Part B – Siesta Company In this part of the Comprehensive Problem


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Hi, I need accounting assignment help please. The Assignment have 3 parts (A, B, C). Part A is a make a balance. Part B is to make journal entries, and Part C is multiple choice questions. Thanks. Part B – Siesta Company.docx Part B – Siesta Company In this part of the Comprehensive Problem you will be making Journal Entries (JEs), a short payroll problem and JE, Adjusting Journal Entries (AJEs) and a Bank Reconciliation (don’t forget the JE for the Bank Reconciliation). Transactions to record (Some of the transactions require you to use the Quickbooks processes instead of making a Journal Entry. This is noted in each transaction.) 1. Dec. 1, Purchased 200 shares of Chevron Corp. common stock for $93.50 per share to be held as a short-term investment. In addition to the purchase price $40 in brokerage fees were paid to acquire the stock. Check #101 was issued for payment [enter ck #101 under “Memo”] [note: for the $40, remember that “any cost incurred to acquire an asset must be recorded as a cost of that asset” (e.g. freight-in on purchased inventory is debited to the inventory account). Unclick the “adjusting entry” box for all JEs you are recording. 2. Dec. 1, purchased a computer from Computer World for $2,000. Sales tax of 7.5% must also be paid. Payment was made by signing a 2-year note which requires interest at an annual rate of 8% to be paid every quarter. The computer is expected to last 3 years after which time it is expected to be sold for $350. It will be depreciated using the double declining method (due to the rapid obsolescence of computer hardware). 3. Dec. 1, paid $1,680 to National Insurance Company for a one-year insurance policy which “runs” from Dec. 1, 2015 – November 30, 2016. Check #102 was issued for payment. 4. Dec. 1, paid $3,600 to JB Commercial Properties for two months of building rent, the months of December 2015 and January 2016. Check #103 was issued for payment. Charge the December rent to “Rent Expense” since that amount will be used up in the current month. 5. Dec. 2, purchased $800 of supplies on credit under terms n/30 from Office Supplies Inc. Since these items are not going to be resold by Siesta Company (i.e. they are not inventory), sales tax at 7.5% must also be paid. Office Supplies Inc. invoice #5450 was received at time of purchase (use in your description) and enter “Office Supplies Inc. under the “name” column and then add as a vendor when prompted. 6. Dec. 19, received a quarterly dividend check for $180 from Chevron Corporation. 7. Dec. 27, pay Mattress World invoice #MWI233 for $8,000 with check #105. Note: Do not make a JE entry for this transaction. Rather complete the steps under item #10 on p. 16 of Part A [i.e. click on “Vendors”, “pay bills” and select the Mattress World invoice] and the system will automatically make the JE for you. Realize what is occurring here => under item #10 in Part A the invoice from Mattress World was received and entered into A/P but because terms were n/30 the invoice was not paid at that time, but now 30 days has almost passed. 8. Dec. 28, it was determined that the “packaging machine” was not needed for the business and thus it was sold for $8,000. Two entries are needed to record the disposal of fixed assets, one to catch-up the depreciation to the date of disposal (thus one month of depreciation needs to be recorded) and the second to record the disposal. Use the information given under step #1 on p. 5 from the Part A handout (related to the depreciation method to use, etc.) to help you record the two entries (use a reference of #12-8a and #12-8b when recording the two entries). 9. Dec. 28, sold 100 shares of the 200 shares of Chevron Corporation stock held as a short-term investment for $104.25 per share. $40 in brokerage fees were incurred to sell the stock. [hint: the $40 is a reduction in the “proceeds from sale” (i.e. reduces the amount of cash received); also, if ½ of the shares purchased we

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