i need urgent help with my accounting hw, businness cycle

using transactions word.pdf and matching with figures in ARTHUR ARCH CHECK FIGURES.pdf , complete tables in task 2_compressed.pdf

1. Nov. 1 Arthur Rubens contributes $30,000 in cash, $4,530 in computer equipment and $4,140
in office furniture to Arthur Architecture Services. Record this as one journal entry to the
general journal.
2. Nov. 1 Arthur has been operating the business out of his home, but now that the business is
growing, he feels it is necessary to rent office space and hire a secretary and two junior
architects. The office is in Newport and he pays $3,600, including $1,800 for the first month’s
rent and $1,800 for the last month’s rent (Check #101).
3. Nov. 1 Arthur decides to buy a company truck, costing $25,000. He pays $5,000 cash down
and obtains a five-year truck loan for $20,000. Record this to the general journal.
Note for future reference: The interest rate is 8% and payments are made monthly beginning
in December. Interest payable and depreciation will be adjusted at the end of the year.The
useful life of the truck is 8 years and the salvage value of the truck is $2,000.
4. Nov. 1 The Newport Yacht Club (NYC) hires Arthur to complete a preliminary blueprint of the
new building project they are planning. Arthur completes the work and bills NYC $950
(Invoice #11-1).
5. Nov. 1 Arthur orders and receives $625 in office supplies on account from Office Depot.
6. Nov. 1 It was necessary to spend $1,000 to install a small storage locker in the back of the
truck to use for on-site surveying (check #102). This should be capitalized, which means it
should be added to the value of the truck on the balance sheet.
7. Nov. 1One year of liability insurance in purchased from Geico for $1,800 (check #103).
8. Nov. 3 The Newport Library commissions Arthur to provide initial surveying and architectural
plans for the new annex of the library. After completion, Arthur bills Newport Library $3,800.
(Invoice #11-2)
9. Nov. 5 Sandra McCullough, a Newport resident, is looking to build a new hillside home. She
asks Arthur to prepare some potential exterior designs. When the task is completed, Arthur
bills her $1,600. (Invoice #11-3)
10. Nov. 8 Global Travel would like to open a new office and has hired Arthur to design a small
area of exterior landscape. This service is completed and they are billed $700 (Invoice #11-4).
11. Nov. 10 Sandra McCullough decides to have Arthur execute his proposal. Arthur finalizes a
series of comprehensive layout designs and works with a third-party landscaper to implement
the design. He bills Sarah $2,800 for his work (Invoice #11-5).
12. Nov. 10 A check is received from Newport Library in full payment for Invoice #11-2.
13. Nov. 12 Arthur purchases a laptop computer on account for $1, 300 from Dell.
14. Nov. 14 Nozama has hired Arthur to design the building exterior and ourdoor patio area of its
new restaurant in Newport. When the work is completed, Nozama is billed $2,150.(Invoice
#11-6)
15. Nov. 15 Pay for office supplies ordered from Office Depot on Nov. 1 (check #104).
16. Nov. 20 Global Travel sends payment in full on invoice #11-4.
17. Nov. 21 Newport Yacht Club pays invoice #11-1 in full.
18. Nov. 23 Arthur orders and receives $300 in office supplies on account from Office Depot.
19. Nov. 25 Sarah McCullough pays 1/2 of invoice #11-3.
20. Nov. 29 Pay for laptop computer purchased from Dell on Nov. 12 (check #105).
21. Nov. 30 Arthur pays his secretary and 2 junior architects for work performed in November.
The junior architects are independent contractors and are therefore paid by the hour. No
taxes are withheld for them. Junior Architect Joe Bruin works 125 hours and is paid $25 per
hour (Check #106). Junior Architect Tommy Trojan works 180 hours and is paid $4 per hour
(check # 107), Secretary Sally May earns $12.50 per hour and works 160 hours for the
month. By law, Arthur must withhold taxes from her paycheck for Federal (15%) and State
(2%) tax purposes. He must also withhold 6.2% for social security and 1.45% for Medicare
from her check. Arthur is also required to pay 6.2% for social security and 1.45% for Medicare
and 5.4% for State Unemployment and 0.6% for Federal Unemployment on behalf of Sally.
Therefore, the following journal entries are required for Sally. (Record to the general journal):
Dr. Salary Expense, Cr. Salaries Payable, Cr. Federal Income Tax Payable, Cr. State Income
Tax Payable, Cr. Social Security Payable, Cr. Medicare Payable, Dr. Payroll Tax Expense, Cr.
Social Security Payable, Cr. Medicare Payable, Cr. Federal Unemployment Tax Cr., State
Unemployment Tax, Record to cash disbursements journal, Dr. Salary Payable, Cr. Cash
(check #108)
22. Dec. 1Pay November bills as follows: Electricity (utilities) – $70 (check #109), Phone $100
(utilities)–(check #110), Visa (only gas for the truck is charged on this card) $210 (check
#111),
23. Dec. 1 Pay December’s office rent of $1800 (check # 112).
24. Dec. 1 Arthur makes the first payment on the truck loan for $406 (check #113). ($273 is for
principal and the remainder is interest).
25. Dec. 1 Arthur signs up for a one-year software subscription to AutoCAD, which allows him to
design 3D blueprints more efficiently for his projects. The annual subscription cost is $1,872
and is paid for in monthly installments beginning on December 1.Pay for first month of
AutoCAD Software (check #114).
26. Dec 2, Send payment to appropriate government entities for Sally May’s payroll tax and
withholdings on Nov. 30: Federal Income Tax check #115, State Income Tax #116, Social
Security #117, Medicare #118, Federal Unemployment Tax #119, State Unemployment Tax
#120
Arthur has had so many customers ask him if he can acquire landscaping trees and stones
for them that he has decided to expand from architectural plans to professional landscaping.
He has negotiated wholesale contracts with Roger’s Gardens, Angelus Quarries, and Home
Depot. Arthur is unable to negotiate cash discounts with these suppliers so all payments are
net 30. Arthur wants to keep his cash flow up so he decides to extend a 2/10, n30 cash
discount to all his customers. Tommy Trojan has agreed to work extended hours to assist in
the planting and physical labor.
27. Dec. 3 University of California, Irvine (UCI) wishes to add a new park to its campus. Arthur
orders and receives the 10 trees from Roger’s Gardens and 6 boulders from Angelus
Quarries on account. The trees cost $750 each and the boulders cost $2,100 in total (record
to Merchandise Inventory).
28. Dec. 4 The Newport Civic Arts Center (NCAC) wants two olive trees in their new courtyard.
Arthur orders and receives 2 olive trees (cost $1,700 each) from Roger’s Gardens. The payment
terms are n30
29. Dec 5 Arthur pays Roger’s Gardens for the 10 trees (check #121) and Angelus Quarries for
the 8 boulders (check #122) ordered on Dec. 3.
30. Dec. 6 Delivered and planted the landscaping items for UCI. Billed UCI $1,100 for each tree,
$3,900 for the boulders, and $1,250 for labor. Payments terms extended to UCI are 2/10, n30
for equipment and services. (Invoice #12-1). Don’t forget to record Cost of Goods Sold
31. Dec. 8 Arthur delivers and plants the olive trees to NCAC. He bills NCAC 2,200 for each tree
and $500 for labor and planning. The payment terms are 2/10, 30. (Invoice #12-2)
32. Dec 10 Sarah McCullough pays $3,500 which she wants applied to the balance on invoice
#11-3 and the remaining amount to invoice #11-5.
33. Dec. 12 UCI pays for goods and services in invoice #12-1.
34. Dec 12 Arthur pays Roger’s Gardens for the olive trees tom Dec 4 (check #123),
35. Dec 14 Pay for office supplies ordered from Office Deps on Nov, 23 (check #124),
36. Dec. 15 Mike Danforth hires Arthur to landscape the backyard of his large private estate.
Arthur orders three sycamore trees ($1,900 each) from Roger’s Gardens.
37. Dec. 17 Arthur delivers and plants the trees in Mike’s backyard. He bills Mike 7,200 for all
tree sycamores and $1,150 for services. (Invoice #12-3)
38. Dec. 18 Balboa Hospital needs three willow trees to provide shade for its outdoor bench
area.
Arthur acquires the trees from Home Depot for $700 each.
39. Dec. 19 Balboa Hospital notifies Arthur that they now only want one willow tree. Arthur returns
two willow trees to Home Depot.
40. Dec. 20 The City of Newport commissions Arthur to build a rock garden and rose garden as
part of its community works program. Arthur buys $3,200 of gravel mixture for the pathways
and 16 large granite sculpture pieces costing $425 each. Both purchases are on account from
Angelus Quarries. He also buys $1,400 of roses from Home Depot on account.
41. Dec. 22 Arthur plants the one willow tree at Balboa Hospital. He bills them $1,000 for the tree
and $240 for installation. (Invoice #12-4).
42. Dec. 23 Arthur completes the installation of the rock garden as well as the rose garden. He
bills the City of Newport Beach $4,200 for the gravel, $575 for each granite stone, $1,800 for
the roses, and $2,000 for design and implementation. (Invoice #12-5).
43. Dec. 24 Arthur draws $6,000 from the company so he can buy Christmas presents (check
#125).
44. Dec. 26 Mike Danforth pays for the equipment and services in Invoice #12-3.
45. Dec. 27 Arthur pays Home Depot for the willow tree received on Dec. 18 (check # 126).
46. Dec. 29 NCAC pays 75% of invoice #12-2.
47. Dec. 31 Arthur pays his secretary and 2 junior architects for work performed in December.
(See Nov. 30 Journal Entries and information as a guide.) Junior architect Joe Bruin works
120 hours (check #127).Junior architect Tommy Trojan works 250 hours, (check #128)
Secretary Sally May works 160 hours for the month (check #129).
ARTHUR ARCHITECTURE SERVICES
CHECK FIGURES
SALES JOURNAL
A/R & SALES
$59,840
COGS & MERCH INV.
$30,800
CASH RECEIPTS JOURNAL
CASH
SALES DISCOUNTS
A/R
$37,435
$490
$37,925
PURCHASES JOURNAL
A/P
$34,425
MERCH. INV.
$32,200
OFFICE SUPPLIES
$925
CASH DISBURSEMENTS
A/P
MERCH. INV.
CASH
$15,925
$42,692
TRIAL BALANCE W ORKSHEET
TRIAL BALANCE
$136,103
ADJUSTMENTS
$2,208
NET INCOME
$9,682