Transactions:   Jan. 3.   Record sales for the week.  To make things easier, we are going to only record cash sales weekly,...

Transactions:

Jan. 3.   Record sales for the week.  To make things easier, we are going to only record cash sales weekly, though in a real business sales would be recorded more often.  Internet sales are done for cash through PayPal.  PayPal subtracts a fee from the amount that is received depending how the client paid PayPal’s.  In store sales are paid with cash.  Remember a 6% sales tax is charged on all instate sales.

                Out-of-State Internet Sales                         150 units                              $1,380

                Instate Internet sales                                       10 units                              $    100

                In-Store Sales                                                      55 units                              $   600

                PayPal fee           $28

Jan. 3     Issued check 562 for $1,200 to pay rent for January.

Jan. 3     Issued check 563 to USPS for $365 for shipping for the above sales.

Jan. 3     Sold old computer(Office Equipment) costing $2,000 and having $800 of accumulated depreciation attached to it for $400 in cash.

Jan. 5     Received order of 5,000 DVDs from KLD Video.  Invoice amount was for $18,367.35 which included shipping and handling.  Terms of the order is 2/10, n/30.  Riley policy is to take advantage of all discounts offered and records all purchases at the net amount, less the discount.  If Riley fails to pay within the discounted period, the extra amount paid is charged to Discounts Lost and expensed as a finance charge.

Jan. 5     Issue check 564 to Custom DVD for the amount due on account.

Jan. 5     Received a $320 bill (Invoice number 312) from Morgan County Journal for advertising in this week’s newspaper.

Jan. 6     Electronically transferred $1,250 to Google for a variety of internet advertising campaigns.  (Confirmation # 1234G234)

Jan 7.     Received $120 from Jason Cridal for amount owed on account.

Jan 7.     Jay Finn, owner of Finn’s Variety Shop stopped by the store to pick up more videos to be sold at his store.  He purchased 250 DVDs on account for $1,500.  Issued him invoice number 3321.  Since Finn is buying the product to resale, he does not have to pay sales tax

Jan. 8     Purchased $650 of office supplies from Dan’s Office Supply Company on account.

Jan 8      Issued the following checks to pay amounts owed on account.

                565         S & S Shipping Supplies                  $1,325

                566         Wholesale Video                              $3,800

Jan 9      Received a check from Glen Beckendale for $80 and H & C Groceries for $980 for payments on account.

 Jan. 9    Purchased shipping supplies costing $640 from S & S Shipping Supplies on Account.

Jan. 10  Record sales for the week ending January 10. 

                Out-of-State Internet Sales                         2,800 units                          $22,800

                Instate Internet sales                                         230 units                          $   2,100

                In-Store Sales                                                        559 units                          $  5,800

                PayPal fee           $498

Jan. 10  Issued check 567 to USPS for $1,465 for shipping for the above sales.

Jan. 10  Electronically transferred the amount due to the federal government for withholdings and FICA for December.

Jan. 10  Electronically transferred the amount due to the state for withholdings and sales taxes from December.

Jan. 10  Electronically transferred the amount due for the fourth quarter unemployment to the federal government.

Jan. 10  Electronically transferred the amount due for the fourth quarter unemployment to the state.

Jan. 12  Received payment on account from Fury Video, $1,500.

Jan.  13Delivered 500 videos to CK Video and delivered the invoice for $3,800. CK Video purchases the videos for resale.  Thus, there is no sales tax.

Jan. 13  Received and recorded bill from City Energy for utilities for $265.

Jan. 13  Received and recorded bill from Topica Bell for telephone service for $212.

Jan. 14  Issued the following checks for bills:

                568         KLD Video                                           $18,000

                569         Morgan County Journal                 $     320

Jan. 15  Processed payroll for the first half of the month.  Details follow:

                Officers’ Salaries                              $10,000

                Wage Expense                                  $  4,250

                Federal Withholdings                         2,975

                FICA Withholdings                               1,083

                State Withholdings                                  570

Jan.  15Processed employer payroll taxes for the first half of the month.  Details are below:

                FICA                                                       $1,083

                Federal Unemployment                                     114

                State Unemployment                          540

Jan. 15  Issued check 570 for net amount of payroll.  Amount is paid to a payroll account where checks are written for payroll.

Jan. 17  Record sales for the week ending January 17. 

                Out-of-State Internet Sales                         2,600 units                          $20,800

                Instate Internet sales                                         180 units                          $   1,900

                In-Store Sales                                                        400 units                          $  3,800

                PayPal fee           $448

Jan. 17  Issued check 571 to USPS for $1,265 for shipping for the above sales.

Jan. 19  Received $800 for payment on Helm’s Depot account and $300 for payment on Larry Flintwood’s account.

Jan. 19  Found out that Sterofonics declared bankruptcy and that you will most likely collect nothing and found out that Mary VanStruckle left the state.  Decide to write off both accounts.

Jan. 20 Issued check 572 for new computer (Office Equipment) $2,600.

Jan. 21  Issued 2,500 more shares of the $1 par value stock for future store expansion at $25 per share.

Jan. 21  Took the $62,500 of cash from sale of stock and invested it into a variety of marketable equity securities.  The cash was electronically transferred.

Jan. 22  Cut check 573 for $220 to Memix Computer Repairs for repairs done to computer.

Jan. 22  Received a bill from Larry’s Janitorial Services for the month of January for $400.

Jan. 23 Issued the following checks for bills:

                574         City Energy                         $265

                575         Topica Bell                             212

Jan. 24  Record sales for the week ending January 24. 

                Out-of-State Internet Sales                         3,200 units                          $27,400

                Instate Internet sales                                         120 units                          $   1,200

                In-Store Sales                                                        320 units                          $  3,300

                PayPal fee           $558

Jan. 24  Issued check 576 to USPS for $1,455 for shipping for the above sales.

Jan. 26 Received a check from Albert Finney for payment on his account for $215.

Jan. 27 Issued check 577 to S & S Shipping Supplies for $640 to pay off the account.

Jan. 29  Issued check 578 for $400 to R.J. Holmes, CPA for accounting services for the month of January.

Jan. 31  $500 was electronically transferred out of the checking account to pay interest for the month of January on the Note Payable.

Jan. 31  Record sales for the week ending January 24. 

                Out-of-State Internet Sales                         2,700 units                          $28,000

                Instate Internet sales                                         230 units                          $   2,400

                In-Store Sales                                                        380 units                          $  4,600

                PayPal fee           $538

Jan. 31  Issued check 579 to USPS for $1,223 for shipping for the above sales.

Jan. 31  Processed payroll for the second half of the month.  Details follow:

                Officers’ Salaries                              $10,000

                Wage Expense                                  $  4,250

                Federal Withholdings                         2,975

                FICA Withholdings                               1,083

                State Withholdings                                  570

Jan.  31Processed employer payroll taxes for the first half of the month.  Details are below:

                FICA                                                       $1,083

                Federal Unemployment                                     114

                State Unemployment                          540

Jan. 31  Issued check 580 for net amount of payroll.  Amount is paid to a payroll account where checks are written for payroll.

Jan. 31  Issued check 581 for $180 to replenish Petty Cash.  Below are the receipts left in the fund.

                Office Supplies                  $50

                Janitorial Expense            $40        

                Miscellaneous                   $90

Monthly Adjusting Entries

1.            $200 of insurance has expired during January.

2.            $5,300 of shipping supplies remained at the end of January.

3.            $520 of office supplies remained at the end of January.

4.            Riley estimates that the allowance for doubtful accounts should have a balance of $600 at the end of January.

5.            Monthly Depreciation for Store Equipment is $500

6.            Monthly Depreciation for Office Equipment is $250