Apex Consulting Corp. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program development. Apex Consulting Corp. showed the following alphabetized post-closing trial balance at April 30, 2014 Account Balance Accounts payable 73,500 Accounts receivable 96,500 Accumulated depreciation, building 3,500 Building 69,000 Cash 118,000 Retained earnings 67,000 Share capital 139,500 Note: There were 20,000 shares issued and outstanding on April 30, 2014. Depreciation on the building is $600 per month. Apex Consulting Corp's salaries expense is a total of $950 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from May : Deposit slip (May 1) O Invoice 6476 0 Receipt 8237 The Grayson Group Bill Purchase Order 4760 O Receipt 8259 Involon 9307 O Receipt from Carlos Diner Receipt 8258 Involce 9300 Vancouver Hydro Bill O Customer Statement for Docker Co Inter-Office Memo 1 Receipt from Corrie's Diner Receipt 8261 O Inter-Office Momo 4 Inter-Office Memo 2 O Receipt 8260 Inter-Office Memo 3 Inter-Office Momo 5 a) Analyze each of the preceding source documents and prepare journal entries using this information only. Note that some source documents may not require an entry. Also, all bills are recorded in the journal on the day they are received. Enter an appropriate description when entering the transactions in the journal, Dates must be entered in the format dd/mmm (10. January 15 would be 15/Jan) The correct answer was: Page Gj1 F Debit Credit 90,000 90,000 Page GJ2 Debit Credit 12,200 12,200 General Journal Date Account/Explanation 1/May Cash Share Capital Issued shares 1/May Cash Consulting Revenue Eamed Earned and received consulting revenue 1/May Prepaid Insurance Cash 380 General Journal Dato Account/Explanation F 5/May Accounts Receivable Consulting Revenue Eamed Eamed consulting revenue 8/May Food and Drinks Expense Cash Paid for dinner with client 9/May Cash Consulting Revenue Earned Earned and recolved consulting 57 380 57 488 1,200 488 1.200 ho .4-4446 4 100 100 bimay Equipment Accounts Payable Received equipment 3/May Cash Uneamed Consulting Revenue Received payment for consulting in advance Case Study Part 1 Solution 12,000 13/May Repair Expense 12,000 Cash Paid for repairs to building 12,000 17/May Accounts Receivable 12,000 Consulting Revenue Earned Earned consulting revenue 4,392 4,392 Date Date Page GJ3 F Debit Credit 500 500 Page 14 F Debit Credit 500 500 General Journal Account/Explanation 31/May Accounts Payable Cash Paid bill for advertising expense 31/May Dividends Cash Dividends 11.900 4,392 11,900 4,392 16,150 General Journal AccountExplanation 22/May Utilities Expense Accounts Payable Recolved bill for utilities expense 24/May Cash Accounts Receivable Received customer payment 25/May Salaries Expense Cash Paid cash for salaries 26/May Advertising Expense Accounts Payable Received bill for advertising expense 27/May Food and Drinks Expense Cash Paid for dinner with client 16,150 500 500 74 74 Com Apex Consulting Corp. Unadjusted Trial Balance May 31, 2014 Cash Accounts receivable Prepaid insurance Equipment Building Accumulated depreciation, building. Accounts payable Unearned consulting revenue Share capital Dividends Retained earnings Consulting revenue earned Salaries expense. Advertising expense Food and drinks expense Repair expense Utilities expense Totals Debit Credit 195,279 108,700 1,200 12,000 69,000 3,500 86,000 12,000 229,500 11,900 67,000 17,460 16,150 500 131 100 500 415,460 415,460 209 General Journal Page GJ5 Date Account/Explanation F Debit Credit 31/May Depreciation Expense, Building 607 600 Accumulated Depreciation, Building 174 600 To record depreciation expense for May for the building 31/May Depreciation Expense, Equipment 614 79 Accumulated Depreciation, Equipment 168 79 To record depreciation expense for May for the equipment 31/May Salaries Expense 622 4,750 Salaries Payable 4,750 To recognize accrued salaries 31/May Uneamed Consulting Revenue 230|1,500 Consulting Revenue Earned 403 1,500 To recognize consulting revenue earned since advance 31/May Insurance Expense 635 100 Prepaid Insurance 128 100 To adjust for the expired portion of prepaid insurance expense Apex Consulting Corp.'s May adjusting entries have been posted to the general ledger for you as shown below. This is similar to how an accounting software package posts automatically Cash Explanation F Debit Date 30/Apr Opening balance 1/May Issued shares Account No. 101 Credit Balance 118,000 208,000 GJ1 90,000 IGH GJ1 1,200 GJ1 12,000 57 488 GJ2 GJ2 GJ2 GJ3 GJ3 Fararlanarahvad ennevin re 1/May Prepaid for insurance 3/May Received payment for consulting in advance 8/May Paid for dinner with client 9/May Earned and received consulting revenue 13/May Paid for repairs to building 24/May Received customer payment 25/May Paid cash for salaries 27/May Paid for dinner with client 31/May Paid bill for advertising expense 31/May Dividends 100 OR A 207.180 219,180 219,123 219,611 219.511 223,903 207,753 207,679 207,179 195.279 4,392 GJ3 16,150 74 500 11,900 GJ4 GJ4 F Debit Account No. 106 Credit Balance 96,500 108,700 113,092 4.392 108,700 GJ2 GJ2 GJ3 12.200 4,392 Accounts Receivable Date Explanation 30/Apr Opening balance 5/May Earned consulting revenue 17/May Earned consulting revenue 24/May Received customer payment Prepaid Insurance Date Explanation 1/May Prepaid for insurance 31/May To adjust for the expired portion of prepaid insurance expense Equipment Date Explanation 2/May Received equipment F GJ1 GJS Debit 1.200 Account No. 128 Credit Balance 1,200 100 1,100 F GJ1 Debit 12.000 Account No. 167 Credit Balance 12,000 Accumulated Depreciation Equipment Date Explanation 31/May To record depreciation expense for May for the equipment Debit F GJS Account No. 168 Credit Balance 79 79 F Debit Account No 173 Credit Balance 69,000 Building Date Explanation 30/Apr Opening balance Accumulated Depreciation, Building, Date Explanation 30/Apr Opening balance 31/May To record depreciation expense for May for the building F Debit Account No. 174 Credit Balance 3,500 600 4.100 GJ5 F Debit Accounts Payable Date Explanation 30/Apr Opening balance 2/May Received equipment 22/May Received bill for utilities expense 26/May Received bill for advertising expense 31/May Paid bill for advertising expense GJ1 GJ3 GJ3 GJ4 Account No. 201 Credit Balance 73,500 12,000 85,500 500 86,000 500 86,500 86,000 500 Date 31/May Salaries Payable Explanation To recognize accrued salaries Debit F GJS Account No. 209 Credit Balance 4,750 4.750 Date 3/ May F Uneamed Consulting Revenue Explanation Received payment for consulting in advance 31/May To recognize consulting revenue eamed since advance Debit Account No. 230 Credit Balance 12,000 12,000 10,500 GJ1 GJ5 1,500 Share Capital Explanation F Debit Date 30/Apr 1/May Opening balance Issued shares Account No. 301 Credit Balance 139,500 90.000 229,500 GJ1 Dividends Explanation Date 31/May Dividends F GJ4 Debit 11.900 Account No. 302 Credit Balance 11.900 F Debit Account No. 318 Credit Balance 67,000 Retained Earnings Date Explanation 30/Apr Opening balance Consulting Revenue Earned Date Explanation 1/May Earned and received consulting revenue 5/May Earned consulting revenue 9/May Earned and received consulting revenue 17/May Eamed consulting revenue 31/May To recognize consulting revenue eamed since advance F Debit GJ1 GJ2 GJ2 GJ2 GJ5 Account No. 403 Credit Balance 380 380 12,200 12,580 488 13,068 4,392 17,460 1,500 18.960 Date 31/May Depreciation Expense, Building Explanation To record depreciation expense for May for the building F GJS Debit 600 Account No. 607 Credit Balance 600 F GJS Debit 79 Account No. 614 Credit Balance 79 Depreciation Expense, Equipment Date Explanation 31/May To record depreciation expense for May for the equipment Salaries Expense Date Explanation 25/May Paid cash for salaries 31/May To recognize accrued salaries F GJ3 GJ5 Debit 16,150 4.750 Account No. 622 Credit Balance 16,150 20.900 Date 31/May Insurance Expense Explanation To adjust for the expired portion of prepaid insurance expense Advertising Expense F GJ5 Debit 100 Account No. 635 Credit Balance 100 Account No. 655 SUS Page 2 of 4 https://1.byty.com/student-serviets/Case Study Serviettoid-11151 Debit 500 Credit Balance 500 GJ3 Date Explanation 26/May Received bill for advertising expense Food and Drinks Expense Date Explanation 8/May Paid for dinner with client 27/May Paid for dinner with client F GJ2 GJ3 Debit 57 74 Account No. 668 Credit Balance 57 131 Repair Expense Date Explanation 13/May Paid for repairs to building. F GJ2 Debit 100 Account No. 684 Credit Balance 100 Utilities Expense Explanation Received bill for utilities expense Date 22/May F GJ3 Account No. 690 Credit Balance 500 Debit 500 Apex Consulting Corp. Adjusted Trial Balance May 31, 2014 Credit Debit 195,279 108,700 1,100 12,000 79 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation, equipment Building Accumulated depreciation, building. Accounts payable_ Salaries payable Unearned consulting revenue Share capital Dividends Retained earnings Consulting revenue earned Depreciation expense, building. Depreciation expense, equipment Salaries expense Insurance expense Advertising expense Food and drinks expense Repair expense Utilities expense 69,000 4,100 86,000 4,750 10,500 229,500 11,900 67,000 18,960 600 79 20,900 100 500 131 100 500 426889 420889 - Prepare a statement of changes in equity for the month ended May 31, 2014. Apex Consulting Corp. Statement of Changes in Equity For Month Ended May 31, 2014 Share Retained Total Capital earnings Equity Balance, May 1 139,500 67,000 206,500 Issuance of shares 90,000 (17,460) 72,540 Net loss (3,950) 279,040 Retained earnings 45,590 Dividends 11,900 279,040 Balance, May 31 229,500 33,690 279,040 Retained earnings 263,190 279,040 229,500 Apex Consulting Corp. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program development. Apex Consulting Corp. showed the following alphabetized post-closing trial balance at April 30, 2014 Account Balance Accounts payable 73,500 Accounts receivable 96,500 Accumulated depreciation, building 3,500 Building 69,000 Cash 118,000 Retained earnings 67,000 Share capital 139,500 Note: There were 20,000 shares issued and outstanding on April 30, 2014. Depreciation on the building is $600 per month. Apex Consulting Corp's salaries expense is a total of $950 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from May : Deposit slip (May 1) O Invoice 6476 0 Receipt 8237 The Grayson Group Bill Purchase Order 4760 O Receipt 8259 Involon 9307 O Receipt from Carlos Diner Receipt 8258 Involce 9300 Vancouver Hydro Bill O Customer Statement for Docker Co Inter-Office Memo 1 Receipt from Corrie's Diner Receipt 8261 O Inter-Office Momo 4 Inter-Office Memo 2 O Receipt 8260 Inter-Office Memo 3 Inter-Office Momo 5 a) Analyze each of the preceding source documents and prepare journal entries using this information only. Note that some source documents may not require an entry. Also, all bills are recorded in the journal on the day they are received. Enter an appropriate description when entering the transactions in the journal, Dates must be entered in the format dd/mmm (10. January 15 would be 15/Jan) The correct answer was: Page Gj1 F Debit Credit 90,000 90,000 Page GJ2 Debit Credit 12,200 12,200 General Journal Date Account/Explanation 1/May Cash Share Capital Issued shares 1/May Cash Consulting Revenue Eamed Earned and received consulting revenue 1/May Prepaid Insurance Cash 380 General Journal Dato Account/Explanation F 5/May Accounts Receivable Consulting Revenue Eamed Eamed consulting revenue 8/May Food and Drinks Expense Cash Paid for dinner with client 9/May Cash Consulting Revenue Earned Earned and recolved consulting 57 380 57 488 1,200 488 1.200 ho .4-4446 4 100 100 bimay Equipment Accounts Payable Received equipment 3/May Cash Uneamed Consulting Revenue Received payment for consulting in advance Case Study Part 1 Solution 12,000 13/May Repair Expense 12,000 Cash Paid for repairs to building 12,000 17/May Accounts Receivable 12,000 Consulting Revenue Earned Earned consulting revenue 4,392 4,392 Date Date Page GJ3 F Debit Credit 500 500 Page 14 F Debit Credit 500 500 General Journal Account/Explanation 31/May Accounts Payable Cash Paid bill for advertising expense 31/May Dividends Cash Dividends 11.900 4,392 11,900 4,392 16,150 General Journal AccountExplanation 22/May Utilities Expense Accounts Payable Recolved bill for utilities expense 24/May Cash Accounts Receivable Received customer payment 25/May Salaries Expense Cash Paid cash for salaries 26/May Advertising Expense Accounts Payable Received bill for advertising expense 27/May Food and Drinks Expense Cash Paid for dinner with client 16,150 500 500 74 74 Com Apex Consulting Corp. Unadjusted Trial Balance May 31, 2014 Cash Accounts receivable Prepaid insurance Equipment Building Accumulated depreciation, building. Accounts payable Unearned consulting revenue Share capital Dividends Retained earnings Consulting revenue earned Salaries expense. Advertising expense Food and drinks expense Repair expense Utilities expense Totals Debit Credit 195,279 108,700 1,200 12,000 69,000 3,500 86,000 12,000 229,500 11,900 67,000 17,460 16,150 500 131 100 500 415,460 415,460 209 General Journal Page GJ5 Date Account/Explanation F Debit Credit 31/May Depreciation Expense, Building 607 600 Accumulated Depreciation, Building 174 600 To record depreciation expense for May for the building 31/May Depreciation Expense, Equipment 614 79 Accumulated Depreciation, Equipment 168 79 To record depreciation expense for May for the equipment 31/May Salaries Expense 622 4,750 Salaries Payable 4,750 To recognize accrued salaries 31/May Uneamed Consulting Revenue 230|1,500 Consulting Revenue Earned 403 1,500 To recognize consulting revenue earned since advance 31/May Insurance Expense 635 100 Prepaid Insurance 128 100 To adjust for the expired portion of prepaid insurance expense Apex Consulting Corp.'s May adjusting entries have been posted to the general ledger for you as shown below. This is similar to how an accounting software package posts automatically Cash Explanation F Debit Date 30/Apr Opening balance 1/May Issued shares Account No. 101 Credit Balance 118,000 208,000 GJ1 90,000 IGH GJ1 1,200 GJ1 12,000 57 488 GJ2 GJ2 GJ2 GJ3 GJ3 Fararlanarahvad ennevin re 1/May Prepaid for insurance 3/May Received payment for consulting in advance 8/May Paid for dinner with client 9/May Earned and received consulting revenue 13/May Paid for repairs to building 24/May Received customer payment 25/May Paid cash for salaries 27/May Paid for dinner with client 31/May Paid bill for advertising expense 31/May Dividends 100 OR A 207.180 219,180 219,123 219,611 219.511 223,903 207,753 207,679 207,179 195.279 4,392 GJ3 16,150 74 500 11,900 GJ4 GJ4 F Debit Account No. 106 Credit Balance 96,500 108,700 113,092 4.392 108,700 GJ2 GJ2 GJ3 12.200 4,392 Accounts Receivable Date Explanation 30/Apr Opening balance 5/May Earned consulting revenue 17/May Earned consulting revenue 24/May Received customer payment Prepaid Insurance Date Explanation 1/May Prepaid for insurance 31/May To adjust for the expired portion of prepaid insurance expense Equipment Date Explanation 2/May Received equipment F GJ1 GJS Debit 1.200 Account No. 128 Credit Balance 1,200 100 1,100 F GJ1 Debit 12.000 Account No. 167 Credit Balance 12,000 Accumulated Depreciation Equipment Date Explanation 31/May To record depreciation expense for May for the equipment Debit F GJS Account No. 168 Credit Balance 79 79 F Debit Account No 173 Credit Balance 69,000 Building Date Explanation 30/Apr Opening balance Accumulated Depreciation, Building, Date Explanation 30/Apr Opening balance 31/May To record depreciation expense for May for the building F Debit Account No. 174 Credit Balance 3,500 600 4.100 GJ5 F Debit Accounts Payable Date Explanation 30/Apr Opening balance 2/May Received equipment 22/May Received bill for utilities expense 26/May Received bill for advertising expense 31/May Paid bill for advertising expense GJ1 GJ3 GJ3 GJ4 Account No. 201 Credit Balance 73,500 12,000 85,500 500 86,000 500 86,500 86,000 500 Date 31/May Salaries Payable Explanation To recognize accrued salaries Debit F GJS Account No. 209 Credit Balance 4,750 4.750 Date 3/ May F Uneamed Consulting Revenue Explanation Received payment for consulting in advance 31/May To recognize consulting revenue eamed since advance Debit Account No. 230 Credit Balance 12,000 12,000 10,500 GJ1 GJ5 1,500 Share Capital Explanation F Debit Date 30/Apr 1/May Opening balance Issued shares Account No. 301 Credit Balance 139,500 90.000 229,500 GJ1 Dividends Explanation Date 31/May Dividends F GJ4 Debit 11.900 Account No. 302 Credit Balance 11.900 F Debit Account No. 318 Credit Balance 67,000 Retained Earnings Date Explanation 30/Apr Opening balance Consulting Revenue Earned Date Explanation 1/May Earned and received consulting revenue 5/May Earned consulting revenue 9/May Earned and received consulting revenue 17/May Eamed consulting revenue 31/May To recognize consulting revenue eamed since advance F Debit GJ1 GJ2 GJ2 GJ2 GJ5 Account No. 403 Credit Balance 380 380 12,200 12,580 488 13,068 4,392 17,460 1,500 18.960 Date 31/May Depreciation Expense, Building Explanation To record depreciation expense for May for the building F GJS Debit 600 Account No. 607 Credit Balance 600 F GJS Debit 79 Account No. 614 Credit Balance 79 Depreciation Expense, Equipment Date Explanation 31/May To record depreciation expense for May for the equipment Salaries Expense Date Explanation 25/May Paid cash for salaries 31/May To recognize accrued salaries F GJ3 GJ5 Debit 16,150 4.750 Account No. 622 Credit Balance 16,150 20.900 Date 31/May Insurance Expense Explanation To adjust for the expired portion of prepaid insurance expense Advertising Expense F GJ5 Debit 100 Account No. 635 Credit Balance 100 Account No. 655 SUS Page 2 of 4 https://1.byty.com/student-serviets/Case Study Serviettoid-11151 Debit 500 Credit Balance 500 GJ3 Date Explanation 26/May Received bill for advertising expense Food and Drinks Expense Date Explanation 8/May Paid for dinner with client 27/May Paid for dinner with client F GJ2 GJ3 Debit 57 74 Account No. 668 Credit Balance 57 131 Repair Expense Date Explanation 13/May Paid for repairs to building. F GJ2 Debit 100 Account No. 684 Credit Balance 100 Utilities Expense Explanation Received bill for utilities expense Date 22/May F GJ3 Account No. 690 Credit Balance 500 Debit 500 Apex Consulting Corp. Adjusted Trial Balance May 31, 2014 Credit Debit 195,279 108,700 1,100 12,000 79 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation, equipment Building Accumulated depreciation, building. Accounts payable_ Salaries payable Unearned consulting revenue Share capital Dividends Retained earnings Consulting revenue earned Depreciation expense, building. Depreciation expense, equipment Salaries expense Insurance expense Advertising expense Food and drinks expense Repair expense Utilities expense 69,000 4,100 86,000 4,750 10,500 229,500 11,900 67,000 18,960 600 79 20,900 100 500 131 100 500 426889 420889 - Prepare a statement of changes in equity for the month ended May 31, 2014. Apex Consulting Corp. Statement of Changes in Equity For Month Ended May 31, 2014 Share Retained Total Capital earnings Equity Balance, May 1 139,500 67,000 206,500 Issuance of shares 90,000 (17,460) 72,540 Net loss (3,950) 279,040 Retained earnings 45,590 Dividends 11,900 279,040 Balance, May 31 229,500 33,690 279,040 Retained earnings 263,190 279,040 229,500