Accounting 11 Chaptersix Ex Lesson 3 Exit Fullscreen onlinelearningbc.com - To exit full screen, press Esc Activity 3 The accounts required for this exercise are shown in the chart of accounts below. Royal City Engineering - Chart of Accounts 101 Bank 301 Pat Schelling, Capital 111 A/R-L. Pero 302 Pat Schelling, Drawings 113 A/R-K. Puna 401 Service Revenue 115 A/R-Spectrum Co. 505 Automobile Expense 117 A/R-W. J. Thompson 510 Bank Charges Expense 120 Supplies 515 General Expense 125 Equipment 520 Rent Expense 130 d21/le/Iti/47259/toolLaunch/460816/1141211138?contentTopicld=1749414&signalStorage=true 201 Bank Loan 530 Wages Expense 211 A/P-Imperial Garage 535 Loss on Sale of Equipment 213 A/P-Home Hardware 220 GST Payable 225 GST Recoverable Pat Schelling began a business called Royal City Engineering. His beginning financial position is shown on the followin ROYAL CITY ENGINEERING BALANCE SHEET August 31, 20- Assets Liabilities Bank $2,000 Bank Loan $20,000 Office Supplies 1,450 Equipment 14,732 Owner's Equity Automobile 28,957 P. Schelling, Capital 27,139 DII prt sc F3 F4 F5 F6 F7 F8 F9 F10 # $ % A 2 3 5 E 9 W E R T Y U S D F G H K Z X C B N M altAccounting 11 Chapter Lesson 3 v Exit Fullscreen Welcome Jaspreet K Total Assets onlinelearningbc.com - To exit full screen, press | Esc A. Journalize the opening entry and post it in the accounts. B. Journalize and post the transactions for September given below. In working out the accounting entries, assume that 1) for the purposes of this exercise, the business pays GST on all its purchases 2) the business charges GST on all sales. Transactions September 1 - Cheque Copy To Rosewell Investments for the rent of the month, $900.00 plus GST of $63.00, total $963.00. 3 - Purchase Invoice From Home Hardware for the purchase of supplies on account, $235.00 plus GST of $16.45, total $251.45. 5- Sales Invoice - To W. J. Thomson for services rendered on account, $3 500.00 plus GST of $525.00 total $4 025.00. 5 - Sales Invoice - To L. Pero for services rendered on account, $2 000.00 plus GST of $300.00 , total $2 300.00. 9 - Cash Sales Slip Sold a piece of equipment for $500.00 cash (assume that this sale is not taxable). This piece of equipment had originally cost $1 200.00 and was included in the Equipment account at that figure. (Note: Although a sale has been made, this transaction does not affect the revenue account, whic used only for the normal revenue of the business.) 10 - Sales Invoice - To Spectrum Co. for services rendered on account, $800.00 plus GST of $120.00, total $920.00. 11 - Cheque Copy - To the owner for personal use, $500.00. 12 - Cheque Copy - To Home Hardware on account, $251.45. 15 - Purchase Invoice - Received from Imperial Garage for gasoline and oil used in the business automobiles, $342.00 plus GST of $23.94, total $365.94. 16 -Cheque Copy - Issued to the Marketplace for the cash purchase of supplies, $165.00 plus GST of $11.55, total $176.55. 18- Cash Receipt - Received a cheque from W. J. Thomson, in full payment of the account balance. 18 - Cheque Copy - To the owner, reimbursement for out-of-pocket expenses: postage, $32.00 plus GST of $2.24; parking, $40 plus GST of $2.80; and gasoline and oil for business purposes, $78.00 plus GST of $5.46; total $160.50. 19 - Bank Debit Memo - Received a memorandum from the bank stating that $250.00 had been deducted from the business bank account to pay fo DII prt sc home end F3 F4 F5 F6 F7 FB F9 F10 F11 F12 @ # $ % & W 4 5 E 6 7 8 O W E R Y U O P . . S D F G H K > X C B N M alt alt ctriAccounting 11 Lesson 3 Chapter Exit Fullscreen Welcome Jaspreet Kaur 19 - Bank Debit Memo - Received a memorandum from the hank stating that $250 00 had hoon deducted from the business bank account to pay fo bank interest and charges. onlinelearningbc.com - To exit full screen, press Esc 19 - Cheque Copy - To an er 19 -- Sales Invoice - To K. Puna for services rendered on account, $600.00 plus GST of $90.00 , total $690.00. 22 -- Memorandum - From the owner stating that the bank had acted on his instructions to reduce the bank loan by $2 000.00. 24 - Cheque Copy - To Bell Canada in payment of the telephone bill, $58.00 plus GST of $4.06, total $62.06. 25 - Cash Receipt - Received a cheque from L. Pero on account, $1 000.00. 26 - Sales Invoice - To W. J. Thomson for services rendered on account, $400.00 plus GST of $60.00 , total $460.00. 26 - Cheque Copy - To the owner for personal use, $450.00. 29 - Memorandum - From the owner stating that 1) he had paid $190.00 plus GST of $13.30, total $203.30, out of his own pocket for supplies used for business purposes, and 2) his Drawings account is to be credited for the above. 30 - Cheque Copy - To an employee for wages, $570.00. 30 - Cheque Copy - To Imperial Garage, paying $365.94 on account. 30 - Purchase Invoice - From Imperial Garage, charging for gasoline and oil used in the company automobiles; $312.00 plus GST of $21.84, total $333.84. C. Balance the ledger by means of a trial balance. D. Prepare an income statement for the month of September. E. Prepare a balance sheet as at September 30. Use the Report Form Balance Sheet (Below) . Notice how the Assets are above the Liabilities and Owner's Equity. Follow the model below. Royal City Engineering Balance Sheet September 30, 20-- Assets Bank $ 1,800 Accounts Receivable 9 500 Supplies 700 DII prt sc home end inse F3 F4 F5 F6 F7 F9 F10 F11 F12 @ # $ A & 4 3 O W W E R Y U O P " . . . S D G H K