Amanda Singh was the first of her family born in Canada, her parents adopted country. Wanting Amanda to embrace her new culture, they enrolled her in ski lessons as soon as she could walk. She loved the snow and took to skiing like a natural. Every weekend and any spare moments she headed to the snow covered peaks. By the time she was sixteen she was an accomplished competitor and a fully licensed instructor; however, her new passion was snow boarding. For her final year in high school she had a part-time job teaching children to ski and snow board. She was approached by the Canadian Olympic Committee to train with the national team, but found that the demands on her time would take her away from her real passion of teaching and coaching the sport she loved.

Amanda was accepted into the kinesiology program at university, and paid for her studies by continuing to teach and coach for the local ski school. In her final year of studies, she took an entrepreneurship course as an elective. When she graduated, a new Canadian business was born.

Although Amandas parents had insisted that she pay for her own education at her commencement ceremony, they presented her with a savings account for the full cost of her degree: $80,000. Amanda paid off the balance of her student loans for $30,000. She then opened a bank account in the name of her new ski/snow boarding school.

Singh Ski School was born, when Amanda deposited $40,000 into the new account.[i]

Amanda has been so busy in the months of September and October, that she has had no time to set up an accounting system. She has asked you, a classmate from her entrepreneurship class to please get her accounting records set up, reconciled and for you to produce financial statements for her first two months of operations. She hands you a shoebox full of documents. First review the accounting cycle media file, then Click on the shoebox to review her documents.

We believe that Amandas fiscal year should start on October 1, 2017.

Amanda negotiated a lease with the local ski resort for $800 per month, beginning September 1, 2017[ii], She prepaid one years rent.[iii] She purchased new computer equipment worth $3,600[iv], she expects that the computer will last three years. The little office space that she rented was in superior condition, but she wanted a new sign and hired a local shop to design and install it for $2,000, paying $1,000 deposit[v], the remainder due on installation, expected for Septemberer 5^th, 2017.[vi] Although the ski lodge attracts many visitors who will ask for lessons, Amanda wants to expand her reach, and be able to book lessons well in advance. She takes an advertisement out in the newspaper in the nearest large city, paying $600[vii]. In addition, she hires a web designer to create a web site and an enterprise system that tracks her bookings, and clients. It is linked to her accounting system. The total cost for the software development is $1,500[viii].

September 1^st Amanda purchases a cash register for $500[ix], with an expected life of 5 years. She buys coffee supplies for $160 and postage for $40[x]. She negotiates with a reputable retailer to purchase $50,000[xi] worth of skies, snowboards, bindings, boots, helmets and poles. On September 1^st, she pays $5,000 cash and signs a note payable for $45,000[xii] @ 5% for 3 years, with interest payments due October 1^st and April 1^st, with the balance of the loan due on August 31^st , 2020. It is expected that the equipment will have a 3 year life.

On September 15^th a school group came to the school for lessons. She charged each of the 30 students $50[xiii] for one-hour group lessons, taking them out in groups of 6. September 23 she had four groups of 6 at $80[xiv] each for group lessons and on September 24 she gave two private clients lessons at $150/hour[xv], and shes coach a Canadian Olympic hopeful for $200 [xvi]for a two-hour session. She purchases office supplies worth $500,[xvii] for use over the next couple of months. The cash sales report for the month of September shows sales of (private lesson of $1,500 and group lessons of $2,100) $3,600[xviii]. She had paid cash delivery charges of 160[xix]. On October 3 the utilities bill of $325[xx] for Septembers usage was received and paid on the due date of October 15^th.

Amandas website has done the trick, with many advanced bookings for October. She has received deposits of $10,000[xxi] for lessons to be given in October, and realizes that she will need some help with lessons on the weekends. She interviews and hires two young instructors, for part-time work on the weekends[xxii]. They will begin work on Saturday, October 7 at $20 per hour. In addition, Amanda has had many requests to rent equipment for the lessons. Amanda withdraws $2,000 from the business account for personal use.[xxiii] On September 20^th a physical count of office supplies reveals that there are $150 worth of supplies left. As September 30^th is Amandas fiscal year end, all other required adjusting entries must be made, and proper form financial statements must be made. In addition, the books must be closed, in preparation for the new fiscal year commencing October 1^st.

[i] Document 1: Bank deposit slip for $40,000

[ii] Document 2: Lease $800/month September 1 to August 31, 2018

[iii] Document 3: Cheque for prepaid rent $9,600

[iv] Document 4: Cheque for computer equipment $3,600

[v] Document 5: Cheque for sign deposit

[vi] Document 6: Installation of sign receipt and cheque for $1,000 dated October 5th

[vii] Document 7: Cheque for advertising expense $600

[viii] Document 8: Cheque for software development $1,500

[ix] Document 9: Cheque for cash register $500

[x] Document 10: Cheque for coffee supplies ($160) and postage ($40) $200

[xi] Document 11: Purchase receipt $50,000 of ski equipment.

[xii] Document 12: Note payable $45,000 5% for 3 years.

[xiii] Document 13: Sales receipts 30 for $50 each for group lessons

[xiv] Document 14: Sales receipts 6 for $80 each for group lessons

[xv] Document 15: Sales receipts 2 for $150 each for private lessons

[xvi] Document 16: Sales receipt for $200 for coaching

[xvii] Document 17: Purchase receipt/cheque for office supplies $500

[xviii] Document 18: Sales report from cash register for $3,600

[xix] Document 19: Reimburse Amanda for cash delivery charges of $160[xix].

[xx] Document 20: Utilities bill for $325.

[xxi] Document 21: Cash receipts of $10,000 for lessons to be provided in October

[xxii] Document 22: Staff hiring memo

[xxiii] Document 23: Cash withdrawal for Amanda $2,000