

0 18,999 0 2,709 0 4,304 12,050 00 18,999 0 2,709 0 4,304 12,050 0

0 0 0 0 0 0 0 00 18,999 0 2,709 0 4,304 12,050 0

502 Cost of Goods Sold - Accessory Sale601 Salaries Expenses 602 Supplies Expenses 603 Insurance Expenses 0 0 BB 0 0 BB 0 0 BB 0 0 BB

350 9225 11222 15425 23545 26

1,767 0 0 0 0 0 0 01,767 0 0 0 0 0 0 0

Adjustments 43 A2 4,600 A5 498 A3 183 A7

43 0 4,600 0 498 0 183 01,810 0 4,600 0 498 0 183 0

Tucker Boats Practice Problem

604 Rent Expense 605 Depreciation expense 606 Utilities expense 607 Advertising expense 0 0 BB 0 0 BB 0 0 BB 0 0 BB

2,400 3 180 13300 17180 21

2,400 0 0 0 0 0 660 02,400 0 0 0 0 0 660 0

Adjustments 280 A4 357 A6

0 0 280 0 357 0 0 02,400 0 280 0 357 0 660 0

608 Interest expense 609 Doubtful Accounts expense 0 0 0 00 0 BB 0 0 BB BB BB

0 0

0 0 0 0 0 0 0 00 0 0 0 0 0

Adjustments 133 A8 186 A1

133 0 186 0 0 0 0 0133 0 186 0 0 0 0 0

Tucker Boats Practice Problem

Boat Inventory

Prepaid Rent

Tucker Boats Practice Problem

Accrued Salaries Payable

Current Maturities of long-term debt

Retained Earnings

Tucker Boats Practice Problem

Cost of Goods Sold - Boat Sales

Insurance Expenses

Tucker Boats Practice Problem

Advertising expense

Tucker Boats Practice Problem - Trial Balance

Date: Transactions Adjustments EOM Closing Entries

Account Account Name Beginning Balance Ending Balance Adjusted Balance Ending BalanceDB CR DB CR DB CR DB CR DB CR DB CR DR CR

101 Cash 0 0 122,863 27,464 95,399 0 95,399 0 95,399 0111 Accounts Receivable 0 0 3,729 0 3,729 0 3,729 0 3,729 0112 Allowance for doubtful accounts 0 0 0 0 0 0 186 0 186 0 186121 Boat Inventory 0 0 32,775 12,050 20,725 0 20,725 0 20,725 0122 Boat Accessory Inventory 0 0 3,080 1,897 1,183 0 43 1,140 0 1,140 0131 Supplies 0 0 760 0 760 0 498 262 0 262 0132 Prepaid Insurance 0 0 2,196 0 2,196 0 183 2,013 0 2,013 0133 Prepaid Rent 0 0 0 0 0 0 0 0 0 0141 Store, Office, & Boat Equipment 0 0 26,880 0 26,880 0 26,880 0 26,880 0142 Accumulated depreciation 0 0 0 0 0 0 280 0 280 0 280201 Accounts Payable 0 0 12,360 34,417 0 22,057 0 22,057 0 22,057202 Accrued Salaries Payable 0 0 0 0 0 0 4,600 0 4,600 0 4,600203 Accrued Interest Payable 0 0 0 0 0 0 133 0 133 0 133204 Unearned Revenue 0 0 0 580 0 580 0 580 0 580205 Dividends Payable 0 0 0 1,500 0 1,500 0 1,500 0 1,500206 Current Maturities of long-term debt 0 0 0 0 0 0 5,000 0 5,000 0 5,000207 Other Accrued expenses payable 0 0 0 0 0 0 357 0 357 0 357210 Notes Payables 0 0 0 20,000 0 20,000 5,000 0 15,000 0 15,000301 Common Stock - (no par) 0 0 900 100,000 0 99,100 0 99,100 0 99,100311 Retained Earnings 0 0 1,500 0 1,500 0 1,500 0 0 2,855 0 1,355401 Boat Sales 0 0 0 18,999 0 18,999 0 18,999 18,999 0 0 0402 Accessory Sales 0 0 0 2,709 0 2,709 0 2,709 2,709 0 0 0403 Boat Repair Revenue 0 0 0 4,304 0 4,304 0 4,304 4,304 0 0 0501 Cost of Goods Sold - Boat Sales 0 0 12,050 0 12,050 0 12,050 0 0 12,050 0 0502 Cost of Goods Sold - Accessory Sales 0 0 1,767 0 1,767 0 43 1,810 0 0 1,810 0 0601 Salaries Expenses 0 0 0 0 0 0 4,600 4,600 0 0 4,600 0 0602 Supplies Expenses 0 0 0 0 0 0 498 498 0 0 498 0 0603 Insurance Expenses 0 0 0 0 0 0 183 183 0 0 183 0 0604 Rent Expense 0 0 2,400 0 2,400 0 2,400 0 0 2,400 0 0605 Depreciation expense 0 0 0 0 0 0 280 280 0 0 280 0 0606 Utilities expense 0 0 0 0 0 0 357 357 0 0 357 0 0607 Advertising expense 0 0 660 0 660 0 660 0 0 660 0 0608 Interest expense 0 0 0 0 0 0 133 133 0 0 133 0 0609 Doubtful Accounts expense 0 0 0 0 0 0 186 186 0 0 186 0 0

0 0 223,920 223,920 169,249 169,249 11,280 11,280 174,805 174,805 26,012 26,012 150,148 150,148

Chart of Accounts - Tucker Boats

101 Cash111 Accounts Receivable 112 Allowance for doubtful accounts 121 Boat Inventory 122 Boat Accessory Inventory 131 Supplies 132 Prepaid Insurance 133 Prepaid Rent 141 Store, Office, & Boat Equipment 142 Accumulated depreciation 201 Accounts Payable 202 Accrued Salaries Payable 203 Accrued Interest Payable 204 Unearned Revenue 205 Dividends Payable 206 Current Maturities of long-term debt 207 Other Accrued expenses payable 210 Notes Payables 301 Common Stock - (no par) 311 Retained Earnings 401 Boat Sales 402 Accessory Sales 403 Boat Repair Revenue 501 Cost of Goods Sold - Boat Sales 502 Cost of Goods Sold - Accessory Sales 601 Salaries Expenses 602 Supplies Expenses 603 Insurance Expenses 604 Rent Expense 605 Depreciation expense 606 Utilities expense607 Advertising expense 608 Interest expense 609 Doubtful Accounts expense