Margaret Nichole S. Ecot Margaret Nichole S.

Ecot
11 - Alocasia 11 - Alocasia
FABM 1 PERFORMANCE TASK FABM 1 PERFORMANCE TASK

Step 1 & 2 Understanding and Journalizing the transaStep 3 - Posting to the General Ledger.

MagentaTech MagentaTech
PURCHASE JOURNAL GENERAL LEDGER
Descriptio Descriptio
Date n Debit ($) Date n Debit ($) Credit ($)

Laboratory Laboratory
Jul 2, 23 $10,000 Jul 2, 23 $10,000
Equipment Equipment

Accounts Accounts
Jul 2, 23 Jul 2, 23 $10,000
Payable Payable

Software Software
Jul 5, 23 $2,500 Jul 5, 23 $2,500
Licenses Licenses

Jul 5, 23 Cash Jul 5, 23 Cash $2,500

Jul 7, 23 3D Printer $3,000 Jul 7, 23 3D Printer $3,000

Accounts Accounts
Jul 7, 23 Jul 7, 23 $3,000
Payable Payable
Raw Raw
Jul 10, 23 $7,500 Jul 10, 23 $7,500
Materials Materials

Jul 10, 23 Cash Jul 10, 23 Cash $7,500

Prototype Prototype
Jul 15, 23 Developm $2,500 Jul 15, 23 Developm $2,500
ent Kit ent Kit

Jul 15, 23 Cash Jul 15, 23 Cash $2,500

Marketing Marketing
Jul 18, 23 & Promo $1,000 Jul 18, 23 & Promo $1,000
Materials Materials
 Accounts Accounts
Jul 18, 23 Jul 18, 23 $1,000
Payable Payable

Office Office
Jul 20, 23 Furniture $4,000 Jul 20, 23 Furniture $4,000
& Fixtures & Fixtures

Accounts Accounts
Jul 20, 23 Jul 20, 23 $4,000
Payable Payable

High- High-
Jul 23, 23 Performan $6,000 Jul 23, 23 Performan $6,000
ce Server ce Server

Accounts Accounts
Jul 23, 23 Jul 23, 23 $6,000
Payable Payable

Safety Safety
Jul 28, 23 $1,500 Jul 28, 23 $1,500
Equipment Equipment

Jul 28, 23 Cash Jul 28, 23 Cash $1,500

Sales
Total Jul 1, 23 Eva $2,500
Revenue
$38,000
 Sales
Jul 5, 23 Yolo $4,000
Revenue

Sales
Jul 8, 23 Alex $1,200
Revenue

Sales
Jul 12, 23 John $3,500
Revenue

CASH RECEIPT JOURNAL

Account Sales
Jul 17, 23 Patrick $2,000
Date Customer Debited Revenue
Sales
Jul 1, 23 Eva TOTAL $51,000 $51,000
Revenue
Sales Accounts
Jul 5, 23 Yolo Jul 3, 23 $12,000
Revenue Payable
Sales
Jul 8, 23 Alex Jul 3, 23 Cash $12,000
Revenue
Sales
Jul 12, 23 John TOTAL
Revenue $ 63,000 $ 63,000
Sales
Jul 17, 23 Patrick
Revenue
TOTAL
Step 7- Preparation of Financial Statements
MagentaTech

Debit Credit
(Income (Income Debit Credit
Account Statement Statement (Balance (Balance
Title Debit ($) Credit ($) ) ) Sheet) Sheet)
Balance
Sheet
Accounts

Cash $191,061 $191,061

Accounts
$28,510 $28,510
Receivable
Merchandi
se $435,000 $435,000
Inventory
Prepaid
$10,000 $10,000
Expenses

Transporta
tion $210,000 $210,000
Equipment

Accum.
Depn.-
$1,750 $1,750
Office
Equipt.
Accounts
$260,000 $260,000
Payable

Accrued
$2,180 $2,180
Expenses

Margaret,
$600,000 $600,000
Capital

Income
Statement
Accounts

Sales $89,246 $89,246

Sales
$365 $365
Discounts

Purchases $488,000 $488,000

Purchase
$8,000 $8,000
Discount
Salaries
$9,000 $9,000
Expense
Supplies
$5,110 $5,110
Expense

Advertisin
$5,200 $5,200
g Expense

Rental
$10,000 $10,000
Expense
Depreciati
on $1,750 $1,750
Expense
Net
$10,641
Income
Total $961,176 $961,176 $532,246 $532,246 $874,571 $874,571
Step 4 & 5 -Prepare the Unadjusted Trial Balance and preparation of Step 6-Preparing adjusting entries.
Worksheet.
MagentaTech MagentaTech
Worksheet
Account Depreciation Expense:
Title Debit ($) Credit ($) Assuming a straight-line depreciation method with an estimate
Laboratory Equipment and 10 years for the Office Furniture &
we can calculate the monthly
depreciation expense.
Cash $26,000
Laboratory Equipment:
Depreciation Expense = Cost of Laboratory Equipment / Usefu
Depreciation Expense = $10,000 / (5 years * 12 months/year)
Accounts Depreciation Expense = $10,000 / 60 Depreciation Expense = $
Receivable
Office Furniture & Fixtures:
Depreciation Expense = Cost of Office Furniture & Fixtures / U
Laboratory Depreciation Expense = $4,000 / (10 years * 12 months/year)
Equipment
$10,000 Depreciation Expense = $4,000 / 120 Depreciation Expense = $

Deferred or Prepaid Expenses:

Assuming the Software Licenses are valid for 1 year and were f
allocate the prepaid expense over the months remaining in the
Software
$2,500
Licenses Deferred Expense = Cost of Software Licenses / Remaining mo
Deferred Expense = $2,500 / 6
Deferred Expense = $416.67
3D Printer $3,000
Accrued Expenses:
Accounts Assuming there is an accrued expense of $1,000 for Marketing
$36,000 of July, we need to recognize this expense in the period.
Payable
Raw Adjusting Entries:
$7,500
Materials Depreciation Expense:
Debit: Depreciation Expense - Laboratory Equipment ($166.67
Prototype Credit: Accumulated Depreciation - Laboratory Equipment ($1
Developm $2,500 Debit: Depreciation Expense - Office Furniture & Fixtures ($33
ent Kit Credit: Accumulated Depreciation - Office Furniture & Fixtures

Marketing Deferred or Prepaid Expenses:

& Promo $1,000 Debit: Deferred Expense - Software Licenses ($416.67)
Credit: Prepaid Expenses - Software Licenses ($416.67)
Materials
Accrued Expenses:
Debit: Marketing & Promo Expenses ($1,000)
Office Credit: Accrued Expenses - Marketing & Promo Materials ($1,0
 
Furniture $4,000
& Fixtures

High-
Performan $6,000
ce Server
 Safety
$1,500
Equipment

Sales
$13,200
Revenue

Total $37,500 $75,200

Step 8- Closing Entries
MagentaTech

Account
Title Debit ($) Credit ($)

Sales
$89,246
Revenue

Income
$89,246
Summary

Purchases $488,000
Purchase
$8,000
Discount

Salaries
$9,000
Expense

Supplies
$5,110
Expense

Advertisin
$5,200
g Expense

Rental
$10,000
Expense
Depreciati
on $1,750
Expense
Fuel
$2,180
Expense

Income
$120,526
Summary

Retained
Earnings
$120,526
(or
Capital)

Dividends
(if
applicable)

Retained
Earnings
(or
Capital)

Dividends

Total $219,776 $219,776

Account
Title Debit ($) Credit ($)
Income
$10,641
Summary
Margaret,
$10,641
Capital
eparing adjusting entries.

MagentaTech

ation method with an estimated useful life of 5 years for the

ears for the Office Furniture & Fixtures, and no salvage value,
Debit Credit
(Adjusted (Adjusted
Account Trial Trial
Laboratory Equipment / Useful Life in months Title Debit ($) Credit ($) Balance) Balance)
/ (5 years * 12 months/year)
/ 60 Depreciation Expense = $166.67 Cash $26,000 $26,000

Office Furniture & Fixtures / Useful Life in months

(10 years * 12 months/year) Accounts
120 Depreciation Expense = $33.33 Receivable

are valid for 1 year and were fully paid on July 5, 23, we can
er the months remaining in the year (6 months).
Laboratory
$10,000 $10,000
ware Licenses / Remaining months in the year Equipment

Software
$2,500 $2,500
Licenses
pense of $1,000 for Marketing & Promo Materials at the end
s expense in the period. 3D Printer $3,000 $3,000

Accounts
$36,000 $36,000
Payable
boratory Equipment ($166.67)
on - Laboratory Equipment ($166.67) Raw
ffice Furniture & Fixtures ($33.33) $7,500 $7,500
Materials
on - Office Furniture & Fixtures ($33.33)

Prototype
are Licenses ($416.67) Developm $2,500 $2,500
are Licenses ($416.67)
ent Kit
nses ($1,000)
eting & Promo Materials ($1,000) Marketing
& Promo $1,000 $1,000
Materials

Office
Furniture $4,000 $4,000
& Fixtures
High-
Performan $6,000 $6,000
ce Server

Safety
$1,500 $1,500
Equipment

Sales
$13,200 $13,200
Revenue

Depreciati
on
Expense - $166.67 $166.67
Laboratory
Equipment

Accumulat
ed
Depreciati
$166.67 $166.67
on -
Laboratory
Equipment

Depreciati
on
Expense -
$33.33 $33.33
Office
Furniture
& Fixtures

Accumulat
ed
Depreciati
$33.33 $33.33
on - Office
Furniture
& Fixtures

Deferred
Expense -
$416.67 $416.67
Software
Licenses
Prepaid
Expenses -
$416.67 $416.67
Software
Licenses

Marketing
& Promo $1,000 $1,000
Expenses

Accrued
Expenses -
Marketing $1,000
& Promo
Materials