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2) prepare the T-accounts. To complete the journal entries, do not forget that you need to...

TUCKER BOATS Tucker Boats began business on September 1, 2013, as a retail sales outlet for Swellcraft water- ski and fishingDESCRIPTIONS OF EVENTS OCCURRING Sept. 1 - 30 Date Description of Event 1 Sept. 1, 2013 Joe, with the help and advice of his7 Sept. 6, 2013 Tucker Boats purchased, at a cost of $11,500, a Fast Glass model Swell craft ski boat for resale. Transportat12 Sept. 11, 2013 13 Sept. 13, 2013 14 Sept. 13, 2013 15 Sept. 14, 2013 of Joe, agreed to pay the $220 invoice within Tucker21 Sept. 21, 2013 22 Sept. 21, 2013 23 Sept. 22, 2013 Tucker Boats paid Swellcraft the $11,500 it owed on its purchase of the26 Sept. 24, 2013 27 Sept. 24, 2013 28 Sept. 25, 2013 29 Sept. 25, 2013 Frank Hammons, an avid skier, purchased a slalom ski

2) prepare the T-accounts. To complete the journal entries, do not forget that you need to make the adjusting entries per the descriptions of transactions in the project document.

3) The last tab in the Excel template is for you to prepare the unadjusted trial balance, as well as the adjusted trial balance. Note that you need to enter all the adjustments in the worksheet.

4) The last step of the project is to make the closing entries. You shall close the Revenue account(s) as well as the Expenses accounts to the income summary and the then close to the Retailed Earnings. Note that in the Excel template "trial balance" tab, the income summary account is not needed.

TUCKER BOATS Tucker Boats began business on September 1, 2013, as a retail sales outlet for Swellcraft water- ski and fishing boats. Tucker Boats is located on Oe outskirts of Las Vegas, Nevada, and the area provides skiers and fishermen with ample opportunities for boating recreation at nearby Lake Mead. Joe Tucker was excited that he was able to get his business established before the spring, so that he would have his operations running smoothly by the peak sales period during spring and early summer. Tucker Boats has adopted a September 30 as fiscal year end, just in time to stock new merchandise. On September 1, Joe and his attorney were involved with issuing the stock of this closely-held corporation. On this same date, he hired a recent graduate of a local trade school, Henry Webster, to be responsible for boat repairs. In the next few days of September, he rented a sales office, boat garage, and lot space. The store is open Monday through Saturday and Joe is there all six days. Henry works 8 hours per day, Monday through Friday. Both Henry and Joe are employees of the corporation. The next page shows Tucker Boat's chart of accounts. Following are descriptions of events occurring during September. After October begins, you are to close the accounts. Note: Since this is a new business, there are no beginning balances in your accounts.
DESCRIPTIONS OF EVENTS OCCURRING Sept. 1 - 30 Date Description of Event 1 Sept. 1, 2013 Joe, with the help and advice of his attorney, Jason Rutherford, issued to himself 5,000 shares of Tucker Boats, Incorporated common stock (no par) at a price of $20 per share. Joe transferred $100,000 cash from his personal bank account and deposited it in a checking account in the name of Tucker Boats, Incorporated Tucker Boats hired Henry at $10 per hour. Henry's typical work week will be 8 hours a day, 5 days per week. Joe and Henry are paid on the first of each month for the month just ended. 2 2 Sept. 1, 2013 3 3 Sept. 1, 2013 4 st Sept. 1, 2013 5 Sept. 4, 2013 6 Sept. 6, 2013 Tucker Boats paid Far West Insurance Agency a one-year general property and liability insurance premium of $2,196. Tucker Boats paid $2,400 to Ace Property Management Group for September's rent on the sales office and boat lot. Tucker Boats wrote a $900 check to Jason Rutherford to pay for his assistance in issuing the common stock. Tucker Boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5th of each month, beginning October 6. (The note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does September. The date the loan is signed bears interest. Interest is accrued to the nearest penny.)
7 Sept. 6, 2013 Tucker Boats purchased, at a cost of $11,500, a Fast Glass model Swell craft ski boat for resale. Transportation cost from the Swellcraft factory to Tucker Boats was $550, which Tucker paid in cash. Tucker uses a perpetual inventory system for both boats and accessories. Payment terms to Swellcraft are net 60 days or within two days of the sale of the boat. Tucker Boats purchased on account a variety of accessory merchandise at a cost of $1,330 from Miller Ski Supplies. Transportation was paid by Miller. Terms are net 30 days. Tucker Boats purchased supplies costing $760, paying cash. 8 8 Sept. 7, 2013 9 Sept. 8, 2013 10 Sept. 9, 2013 John Phillips, a local ski enthusiast, provided Tucker Boats with its first sale when he bought a $490 slalom ski for cash. The ski had been included in the September 7 purchase and had cost Tucker $350. 11 Sept. 11, 2013 Albert Snell, another skier, brought his Manvader ski boat in to be "winterized." Henry changed both the engine and outdrive oil, drained the water from the engine, replaced the spark plugs, and tuned the engine. Albert, a long time friend
12 Sept. 11, 2013 13 Sept. 13, 2013 14 Sept. 13, 2013 15 Sept. 14, 2013 of Joe, agreed to pay the $220 invoice within Tucker Boats' customary 30-day trade terms. Sold Frank Featherstone a dry suit with a $410 price. After checking his credit, he was allowed the 30-day trade terms. The dry suit also was included in the September 7 purchase and had cost $225. Tucker Boats purchased additional accessory merchandise from Fisherman's Warehouse at a cost of $860. Tucker agreed to the 15-day payment terms from Fisherman's and paid $40 cash to a trucking firm for transportation. Tucker Boats paid Admirable Advertising Agency $180 for a newspaper advertisement to carried in the Saturday, September 18 edition of the Las Vegas Gazette. After inspecting the merchandise from Fisherman's Warehouse on September 13, Joe noticed that part of the merchandise was damaged. Tucker Boats returned the damaged merchandise, which had cost $130, and received a debit memorandum from Fisherman's Warehouse. Art Jensen, a new customer, purchased fishing gear at a price of $335, paying cash. The merchandise was included in the September 13 purchase at a cost of $222. Joe was hopeful that his upcoming newspaper advertisement would bring in boat customers, so he purchased a 15-foot, Swellcraft fishing boat with a 25- horsepower outboard motor. Tucker Boats received an invoice for $7,800 from Swellcraft and paid $310 cash for transportation. Tucker Boats' advertisement in the morning paper paid off when Lance Layitover signed a sales contract to buy the Fast Glass Swellcraft ski boat for an "out-the-door" price of $18,999. The sale was contingent on Lance's arranging bank financing. Tucker Boats had a booth in the Nevada State Boat Show to be held Sunday, September 26, paying the organizers of the event $300. Lance delivered the bank's check for $17,000 and his own for the balance of $1,999 to finalize the sale of the Swellcraft ski boat. 16 Sept. 15, 2013 17 Sept. 15, 2013 18 Sept. 18, 2013 19 Sept. 18, 2013 20 Sept. 20, 2013
21 Sept. 21, 2013 22 Sept. 21, 2013 23 Sept. 22, 2013 Tucker Boats paid Swellcraft the $11,500 it owed on its purchase of the Swellcraft ski boat. Henry finished repairs and maintenance jobs on several boats. Cash receipts for this work amounted to $1,755. Tucker Boats' advertisement was so successful that he paid another $180 for an advertisement in the September 24 morning edition of the Gazette. Tucker Boats purchased another Fast Glass Swellcraft ski boat with some additional options that weren't included in the one he sold. The invoice cost was $12,100, which he agreed to pay on the same terms as his first purchase. Transportation cost, which Tucker Boats paid in cash, was $515. Ski accessory sales for cash totaled $704 for the day. The cost of these sales was $425. 24 Sept. 23, 2013 25 Sept. 23, 2013
26 Sept. 24, 2013 27 Sept. 24, 2013 28 Sept. 25, 2013 29 Sept. 25, 2013 Frank Hammons, an avid skier, purchased a slalom ski from the manufacturer's catalogue. He paid the entire $580 price and the ski was ordered because it was not in stock. Tucker Boats wrote a $730 check to pay Fisherman's Warehouse for its September 13 purchase. Accessories costing $545 were sold to Vivian Ellis for a price of $770. Joe's check of her credit qualified her for 30-day credit terms. Additional accessory merchandise costing $827 was purchased from Tackle and Line Shop. Shipping costs were paid for in cash ($23). Payment terms are 30 days. James Murphy, a long-time associate of Joe Tucker, had major repairs to his boat performed during the last week of September. Henry finished the repairs on this date and Murphy was billed $2,329. Payment from James is due in 30 days. Joe and his wife, Martha, who is the Vice-president of Tucker Boats, constitute the Board of Directors. They met and declared a $.30 per share cash dividend, to be paid on March 15, 2021. 30 Sept. 27, 2013 31 Sept. 28, 2013 After you develop the journal entries for the above transactions, you should post the entries to T- accounts and calculate the account balances. These account balances can then be used in making adjusting entries. Using these account balances and additional adjustment information below, record adjusting journal entries. Note that some information needed for adjustments is obtained from the description of the original transaction. For example, Henry's wage rate is given in a Sept. 1 description.
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Name Box B с D E F G H J K M N 0 P 1 2 3 101 0 Cash 0 111 0 112 Allowance for doubtful account 0 0 BB 0 100,000 Accounts Rece
B c D E F G H 1 J K L M N o Р Q 1,140 0 262 0 2,013 0 0 0 141 0 Store, Office & Boat Equipmen 142 0 BB 0 5 Accumulated deprec
A B с D E F G H J K L M N 0 Р 0 0 0 357 A6 0 0 5,000 20.000 20,000 A9 900 0 100,000 99,100 0 1,500 1,500 olo 0 0 357 357 5,00A B с D E F G H 1 J K L M N O Р 0 2,400 2,400 0 0 0 0 0 0 0 0 357 660 660 0 0 0 A6 280 A4 0 0 2,400 0 0 280 280 0 0 357 357 0

Date: Transactions Adjustments EOM Closing Entries
Account Account Name Beginning Balance Ending Balance Adjusted Balance Ending Balance
DB 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 0
111 Accounts Receivable                                            0 0 3,729 0 3,729 0 3,729 0 3,729 0
112 Allowance for doubtful accounts                                0 0 0 0 0 0 186 0 186 0 186
121 Boat Inventory                                                 0 0 32,775 12,050 20,725 0 20,725 0 20,725 0
122 Boat Accessory Inventory                                      0 0 3,080 1,897 1,183 0 43 1,140 0 1,140 0
131 Supplies                                                       0 0 760 0 760 0 498 262 0 262 0
132 Prepaid Insurance                                              0 0 2,196 0 2,196 0 183 2,013 0 2,013 0
133 Prepaid Rent                                                   0 0 0 0 0 0 0 0 0 0
141 Store, Office, & Boat Equipment                                0 0 26,880 0 26,880 0 26,880 0 26,880 0
142 Accumulated depreciation                                       0 0 0 0 0 0 280 0 280 0 280
201 Accounts Payable                                              0 0 12,360 34,417 0 22,057 0 22,057 0 22,057
202 Accrued Salaries Payable                                       0 0 0 0 0 0 4,600 0 4,600 0 4,600
203 Accrued Interest Payable                                       0 0 0 0 0 0 133 0 133 0 133
204 Unearned Revenue                                               0 0 0 580 0 580 0 580 0 580
205 Dividends Payable                                              0 0 0 1,500 0 1,500 0 1,500 0 1,500
206 Current Maturities of long-term debt                           0 0 0 0 0 0 5,000 0 5,000 0 5,000
207 Other Accrued expenses payable                                 0 0 0 0 0 0 357 0 357 0 357
210 Notes Payables                                                 0 0 0 20,000 0 20,000 5,000 0 15,000 0 15,000
301 Common Stock - (no par)                                        0 0 900 100,000 0 99,100 0 99,100 0 99,100
311 Retained Earnings                                              0 0 1,500 0 1,500 0 1,500 0 0 2,855 0 1,355
401 Boat Sales                                                     0 0 0 18,999 0 18,999 0 18,999 18,999 0 0 0
402 Accessory Sales                                                0 0 0 2,709 0 2,709 0 2,709 2,709 0 0 0
403 Boat Repair Revenue                                            0 0 0 4,304 0 4,304 0 4,304 4,304 0 0 0
501 Cost of Goods Sold - Boat Sales                                0 0 12,050 0 12,050 0 12,050 0 0 12,050 0 0
502 Cost of Goods Sold - Accessory Sales                           0 0 1,767 0 1,767 0 43 1,810 0 0 1,810 0 0
601 Salaries Expenses                                              0 0 0 0 0 0 4,600 4,600 0 0 4,600 0 0
602 Supplies Expenses                                              0 0 0 0 0 0 498 498 0 0 498 0 0
603 Insurance Expenses                                             0 0 0 0 0 0 183 183 0 0 183 0 0
604 Rent Expense                                                   0 0 2,400 0 2,400 0 2,400 0 0 2,400 0 0
605 Depreciation expense                                           0 0 0 0 0 0 280 280 0 0 280 0 0
606 Utilities expense 0 0 0 0 0 0 357 357 0 0 357 0 0
607 Advertising expense                                            0 0 660 0 660 0 660 0 0 660 0 0
608 Interest expense                                               0 0 0 0 0 0 133 133 0 0 133 0 0
609 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
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