Project below.ACTION VIDEO PRODUCTIONS Copyright © 2017 McGraw-Hill Education. All rights reserved. ...

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Project below.ACTION VIDEO PRODUCTIONS Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  i                         ACTION VIDEO PRODUCTIONS  A Sole Proprietorship Service Business      INCLUDES:   • Company Profile  • Procedures Manual  • Source Documents  • Accounting Forms  • Audit Test     Price ▪ Haddock ▪ Farina      Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  ii Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  iii  TABLE OF CONTENTS      INTRODUCTION…...……………………………………………………........………1      PROCEDURES MANUAL...................................................................................2      SOURCE DOCUMENTS.....................................................................................5      JOURNALS.......................................................................................................37      GENERAL LEDGER..........................................................................................45      ACCOUNTING STATIONERY..........................................................................63      AUDIT TEST.....................................................................................................75      CHART OF ACCOUNTS..................................................................................77       Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  1  Introduction    The business in this simulation, Action Video Productions of Surfside, Florida, is organized as a sole  proprietorship and is owned by Adrian Martinez. Having received his bachelor’s degree in fine arts at a  Midwestern university, Adrian moved to the Miami area with the ultimate dream of becoming a video  news photographer. Once he is well established, he wants to direct his own video documentary based on  local subject matter for which he has found a unique perspective—something that could air on local  public television. His overall professional goal is to own his own broadcast quality video camera and earn his union  card as a video cameraman. The pay is excellent, and once in the union, he can freelance for various  television news departments around the area. As a stepping stone to this dream, Adrian decided to create his own business, Action Video  Productions. The business specializes in event video photography, which allows him to utilize his  interests and skills. Action Video Productions will digitally video record events such as weddings, anniversary parties,  and high school and college sports events. The videos are edited utilizing music where appropriate.  Creative title sequences will be added in order to provide clients with a professionally produced DVD.  Adrian has rented a space that will serve as an office and studio. It is near his apartment and is the base of  operations for Action Video Productions. To market his business, Adrian plans to build his own Web page and use desktop publishing software  to create two versions of a brochure (color for the wedding clientele, and black and white, mass-produced  flyers for the sports market). The brochures will display images of weddings and sporting events he shot  back in Iowa. The photographs showcase his seasoned eye for subject and composition. He plans to place  ads in the bridal announcement section of local newspapers, and has already introduced himself, through  letters with flyers, to high school and college athletic directors within a 45-minute radius of his home.  Adrian plans to create five-minute sample videos for both weddings and athletic events. Adrian regularly scans local papers for notices of particular events, such as amateur sporting  tournaments, grand openings, and school plays, and contacts the organizers to acquaint them with his  service. He has already received telephone inquiries about recording two weddings. A local high school  football coach is considering hiring Adrian to record the home games for the next season. Adrian has employed Danielle Sloane to pay Action Video Productions’ bills and prepare bank  deposits. You are Adrian’s part-time accountant responsible for maintaining the books for Action Video  Productions. You will keep the accounting records for Action Video Productions for the month of June. The first  day of operations will be June 2. Transactions should be recorded using the current year. The material in  this text is organized into three sections: (1) Procedures Manual  (2) Weekly Transactions and Source Documents  (3) Accounting Forms  Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  2  Procedures Manual  This Procedures Manual contains instructions for completing the simulation.   Source Documents  In this simulation you will analyze various source documents to determine the entries to be made in  the general journal. To determine what information you should enter in the general journal, follow these  steps: 1. Read the source document to determine what the transaction involves.     2. Verify that the arithmetic on the source document is correct.    3. Determine the accounts that are affected by the transactions. (Use the chart of accounts for Action  Video Productions on page 77.) 4. Determine the account(s) to be debited and the amount(s).     5. Determine the account(s) to be credited and the amount(s).     6. Determine the word, number, or phrase to describe the transaction.     The source documents are grouped by week and include the following: (1) Invoices to be paid   (2) Sales invoices   (3) Checks and receipts from clients   (4) Statements of account  (5) Memorandums  INVOICES  Action Video Productions is a new business and many items will be purchased for its daily business  operations. Equipment and supplies are purchased either for cash or on account. When Action Video  Productions buys items on account, the company selling the items gives Action Video Productions an  invoice indicating the amount that Action Video Productions owes. Before the information from an invoice is recorded in the general journal, you should check the  arithmetic to make sure that all the amounts have been calculated correctly. To verify these amounts,  multiply the quantity of items sold by the unit price for each item to see if the total, which is called an  extension, is correct. If there is an error in an extension, you should draw a line through the incorrect  amount and write the correct amount above it. After you have verified all the extensions and recalculated  the sales tax, re-add the total column to find the correct total for the invoice. If an error is found, notify Adrian Martinez in writing on the stationery provided on page 133. Include  information identifying the amount of the error, the item, and the company involved. In a real business  situation, you would call the company involved and ask to have a corrected invoice issued. Once you have finished verifying the information on an invoice, record the correct entry in the  general journal. The invoice is your source document for the general journal entry. Use "Invoice"  followed by the invoice number as the source document reference or general journal entry description.   Copyright © 2017 McGraw-Hill Education. All rights reserved.  No reproduction or distribution without the prior written consent of McGraw-Hill Education.  3  

Jaishree · Accepted Answer

General Journal
	GENERAL JOURNAL
	Date		Details	Post Ref	Debit	Credit
	02.06.2019		Cash		$   8,500.00
			Adrian Martinez, capital			$   8,500.00
			(Memo-1;Being cash invested into business)
	02.06.2019		Computer Equipment		$   5,072.10
			Accounts Payable- South Atlantic Computers			$   5,072.10
			(Invoice-1131; Being computer package purchased)
	02.06.2019		Accounts Payable- South Atlantic Computers		$   2,100.00
			Cash			$   2,100.00
			(Check No-101;Being payment made to creditor)
	02.06.2019		Miscellaneous Expense		$   21.20
			Cash			$   21.20
			(Invoice - 1250, Check No.-102; Being newspapers purchased)
	03.06.2019		Advertising Expense		$   180.20
			Cash			$   180.20
			(Invoice- 602; Check No.- 103; Being marketing flyers copied)
	04.06.2019		Rent Expense		$   975.00
			Cash			$   975.00
			(Memo No -2, Check No-104; Being rent paid for June)
	04.06.2019		Advertising Expense		$   450.00
			Cash			$   450.00
			(Check No.-105; Being advertisments made)
	05.06.2019		Vehicle		$   23,540.00
			Capital			$   23,540.00
			(Memo No.5; Being vehicle invested in the business)
	05.06.2019		Advertising Expense		$   28.00
			Cash			$   28.00
			(Check No.-106; Being cash reimbursed fot mailings)
	05.06.2019		Accounts Receivable- Nicolas DeCilla		$   1,950.00
			Sales Income			$   1,950.00
			(Invoice - S101; Being Sales made)
	05.06.2019		Cash		$   650.00
			Accounts Receivable- Nicolas DeCilla			$   650.00
			(Receipt No.-1; Being amount received from receivables)
	05.06.2019		Accounts Recievables- Glastre Art Gallery		$   600.00
			Sales Income			$   600.00
			(Invoice - S102; Being Sales made)
	05.06.2019		Cash		$   300.00
			Accounts Recievables- Glastre Art Gallery			$   300.00
			(Receipt No.-2; Being amount received from receivables)
	08.06.2019		Equipment		$   3,286.00
			Accounts Payable- Tropical Video			$   3,286.00
			(Invoice- 2105; Being equipments purchased)
	08.06.2019		Accounts Payable- Tropical Video		$   1,000.00
			Cash			$   1,000.00
			(Check No 107 ; Being payment made)
	09.06.2019		Cash		$   300.00
			Accounts Receivables- Glastre Art Gallery			$   300.00
			(Receipt No. 3; Being payment received)
	09.06.2019		Videography Supplies		$   318.00
			Cash			$   318.00
			(Invoice- 2105, Check No- 108; Being supplies purchased)
	09.06.2019		Equipment		$   550.00
			Cash			$   550.00
			(Check No- 109; Being reimburesement made for microphone set purchased)
	10.06.2019		Accounts Recievables-Stein		$   1,500.00
			Sales Income			$   1,500.00
			(Invoice - S103; Being Sales made)
	10.06.2019		Cash		$   500.00
			Accounts Recievables-Stein			$   500.00
			(Receipt No.-4; Being amount received from receivables)
	11.06.2019		Accounts Recievables-hallendale High School		$   1,030.00
			Sales Income			$   1,030.00
			(Invoice - S104; Being Sales made)
	11.06.2019		Prepaid Insurance		$   756.00
			Cash			$   756.00
			(Check No.-110; Being insurance premium paid for the year)
	12.06.2019		Cash		$   650.00
			Accounts receivables- DeCilla			$   650.00
			(Receipt No- 5; Being installment received)
	12.06.2019		Cash		$   450.00
			Sales Income			$   450.00
			(receipt No. 6; Being DVD duplicates sold for cash)
	15.06.2019		Wages Expense		$   750.00
			Cash			$   750.00
			(Check No. 111 and 112; Being wages paid)
	16.06.2019		Equipment		$   450.50
			Accounts Payable- Islander Audio Systems			$   450.50
			(Invoice - 7083; Being supplies purchased)
	16.06.2019		Advertising Expense		$   174.00
			cash			$   174.00
			(Check No. 113; Being advertisement made)
	17.06.2019		Cash		$   650.00
			Accounts receivables- DeCilla			$   650.00
			(Receipt No 7; Being installment received)
	18.06.2019		Videography Supplies		$   44.52
			Cash			$   44.52
			(Check No 114; Being duplicate DVDs purchased)
	18.06.2019		Cash		$   46.64
			Videography Supplies			$   46.64
			(Being defective DVD returned and amount received)
	19.06.2019		Cash		$   500.00
			Accounts receivables- Stein			$   500.00
			(receipt No. 8; Being installment received)
	19.06.2019		Cash		$   350.00
			Sales Income			$   350.00
			(Receipt No. 9; Being Duplicates DVDs Sold)
	19.06.2019		Miscellaneous Expense		$   24.60
			Cash			$   24.60
			(Check No 115; Being mailing expenses reimbursed)
	19.06.2019		Vehicle Expense		$   42.50
			Cash			$   42.50
			(Check No 116; Being oil change of vehicle made)
	19.06.2019		Cash		$   200.00
			Sales Income			$   200.00
			(receipt No. 10; Being cash sales made)
	23.06.2019		Cash		$   1,030.00
			Accounts receivable- Hallendale High School			$   1,030.00
			(Receipt No. 11; Being amount received)
	23.06.2019		Utilities Expense		$   42.06
			Cash			$   42.06
			(Check No 117; Being telephone expense paid)
	25.06.2019		Adrian Martinez- Drawings		$   400.00
			Cash			$   400.00
			(Check No 118; Being cash drawings made)
	26.06.2019		Accounts payable- South Atlantic Computers		$   1,370.00
			Cash			$   1,370.00
			(Check No. 119; Being payment made)
	26.06.2019		Cash		$   500.00
			Accounts receivables- Stein			$   500.00
			(Receipt No 12; Being final installment received)
	27.06.2019		Equipment		$   600.00
			Cash			$   600.00
			(Check No 120; Being CDs purchased for music)
	27.06.2019		Maintenance Expense		$   55.00
			Cash			$   55.00
			(Check No. 121; Being repair made for video camera
	27.06.2019		Cash		$   245.00
			Sale Income			$   245.00
			(Receipt No. 13; Being cash sale made)
	29.06.2019		Wages Expense		$   690.00
			Cash			$   690.00
			(Check No 122 and 123; Being wages paid)
	29.06.2019		Utilities expense		$   143.80
			Cash			$   143.80
			(Check No 124; Being water and power bill paid)
	29.06.2019		Accounts receivables- Correa		$   1,800.00
			Sales Income			$   1,800.00
			(Invoice No S105; Being sales made)
	29.06.2019		Cash		$   600.00
			Accounts receivables- Correa			$   600.00
			(Receipt No. 14; Being deposit received)
	29.06.2019		Videography Supplies 		$   48.23
			Cash			$   48.23
			(Check No 125; Being duplicate DVDs purchased)
			ADJUSTMENTS
	30.06.2019		Videography Supplies Expense		$   208.11
			Videography Supplies			$   208.11
			(Being supplies expensed)
	30.06.2019		Insurance Expense		$   252.00
			Prepaid Insurance			$   252.00
			(Being insurance expense for the month of June provided)
	30.06.2019		Depreciation expense-Computer equipment		$   141.00
			Accumulated depreciation- Computer Equipment			$   141.00
			(Being depreciation charged)
	30.06.2019		Depreciation expense-Vehicle		$   364.00
			Accumulated depreciation- Vehicle			$   364.00
			(Being depreciation charged)
	30.06.2019		Depreciation expense-equipment		$   107.00
			Accumulated depreciation-  Equipment			$   107.00
			(Being depreciation charged)
			CLOSING ENTRIES
	30.06.2019		Income Summary		$   4,648.47
			Advertising Expense			$   832.20
			Insurance Expense			$   252.00
			Maintenance expense			$   55.00
			Miscellaneous expense			$   45.80
			Rent expense			$   975.00
			Videography supplies expense			$   208.11
			Utilities expense			$   185.86
			Vehicle expense			$   42.50
			Wages Expense			$   1,440.00
			Depreciation expense- Computer equipment			$   141.00
			Depreciation expense- Vehicle			$   364.00
			Depreciation expense- Equipment			$   107.00
			(Being expenses account closed)
	30.06.2019		Sales Income		$   8,125.00
			Income Summary			$   8,125.00
			(Being income account closed)
	30.06.2019		Adrian Martinez- Capital		$   400.00
			Adrian Martinez- Drawings			$   400.00
			(Being drawings account closed)
	30.06.2019		Income Summary		$   3,476.53
			Adrian Martinez- Capital			$   3,476.53
			(Being profit transferred)
General Ledger
	Cash 										Accounts payable- Islander Audio Systems									Adrian Martinez- Capital									Sales Income									Advertising Expense
				Account Number		100								Account Number		210							Account Number		310							Account Number		410							Account Number		510
	Date	Description	Post Ref	Debit	Credit	Balance					Date	Description	Post Ref	Debit	Credit	Balance				Date	Description	Post Ref	Debit	Credit	Balance				Date	Description	Post Ref	Debit	Credit	Balance				Date	Description	Post Ref	Debit	Credit	Balance
						Debit	Credit									Debit	Credit								Debit	Credit								Debit	Credit								Debit	Credit
	02.06.2019	Adrian Martinez, capital		$8,500.00		$8,500.00					16.06.2019	Equipment			$   450.50					02.06.2019	Cash			$   8,500.00		8,500.00			05.06.2019	Accounts Receivable- Nicolas DeCilla			$   1,950.00		1,950.00			03.06.2019	Cash		$180.20		$180.20
	02.06.2019	Accounts Payable- South Atlantic Computers			2,100.00	6,400.00					30.06.2019	Balance c/d					450.50			05.06.2019	Vehicle			23,540.00		32,040.00			05.06.2019	Accounts Recievables- Glastre Art Gallery			600.00		2,550.00			04.06.2019	Cash		450.00		630.20
	02.06.2019	Miscellaneous Expense			21.20	6,378.80														30.06.2019	Adrian Martinez- drawings		400.00			31,640.00			10.06.2019	Accounts Recievables-Stein			1,500.00		4,050.00			05.06.2019	Cash		28.00		658.20
	03.06.2019	Advertising Expense			180.20	6,198.60														30.06.2019	Income Summary			3,476.53		35,116.53			11.06.2019	Accounts Recievables-hallendale High School			1,030.00		5,080.00			16.06.2019	cash		174.00		832.20
	04.06.2019	Rent Expense			975.00	5,223.60														30.06.2019	Balance c/d					35,116.53			12.06.2019	Cash			450.00		5,530.00			30.06.2019	Income Summary			832.20	0.00
	04.06.2019	Advertising Expense			450.00	4,773.60																							19.06.2019	Cash			350.00		5,880.00
	05.06.2019	Advertising Expense			28.00	4,745.60																							19.06.2019	Cash			200.00		6,080.00
	05.06.2019	Accounts Receivable- Nicolas DeCilla		$   650.00		5,395.60																							27.06.2019	Cash			245.00		6,325.00
	05.06.2019	Accounts Recievables- Glastre Art Gallery		$   300.

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