Acct202 AC Speed Company (Working Papers ONLY) - Fall 2014 (June 2013 Transactions)

Acct202 Accounting Simulation
(Practice Set) AC Speed Company - Fall 2014 (June 2013 Transactions)
***This tutorial contains working papers in Excel ONLY (Excel with macros)*** JUNE 2013 JOURNAL TRANSACTIONS
June 1 Signed a 3 year 7.1% , $210,000 note payable with First Bank.
June 1 Purchased 3,100 GPS units on credit from Navistar for $35.5 per unit.
June 1 Issued 5,000 shares of common stock for $10 per share (Refer to General ledger for description of common stock).
June 1 Sold 1983 DVD players on account to Toyota for $75 per unit, Invoice #5555
June 2 Sold 3400 GPS units on account to Kia for $58 per unit, Invoice #5556.
June 2 Purchased office supplies from Office Max on credit for $1150
June 2 Sold 975 docking stations for $66 per unit and 1925 GPS units for $82 per unit on account to Nissan, Invoice #5557.
June 3 The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th.
June 4 Received payment from Toyota for May 11th sale.
June 4 Rented part of the warehouse to a new tenant and received $5400 for three months rent starting in June June 5 Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278.
June 7 Received and paid expense reports for travel and entertainment totaling $900 , Check #5279.
June 8 Paid for office supplies purchased on June 2nd, Check #5280.
June 11 Paid in full for the June 1 purchase from Navistar, Check #5281.
June 11 Received a bill from the law firm of Larry, Moe & Curly for $5400 , payable upon receipt, for bond consulting fees, Check #5282.
June 12 Paid the dividend that was declared on June 3, Check #5283.
June 13 Took advantage of a special deal to purchase 3250 DVD players on account from JVC for $48 per unit. June 13 Purchased 850 GPS units on credit from Magellan for $33 per unit. June 15 Sold 2000 DVD players on credit to Ford Motor Co. for $89 per unit, Invoice 5558. June 15 Check # 5284 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
June 16 Purchased 1800 docking stations on credit from Samsung for $42 per unit. June 17 Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $36 per unit.
June 17 Returned the 350 defective units received from Kia to Navistar.
June 18 Received payment in full from Toyota for the June 1st sale.
June 20 While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for South America instead of North America. AC Speed returned the entire order to Magellan.
June 20 A bankruptcy judge disallowed AC Speed's claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable.
June 22 Sold 1650 docking stations on credit to Kia for 64.5 per unit, Invoice #5559.
June 23 Paid $75000 of the $162500 owed to JVC from May 25, Check #5285.
June 23 Received payment from Ford Motor Co. for $175000 of the $300000 owed from May 5.
June 24 Purchased a $100 international phone card for one of the sales representative's upcoming European business trip, Check #5286.
June 25 Paid in full for the purchase from JVC on June 13, Check #5287
June 26 Purchased 1250 docking station from Samsung for $41 per unit paying in cash, Check #5288
June 27 Sold 1500 docking stations on credit to Honda for $61 per unit, Invoice 5560.
June 27 Hired and paid a consultant $75000 to devise a marketing plan. AC Speed's management felt this was necessary to develop brand awareness. Check #5289.
June 28 AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10000 ( $2000 principal and $8000 interest), Check #5290.
June 29 Received payment in full from Honda for the June 27th transaction.
June 29 Paid in full for the purchase from Magellan on May 31st, Check #5291. June 29 Check # 5292 was issued for payroll: $14500 for salaried and $4750 for wages (wage expense)
June 30 Paid the first month's principal payment of $15,000 on the note payable. In addition, paid one month's interest, Check #5293
June 30 Issued bonds payable at face value for $450,000 *All purchases on account terms of 2/15, n/30 **All credit sales have terms of 2/20, n/30

June Month-end Adjustments:
A. AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June.
B. The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: Office Supplies - $2500 C. AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2% of accounts receivable.
D. The Company took a physical inventory count on June 30 and found the following inventory on hand: Merchandise Inventory - $120000
E. The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June.
F. Depreciation on the company's fixed assets for the month of June is as follows: 1. The furniture and equipment for the warehouse was purchased a few years ago for 10000. These assets have a 4-year life, an expected salvage value of 1000 and are depreciated using the straight-line method.
2. The furniture and equipment for the office was purchased last year for 8500. these assets have a 7 year life, an expected salvage value of 1500 and are depreciated using straight-line method.

Credit Terms & Inventory Accounting
a. When AC Speed purchases merchandise from a supplier or vendor on account, they receive credit terms of 2/15, net 30.
b. When AC Speed sells merchandise to a customer on account, they offer that customer credit terms of 2/20, net 30
c. AC Speed accounts for the specific types of merchandise in their inventory with a set of subsidiary ledgers (inventory control cards). The balances in these subsidiary ledger records, in total, must equal the balance in the Merchandise Inventory account in the general ledger.
d. AC Speed uses a perpetual inventory accounting system and a last-in, first-out (LIFO) inventory costing method.
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