Month-to-month Accounting TransactionsSAP AG 2009 / SAP College AlliancesNext, you may be reviewing a collection of occasions which have occurred through the month of January 20YY andrecording and posting as acceptable the mandatory journal entries.#DESCRIPTION OF EVENTS OCCURRING throughout January, 20YYDateDescription of Event1January 2, 20YYEmployees are paid on the primary day of the month for work performedduring the earlier month (due to the New Years vacation, this monththey are paid on the 2nd). Complete wages paid on this date had been $38,000.(Ignore payroll taxes for this project.)2January 2, 20YY3January four, 20YYCottonwood paid hire for the present month. The quantity of the paymentwas $10,000.Cottonwood signed and paid for an annual promoting settlement with thePRCA for banner advertisements on the PRCA web site. Cottonwoods advertisementswill be posted to the web site beginning in April 20YY and run till March 31,20YY+1. The quantity of the settlement is $7,000.4January 7, 20YYCottonwood acquired a cargo of occasion merchandise from the RodeoOutfitters Firm. This merchandise was ordered on December 15thand was delivered by Viking Freight. Rodeo Outfitters paid Viking for theshipping cost of $812. Cottonwood is to pay Rodeo Outfitters $96,000primarily based on phrases of internet 30.5January eight, 20YYCottonwood acquired an order from the FFA rodeo in LaJunta Colorado,(LJ FFA), for $17,000 in occasion merchandise. The Cottonwood customerservice consultant confirmed that the LJ FFA Rodeos account waspaid present they usually had enough credit score obtainable to cowl the brand new sale.The order was then despatched to the warehouse the place it was picked andprepared for delivery. The merchandise was shipped through UPS at a price of$215, which was paid by Cottonwood. Price of the merchandise shippedwas $12,500. Phrases of the sale are internet 30.6January 12, 20YYAlamo Convention Middle in Texas positioned an order with Cottonwood viaemail. Cottonwoods gross sales rep wrote up the order, checked their credit score andsent the order info to the warehouse for delivery. The sale amountwas $108,100, which included $90,320 in resale merchandise and $17,780in occasion merchandise. The price of the resale merchandise was $60,418and the price of the occasion merchandise was $13,953. The products wereshipped that day. Cottonwood paid the delivery expense of $897.Fee phrases for the order are internet 15.7January 14, 20YYCottonwood paid the bill for the gadgets from Rodeo Outfitters receivedon January seventh.ACCT 4342-S13 Month-to-month TransactionsPage 2#DateDescription of Event8January 16, 20YYAfter intensive assortment effort together with having a set agencycontact the celebration, Cottonwood was notified at present that the Fly-by-KnightRodeo has gone out of enterprise. They owed Cottonwood $2,000 onaccount. Cottonwood now deems that debt as being uncollectible andremoves it from their books. Notice the corporate makes use of an Allowance forDoubtful Accounts account.9January 19, 20YY10January 20, 20YY11January 23, 20YYCottonwood acquired buyer checks totaling $13,110 for cost onoutstanding accounts.Cottonwood remitted (paid) any gross sales tax collected within the prior quarter tothe State of California. (Notice: Gross sales tax is collected and paid quarterly).The FFA Rodeo in LaJunta Colorado (January eighth) returned $5,000 inevent merchandise as extra merchandise. The merchandise wasinspected and restocked. FFA is given a credit score to their account for thereturned merchandise. The credit score is for the $5,000 minus a 10%restocking price. The price of the products is $2,500. FFA LaJunta paid thereturn delivery of $58. (Notice: Restocking Charges are accounted for as Misc.Income.)12January 31, 20YYEmployees payroll is calculated for the month. The January salaryexpense is $37,000. This quantity is to be paid on February 1, 20YY.Ignore payroll taxes.Utilizing these account balances and extra adjustment info under, document adjusting journalentries. Adjustment info as of January 31, 20YY not already given within the authentic transaction(s):1. Warehouse and workplace tools was positioned in service on January 1, 20 YY-5 and is predicted to final10 years and has no salvage worth. Cottonwood depreciates mounted belongings on a straight-lineDepreciation is rounded to the closest greenback and belongings are depreciated on a month-to-month foundation (i.e.variety of days within the month is just not of consequence).2. On February 2, Cottonwood acquired a $three,500 invoice from PG&E for utilities consumed throughout Januaryand the January AT&T invoice within the quantity of $350. The gadgets are each handled as utility expense.three. Legal responsibility insurance coverage for the 20YY fiscal yr was paid on the finish of November 20YY-1. Liabilityinsurance is assumed to be utilized uniformly month-to-month over the one-year coverage interval.
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