Question:
- You must use SoundBytes Electronics Practice Set (ISBN 978-0-17-664180-1).
- You will set up the company manually from scratch using Chapter 4A as a guide.
- DO NOT use the data files referred to on page 1.
- Using the data files will result in a mark of 0%
- NOTE: For any settings not clearly defined or described in these pages use your discretion as to the appropriate setting.
- Provide me with a list of any assumptions that you make in setting up the company in a work document.
- Pages 1, 2, 3 and 4 are provided as background information and need to be used as guidelines for setting up the company
Page 5 is a guide for the Ratios for the company – see list of reports
- Your chart of accounts must be based upon the Adjusted Trial Balance on page 6 (Account codes must have a 0 added to them i.e.: 101 is 1010). You must use appropriate account codes (H, T, A, S, G)
- Use history to enter the account balances on page 6.
- Use tax settings for GST @ 6% and PST @ 7% wherever HST is used in the practice set.
HST on Sales and HST on Purc/Serv accounts will need to be changed to reflect the above settings and new accounts created as necessary.
The opening balance of $1,387 for Account 241 will need to be allocated between the GST and PST accounts. No allocation is necessary for Account 243
NOTE: All purchase transactions that have HST will be posted only to the GST account.
All sales transactions will be posted to both GST and PST accounts.
- Set up Customers, Vendors and Inventory according to the lists on page 7.
Use history to enter the account balances on page 7 (the HST amounts are all allocated to GST accounts).
- Page 8 is information needed to calculate and enter the monthly depreciation expense at month end.
- Page 9 can be ignored.
- Pages 10 and 11 reports to be used as the basis to compare your setup results prior to entering the transactions for April.
- Page 12 is information needed to calculate and enter the monthly loan payment at month end.
- You must create two employees for the company – one born in 1990 and the other in 1992. Use page 400 as a guide for salaried and hourly employee deductions.
- You will need to add the accounts listed on page 378 to your chart of accounts – only those accounts that are necessary to process the payroll need to be added. Use only one account for their earnings.
- Use any two names. Use the same federal and provincial tax credits and settings that are used in Chapter 7 pages 392-399. Both employees accrue 4% vacation pay.
- One person will be paid a salary or $1,500 every two weeks on April 14 and 28.
- The other employee is paid $15 per hour.
This employee worked 35 hours April 1 to 14; 20 hours April 15 to 28.
- Create two projects – Surrey and Kelowna. All revenue and expense transactions must be allocated 50% to each project (100% in total)
- Set the modules to ready once you have confirmed your results.
- Use pages 13 and 14 as guidelines for entering the April transactions on pages 16 to 30. Vendors and Customers will be created for all sales, receipts, purchases and payments.
- The April 13 payment to Receiver General will need to be separated into the GST and PST portions (assume that the PST owing is sent to Receiver General). A journal entry on March 30 is required.
- Create a vendor for Mr. Stammers to record the April 13 cheque for car repairs – do not add taxes to the payment.
- The April 30 cheque to you is not payroll.
- Calculate the ratios listed on page 15 and 59. Submit the ratios in a Word document.
- NOTE: Pages 31 to 58 inclusive, 61, 62, 64 to 66 are not used for this project.
- A bank reconciliation will be completed at the end of April using the information on page 63. All the payroll cheques for April 14 and 28 have NOT cleared the bank.
Submit the following reports as PDF files in Moodle prior to the due date and time.
- Chart of Accounts April 30
- Trial Balance at March 31
- Income Statement for the month of April
- Balance Sheet at April 30
- Detailed Customer Aged report at April 30
- Detailed Vendor Aged report at April 30
- Pending Sales Orders Detail by Customer
- Inventory Summary at April 30
- All Journal Entries April 1 to 30
- General Ledger listing by date for April
- Bank Account Reconciliation Detail for April 1 to 30
- Bank Reconciliation Transactions Detail Report April 1 to 30
- Employee Detail for April 1 to 30
- Tax Detail by Tax Code for April 1 to 30
- Income detail reports for the two projects April 1 to April 30
This one report is submitted as a Word Document Ratios calculated from reports at the end of April.
Answer:
| |
ASSET
|
|
|
|
|
| |
|
|
|
|
|
| |
|
1000
|
Current Assets
|
H
|
|
| |
|
1010
|
Bank Account Chequing
|
G
|
Bank
|
| |
|
1200
|
Accounts Receivable
|
G
|
Accounts Receivable
|
| |
|
1220
|
Merchandise Inventory
|
G
|
Inventory
|
| |
|
1240
|
Store Supplies on Hand
|
G
|
Other Current Asset
|
| |
|
1280
|
Prepaid Insurance
|
G
|
Other Current Asset
|
| |
|
1290
|
Total Current Assets
|
T
|
|
| |
|
|
|
|
|
| |
|
1600
|
Non-Current Assets
|
H
|
|
| |
|
1610
|
Store Equipment
|
A
|
Capital Asset
|
| |
|
1620
|
Accum Depr Store Equipment
|
A
|
Accum. Amort. & Depreciation
|
| |
|
1630
|
Net – Store Equipment
|
S
|
|
| |
|
1640
|
Total Non-Current Assets
|
T
|
|
| |
|
|
|
|
|
| |
LIABILITY
|
|
|
|
| |
|
|
|
|
|
| |
|
2000
|
Current Liabilities
|
H
|
|
| |
|
2100
|
Accounts Payable
|
G
|
Accounts Payable
|
| |
|
2200
|
Accrued Payables
|
G
|
Liability
|
| |
|
2410
|
HST on Sales
|
A
|
Sales Tax Payable
|
| |
|
2430
|
HST on Purchases/Serv
|
A
|
Sales Tax Payable
|
| |
|
2450
|
HST Owing (Refund)
|
S
|
|
| |
|
2500
|
Total Current Liabilities
|
T
|
|
| |
|
|
|
|
|
| |
|
2600
|
Long Term Liabilities
|
H
|
|
| |
|
2610
|
Bank Loan Payable
|
G
|
Long Term Debt
|
| |
|
2700
|
Total Long Term Liabilities
|
T
|
|
| |
|
|
|
|
|
| |
EQUITY
|
|
|
|
| |
|
|
|
|
|
| |
|
3000
|
Owners Equity
|
H
|
|
| |
|
3100
|
Capital John Stammers
|
G
|
Owner/Partner Contributions
|
| |
|
3150
|
Drawings John Stammers
|
G
|
Owner/Partner Withdrawals
|
| |
|
3560
|
Retained Earnings – Previous Year
|
G
|
Retained Earnings
|
| |
|
3600
|
Current Earnings
|
X
|
Current Earnings
|
| |
|
3700
|
Total Owners Equity
|
T
|
|
| |
|
|
|
|
|
| |
REVENUE
|
|
|
|
| |
|
|
|
|
|
| |
|
4000
|
Sales Revenue
|
H
|
|
| |
|
4010
|
Sales-Electronic Devices
|
G
|
Operating Revenue
|
| |
|
4030
|
Sales-Music CDs
|
G
|
Operating Revenue
|
| |
|
4050
|
Sales-Movies
|
G
|
Operating Revenue
|
| |
|
4070
|
Sales-Others
|
G
|
Operating Revenue
|
| |
|
4210
|
Sales-Returns
|
G
|
Operating Revenue
|
| |
|
4230
|
Sales-Discounts
|
G
|
Operating Revenue
|
| |
|
4260
|
Net Sales
|
T
|
|
| |
|
|
|
|
|
| |
EXPENSE
|
|
|
|
| |
|
|
|
|
|
| |
|
5000
|
Cost of Goods Sold
|
H
|
|
| |
|
5100
|
Cost of Goods Sold
|
G
|
Cost of Goods Sold
|
| |
|
5120
|
Item Assembly Costs
|
G
|
Cost of Goods Sold
|
| |
|
5130
|
Adjustment Write-off
|
G
|
Cost of Goods Sold
|
| |
|
5160
|
Purchase-Discounts
|
G
|
Cost of Goods Sold
|
| |
|
5190
|
Total Cost of Goods Sold
|
T
|
|
| |
|
|
|
|
|
| |
|
5200
|
Operating Expenses
|
H
|
|
| |
|
5210
|
Rent Expenses
|
G
|
Operating Expense
|
| |
|
5230
|
Store Salaries Expense
|
G
|
Operating Expense
|
| |
|
5270
|
Store Supplies Expense
|
G
|
Operating Expense
|
| |
|
5290
|
Insurance Expense
|
G
|
Operating Expense
|
| |
|
5310
|
Hydro & Water Expenses
|
G
|
Operating Expense
|
| |
|
5330
|
Depreciation Expenses Equip
|
G
|
Operating Expense
|
| |
|
5350
|
Advertising Expense
|
G
|
Operating Expense
|
| |
|
5720
|
Miscellaneous/Other Expenses
|
G
|
Operating Expense
|
| |
|
5740
|
Bank Charges/Interest Expense
|
G
|
Operating Expense
|
| |
|
5760
|
Bookkeping Charges
|
G
|
Operating Expense
|
| |
|
5800
|
Total Operating Expenses
|
T
|
|
| |
|
|
|
|
|
|
Tax Summary 01-01-2018 to 30-04-2018
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
Description
|
Taxable Amount Excluding Taxes
|
Taxes Paid/Charged
|
Taxable Amount Including Taxes
|
Other Taxes Paid/Charged
|
Total Amount Including Taxes
|
|
Sales
|
|
|
|
|
|
|
|
|
| |
GST/HST
|
|
|
|
|
|
|
|
| |
|
GST/HST Refundable
|
|
|
|
|
|
|
| |
|
|
GST/HST@ 13.00%
|
1,740.00
|
226.20
|
1,966.20
|
0.00
|
1,966.20
|
| |
|
|
|
|
|
|
|
|
| |
|
Total Refundable GST/HST
|
|
1,740.00
|
226.20
|
1,966.20
|
0.00
|
1,966.20
|
| |
|
|
|
|
|
|
|
|
| |
Total GST/HST
|
|
1,740.00
|
226.20
|
1,966.20
|
0.00
|
1,966.20
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Purchases
|
|
|
|
|
|
|
|
|
| |
GST/HST
|
|
|
|
|
|
|
|
| |
|
GST/HST Refundable
|
|
|
|
|
|
|
| |
|
|
GST/HST@ 13.00%
|
8,600.00
|
1,118.00
|
9,718.00
|
0.00
|
9,718.00
|
| |
|
|
|
|
|
|
|
|
| |
|
Total Refundable GST/HST
|
|
8,600.00
|
1,118.00
|
9,718.00
|
0.00
|
9,718.00
|
| |
|
|
|
|
|
|
|
|
| |
Total GST/HST
|
|
8,600.00
|
1,118.00
|
9,718.00
|
0.00
|
9,718.00
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Net refundable GST/HST collected from sales less paid on purchases: -891.80*
|
|
|
|
|
| |
|
|
|
All Transactions 30-03-2018 to 30-04-2018
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
Account Number
|
Account Description
|
Debits
|
Credits
|
|
02-04-2018
|
J1
|
401,
|
Mall Management
|
|
|
|
|
| |
|
|
|
2430
|
HST on Purchases/Serv
|
195.00
|
–
|
| |
|
|
|
5210
|
Rent Expenses
|
1,500.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
1,695.00
|
| |
|
|
|
|
|
|
|
|
03-04-2018
|
J2
|
802Rt,
|
LeaMegs DJs
|
|
|
|
|
| |
|
|
|
1220
|
Merchandise Inventory
|
100.00
|
–
|
| |
|
|
|
2410
|
HST on Sales
|
26.00
|
–
|
| |
|
|
|
4210
|
Sales-Returns
|
200.00
|
–
|
| |
|
|
|
1200
|
Accounts Receivable
|
–
|
226.00
|
| |
|
|
|
5100
|
Cost of Goods Sold
|
–
|
100.00
|
| |
|
|
|
|
|
|
|
|
03-04-2018
|
J3
|
2819,
|
Active Electronics Inc
|
|
|
|
|
| |
|
|
|
1220
|
Merchandise Inventory
|
5,800.00
|
–
|
| |
|
|
|
2430
|
HST on Purchases/Serv
|
754.00
|
–
|
| |
|
|
|
2100
|
Accounts Payable
|
–
|
6,554.00
|
| |
|
|
|
|
|
|
|
|
04-04-2018
|
J4
|
Cash,
|
810, <One-time customer>
|
|
|
|
| |
|
|
|
1010
|
Bank Account Chequing
|
339.00
|
–
|
| |
|
|
|
5100
|
Cost of Goods Sold
|
150.00
|
–
|
| |
|
|
|
1220
|
Merchandise Inventory
|
–
|
150.00
|
| |
|
|
|
2410
|
HST on Sales
|
–
|
39.00
|
| |
|
|
|
4010
|
Sales-Electronic Devices
|
–
|
250.00
|
| |
|
|
|
4030
|
Sales-Music CDs
|
–
|
20.00
|
| |
|
|
|
4050
|
Sales-Movies
|
–
|
30.00
|
| |
|
|
|
|
|
|
|
|
05-04-2018
|
J5
|
402,
|
City News Services
|
|
|
|
|
| |
|
|
|
2430
|
HST on Purchases/Serv
|
91.00
|
–
|
| |
|
|
|
5350
|
Advertising Expense
|
700.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
791.00
|
| |
|
|
|
|
|
|
|
|
06-04-2018
|
J6
|
811,
|
LeaMegs DJs
|
|
|
|
|
| |
|
|
|
1200
|
Accounts Receivable
|
904.00
|
–
|
| |
|
|
|
5100
|
Cost of Goods Sold
|
400.00
|
–
|
| |
|
|
|
1220
|
Merchandise Inventory
|
–
|
400.00
|
| |
|
|
|
2410
|
HST on Sales
|
–
|
104.00
|
| |
|
|
|
4030
|
Sales-Music CDs
|
–
|
720.00
|
| |
|
|
|
4070
|
Sales-Others
|
–
|
80.00
|
| |
|
|
|
|
|
|
|
|
09-04-2018
|
J8
|
850,
|
Muiscal Supplies
|
|
|
|
|
| |
|
|
|
1220
|
Merchandise Inventory
|
600.00
|
–
|
| |
|
|
|
2430
|
HST on Purchases/Serv
|
78.00
|
–
|
| |
|
|
|
2100
|
Accounts Payable
|
–
|
678.00
|
| |
|
|
|
|
|
|
|
|
09-04-2018
|
J9
|
403,
|
Active Electronics Inc
|
|
|
|
|
| |
|
|
|
2100
|
Accounts Payable
|
696.08
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
553.70
|
| |
|
|
|
5160
|
Purchase-Discounts
|
–
|
142.38
|
| |
|
|
|
|
|
|
|
|
10-04-2018
|
J10
|
1076,
|
812, Community Service Group
|
|
|
|
| |
|
|
|
1010
|
Bank Account Chequing
|
610.20
|
–
|
| |
|
|
|
5100
|
Cost of Goods Sold
|
302.49
|
–
|
| |
|
|
|
1220
|
Merchandise Inventory
|
–
|
302.49
|
| |
|
|
|
2410
|
HST on Sales
|
–
|
70.20
|
| |
|
|
|
4010
|
Sales-Electronic Devices
|
–
|
225.00
|
| |
|
|
|
4030
|
Sales-Music CDs
|
–
|
180.00
|
| |
|
|
|
4050
|
Sales-Movies
|
–
|
135.00
|
| |
|
|
|
|
|
|
|
|
13-04-2018
|
J11
|
404,
|
Canada Revenue Agency
|
|
|
|
| |
|
|
|
2410
|
HST on Sales
|
1,387.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
546.00
|
| |
|
|
|
2430
|
HST on Purchases/Serv
|
–
|
841.00
|
| |
|
|
|
|
|
|
|
|
13-04-2018
|
J12
|
405,
|
Andre’s Auto Repair
|
|
|
|
|
| |
|
|
|
3150
|
Drawings John Stammers
|
700.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
700.00
|
| |
|
|
|
|
|
|
|
|
13-04-2018
|
J13
|
406,
|
Active Electronics Inc
|
|
|
|
|
| |
|
|
|
2100
|
Accounts Payable
|
6,422.92
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
6,422.92
|
| |
|
|
|
|
|
|
|
|
16-04-2018
|
J14
|
407,
|
Metro Hydro
|
|
|
|
|
| |
|
|
|
2100
|
Accounts Payable
|
339.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
339.00
|
| |
|
|
|
|
|
|
|
|
27-04-2018
|
J17
|
813,
|
Falls DJ Service
|
|
|
|
|
| |
|
|
|
1200
|
Accounts Receivable
|
339.00
|
–
|
| |
|
|
|
5100
|
Cost of Goods Sold
|
153.08
|
–
|
| |
|
|
|
1220
|
Merchandise Inventory
|
–
|
153.08
|
| |
|
|
|
2410
|
HST on Sales
|
–
|
39.00
|
| |
|
|
|
4030
|
Sales-Music CDs
|
–
|
300.00
|
| |
|
|
|
|
|
|
|
|
27-04-2018
|
J18
|
1,
|
Falls DJ Service
|
|
|
|
|
| |
|
|
|
1010
|
Bank Account Chequing
|
100.00
|
–
|
| |
|
|
|
1200
|
Accounts Receivable
|
–
|
100.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J19
|
1,
|
|
|
|
|
|
| |
|
|
|
2610
|
Bank Loan Payable
|
353.00
|
–
|
| |
|
|
|
5740
|
Bank Charges/Interest Expense
|
47.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
400.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J20
|
408,
|
Employee
|
|
|
|
|
| |
|
|
|
5230
|
Store Salaries Expense
|
540.00
|
–
|
| |
|
|
|
5760
|
Bookkeping Charges
|
100.00
|
–
|
| |
|
|
|
1010
|
Bank Account Chequing
|
–
|
640.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J21
|
2,
|
|
|
|
|
|
| |
|
|
|
5270
|
Store Supplies Expense
|
128.00
|
–
|
| |
|
|
|
1240
|
Store Supplies on Hand
|
–
|
128.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J22
|
3,
|
|
|
|
|
|
| |
|
|
|
5290
|
Insurance Expense
|
150.00
|
–
|
| |
|
|
|
1280
|
Prepaid Insurance
|
–
|
150.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J23
|
4,
|
|
|
|
|
|
| |
|
|
|
5330
|
Depreciation Expenses Equip
|
450.00
|
–
|
| |
|
|
|
1620
|
Accum Depr Store Equipment
|
–
|
450.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J24
|
5,
|
|
|
|
|
|
| |
|
|
|
5310
|
Hydro & Water Expenses
|
330.00
|
–
|
| |
|
|
|
2200
|
Accrued Payables
|
–
|
330.00
|
| |
|
|
|
|
|
|
|
|
30-04-2018
|
J25
|
6,
|
|
|
|
|
|
| |
|
|
|
5740
|
Bank Charges/Interest Expense
|
10.00
|
–
|
| |
|
|
|
2200
|
Accrued Payables
|
–
|
10.00
|
| |
|
|
|
|
|
24,994.77
|
24,994.77
|
|
|
|
Ratio Analysis:
|
Current Ratio
|
21.24
|
|
Acide Test Ratio
|
6.39
|
|
|
|
|
Gross Profit Ratio
|
49.47%
|
|
Expense Ratio
|
23.92%
|
|
Net Profit Ratio
|
25.55%
|
|
|
|
|
Merchandise Turnover
|
3.013
|
|
Return on Equity
|
2.848
|
|
Debt Ratio
|
0.243
|
|
|
