Faculty Info Sheet
Year Began: 2023 Adj Amount: Company Name: Cups & Cones 7 Scoring Section Daily Transactions Journal Page Daily Entry Points General Ledger (T-Account) Ledger Points Adjusting Entries Journal Page Adjusting Points Income Statement IS Points Statement of SE
Product: ice cream machines % Days Net Days Earned Possible Section Weight Date Account DR CR Point Per Item: 1 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Possible: 1 Account DR CR Points each 2 Sales Revenue 117,600.00 10 Common Stock Retained Earnings Total Stockholders’ Equity SE Points
Terms: 3/15, n/30 3 15 n 30 Unemployment Tax: Daily Transaction Points: 100 126 30% 1-Nov Cash 150,000.00 1 1 150,000.00 24,000.00 45,000.00 45,000.00 8,000.00 15,700.00 1 Depreciation Expense 450.00 2 2 Less: Sales Discounts 1,350.00 Balance, January 1 - 0 - 0 - 0 Points 3
% of Bad Debt 1.00 Nov Dec CHECK Adjusting Entry Points: 72 72 17% Common Stock 150,000.00 1 1 43,650.00 8,000.00 72,600.00 726.00 16,500.00 25,740.00 Cash 0 Accumulated Depreciation - Computer 450.00 2 2 Net Sales 116,250.00 Issuance of Stock 150,000.00 150,000.00 3
Sales Tech Salary 4,000.00 726 % of Receivables - Bad Debt Exp 240.00 180.00 CORRECT 60 Ledger: 2 37 9% 60,000.00 1,700.00 24,200.00 AR 0 Less: Cost of Goods Sold 41,440.00 Net Income 40,174.00 40,174.00 0
Office Manager Salary 6,000.00 360.00 60.00 CORRECT Adjusted TB Points: 30 39 9% 1-Nov Computer Equipment 15,000.00 1 1 33,000.00 12,000.00 - 0 726.00 7,260.00 - 0 Allowance 0 2 Interest Expense 75.00 2 2 Gross Profit 74,810.00 10 Dividends (4,000.00) (4,000.00) 3
Owner Investment 150,000.00 Depreciation: Income Statement: 10 40 10% Notes Payable 15,000.00 1 1 1,700.00 Inventory 0 Interest Payable 75.00 2 2 Operating Expenses: Balance, December 31 150,000.00 36,174.00 186,174.00 3 0 0
Computer system 15,000.00 450.00 Two-Months Dep Asset Life Salvage (10%) Equity Statement: 9 18 4% 6,735.00 72,600.00 - 0 Supplies 0 Advertising Expense 1,700.00
Interest Rate on Computer 3.00 75.00 Two Months Int Computer 5.00 1,500.00 Balance Sheet: 0 48 11% 2-Nov Prepaid Rent 24,000.00 1 1 70,000.00 Prepaid Rent 0 3 Rent Expense 2,000.00 2 2 Utilities Expense 3,200.00 Closing Entries Closing Entries
Two Years Rent 24,000.00 2,000.00 Two Months Rent Delivery Truck 10.00 7,000.00 Closing Entries: 0 24 6% Cash 24,000.00 1 1 16,500.00 Supplies Prepaid Rent Prepaid Insurance Prepaid Insurance 0 Prepaid Rent 2,000.00 2 2 Salaries Expense 20,000.00 Date Account DR CR Points 1
Inventory Purchase 1 1,000.00 Quantity: 8 Supplies Expense Ratios: 0 15 4% 4,000.00 1,700.00 2,890.00 24,000.00 2,000.00 12,000.00 500.00 Computer Equipment 0 Depreciation Expense 975.00 31-Dec Sales Revenue 117,600.00 0 0
Supplies Purchase 1 1,700.00 Available On Hand (15%) Total Points: 223 419 100% 3-Nov Inventory 8,000.00 1 1 1,700.00 1,700.00 Acc Dep - Comp 0 4 Insurance Expense 500.00 2 2 Rent Expense 2,000.00 Sales Discounts 1,350.00 0 0
Inventory Purchase 2 1,100.00 Quantity: 15 3,400.00 510.00 Cash 8,000.00 1 1 Delivery Truck 0 Prepaid Insurance 500.00 2 2 Supplies Expense 2,890.00 Retained Earnings 116,250.00 0 0
Insurance Policy 12,000.00 500.00 One Month Insurance Final Score: 53 510.00 - 0 22,000.00 - 0 11,500.00 - 0 Acc Dep - DT 0 Bad Debt Expense 726.00
Inventory Sale 1 3,000.00 Quantity: 15 Enter at least: 9 4-Nov Supplies 1,700.00 1 1 140,315.00 - 0 AP 0 5 Supplies Expense 2,890.00 2 2 Payroll Tax Expense 2,370.00 31-Dec Retained Earnings 76,076.00 0 0 0
Utilities 1,700.00 But no more than: 22 Accounts Payable 1,700.00 1 1 Accumulated Depreciation - Computer Accumulated Depreciation - Delivery Truck Interest Payable 0 Supplies 2,890.00 2 2 Insurance Expense 500.00 Cost of Goods Sold 41,440.00 0
Fed Income Tax Rate 15.00 Cost of Goods Sold Calculation Computer Equipment Delivery Truck Defe
ed Revenue 0 Total Operating Expenses 34,361.00 0 Advertising Expense 1,700.00 0
State Income Tax Rate 10.00 765.00 FICA Tax CHECK Check: Qty Cost 15-Nov Inventory 16,500.00 1 1 15,000.00 450.00 70,000.00 525.00 Salaries Payable 0 6 Depreciation Expense 525.00 2 2 Operating Income 40,449.00 0 Utilities Expense 3,200.00 0
FICA Tax Rate 7.65 7,000.00 Unemployment Cap Postive End Cash OK Purchase 1 8 1,000.00 8,000.00 Accounts Payable 16,500.00 1 1 Notes Payable 0 Accumulated Depreciation - Delivery Truck 525.00 2 2 Other Revenue (Expense): Salaries Expense 20,000.00 0
Unemployment Tax Rate 6.00 Payment Year One Interest Postive Income OK Purchase 2 15 1,100.00 16,500.00 15,000.00 - 0 - 0 450.00 70,000.00 - 0 - 0 525.00 Fed Inc Tax Pay 0 Interest Expense (275.00) Depreciation Expense 975.00 0
Note Payable 2 60,000.00 $7,397 2,400.00 Sale 1 15 15,700.00 CGS Calculation 17-Nov Accounts Payable 1,700.00 1 1 NC State Inc Tax 0 7 Interest Expense 200.00 2 2 Total Other Revenue (Expense) (275.00) Rent Expense 2,000.00 0
Term on Note 2 (years) 10.00 200.00 Interest Exp on Note Remaining 8 1,100.00 Cash 1,700.00 1 1 Accounts Payable Interest Payable Defe
ed Revenue Salaries Payable FICA Tax 0 Interest Payable 200.00 2 2 Net Income 40,174.00 0 Interest Expense 275.00 0
Rate on Note Payable 2 4.00 4% Purchase 3 20 1,210.00 24,200.00 1,700.00 1,700.00 75.00 33,000.00 6,735.00 6,735.00 Une. Tax Pay 0 Supplies Expense 2,890.00 0
Delivery Truck 70,000.00 525.00 One Month Depreciation Sale 2 22 25,740.00 CGS Calculation 18-Nov Prepaid Insurance 12,000.00 1 1 16,500.00 16,500.00 200.00 6,735.00 Common Stock 0 8 Bad Debt Expense 726.00 2 2 Bad Debt Expense 726.00 0
Dividends 4,000.00 Ending Inventory 6 1,210.00 Cash 12,000.00 1 1 1,700.00 Retained Earnings 1 Allowance for Uncollectible Accounts 726.00 2 2 Balance Sheet Payroll Tax Expense 2,370.00 0
Supplies Purchase 2 1,700.00 2,890.00 Supplies Expense CGS 41,440.00 24,200.00 Cash Divs 0 Assets: BS Points Insurance Expense 500.00 0
Inventory Purchase 3 1,210.00 Quantity: 20 20-Nov Accounts Receivable 45,000.00 1 1 1,500.00 Sales Revenue 0 9 Utilities Expense 1,500.00 2 2 Cu
ent Assets: 8
Inventory Sale 2 3,300.00 Quantity: 22 Enter at least: 9 Check: CGAS 48,700.00 Sales Revenue 45,000.00 1 1 - 0 27,400.00 - 0 275.00 - 0 33,000.00 - 0 6,735.00 Service Rev 1 Accounts Payable 1,500.00 2 2 Cash 140,315.00 31-Dec Retained Earnings 4,000.00 0 0
Advertising 1,700.00 But no more than: 25 EI 7,260.00 Sales Discount 0 Accounts Receivable 72,600.00 Cash Dividends 4,000.00 0 0
Defe
ed Revenue 33,000.00 Quantity: 10 CGS 41,440.00 20-Nov Cost of Goods Sold 15,700.00 1 1 Notes Payable Federal Income Tax Payable NC State Income Tax Payable FICA Tax Payable CGS 0 Allowance for Uncollectible Accounts (726.00)
Accrued Utilities 1,500.00 CGS Check Co
ect Inventory 15,700.00 1 1 15,000.00 1,500.00 1,000.00 765.00 Ad Exp 0 McDoodles Inc. Adjusted Trial Balance
December 31, 2022 TB Points Inventory 7,260.00 Ratio Points
60,000.00 1,500.00 1,000.00 765.00 Ut. Exp 0 Account Name Debit Credit Each 1 Supplies 510.00 Ratio Formula Answer Points 3
Notes Payable: Cu
ent Portion 28-Nov Cash 43,650.00 1 1 765.00 Sal. Exp 0 Cash 140,315 0 Prepaid Rent 22,000.00 Cu
ent Ratio Cu
ent Assets/Cu
ent Liabilities 2.63 0
Cu
ent $4,997 $19,997 Sales Discounts 1,350.00 1 1 765.00 Dep Exp 0 Accounts Receivable 72,600 1 Prepaid Insurance 11,500.00 Debt to Equity Total Liabilities/Stockholders Equity 0.81 0
Long-term $55,003 Accounts Receivable 45,000.00 1 1 - 0 75,000.00 - 0 3,000.00 - 0 2,000.00 - 0 3,060.00 Rent Exp 0 Allowance for Uncollectible Accounts 726 1 Total Cu
ent Assets 253,459.00 0 Gross profit ratio GP/Net Sales 0.64 0
Int Exp 0 Inventory 7,260 1 Property, Plant, and Equipment Profit margin net income/net sales 0.35 0
Note Check Co
ect 29-Nov Utilities Expense 1,700.00 1 1 Unemployment Tax Payable Common Stock Retained Earnings Cash Dividends Sup Exp 0 Supplies 510 1 Computer Equipment 15,000.00 Return on Assets Net income/Average total assets 0.24 0
Cash 1,700.00 1 1 600.00 150,000.00 4,000.00 BD Exp 0 Prepaid Rent 22,000 1 Less: Acc Dep (450.00)
240.00 Pay Tax Exp 0 Prepaid Insurance 11,500 1 Delivery Truck 70,000.00
27-Nov Salaries Expense 10,000.00 1 1 - 0 840.00 - 0 150,000.00 - 0 - 0 4,000.00 - 0 Ins. Exp. 0 Computer Equipment 15,000 1 Less: Acc Dep (525.00)
Federal Income Tax Payable 1,500.00 1 1 Accumulated Depreciation – Computer 450 1 Net Property, Plant, and Equipment 84,025.00
FICA Tax Payable 765.00 0 0 Sales Revenue Service Revenue Sales Discounts Cost of Goods Sold Delivery Truck 70,000 1 Total Assets 337,484.00 0
NC State Income Tax Payable 1,000.00 0 0 45,000.00 1,350.00 15,700.00 Accumulated Depreciation – Delivery Truck 525 1 Liabilities:
Salaries Payable 6,735.00 0 0 72,600.00 25,740.00 Accounts Payable 27,400 0 Cu
ent Liabilities:
Interest Payable 275 1 Accounts Payable 27,400.00
27-Nov Payroll Tax Expense 1,365.00 0 0 - 0 117,600.00 - 0 - 0 1,350.00 - 0 41,440.00 - 0 Defe
ed Revenue 33,000 1 Interest Payable 275.00
FICA Tax Payable 765.00 0 0 Salaries Payable 6,735 0 Defe
ed Revenue 33,000.00
Unemployment Tax Payable 600.00 0 0 Advertising Expense Utilities Expense Salaries Expense Depreciation Expense Notes Payable 75,000 1 Salaries Payable 6,735.00
1,700.00 1,700.00 10,000.00 450.00 Federal Income Tax Payable 3,000 1 Notes Payable 19,997.00
1-Dec Salaries Payable 6,735.00 1 0 1,500.00 10,000.00 525.00 NC State Income Tax Payable 2,000 1 Federal Income Tax Payable 3,000.00
Cash 6,735.00 1 0 1,700.00 - 0 3,200.00 - 0 20,000.00 - 0 975.00 - 0 FICA Tax Payable 3,060 0 NC State Income Tax Payable 2,000.00
Unemployment Tax Payable 840 1 FICA Tax Payable 3,060.00
1-Dec Cash 60,000.00 1 1 Rent Expense Interest Expense Supplies Expense Bad Debt Expense Common Stock 150,000 1 Unemployment Tax Payable 840.00
Notes Payable 60,000.00 1 1 2,000.00 75.00 2,890.00 726.00 Retained Earnings - 0 0 Total Cu
ent Liabilities 96,307.00 0
200.00 Dividends 4,000 1 Long-Term Liabilities:
1-Dec Delivery Truck 70,000.00 1 1 2,000.00 - 0 275.00 - 0 2,890.00 - 0 726.00 - 0 Sales Revenue 117,600 1 Notes Payable 55,003.00
Cash 70,000.00 1 1 Service Revenue - 0 1 Total Liabilities 151,310.00 0
Payroll Tax Expense Insurance Expense Sales Discounts 1,350 1 Stockholders’ Equity:
4-Dec Accounts Payable 16,500.00 1 1 1,365.00 500.00 Cost of Goods Sold 41,440 1 Common Stock 150,000.00
Cash 16,500.00 1 1 1,005.00 Advertising Expense 1,700 1 Retained Earnings 36,174.00
2,370.00 - 0 500.00 - 0 Utilities Expense 3,200 1 Total Stockholders’ Equity 186,174.00 0
5-Dec Cash Dividends 4,000.00 1 1 Salaries Expense 20,000 1 Total Liabilities & Stockholders’ Equity 337,484.00 0
Cash 4,000.00 1 1 Depreciation Expense 975 0
2,370 2,870 Debits 420,611 Rent Expense 2,000 1
6-Dec Supplies 1,700.00 1 1 500 Credits 420,611 Interest Expense 275 1
Accounts Payable 1,700.00 1 1 Balanced - 0 Supplies Expense 2,890 1
Bad Debt Expense 726 1
7-Dec Inventory 24,200.00 1 1 Payroll Tax Expense 2,370 0
Accounts Payable 24,200.00 1 1 Insurance Expense 500 1
Totals 420,611 420,611 0 0
15-Dec Accounts Receivable 72,600.00 1 1
Sales Revenue 72,600.00 1 1
15-Dec Cost of Goods Sold 25,740.00 1 1
Inventory 25,740.00 1 1
18-Dec Advertising Expense 1,700.00 1 1
Cash 1,700.00 1 1
24-Dec Cash 33,000.00 1 1
Defe
ed Revenue 33,000.00 1 1
31-Dec Salaries Expense 10,000.00 1 1
Federal Income Tax Payable 1,500.00 1 1
FICA Tax Payable 765.00 0 0
NC State Income Tax Payable 1,000.00 0 0
Salaries Payable 6,735.00 0 0
31-Dec Payroll Tax Expense 1,005.00 0 0
FICA Tax Payable 765.00 0 0
Unemployment Tax Payable 240.00 0 0
Chart of Accounts
Alphabetical Chart of Accounts: Financial Statement Validation:
Accounts Payable Accounts Payable
Accounts Receivable Accounts Receivable
Accumulated Depreciation - Computer Advertising Expense
Accumulated Depreciation - Delivery Truck Allowance for Uncollectible Accounts
Advertising Expense Assets:
Allowance for Uncollectible Accounts Bad Debt Expense
Bad Debt Expense Balance, December 31
Cash Balance, January 1
Cash Dividends Cash
Common Stock Common Stock
Computer Equipment Computer Equipment
Cost of Goods Sold Cost of Goods Sold
Defe
ed Revenue Cu
ent Assets:
Delivery Truck Cu
ent Liabilities:
Depreciation Expense Defe
ed Revenue
Federal Income Tax Payable Delivery Truck
FICA Tax Payable Depreciation Expense
Insurance Expense Dividends
Interest Expense Federal Income Tax Payable
Interest Payable FICA Tax Payable
Inventory Gross Profit
NC State Income Tax Payable Insurance Expense
No Entry Required Interest Expense
Notes Payable Interest Payable
Payroll Tax Expense Inventory
Prepaid Insurance Issuance of Stock
Prepaid Rent Less: Accumulated Depreciation-Compute
Rent Expense Less: Accumulated Depreciation-Equipment
Retained Earnings Less: Sales Discounts
Salaries Expense Liabilities:
Salaries Payable Long-Term Liabilities:
Sales Allowances NC State Income Tax Payable
Sales Discounts Net Income
Sales Returns Net Income
Sales Revenue Net Property, Plant & Equipment
Service Revenue Net Sales
Supplies Notes Payable
Supplies Expense Notes Payable
Unemployment Tax Payable Operating Expenses:
Utilities Expense Operating Income
Other Revenue (Expense):
Payroll Tax Expense
Prepaid Insurance
Prepaid Rent
Property, Plant, and Equipment
Rent Expense
Retained Earnings
Salaries Expense
Salaries Payable
Sales Revenue
Stockholders’ Equity:
Supplies
Supplies Expense
Total Assets
Total Cu
ent Assets
Total Cu
ent Liabilities
Total Operating Expenses
Total Liabilities
Total Liabilities & Stockholders’ Equity
Total Other Revenue (Expense)
Total Stockholders’ Equity
Unemployment Tax Payable
Utilities Expense
Instructions
Company Information & Summary of Significant Account Policies
Cups & Cones Company began operations on November 1, 2023. The main operating goal of the company is to sell high end
ice cream machines. Customers may pay using cash or if appropriate, a credit is extended to customers with terms 3/15, n/30 .
The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all
adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation
for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At
the end of the period, based on industry standards, the company believes 1% of the balance in accounts recievable will be
uncollectible. The company purchases ice cream machines for resale only as such they ca
y them as inventory.
The company has two employees, one is a sales technician, salary of $4000 per month and the other employee is the office
manager with a salary of $6000 per month. Payroll is processed on the last day of the month, and paid on the first day of the
following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1.
Required:
1) Cups & Cones Company engaged in the following transactions for November and December. Record the following transactions on the Daily Transactions tab.
Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full credit.
1-Nov The owner invested $150000 into the company in exchange for 5,000 shares of common stock.
1-Nov The company purchased a computer system for $15000 and signed a one-year note for the entire balance. The note is due on November 1, 2024 and has an annual rate of interest of 3%.
2-Nov Paid for two years rent on the office space, $24000.
3-Nov Purchased 8 ice cream machines at a total cost of $1000 each for cash, FOB Destination.
4-Nov Purchased $1700 of supplies on account, term n/30.
15-Nov Purchased 15 ice cream machines at a total cost of $1100 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to the shipping company by the appropriate party.
17-Nov Paid for the supplies purchased on November 4.
18-Nov Paid for a two-year insurance policy for the store, $ XXXXXXXXXXThe policy was effective beginning December 1, 2023.