Lucy’s Doggie Care is a small business owned by Lucy Roark. Located in Fort Mill, South Carolina, it has been operating successfully for several years. The business was originall

Must be done in Excel!! NOT A WRITTEN PAPER MUST HAVE ACCOUNTING EXPERIACE!!Use the attached file to see January transactions to preform the following: Include all journal entries (general journal) for the month, the general ledger, a trial balance, adjusting entries and an adjusted trial balance. (Must be in excel, must have a separate sheet for each and have formulas to populate the sheets)
DESCRIPTION OF THE COMPANY
Lucy’s Doggie Care is a small business owned by Lucy Roark. Located in Fort Mill, South Carolina, it has been operating successfully for several years. The business was originally organized to provide pet day-care services for a working clientele. Currently Ms. Roark can accommodate 55?60 dogs. The cost is $18 per day or $75 per week; almost all clients pay on a weekly basis. Clients generally drop off their dogs in the morning and pick them up in the evening, although for an additional fee, a van pickup and delivery service is available. Because this day care is usually completely booked, several clients pay quarterly advance fees to ensure that their pets have a reserved spot. In addition, Lucy’s Doggie Care also offers pet bathing and grooming. One of the full-time employees is a groomer, and the business has a part-time employee who does pet grooming and whose hours depend on the number of clients requesting bathing and grooming for their dogs. Last year, Lucy’s Doggie Care began selling a line of specialty all-natural pet food and treats under the “Roark” brand name. This dog food has become very popular with day-care clientele, several of the local kennels, and numerous local breeders of show and performance dogs. The business also sells dog accessories, such as crates, vitamins, care products, collars, and leashes.
Day-care fees, grooming fees, and sales of accessories or dog food to walk-in clientele are usually cash transactions. Sales to kennels and training schools are made on account. All sales on account are made on a 2/10, n/30 basis.
You have been employed to maintain the accounting records and prepare financial statements for Lucy’s Doggie Care. The following transactions are to be analyzed, recorded, and posted. End-of-the-month procedures are to be completed. Lucy’s Doggie Care prepares monthly financial statements.
Company Information
Company Address:
Telephone:
Federal Employer ID:
State Employer ID:
Form of Business:
SC SUTA Tax Rate:
Fiscal Year:
Current Year: 2019
6700 Lakes Parkway
Fort Mill, SC 29333
864.777.1234
44-852236
45-852263
Sole Proprietorship
4.0%
January?December
BOOKS OF ACCOUNT
Journals
The following journals are to be used:
l. General Journal
Sales Journal?This is a modified Sales Journal that includes separate columns for the debit to Accounts Receivable, credit to Sales?Store Sales, and credit to Sales Tax Payable, and a single column for the entry to debit Cost of Goods Sold?store Sales/credit Merchandise Inventory.
Purchases Journal
Cash Receipts Journal
Cash Payments Journal
As you enter items in the journals, you should post daily to the accounts receivable and accounts payable subsidiary ledgers. Keep the individual inventory item records updated by posting each inventory transaction to the proper item record.
Post each journal entry from the general journal to the general ledger. Prior to posting from the special journals, total each column and prove the equality of debits and credits. Post all items that need to be posted individually to the general ledger. Rule the special journals and post the totals to the appropriate accounts in the general ledger. Determine the balance of each general ledger account.
Ledgers
The following ledgers are included:
l. General Ledger?Beginning account balances as of January I have been entered into the accounts as appropriate.
Accounts Receivable Ledger?Beginning balances have been entered into the customer ledgers as appropriate.
Accounts Payable Ledger?Beginning balances have been entered into the vendor ledgers as appropriate.
Inventory Item Records?Beginning balances have been entered into an inventory item record for each inventory item.
A list of all the customers and creditors of Lucy’s Doggie Care is also provided.
In the general ledger, all accounts have been opened, and the account balances as of January the beginning of a new fiscal period, can be found on the Dec. 31st trial balance.
Payroll Accounting Records
Lucy’s Doggie Care uses two records to record the payroll for each semimonthly pay period:
l. Payroll Register?This record is used to record the payroll data for each payroll period. Each employee is a line-item entry into the payroll register.
2. Employees’ Earnings Records?These records are used to maintain a continuous record of the payroll data for each employee for all pay periods during the year.
Before processing each payroll, make any changes to employee pay information on the Employees’ Earnings Records. Determine each employee’s gross pay, federal income tax withholding, FICA tax, medical insurance deduction, and net pay. Enter the data into the Employees’ Earnings Records. Transfer the information from the Employees’ Earnings Records to the Payroll Register for the period. You will not actually issue payroll checks.
From the information in the Payroll Register, prepare a general journal entry to record the total payroll for the pay period. The journal entry should include the following:
Salaries Expense (gross wages for salaried employees)
Wages Expense (gross wages for hourly employees)
Employees’ Federal Income Tax Payable
FICA Taxes Payable (the sum of Social Security and Medicare taxes)
Insurance Premiums Payable
Payroll Checking Account (net pay)
Employer Payroll Taxes. Employer’s payroll taxes are calculated at the end of each month and are posted by Adjusting Journal Entry. The payroll taxes are the employer’s matching Social Security Tax and Medicare Tax, Federal Unemployment Tax (FUTA), and State Unemployment Tax (SUTA). Some rates are rounded for simplicity.
Social Security Tax is 6% of gross pay for each employee.
Medicare Tax is 1.5% of gross pay for each employee.
FUTA is 2.2% of the first $7,000 of annual earnings for each employee.
(Note: You will need to refer to each employee’s earnings record to determine whether a portion or all of the employee’s wages are subject to FUTA tax for each pay period. Do not compute FUTA tax on wages above the $7,000 ceiling.)
SUTA is 4.0% of the first $7,000 of annual earnings for each employee.
(Note: You will need to refer to each employee’s earnings record to determine whether a portion or all of the employee’s wages are subject to SUTA tax for each pay period. Do not compute SUTA tax on wages above the $7,000 ceiling.)
Beginning Account Balances
Exhibit A is a trial balance for Lucy’s Doggie Care as of December 31.
Additional Account Information
Regular Checking Account/Payroll Checking Account. All cash disbursements, except the payroll checks, are made from the regular account. The payroll account is maintained at $100.00. When the payroll checks are to be issued, a check written on the Regular Checking Account in the amount of the net payroll is deposited in the Payroll Checking Account.
Accounts Receivable. Exhibit B is a Schedule of Accounts Receivable at December 31.
Note Receivable. The note receivable is a 9%, 9-month note dated December 31. Interest and principal will be repaid at maturity.
Merchandise Inventory. Exhibit C is a December 31 inventory listing for Lucy’s Doggie Care. The exhibit shows the number of units on hand at December 31, unit cost, total cost, and selling price for each item in inventory. All sales of merchandise will be credited to account 410 Sales?Store Sales, and Cost of Goods Sold will be charged to account 510 Cost of Goods Sold. A manual accounting system must have an inventory subsidiary ledger for each item. The December 31 item quantities and amounts have been entered into the inventory subsidiary ledger. Lucy’s Doggie Care uses a perpetual FIFO inventory system. All entries to record the Cost of Goods Sold, Sales Returns, and Purchase Returns are to be made in the General Journal.
Prepaid Insurance. This is a 12-month comprehensive property and liability policy purchased for $ 1,600.00 and provides coverage for the current fiscal year.
Plant and Equipment Assets. The building, furniture and fixtures, and office equipment are depreciated using the straight-line method.
Accounts Payable. Exhibit D is a Schedule of Accounts Payable at December 31. In addition to the balance for each vendor, the schedule also indicates the invoice date, invoice number, and final due date for each vendor.
Note Payable?Current. This is a 9-month, 10% note to PSL Trust Company due on June 25. Interest is accrued monthly and payable quarterly, due by the 5th of the month following the end of the quarter.
Unearned Day-Care Fees. Prepayments of day-care fees for 14 dogs at $75.00 per week. Prepaid period extends at least into February for all 14 dogs.
Note Payable?Long Term. This is a 9% note to Small Business Bank. Interest is payable monthly on or before the 1 5th of the month.
Sales Tax
SC sales tax of 6% is applicable to all sales of merchandise. Fees for services are tax exempt.
EMPLOYEES AND PAYROLL INFORMATION
The employees of Lucy’s Doggie Care are paid semimonthly on the 15th (or the previous Friday if the 15th is on a weekend) and the last day of each month. Exhibit E (see page 13) contains the IRS 2010 tables for the percentage method of withholding with a semimonthly payroll. Each employee is issued a payroll check from the Payroll Checking Account.
Salaried employees receive a fixed amount of pay for each pay period, regardless of the number of hours worked. Salaried employees’ gross pay is charged to Salaries Expense. Hourly employees receive time and one-half for any hours worked in excess of 40 hours per week; thus, the pay for these employees may vary from pay period to pay period. Hourly employees’ gross pay is charged to Wages Expense. Individual payroll information for employees may be located on the Employees’ Earnings Record documents.
Federal Tax Withholding Deductions
Social Security Tax is withheld using the rate of 6% on the first $100,000 earned by each employee.
.
Medicare Tax is withheld using the rate of I .5% on total employee wages.
Federal Income Tax to be withheld is determined with the percentage method using the IRS tables provided in Exhibit E. Assume the semimonthly standard allowance per exemption is $152.00.
State Tax Withholding Deductions
SC has no state or local income taxes.
Medical Insurance Deductions
Employees have the option of paying for group medical insurance through payroll deduction.
Single employees pay a semimonthly deduction of $25.00 if the employee elects medical insurance coverage.
Married employees pay a semimonthly deduction of $40.00 if the employee elects medical insurance coverage with spousal benefits.
Changes to Employee Payroll Processing Information
Changes for the January 13th payroll period:
None
Changes for the January 31st payroll period:
Shante Cook receives a $1.00 per hour pay increase. (previously made $12.00 per hour)
Andy Singer receives a $0.50 per hour pay increase. (previously made $10.00 per hour)
Sean Thomas’s status changes to “Married,” and his medical deduction changes to $40.00 per pay period. He requested his federal income tax withholding to remain at $177.80. (Sean Thomas is salaried and makes $2,800 per month)
END-OF-PERIOD REPORTS
After all transactions for January have been entered, prepare a trial balance. Review the trial balance and the information provided that pertains to the end-of-the-month adjustments.
Enter and post the necessary adjustments. Total the ending inventory item balances, and compare the total with the controlling account in the general ledger.
Using the forms and working papers provided, prepare the financial statements and reports indicated below or as specified by your instructor.
Schedule of Accounts Receivable
Schedule of Accounts Payable
Income Statement
Statement of Owner’s Equity
Balance Sheet
Post-Closing Trial Balance
If directed by your instructor, after preparing financial statements and reports, record and post the closing entries, and prepare a post-closing trial balance.
Check Figure: Cash (account no. 102) balance on January 31 should be $10,317.80.

Lucy?s Doggie Care
General Ledger Trial Balance
December 31, 20XX

EXHIBIT B
Lucy?s Doggie Care
Schedule of Accounts Receivable December 31, 20–

EXHIBIT C
Lucy?
Inventory List
December 31, 20?
.
Lucy’s Doggie Care
NARRATIVE OF TRANSACTIONS
Record the following transactions in the appropriate journals,

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