BAF3M Final Summative Evaluation Travel Trailers You will complete the accounting cycle for Travel Trailers. You will complete the following:: Journalize transactions Post to the general ledger (T accounts) Take of a trial balance Journalize the adjusting entries Post to the general ledger (T accounts) Complete the 8 column worksheet Prepare a formal income statement Prepare a formal balance sheet Journalize the closing entries Post to the ledger (T accounts) Create a post closing trial balance as .com Write a reflection paragraph (see instructions below)* The tasks can be broken up into 4 phases: e Phase 1: Journalize transactions, post to general ledger (T accounts), take off trial balance. Phase 2: Adjusting entries (journalize and post to ledger), complete 8 column worksheet, formal income statement and balance sheet Phase 3: Closing entries (journalize and post to ledger) Phase 4: Reflection Report Notes: Journal explanations are not necessary. Also, when posting the to ledger, combine all accounts receivable (and accounts payable) accounts into one T account called "Accounts Receivable (Payable)" Marking Scheme Phase 1 30 tudy Phase 2 /25 via Co Phase 3 /20 Phase 4 /15 Punctuality /10 Total /100 This project is worth 10% of your overall course grade. Travel Trailers Background Information: Travel Trailers is a business owned and operated by Charles Fowler. The business earns its income from selling and servicing recreational vehicles. All sales and service transactions are subject to 13% HST. Travel Trailers has a financing arrangement with Federated Finance Company for the sale of its major items, travel trailers, and mobile homes. When these units are sold on credit, Federated Finance pays Travel Trailers in full and takes on the responsibility of collecting from the customer. Thus, Travel Trailers receives payment in full for each unit sold and is able to treat the transaction as a cash sale.The Transactions: June 1 Sales Invoice No. 636, to A. Newman for repairs to trailer, $600 plus HST $78, total $678.00. 2 Cheque Copy No. 755, to General Real Estate, for the rent for June, $1 250 plus HST $162.50, total $1 412.50. 3 Sales Invoice No. 637, to L. Walker, for trailer parts, $900 plus HST $117, total $1 017. 4 Cheque Copy No. 756, to Double-G Industries, on account, $5 000. 5 Purchase Invoice From Parker Manufacturing, No. 40, for supplies, $236 plus HST $30.68, total $266.68; terms 2/10 n/30. 6 Cash Receipt S From W. Hoyle, invoice 635 on account, $86.25. 7 Cash Sales Receipt C From Federated Finance Company, No. 7042, for the sale of a trailer, selling price, $12 700 plus HST $1 651, total $14 351. 8 Cheque Copy No. 757, to C. Fowler for personal use, $1 000. era 9 Cheque Copy No. 758, made to Cash, for the wages for the week, $2 178.50. 10 Sales Invoice No. 638, to N. Thompson, for trailer repairs and parts, $1 370 plus HST $178.10, total $1 548.10. 11 Cheque Copy No. 759, to J.C. Pat Supply, for the cash purchase of supplies, $243.50, and miscellaneous expense items, $135.25 plus HST $49.24; total $427.99. 12 Cash Receipt From A. Newman, on account, $287.50. 13 Purchase Invoices From Windsor Manufacturing, No. 452, for trailer parts, $1 452 plus HST $188.76, total $1640.76; terms net 30. 14 Purchase Invoices From Maynard's Delivery, No. 64, for transportation charges on incoming merchandise, $217.50 plus HST $28.28, total $245.78; terms 2/10 n/30. 15 Sales Invoice No. 639, to B. Fraser, for trailer parts, $450 plus HST $58.50, total $508.50. 16 Cash Receipt From N. Thompson, on account, $684.25. 17 Cash Receipt From Federated Finance Company, No. 7043, for the sale of a trailer, $14 500 plus HST $1 885, total $16 385.18 Purchase Invoice From Windsor Manufacturing, No. 481 for a new trailer, $14 500 plus HST $1 885, total $16 385; terms net 30. 19 Sales Invoice No. 640, to Schell Brothers, for trailer parts and service, $1 700 plus HST $221, total $1 921. 20 Cheque Copy No. 762, to C. Fowler, for personal use, $500. 21 Cheque Copy No. 767, to Windsor manufacturing, on account, $15 000. 22 Cheque Copy No. 763, made out to Cash, for the wages for the week, $2 042.75 23 Purchase Invoices From Windsor Manufacturing, No. 499, for trailer parts, $283.50 plus HST $36.86, total $320.36; terms net 30. 24 Sales Invoice No. 642, to L. Walker, for trailer parts and service, $290 plus HST $37.70, total $327.70. 25 Purchase Invoice From Parker Manufacturing, No. 140, for trailer parts, $367.20 plus HST $47.74, total $414.94; terms 2/10 n/30 26 Cash Receipt From Federated Finance Company, No. 7045, for the sale of a trailer $18 500 plus HST $2 405, total $20 905. 27 Cheque Copies No. 773, to C. Fowler, for personal use, $350. 28 Sales Invoice No. 643, to A. Newman, for trailer repairs, $236 plus HST $30.68, total $266.68. Adjusting Entry Transactions: (ignore HST) 1. Supplies on hand at June 30, totaled $1 300. 2. Prepaid Insurance as of June 30 was valued at $1 599. 3. Late purchase invoices as of June 30: Th > Purchases $740 > Miscellaneous Expense 102 4. Depreciation is calculated using the straight-line method. (Remember that the statement period is half a year). S > Truck: Cost - $38 000; estimated life - 9 years, estimated salvage value - $2 000. Equipment: Cost - $34 472; estimated life - 10 years, estimated salvage value - $4 472.Beginning balances for Travel Trailers: TRAVEL TRAILERS TRIAL BALANCE MAY 31, 2011 # Account Name Debit Credit 101 Bank $ 21 918.45 110 Accounts Receivable 2 719.75 115 Merchandise Inventory 125 423.00 120 Supplies 1 151.00 125 Prepaid Insurance 2 650.00 130 Equipment 34 472.00 131 Accumulated Depreciation - Equipment $ 6 000.00 140 Truck 38 000.00 141 Accumulated Depreciation - Truck 201 Accounts Payable V 16 000.00 21 386.09 205 Bank Loan 120 000.00 210 HST Payable 5 682.68 215 HST Recoverable 1 629.28 305 C. Fowler, Capital 40 922.96 310 C. Fowler, Drawings 15 000.00 405 Sales esource 189 423.51 505 Purchases 96 581.75 510 Freight-in urs 1 174.72 522 Depreciation Expense - Equipment 523 Depreciation Expense - Truck 525 Insurance Expense 535 Miscellaneous Expense 5 344.98 540 Rent Expense 545 Supplies Expense Via 6 250.00 555 Wages Expense 47 100.31 $ 399 415.24 $ 399 415.24 598 Income Summary CREATE 2 2-sided General Journals 1 2-sided T account Ledger, with account names and beginning balances (use this ledger for posting the initial entries, the adjusting entries and the closing entries) 1 Trial Balance/Adjusting Entries Journal page (2 sided) 1 Worksheet (8 column) 1 Income Statement/Balance Sheet Form (2 sided) 1 Closing Entries Journal page/Post Closing Trial Balance form (2 sided)