Accounting Case Study help


Accounting Case Study help

CASE STUDY INSTRUCTIONS – Required:

Click ORDER NOW  to have your custom paper completed successfully on time

Email Us: support@customwritings-us.com

PART 1 – Journalize Monthly Transactions
1) Record the transactions for the month in the special journals and general journal as applicable.
Notes:
– Memories Gift Shop posts daily to the A/R and A/P subsidiary ledger accounts and to the general ledger accounts for any amounts entered in the ‘Other’ column.
– General journal entries are posted daily
– HST is charged on both purchases and sales at 13%.  Be sure to calculate and record HST on each sale and purchase.
– Use the Inventory Valuation tab to calculate inventory values (Perpetual Inventory Systems, FIFO).  Cost of Goods Sold for each transaction will be derived from this tab.
   Make sure to update this tab for EVERY sale and EVERY purchase.  Note that discounts on inventory purchases and returns will also need to be updated.
SPECIAL NOTES
Both the Payroll and HST remitances will use the opening balances from the beginning of the month.
PART 2 – Bank Reconcilliation
2) Prepare the bank reconciliation for the month. Post any adjustments required to the general journal and general ledger.
PART 3 – Posting
3) Ensure all totals from the special journals and general journal have been posted to the general ledger at the end of the month.
Note:  Be sure to use posting references.
4) After posting the above journal entries to the general ledger accounts, fill in the first two columns of the worksheet.
5) Enter the values from your worksheet online through your ameengage.com course page. If your first 2 columns are not correct online, request assistance from your teacher before proceeding.
PART 4 – Month End Adjustments
6) Complete the ‘adjustments’ from the transactions tab in the adjustment column on the worksheet.
7) Complete the Adjusted Trial Balance columns in the worksheet.
8) Enter the values from your worksheet online through your ameengage.com course page. If your first 2 columns are not correct online, request assistance from your teacher before proceeding.
9) Journalize and post the adjusting entries from the worksheet to the general journal and general ledger.
PART 5 – Create the Financial Statements
10) Prepare an A/R and A/P Subledger total report to prove the subledgers are equal to the general ledger balance.
11) Fill in the last 4 columns of the worksheet to prepare for financial statement creation (may need to refer to Appendix 6A in your first semester text for this step).
12) Use the worksheet to prepare a Multistep Income Statement in the tab provided.
13) Use the worksheet and the income total from step (12) to prepare the Statement of Owner’s Equity in the tab provided.
14) Use the worksheet and the data from step (13) to prepare a classified Balance Sheet in the tab provided.
PART 6 – Close the Books
15) Journalize and post the closing entries using the indirect method (Income Summary Account).
16) Prepare the post-closing trial balance.

Transactions for the month of October:
180 52 100 110 50 75 142 4565
Oct 1 Bought inventory from Outdoor T-Shirts on account, invoice #5455; 350 units at $55 each plus HST. Terms of the purchase were 4/10, net 30. Update the inventory table after each purchase. 350 19250
55
Oct 1 Paid $2,000 for monthly rent with cheque #142. 2000
Oct 1 Established a petty cash fund for $400 with cheque #143. 400
Oct 2 Sold goods to Outback Karen, 320 units at $100 each plus HST with invoice #4565.  The invoice terms were 5/10, net 30. Update the inventory table after each sale. 320 32000
100
Oct 3 Purchased a one year insurance policy from Ultimate Insurance with cheque #144 for $2,100. 2100
Oct 4 The owner invested $15,000 cash into the company. 15000
Oct 5 Paid $5,200 with cheque #145 to Outdoor T-Shirts for an amount owing from last month. 5200
Oct 5 Bought inventory from Camping Retailers with cheque #146, 180 units at $52 per unit plus HST. 9360
Oct 7 Outback Karen returned 20 units from the purchase on October 2. They were ordered incorrectly. Use the cost from the October 1 purchase to put the items back in inventory. 20 2000
Oct 7 Returned 30 defective units to Camping Retailers and received cash. Record this in the general journal. 30 1560
Oct 8 Received $4,100 from Woodsman Bill for a sale on account last month. 4100
Oct 9 Made a cash sale  to Woodsman Bill, 50 units at $75 per unit plus HST. 3750
Oct 10 Outback Karen paid invoice #4565 on time and took advantage of the early payment discount. 1500 28500
Oct 12 The owner went to the bank and received a $20,000 loan. 20000
Oct 13 Purchased new equipment with cheque #147 for $10,000 plus HST. 10000
Oct 14 Paid $6,300 with cheque #148 to Hiking Caps for an amount owing from last month. 6300
Oct 14 Remitted the balance of CPP, EI and income tax owing from the beginning of the month to the receiver general with cheque #149.
Oct 15 Paid the amount owing to Outdoor T-Shirts on invoice #5455 with cheque #150. 19250
Oct 15 Prepared the payroll for the first half of the month. Gross pay is $7,000, CPP is $347, EI is $132 and income tax is $1,400. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later. 7000
Oct 16 Purchased office supplies for $4,000 plus HST with cheque #151 from Staplers Supplies. 4000
Oct 16 Paid the employees the net pay from the payroll transaction on October 15. For simplicity, use cheque #152 for the total amount.
Oct 17 Received $4,100 from Outback Karen for a sale last month. 4100
Oct 18 Purchased inventory on account from Camping Retailers. Invoice #6235; 200 units at $50 each plus HST. Terms of purchase were 2/10, net 30. 200 10000
50
Oct 20 Sold goods to Hiker Mike on account. Sold 60 units at $110 per unit plus HST with invoice #4566. The invoice terms were 5/10, net 30. 60 6600
110
Oct 25 Purchased inventory on account from Hiking Caps. Invoice #4528; 100 units at $52 each plus HST. Terms of purchase were 2/10, net 30. 100 5200
52
Oct 26 Paid Camping Retailers the amount owing from the purchase on October 18 and took advantage of the early payment discount. Paid with cheque #153. Update the inventory table to apply the discount as a reduction to the per unit inventory value. 200 9800
Oct 26 Sold goods to Moose Time on account. Sold 500 units at $110 per unit plus HST with invoice #4567. The invoice terms were 5/10, net 30. 500 55000
110
Oct 27 Received $1,300 cash from Moose Time as a deposit for products that will be delived next month. 1300
Oct 29 The owner withdrew $2,000 cash from the business with cheque #154 for personal use. 2000
Oct 29 Hiker Mike paid the amount owing from the sale on October 20 and took advantage of the early payment discount. 330 6270
Oct 30 The petty cash is replenished and increased to $500 with cheque #155. Receipts in the petty cash box are: office supplies $60 plus HST, maintenance expense for $120 plus HST and entertainment expense for $150 plus HST. 500 120
60 150
Oct 30 Sold goods to Moose Time for 100 units at $110 per unit plus HST. Moose Time paid cash. 11000
Oct 31 Prepared the payroll for the second half of the month. Gross pay is $7,500, CPP is $371, EI is $141 and income tax is $1,500. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later. 7500
Oct 31 Dark Forest is unable to pay the amount owing. The full amount owing is written off using the AFDA account. $400
Oct 31 Remitted the HST owing to the receiver general with cheque #156. Use the balances from the HST accounts from the beginning of the month
Adjustments
Oct 31 Accrued the amount of interest owing on the bank loan for the month. The interest rate is 5% per annum. 5 $0.00
Oct 31 One month of insurance has been used. 175
Oct 31 A count of office supplies shows that $950 is left on hand. 950
Oct 31 A physical count of inventory shows that 5 are missing. Adjust the inventory values based on the missing inventory. 5
Oct 31 Record straightline depreciation on the equipmentfor the month. All equipment purchased is expected to last 5 years and have no residual value at the end of its useful life.

 

 

 

 

 

General Ledger Accounts
Account: Cash GL No: 101
Date Description PR DR CR Balance (DR or CR)
Opening Balance 15,262.00 DR
Account: Petty Cash GL No: 105
Date Description PR DR CR Balance (DR or CR)
Opening Balance 0.00 DR
Account: Accounts Receivable GL No: 110
Date Description PR DR CR Balance (DR or CR)
Opening Balance 54,200.00 DR
Account: Allowance for Doubtful Accounts GL No: 115
Date Description PR DR CR Balance (DR or CR)
Opening Balance 2,400.00 CR
Account: Inventory GL No: 120
Date Description PR DR CR Balance (DR or CR)
Opening Balance 15,000.00 DR
Account: Prepaid Insurance GL No: 125
Date Description PR DR CR Balance (DR or CR)
Opening Balance 0.00 DR
Account: Office Supplies GL No: 130
Date Description PR DR CR Balance (DR or CR)
Opening Balance 1,000.00 DR
Account: Equipment GL No: 140
Date Description PR DR CR Balance (DR or CR)
Opening Balance 62,000.00 DR
Account: Accumulated Depreciation GL No: 145
Date Description PR DR CR Balance (DR or CR)
Opening Balance 17,800.00 CR
Account: Accounts Payable GL No: 200
Date Description PR DR CR Balance (DR or CR)
Opening Balance 42,300.00 CR
Frequently used tabs:
Account: Interest Payable GL No: 205 Return to Transactions
Date Description PR DR CR Balance (DR or CR)  
Opening Balance 0.00 CR Special Journals
General Journal
Account: HST Payable GL No: 210
Date Description PR DR CR Balance (DR or CR)
Opening Balance 12,000.00 CR
Account: HST Recoverable GL No: 215
Date Description PR DR CR Balance (DR or CR)
Opening Balance 5,000.00 DR
Account: CPP Payable GL No: 220
Date Description PR DR CR Balance (DR or CR)
Opening Balance 1,400.00 CR
Account: EI Payable GL No: 225
Date Description PR DR CR Balance (DR or CR)
Opening Balance 600.00 CR
Account: Income Tax Payable GL No: 230
Date Description PR DR CR Balance (DR or CR)
Opening Balance 3,000.00 CR
Account: Salaries Payable GL No: 235
Date Description PR DR CR Balance (DR or CR)
Opening Balance 0.00 CR
Account: Unearned Revenue GL No: 240
Date Description PR DR CR Balance (DR or CR)
Opening Balance 0.00 CR
Account: Bank Loan GL No: 245
Date Description PR DR CR Balance (DR or CR)
Opening Balance 10,000.00 CR
Account: Capital Account GL No: 300
Date Description PR DR CR Balance (DR or CR)
Opening Balance 62,962.00 CR
Account: Owner’s Drawings GL No: 305
Date Description PR DR CR Balance (DR or CR)
Account: Income Summary GL No: 315
Date Description PR DR CR Balance (DR or CR)
Account: Sales Revenue GL No: 400
Date Description PR DR CR Balance (DR or CR)
Account: Sales Discounts GL No: 405
Date Description PR DR CR Balance (DR or CR)
Account: Sales Returns and Allowances GL No: 410
Date Description PR DR CR Balance (DR or CR)
Account: Interest Revenue GL No: 420
Date Description PR DR CR Balance (DR or CR)
Account: Cost of Goods Sold GL No: 500
Date Description PR DR CR Balance (DR or CR)
Account: Employee Benefits Expense GL No: 510
Date Description PR DR CR Balance (DR or CR)
Account: Depreciation Expense GL No: 515
Date Description PR DR CR Balance (DR or CR)
Account: Insurance Expense GL No: 520
Date Description PR DR CR Balance (DR or CR)
Account: Interest Expense GL No: 525
Date Description PR DR CR Balance (DR or CR)
Account: Office Supplies Expense GL No: 530
Date Description PR DR CR Balance (DR or CR)
Account: Rent Expense GL No: 535
Date Description PR DR CR Balance (DR or CR)
Account: Salaries Expense GL No: 540
Date Description PR DR CR Balance (DR or CR)
Account: Bank Charges Expense GL No: 545
Date Description PR DR CR Balance (DR or CR)
Account: Maintenance Expense GL No: 550
Date Description PR DR CR Balance (DR or CR)
Account: Entertainment Expense GL No: 555
Date Description PR DR CR Balance (DR or CR)
5 $0.00
 

Click ORDER NOW  to have your custom paper completed successfully on time

Email Us: support@customwritings-us.com

 

 

 

Click ORDER NOW  to have your custom paper completed successfully on time

Email Us: support@customwritings-us.com

Click ORDER NOW  to have your custom paper completed successfully on time

Email Us: support@customwritings-us.com

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: