Question

This assignment is a case study which must be completed in Excel. You are expected to use Tables to produce Trial Balance. The assignment will involve aspects of the material from all weeks of the course and is designed for you to demonstrate your new (or newly refreshed) accounting knowledge. It accounts for 30% of the final grade and you must achieve at least 50% in both this assignment and the course as a whole to pass. Case Study. JJ Cakes JJ Cakes began operating on January 1 2018. They are a specialist cake maker. The premises they occupy are rented and they signed a five year lease with a prepayment of the first three months and half a month's rent as a damage deposit. The rent is $2,000 per month and includes all utilities. The owner, JJ, started the business with $25,000 she received on her 30th birthday from her great aunt. She is very excited about starting her business and has lined up her first client who wants a wedding cake for a March 1" wedding. The client has paid a $400 deposit for this custom $1,200 three tier cake. Before the business opened, JJ spent $5,000 cash on a new oven ($2,500), a display case ($600). furniture for the store front ($1,100) and a backlit sign for the front of the store ($800). JJ also purchased $1,500 of supplies on account from a local company, with a 90 day credit policy. There is an annual insurance policy required by the landlord, which JJ purchased on January 1 for $1,800. JJ expects clients to book cakes from day one so has hired a friend, Amy, to work the front of store at $15/hr for a 40hr week. She also went ahead and ordered $700 worth of inventory to be delivered on January 10th and every two weeks after that. The inventory is on account and payment is expected within 30 days. At January 31", JJ Cakes has sold and produced 4 custom cakes, details as followed 1. $900 cake, ordered January 3, delivered January 11th,paid cash on delivery 2. $2.000 cake, ordered January 5th, delivered January 12th, paid cash January 15th 3. $1,500 cake, ordered January 9, delivered January 13th, paid cash on delivery 4. $2,500 cake, ordered January 18, delivered January 30, balance outstanding For cake #4, the customer still has a week to pay per the terms of the contract. There is $150 of inventory left in the stock room. The employee has worked 24 hours in the last week of January, as well as four full weeks of work. She is paid every two weeks at the end of the second week

Answer 1

Journal entries for January:

Date		Accounts	Ref.	Debit	Credit
2018
Jan	1	Cash		$ 25,000
		Capital			$ 25,000
		Capital brought in by owner
		Oven		$   2,500
		Display case		$      600
		Furniture		$   1,100
		Backlit sign		$      800
		Cash			$   5,000
		Assets acquired by cash
		Inventory		$   1,500
		Accounts Payable			$   1,500
		Purchased inventory on credit.
		Rent deposit		$   7,000
		Cash			$   7,000
		Prepayment of Rent deposit ( three and half months rent)
		Insurane premium		$   1,800
		Cash			$   1,800
		Insurance premium paid as required by landlord
		Cash		$      400
		Accounts Receivable			$      400
		Advance deposited by customer
	10	Inventory		$      700
		Accounts payable			$      700
		Purchased inventory on credit
	11	Cash		$      900
		Sales			$      900
		Inventory sold on cash
	12	Accounts Receivable		$   2,000
		Sales			$   2,000
		Inventory sold on credit
	13	Cash		$   1,500
		Sales			$   1,500
		Inventory sold on cash
	14	Salaries and wages		$   1,200
		Cash			$   1,200
		Salary paid
	15	Cash		$   2,000
		Accounts receivable			$   2,000
		Cash received from account receivables
	24	Inventory		$      700
		Accounts payable			$      700
		Purchased inventory on credit
	28	Salaries and wages		$   1,200
		Cash			$   1,200
		Salary paid
	30	Accounts Receivable		$   2,500
		Sales			$   2,500
		Inventory sold on credit

Cash Account
Date		Particulars	Amount	Date		Particulars	Amount
2018				2018
Jan	1	Capital	$ 25,000	Jan	1	Oven	$    2,500
		Accounts Receivable	$       400			Display case	$       600
	11	Sales	$       900			Furniture	$    1,100
	13	Sales	$    1,500			Backlit sign	$       800
	15	Accounts Receivable	$    2,000			Rent deposit	$    7,000
						Insurance	$    1,800
					14	Salaries and wages	$    1,200
					28	Salaries and wages	$    1,200
						Balance c/f	$ 13,600
			$ 29,800				$ 29,800

Trial Balance
Particulars	Debit Total	Credit Total
Cash	$     13,600
Accounts Receivable	$       2,100
Oven	$       2,500
Display case	$          600
Furniture	$       1,100
Backlit sign	$          800
Rent deposit	$       7,000
Insurance	$       1,800
Salaries and wages	$       2,400
Inventory	$       2,900
Capital		$    25,000
Sales		$      6,900
Accounts payable		$      2,900
Total	$     34,800	$    34,800