Please complete this project correctly. All the materials you need are attached. ATTACHMENT PREVIEW Download attachment da1af15_Garcia_case.pdf EXPLANATION OF EXTRA CREDIT ASSIGNMENT The extra credit assignment consists of a manual accounting exercise (the Garcia case). You will enter the transactions in the respective special journals and post to the general ledger and subsidiary ledgers. You will prepare a worksheet, enter adjusting entries on the worksheet, prepare financial statements, and close the books. You will make sure that your adjusting and closing entries are entered in the journals and posted. Finally, you will prepare a post-closing trial balance and reconcile the subsidiary ledgers to the general ledger. Please note that the Garcia Company uses the periodic inventory system. You will need to consult Appendix C starting at the end of the text. Blank working papers are included for the above steps. Please submit the assignment in the following order: 1 2 3 4 5 6 7 8 9 10 11 12 13 SALES JOURNAL PURCHASES JOURNAL CASH DISB. JOURNAL CASH RECEIPTS JOURNAL GENERAL JOURNAL (2 PAGES) GENERAL LEDGER AR & AP SUB LEDGERS WORKSHEET INCOME STATEMENT STMT OF OE. BALANCE SHEET POST CLOSE T/B SCHEDULE OF AR & AP USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL USE MANUAL WORKPAPERS & PENCIL 2 DE ANZA COLLEGE Accounting 1A Extra Credit Assignment G.R. Garcia CO. G.R. Garcia CO. closes its books and prepares financial statements at the end of each month. The company uses the PERIODIC inventory method. The company completed the following transactions during May: MAY 1 Issued check for office rent for the current month. (Debit rent expense) CHECK #: 1062 AMOUNT: $4,700 2 Issued check to pay salaries. Part of this amount had been accrued last month. The company does not use reversing entries. CHECK #: 1063 AMOUNT: $1,550 AMOUNT ACCRUED AS SALARY PAYABLE LAST MONTH: $475 2 Issued invoice for sale on account. INVOICE #: 225 AMOUNT: $6,500 CUSTOMER: HUANG CO. 3 Purchased inventory on credit; terms 1/15, n/60. VENDOR: HOWELL INC. AMOUNT: $2,300 4 Received net amount of cash on account from customer within discount period. CUSTOMER: SCHILLING CO. AMOUNT: $5,292 4 Sold inventory for cash. AMOUNT: $7,200 5 Issued credit memo for merchandise returned by customer to G.R. Garcia CO. Cr Memo #: 173 AMOUNT: $250 CUSTOMER: LEUNG, INC. 5 Issued check to purchase supplies for cash. AMOUNT: $1,375 CHECK #: 1064 6 Collected interest revenue. AMOUNT: $880 7 Issued invoice for sale on account. INVOICE #: 226 AMOUNT: $8,700 CUSTOMER: MCGUIRE, CORP. 8 Issued check to pay vendor part of the amount owed last month. Payment occured after the end of the discount period. CHECK #: 1065 AMOUNT: $7,200 VENDOR: ALCALA, LTD. 11 Issued check to pay vendor the net amount owed from the 3rd of the month. CHECK #: 1066 VENDOR: HOWELL INC. 12 Received net amount of cash on account from customer in full settlement of the account receivable from the 2nd of the month. CUSTOMER: HUANG CO. page 1 3 MAY 16 Issued check to pay salaries. CHECK #: 1067 AMOUNT: $1,550 19 Purchased inventory for cash. CHECK #: 1068 AMOUNT: $1,460 22 Purchased furniture on credit; terms 3/15, n/60. VENDOR: CHUANG CO. AMOUNT: $1,540 23 Issued invoice for sale on account. INVOICE #: 227 AMOUNT: $16,200 CUSTOMER: SCHILLING CO. 24 Received half of the amount due on account from customer, regarding the prior month accounts receivable, after the discount period. CUSTOMER: MCGUIRE, CORP. 25 Issued check to pay utilities. CHECK #: 1069 AMOUNT: $1,325 26 Purchased supplies on credit; terms 2/10, n/30. VENDOR: ALCALA, LTD. AMOUN