Template for Financial Acctg Step 2 Step 3 Step 4 Report Step 5 Report
Comp Name Netflix B Posting to T Accounts "piggy bank" C Summarizing on Trial Balance as at Nov 30,2016 D Income Statement or Profit and Loss statement E. Preparing Financial Statements
Month March XXXXXXXXXX Step 1 Jan 1 "transaction" - John susbcribe to Netflix. 8.99 T Accounts Trial Balance Debit Credit For the Period Ending March 31 A. Balance Sheet as of March 31,2017
A Recording transactions/ Passing Journal Entries Cash/Bank 8.99 Date Cash/Bank Debit Credit Net Balance Step 3 Sales A 23.98 Assets = Liabilities
Exchange? Subscription fee 8.99 Description Month Ended Jan 2022 Less: Cost of Sales B xx
Date Journal Entries Debit Credit Business Jan 1 Subscription fee - Sales (JK) 8.99 Gross Profit C = A-B xx
Saturday, January 01, 2022 Cash/Bank $ 8.99 Transaction Jan 1 Subscription renewal ( Sahil) 14.99 Expenses D Computer 10,000
Language Subscription fee (revenue) $ 8.99 2 accounts impacted Rent xx
$ 8.99 $ 8.99 Advertising etc xx
Thursday, March 02, 2017 Jan 2 - Mr Sahil renwed subscriotion for family plan 14.99 Transaction
Cash/Bank $ XXXXXXXXXX
Subscription fee (revenue) $ XXXXXXXXXX Shares Capital 10,000
$ XXXXXXXXXX $ XXXXXXXXXX Add - Net profit
Saturday, March 04, 2017 Balance sheet balances $ 10,000 $ 10,000
Total Expenses D
Net profit Gross Profit - Expenses XX
Thursday, March 09, 2017 total 23.98 - 0 23.98 DR Cash 23.98 E E= C-D
Subscription fee (Revenue) Debit Credit Net Balance
Jan 1 Cash/Bank (JK) 8.99
Jan-22 Cash/Bank (Sahil) 14.99
March 11,2017 - 0 23.98 XXXXXXXXXX CR Subscription Sales Revenue 23.98
A/P Debit Credit Net Balance
Opening Balance DR Computer at Netflix 10,000.00
CR Share capital (Sale of shares in stock exchange) 10000
- 0 - 0 5,500.00 CR A/P
March 16,2017 A/R Debit Credit Net Balance
Opening Balance 300.00
300.00 - 0 300.00 DR A/R
March 22,2017 Revenue Debit Credit Net Balance
March 24,2017 - 0 4,000.00 CR Revenue
Vacuum Debit Credit Net Balance
- 0 - 0 - 0 DR Vacuum - 0
Salaries Debit Credit Net Balance
- 0 - 0 - 0 DR Salaries
Vaccum Repair Debit Credit Net Balance
March 31,2017 - 0 - 0 500.00 DR Vacuum Repai
Heat Bill Debit Credit Net Balance
March 31,2017 - 0 - 0 100.00 DR Heat Bill
Telephone Bill Debit Credit Net Balance
- 0 50.00 DR Telephone Bill
Interest Debit Credit Net Balance
- 0 75.00 DR Interest
Dividends Debit Credit Net Balance
- 0 700.00 DR Dividends
Bank Loan Debit Credit Net Balance
Opening Bal 2,000.00
Shares Debit Credit Net Balance
Opening Bal 100
Retained earnings Debit Credit
Opening Balance 5,700 Balances! 10,023.98 10,023.98
Tony Freedman was very happy to see the progress made by . using the specialized journals. Effective January 1, 2017, the company obtains an HST
number* and so begins to charge HST at 13% on all sales n:ad_e. The company
also pays HST from January 1 on ~II pur~hases. The special Journals used in
Ton)1s company have been modified to in~lude columns for HST, and these
can be found in the Study Guide with Workmg Papers, pages 11-78 to 11-9l .
The partial January transactions are as follows:
Jan. J Received cheque from Carson Engineering Corp. for amount
3 Wrote cheque No. 280 to Able Holdings for December,
January, and Fe
uary rent, $1,200 (HST exempt).
3 Bought merchandise on account from Computer Connection
(purchase order No. 4016), $2,500, plus HST, terms 3/10,
3 Paid amount due to Staples (cheque No. 281 ).
3 Sold $900, plus HST, worth of merchandise to Taylor Golf on
credit, sales invoice No. 12690; terms are 2/10, n/30.
3 Charged $5,085, including HST, for cash sales for the week of
6 Bought merchandise on account from Multi Systems (purchase
order No. 4017), $300, plus HST; terms are 3/10, n/30.
6 Bought office supplies on account from Staples (purchase
order No. 4018), $200, plus HST; terms are n/30.
9 Issued debit memorandum No. 11 to Computer Connection
for merchandise returned from purchase order No. 4016,
$300 (remember the HST).
9 Paid City Newspaper amount owing from December 31,
cheque No. 282.
10 Received electric bill for January, $250, plus HST.
10 Received from Taylor Golf balance owing as of December 31.
10 Purchased merchandise on account from Computer
Connection (purchase order No. 4019), $500, plus HST,
terms are 1 /30, n/60.
10 Paid West Bell Canada December 11 bill, cheque No. 283.
10 Sold $3,500, plus HST, worth of merchandise on account to
Digital Prints Co., invoice 12691, terms are 2/1 O, n/30.
10 Charged $13,560, including HST, for cash sales for the week
of January 10.
13 Paid net amount due to Computer Connection (purchase
order No. 4016), less discount, cheque No. 284.
13 Paid amount due to CRA re December wages, cheque
13 Re_ceived }anuary phone bill, $110, plus HST.
13 Paid Multi Systems re January 6 purchase, less discount,
cheque No. 286. 'fl, O\rt>I /
17 Charged $15,820, including HST, for cash sales for the week
of January 1 7.
17 Paid Alpha Office Co. the amount owing from December,
cheque No. 287.
23 Sold $4,000, plus HST, worth of merchandise on account to
Noel Aberhart, sales invoice No. 12692; terms are 4/1 O, n/30.
24 Charged $13,560, including HST, for cash sales for the week
of January 24.
27 Issued credit memorandum to Digital Prints Co. for $400
worth of merchandise returned (remember the HST), invoice
27 Charged amount owing (less discount) from Noel Aberhart,
invoice No. 12692.
30 Sold $1,600, plus HST, worth of merchandise to Anthony
Pita le, invoice No. 12693; terms 2/10, n/30.
30 Charged full payment from Digital Prints (remember the credit
memorandum), invoice No. 12691.
31 Charged $12,430, including HST, for cash sales for the week
of January 31 .
31 Wrote cheque No. 288 to Automated Payroll Service for
January covering January wages, $8, XXXXXXXXXXTony has decided
to spend his time doing repairs and making sales rather
than preparing payroll records like he did in November and
December. The company issues cheques to all employees
weekly but obtains one cheque monthly from Tony's company
for wages, benefits, and its own charges at month-end.
Schedule of Accounts Receivable
Precision Computer Centre
December 31, 2016
Anthony Pitale $ 1,600.00
Taylor Golf 3,200.00
Carson Engineering 14,990.00
Total Amount Due $19,790.00
Schedule of Accounts Payable
Precision Computer Centre
December 31, 2016
Alpha Office Co. $ 318.00
City Newspaper 855.00
West Bell Canada 165·00
Total Amount Payable $1,588-00
Assignment . )
S 11 78 to 11 91 in your Study Guide with Workmg Papers. ( ee pages - - .
0 . t· ·n the appropriate journals (cash receipts, sales, Journalize the transac ions 1 . cash payments, purchases, or general Journal).
. ts receivable subsidiary ledger and accounts pay~ble e Rec~r~ m the accoun ost to the eneral ledger as appropriate. A partial
subs1d1ary ledg~r .andl pd d . the ftudy Guide with Working Papers. general ledger Is me u e in e Prepare a schedule of accounts receivable, and a schedule of accounts
payable as of January 31 , 2017.
- - · · -- &SSL