2 Co to Page H Document View Page 1 Previous Next Create PDF from Review Ordine Services Fabulous Fruit (FF) is a new corporation that imports fruit from Africa to sell to supermarkets in Dubai. It sells the following: 1 2 3 Product Mangoes Papayas Bananas Selling price AED 20 per kilo AED 15 per lo AED 10 per kilo Cost Price AED 16 per kilo AED 12 per kilo AED 8 per kilo Supplier Magnificent Mangoes Inc Plump Papayas Farms Bermuda Bananas Ltd. The purchase terms for all suppliers are 1/30 and the credit limit is AED 100,000 each. FF has 3 main customers: Spinneys terms 2/10, 1/30, credit limit 100,000 Union Co-op terms 2/10, 1/30, credit limit 100,000 3. Choithrams terms 2/10, 1/30, credit limit 100,000 FF is starting business on January 1, 2014 and they would like you to set up their company on Peachtree using the accrual basis, real time, and a perpetual FIFO Inventory system Prepare Your Chart of Accounts: A/c Name A/c Name 300 301 Equity-(300 - 399) Common Stock-Equity doesn't close) Retained Earnings-(Equity-Retained earnings 100 105 110 115 120 125 Current Assets-(100-149) Cash (Cash) Accounts Receivable - (Accounts receivable) Inventory -- (inventory) Office Supplies Other Current Assets) Prepaid Rent - Other Current assets) Prepaid Insurance Other Current assets) 400 401 Revenue (income) -(400 - 499) Sales Revenue-(Income) Sales discounts -Income 150 151 Fixed Assets -(150-199) Office Equipment Fixed Assets) Ace. Depreciation. Off.E. - (Ace Depreciation) Current Liabilities -(200 - 249) Accounts payable-Accounts payable) 500 505 510 515 520 525 530 Expenses -(500-599) Cost of goods sold - Cost of Sales Utilities expense-Expenses) Salaries expense Expenses) Rent expense (Expenses) Insurance expense Expenses Office supplies expense-Expenses) Depreciation expense Expenses) 200 T Transactions for January, 2014 Jan 1 Issued 10,000 common shares for AED50 each. MacBook Air 2 of 2 Next Go to Page Document view Page View Create PDF from Review Deline Services Transactions for January, 2014 Jan 1 Issued 10,000 common shares for AED50 each. Jan 1 Paid AED 7,200 for the next six months rent of a part of a warehouse to Global Storage solutions. Check # 101 (Invoice #GS51011) Jan 2 Paid AED 24,000 for an insurance policy for a year to Nexus Insurance. Check # FF102 (Invoice #N11010) Compiled Rao KVN Higher Colleges of Technology BUS 4113 - Financial Accounting Sage 50 (Peachtree) Software Jan 3 Purchased some office equipment for AED 32,000 cash from Office Solutions - Check #FF103 (Invoice # OS2109). The equipment has a useful life of 5 years and a salvage value of AED 2,000. The company uses the straight line depreciation method for this asset. Purchased on credit 200 kilos of bananas at AED 8 per kilo (invoice # 356), 100 kilos of mangoes at AED16 per kilo invoice # 67), and 150 kilos of papayas at AED12 per kilo. (invoice # 2005) Jan 5 Purchased office supplies for AED 4,000 cash from Staloney Solutions. Check # FF104 (Invoice # 552213) Jan 5 Sold 110 kilos of bananas and 90 kilos of mangoes to Spinneys on credit. (invoice # 2014-1) Jan 8 Sold 60 kilos of bananas and 80 kilos of papayas to Union Co-op on account. (invoice # 2014-2) Jan 9 Paid the amount owing to all three suppliers. (Invoice # 356; Check # FF105) (Invoice 67; Check # FF106) (Invoice 2005: Check # FF107) c hased 250 losofihan account Price has risento. N Hann e ki dan MacBook Air 5 Previous Next Soda PDF :D) Fabulous Fruits Company.pdf 202 G o to Page Document view Page View Create POF from Review Online Services Turvoice 356 Checz FF10ST (Invoice N67; Check # FF106) (Invoice 2005, Check # FF107) Jan 10 Purchased 250 kilos of bananas on account. Price has risen to AED 9 per kilo (invoice # 393) and 120 kilos of mangoes at AED 16 per kilo. (invoice #74). Jan 11 Collected the amount owing from Union Co-op (check 667) and gave them the discount Jan 14 Sold 200 kilos of bananas, 50 kilos of mangoes and 50 kilos of papayas to Choithrams (invoice 2014-3) Jan 19 Purchased 300 kilos of bananas at AED 9 per kilo (invoice # 423). 100 kilos of mangoes at AED 16 per kilo (invoice #79) and 200 kilos of papayas at a reduced price of AED 10 per kilo. (invoice # 2449) Jan 20 Returned 50 kilos ofmangoes to the supplier invoice #79) --Debit note was issued (Debit note of VCRN1) (Peachtree calls Debit notes as vendor credit notes Collected the money owing from Spinneys (check 8 7361) Jan 22 Jan 25 Sold 150 kilos of bananas and 140 kilos of papayas to Spinneys. (invoice 2014-4) Jan 28 Paid electric bill of AED 500 cash. Check # FF108 Jan 30 Paid salaries of AED 1,500 in cash. Check #FF109 Jan 30 Sold 60 kilos of papayas to Choithrams (invoice #2014-5) Jan 31 Jan 31 Choithrams returned 20 kilos of papayas. (invoice 2014-5) -Credit note was issued (Credit note CRNI) Prepare all the necessary adjusting journal entries at the end of the first month Assume Office supplies on hand is AED 1,000. (Prepaid Rent: Prepaid Insurance: Depreciation expense: Office supplies expense) Compiled Rao KVN D210.0Bw x sa MacBook Air 3:05 A) ACC 2103 Sage 50 Project DOCX - 19 KB Purchase of long term assets on credit (at least 2) Sales made for cash or credit (at least 6) Sales returns & Purchase Returns (at least I each) Purchases of inventory on Cash or on credit (at least 6) Expenses paid by cash or on credit (at least 2 each) * Cash paid to creditors for amounts owing to them (at least 2) Cash received from customers for amounts owing from them (at least 2) Different adjusting entries (at least 2 depreciation entries and any other adjusting entries that are required for your company) Company policies: You will need to set up at least 3 inventory items, 3 customers and 3 vendors (suppliers) and use them in the transactions above. You can set up your own terms and conditions for Credit Sales and Credit purchases Answers to the following questions 1. How is the accounting different for a merchandising company compared to a service company 2. Give at least 3 benefits to using a computerized accounting package with an inventory module to account for a merchandising company. 3. What is the difference between "remitto" and "ship to 4. Which inventory methods can you choose in Peachtree 5. What decisions can managers make based on the information on the inventory valuation report? 2 Co to Page H Document View Page 1 Previous Next Create PDF from Review Ordine Services Fabulous Fruit (FF) is a new corporation that imports fruit from Africa to sell to supermarkets in Dubai. It sells the following: 1 2 3 Product Mangoes Papayas Bananas Selling price AED 20 per kilo AED 15 per lo AED 10 per kilo Cost Price AED 16 per kilo AED 12 per kilo AED 8 per kilo Supplier Magnificent Mangoes Inc Plump Papayas Farms Bermuda Bananas Ltd. The purchase terms for all suppliers are 1/30 and the credit limit is AED 100,000 each. FF has 3 main customers: Spinneys terms 2/10, 1/30, credit limit 100,000 Union Co-op terms 2/10, 1/30, credit limit 100,000 3. Choithrams terms 2/10, 1/30, credit limit 100,000 FF is starting business on January 1, 2014 and they would like you to set up their company on Peachtree using the accrual basis, real time, and a perpetual FIFO Inventory system Prepare Your Chart of Accounts: A/c Name A/c Name 300 301 Equity-(300 - 399) Common Stock-Equity doesn't close) Retained Earnings-(Equity-Retained earnings 100 105 110 115 120 125 Current Assets-(100-149) Cash (Cash) Accounts Receivable - (Accounts receivable) Inventory -- (inventory) Office Supplies Other Current Assets) Prepaid Rent - Other Current assets) Prepaid Insurance Other Current assets) 400 401 Revenue (income) -(400 - 499) Sales Revenue-(Income) Sales discounts -Income 150 151 Fixed Assets -(150-199) Office Equipment Fixed Assets) Ace. Depreciation. Off.E. - (Ace Depreciation) Current Liabilities -(200 - 249) Accounts payable-Accounts payable) 500 505 510 515 520 525 530 Expenses -(500-599) Cost of goods sold - Cost of Sales Utilities expense-Expenses) Salaries expense Expenses) Rent expense (Expenses) Insurance expense Expenses Office supplies expense-Expenses) Depreciation expense Expenses) 200 T Transactions for January, 2014 Jan 1 Issued 10,000 common shares for AED50 each. MacBook Air 2 of 2 Next Go to Page Document view Page View Create PDF from Review Deline Services Transactions for January, 2014 Jan 1 Issued 10,000 common shares for AED50 each. Jan 1 Paid AED 7,200 for the next six months rent of a part of a warehouse to Global Storage solutions. Check # 101 (Invoice #GS51011) Jan 2 Paid AED 24,000 for an insurance policy for a year to Nexus Insurance. Check # FF102 (Invoice #N11010) Compiled Rao KVN Higher Colleges of Technology BUS 4113 - Financial Accounting Sage 50 (Peachtree) Software Jan 3 Purchased some office equipment for AED 32,000 cash from Office Solutions - Check #FF103 (Invoice # OS2109). The equipment has a useful life of 5 years and a salvage value of AED 2,000. The company uses the straight line depreciation method for this asset. Purchased on credit 200 kilos of bananas at AED 8 per kilo (invoice # 356), 100 kilos of mangoes at AED16 per kilo invoice # 67), and 150 kilos of papayas at AED12 per kilo. (invoice # 2005) Jan 5 Purchased office supplies for AED 4,000 cash from Staloney Solutions. Check # FF104 (Invoice # 552213) Jan 5 Sold 110 kilos of bananas and 90 kilos of mangoes to Spinneys on credit. (invoice # 2014-1) Jan 8 Sold 60 kilos of bananas and 80 kilos of papayas to Union Co-op on account. (invoice # 2014-2) Jan 9 Paid the amount owing to all three suppliers. (Invoice # 356; Check # FF105) (Invoice 67; Check # FF106) (Invoice 2005: Check # FF107) c hased 250 losofihan account Price has risento. N Hann e ki dan MacBook Air 5 Previous Next Soda PDF :D) Fabulous Fruits Company.pdf 202 G o to Page Document view Page View Create POF from Review Online Services Turvoice 356 Checz FF10ST (Invoice N67; Check # FF106) (Invoice 2005, Check # FF107) Jan 10 Purchased 250 kilos of bananas on account. Price has risen to AED 9 per kilo (invoice # 393) and 120 kilos of mangoes at AED 16 per kilo. (invoice #74). Jan 11 Collected the amount owing from Union Co-op (check 667) and gave them the discount Jan 14 Sold 200 kilos of bananas, 50 kilos of mangoes and 50 kilos of papayas to Choithrams (invoice 2014-3) Jan 19 Purchased 300 kilos of bananas at AED 9 per kilo (invoice # 423). 100 kilos of mangoes at AED 16 per kilo (invoice #79) and 200 kilos of papayas at a reduced price of AED 10 per kilo. (invoice # 2449) Jan 20 Returned 50 kilos ofmangoes to the supplier invoice #79) --Debit note was issued (Debit note of VCRN1) (Peachtree calls Debit notes as vendor credit notes Collected the money owing from Spinneys (check 8 7361) Jan 22 Jan 25 Sold 150 kilos of bananas and 140 kilos of papayas to Spinneys. (invoice 2014-4) Jan 28 Paid electric bill of AED 500 cash. Check # FF108 Jan 30 Paid salaries of AED 1,500 in cash. Check #FF109 Jan 30 Sold 60 kilos of papayas to Choithrams (invoice #2014-5) Jan 31 Jan 31 Choithrams returned 20 kilos of papayas. (invoice 2014-5) -Credit note was issued (Credit note CRNI) Prepare all the necessary adjusting journal entries at the end of the first month Assume Office supplies on hand is AED 1,000. (Prepaid Rent: Prepaid Insurance: Depreciation expense: Office supplies expense) Compiled Rao KVN D210.0Bw x sa MacBook Air 3:05 A) ACC 2103 Sage 50 Project DOCX - 19 KB Purchase of long term assets on credit (at least 2) Sales made for cash or credit (at least 6) Sales returns & Purchase Returns (at least I each) Purchases of inventory on Cash or on credit (at least 6) Expenses paid by cash or on credit (at least 2 each) * Cash paid to creditors for amounts owing to them (at least 2) Cash received from customers for amounts owing from them (at least 2) Different adjusting entries (at least 2 depreciation entries and any other adjusting entries that are required for your company) Company policies: You will need to set up at least 3 inventory items, 3 customers and 3 vendors (suppliers) and use them in the transactions above. You can set up your own terms and conditions for Credit Sales and Credit purchases Answers to the following questions 1. How is the accounting different for a merchandising company compared to a service company 2. Give at least 3 benefits to using a computerized accounting package with an inventory module to account for a merchandising company. 3. What is the difference between "remitto" and "ship to 4. Which inventory methods can you choose in Peachtree 5. What decisions can managers make based on the information on the inventory valuation report