ABC Carpet Template for Financial Acctg Step 2 Step 3 Step 4Report Step 5Report Comp NameNetflix B Posting to T Accounts"piggy bank" CSummarizing on Trial Balance as at Nov 30,2016 DIncome...

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ABC Carpet
        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
        March 15,2017
                                                                                        
                                                    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
        March 19,2017
                                        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
        March 28,2017
                                        - 0    - 0    - 0    DR    Vacuum    - 0
                                    Salaries    Debit    Credit    Net Balance
        March 29,2017
                                        - 0    - 0    - 0    DR    Salaries
                                    Vaccum Repair    Debit    Credit    Net Balance
        March 31,2017
        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
                                            2,000.00
                                    Shares    Debit    Credit    Net Balance
                                    Opening Bal        100
                                        - 0
                                    Retained earnings    Debit    Credit
                                    Opening Balance        5,700            Balances!    10,023.98    10,023.98
        
        
        

CONTINUING PROBLEM
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:
201 7
Jan. J Received cheque from Carson Engineering Corp. for amount
outstanding.
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,
n/30.
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
January 3.
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
No. 285.
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
No. 12691.
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
Staples 250.00
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
Answered Same DayApr 05, 2022

Solution

Khushboo answered on Apr 06 2022
14 Votes
ABC Carpet
        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 31 2017    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    50,940.00        Assets    =    Liabilities
                Exchange?    Subscription fee    8.99            Description                    Month Ended Jan 2022                Less: Cost of Sales    B    2,925
        Date    Journal Entries    Debit    Credit    Business                                Cash    72,550            Gross Profit    C = A-B    48,015.00
        2017, Jan3    Cash/Bank    $ 14,990.00                    Accounts receivables    14,990.00                Accounts receivable    4,425            Expenses    D            Cash    72,550    Accounts payable    1,198
            Accounts receivables        $ 14,990.00                Rent        1,200.00            Prepaid rent    400            Rent        800        Accounts receivable    4,425    HST payable    20,203
                                            250.00            HST receivables    463            Electricity expenses        250        Prepaid rent    400
        2017, Jan3    Prepaid rent     $ 400.00                        5,085.00                Office supplies    200            Telephone expenses        110        HST receivables    463
            Rent expenses    $ 800.00                            855.00            Accounts payable        1,198        Wages expenses        8,740        Office supplies    200
            Cash/Bank        $ 1,200.00                    3,200.00                HST payable        20,203                                Retained earnings    18,522
                                            165.00            Sales revenue        51,500                                Add - Net profit    38,115
        2017, Jan3    Purchases    $ 2,500.00                        13,560.00                Sale return and allowances    560                            Balance sheet balances    $ 78,038        $ 78,038
            HST receivables    $ 325.00                            2,420.00            Rent expenses    800
            Accounts payable        $ 2,825.00                        330.00            Electricity expenses    250            Total Expenses    D    9,900
                                        15,820.00                Telephone expenses    110.00            Net profit    Gross Profit - Expenses    38,114.80
        2017, Jan3    Accounts payable    $ 250.00                            $ 318.00            Wages...
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