As part of the requirements of her university entrepreneurship program, Emily Anthony had been operating Compu-Tech Consulting, a proprietorship, on a part-time basis. The purpose of Compu-Tech Consulting was to provide training and technical support to anyone who wished to learn how to use a computer, tablet, or smart phone, as well as to fix hardware or soft ware issues. As Emily had approached her graduation from university, she had considered other opportunities in addition to continuing to operate Compu-Tech Consulting.

Emily's parents, Doug and Bev Anthony, have been operating Anthony Business Company Ltd. (ABC), a private corporation, for a number of years. ABC provides business services and sells related products and accessories. The company has been overwhelmed with the demand for its goods and services and has recently negotiated a number of new contracts.

In regards to Emilys graduating, and in hope of spending a little more time away from the business, Doug and Bev had discussed with Emily the possibility of her moving back to her home province to become one of ABC's shareholders. In addition, Emily would assume the full-time responsibility of administrator. Emily could continue to provide computer training and technical support; however, that would be done through ABC rather than through Compu-Tech Consulting.

After graduating from university in May 2017 and investigating the opportunities available to her, Emily became a shareholder of Anthony Business Company and assumed the position of administrator. She began familiarizing herself with the business operation and all of the information that is available to help her run the business day to day.

Emily has come to you for advice and asks the following questions:

1. What form of generally accepted accounting principles do you anticipate each of these business organizations is using?

2. As ABC begins to meet the demands of its new contractual commitments, what accounting information will Emily need if she accepts the position with ABC as administrator, and why? How often will she need this information?

3. What types of users do you anticipate will use ABC's accounting information? What information will these users require?

Emily obtained a copy of ABC's partial trial balance at June 30, 2017, to start to become familiar with the organization's accounting position. The accounting records have not yet been fully updated for the month, so the trial balance is not yet complete.

ANTHONY BUSINESS COMPANY LTD.

Trial Balance (partial)

June 30, 2017

Debit Credit

Cash $ 39,004

Accounts receivable 5,900

Inventory 16,250

Supplies 1,875

Prepaid insurance 12,000

Land 100,000

Buildings 165,000

Accum. depreciationbuildings $ 137,500

Equipment 42,000

Accum. depreciationequipment 14,000

Vehicles 52,500

Accounts payable 3,540

Unearned revenue 100

Bank loan payable 22,500

Mortgage payable 53,200

Common shares 300

Retained earnings 146,788

Dividends declared 30,000

Rent revenue 6,000

Sales revenue 633,768

Cost of goods sold 102,386

Salaries expense 387,532

Office expense 18,000

Utilities expense 12,000

Advertising expense 9,000

Property tax expense 5,950

Interest expense 5,299

Income tax expense 13,000

Total $1,017,696 $1,017,696

While a number of transactions have already been recorded and posted for the month of June, there are other transactions listed below that have not yet been recorded in the accounting records:

June 5 Emily attends to the receipt of advertising supplies. 5,000 marketing brochures were purchased on account from Nakhooda Printing for $2,500. (Hint: Use the Supplies account.)

June 14 ABC purchases computer equipment for $2,520 cash to accommodate the growth of services. (Hint: Use the Equipment account.)

June 16 Emily's good friend is starting a tour boat business in July and wants ABC to set up the accounting system. A $1,000 cash deposit is received in advance.

June 19 Emily teaches a Tips on using Facebook class to a group of seniors that was booked a number of months ago. A $100 deposit had been received in advance and is included in the Unearned Revenue account. $300 is collected in cash at the end of the class, representing the remaining balance due. (Hint: ABC uses the Sales account for both the provision of services and the sale of goods.)

June 21 50 training manuals are delivered to a client in Calgary. An invoice of $2,040 for the preparation of these manuals is included.

June 27 A $200 invoice for use of Emily's cellphone is received. The cellphone is used exclusively for ABC's business. The invoice is for services provided in June and is due on July 21. (Hint: Use the Utilities Expense account.)

June 29 A new client has just had its computer data hacked. Emily has agreed to work with the client next month to help the company strengthen its firewall, tighten up its privacy controls, and document its procedures.

June 30 Emily receives her first paycheque from ABC, for $3,250.

June 30 The client for which 50 training manuals were delivered in the June 21 transaction requests another 50 manuals. These are delivered to its Calgary office and an invoice of $2,550 for the preparation of these manuals is included.

Emily has come to you again for advice in regards to the following aspects:

1. Journalize the above accounting transactions for June.

2. Set up T accounts, enter the opening balances in the general ledger from the partially completed trial balance at June 30, and post the remaining June journal entries to the general ledger.

3. Prepare an updated trial balance at June 30.