Directions: This assignment covers journalizing transactions, entering bills and paying bills on account, receiving payment and creating invoices on account. You will also record cash payments and cash and credit card sales, create a custom footer for your reports, and print a Journal report, a Customer Balance Summary report, a Vendor Balance Summary report, and a Trial Balance report.

  1. Open the QuickBooks program. Open the QB3file for the ZastrowShoes. The sales tax rate is 6%. When you pay your payroll taxes to the government, please make the check payable to Mercantile Bank.
  2. Enter the transactions for December, 2015:

Customers:

  1. Use the Create Invoices features for sales on account to customers.
  2. Use the QuickBooks Receive Payments feature when you have customer payments.
  • Remember to key the amount in the Amount of Discount field of the Discount and Credits box.(Sales Discounts)
  • Use the Enter Sales Receipts option to record cash and credit card sales.

Vendors:

  1. Use the QuickBooks Enter Bills every time you purchase merchandise or supplies on account.
  2. Use the QuickBooks Pay Bills feature when you make payments to vendors on your accounts payable.
  • Remember to key the amount in the Amount of Discount field of the Discount and Credits box.(Purchases Discount)
  • Use the Write Checks feature for all other cash payments like rent expense, purchasing supplies for cash, paying for your tax liability to the government, and similar non-vendor transactions.
  • Use the Make General Journal Entries window for all other transactions.
  1. Source documents are abbreviated as follows: check, C; memorandum, M; purchase invoice, P; receipt, R; sales invoice, S; terminal summary, TS

Transactions for December, 2015:

1 Sold merchandise on account to PappasMercantile, $3,640.00, plus sales tax, 218.40. S300.

2Recorded cash and credit card sales, $6,890.00, plus sales tax, $413.40; total, $7,303.40. TS48

4Received cash on account from Hubbard Medical Clinic, covering S391 for $1,500.00. R405. (Remember to select “Deposit to Cash”.)

5Recorded cash and credit card sales, 5,430, plus sales tax, $325.80, total, 5,755.80. TS49.

5Granted credit to Pappas Mercantile for merchandise returned, $128.00, plus sales tax, $7.68, from S300; total, $135.68. CM25. Choose “Retain as an available credit” when prompted.

6Sold merchandise on account to Sykora, Inc., $980.00, plus sales tax. S401.

7Received cash on account from Sykora, Inc. covering S381 for 5,819.35, less 2% discount. R406. (Consider: How do you know if it is a Purchases Discount or a Sales Discount?)

8Paid cash to AT&T for telephone bill, 194.00. C400.

9Paid cash on account to Tocco Distinctive Clothing, $1,595.00, covering P234. C401.

9Received cash on account from Pappas Mercantile, covering S300 for $3858.40. R406.(Use the available credit of 135.68 when prompted.)

11Recorded cash and credit card sales, $6,295.00, plus sales tax, $377.70; total, $6,672.70. TS50.

15ZastrowShoes’ bank charges a fee for handling the collection of credit card sales deposited during the month. The credit cardfee is deducted from its bank account. The amount is then shown on the bank statement. The credit card fee is recorded as a reduction in cash. Record the credit card fee expense, $442.00. M60.(Debit Credit Card Fee Expense; creditCash in the general journal.) Note: Click off on the Adj. Entry box as this is not an adjusting entry.

16Paid cash to First Choice for office supplies, 225.00. C402.

17Purchased merchandise on account from Cole Enterprises, 4,833.00. P33

17Sold merchandise on account to Sykora, Inc., $480.00, plus sales tax. S402.

18Recorded cash and credit card sales, $6,000, plus sales tax, $360.00; total, $6,360.00. TS51.

21Purchased merchandise on account from ToccoDistinctive Garments, $3,528.00. P34.

22Paid cash to MichCon for utility bill, 346.20. C403.

23Sold merchandise on account to Clare Public Schools, $3,500.00. Clare Public Schools is a tax exempt organization. S403.

31Paid cash to replenish the petty cash fund, $84.96: office supplies, $12.50; advertising, $50.00;miscellaneous, $22.37; cashshort, $.09. C405. (You will have to add “Petty Cash” as “Other” when writing your check.)

31Paid cash for semimonthly payroll, $2,745.07 (total payroll, $3,620.00, less deductions: employee income tax, $238.00; social security tax, $224.44; Medicare tax, $52.49; health insurance premiums (Account 2145), $240.00; retirement benefits, $120.00). C404.

31Recorded employer payroll taxes, $501.37, for the monthly pay period ended December 31. Taxes owed are: social securitytax, $224.44: Medicare tax, $52.49; federal unemployment tax, $28.96; and state unemployment tax, $195.48. M61. Consider: Which journal will you use for this transaction? Note: When you make the entry, remember to click off on the Adj. Entry box as this is not an adjusting entry.

31 Recorded cash and credit card sales, $3,920.00, plus sales tax, $216.38; total, $4,136.38. TS52.

QuickBooks Check Figures:

  1. Journal total for December 1 through December 31, 2015: 61,545.18
  2. Trial Balance total for December 1 through December 31, 2015: 535,400.59
  3. Customer Balance Summary Report as of December 31, 2015: 12,349.54
  4. Vendor Balance Summary Report as of December 31, 2015: 16,072.00

When your work is correct, please print the four reports. Print the journal in landscape orientation and the rest of the reports in portrait orientation. Also, add your name and the assignment number (Assignment #4) to the footer of every report.