Cash Journal June 1stto June 30th, 2016
Date	Chq#	Payee		Amount	Balance	Description
June 1st		Brunos contribution		1.900	$1.900	Brunos initial contribution
		Bruno and partner		100	$1.800	Rent - garage
		Bruno and partner		100	$1.700	Utilities
		Bruno and partner		100	$1.600	Rent car
	1	Marco		1000	$600	Web site design
		Metro bank		2.500	$3.100	Use of line of credit
		Business Number Org.		500	$2.600	Set up his own company
	2	Flowers Bulk Market		50	$2.550	Purchase of fresh flowers
	3	Florist Paradise		2000	$550	Purchase of dry supplies
June 4th		Bruno		15	$565	Revenue flowers
June 5th		Bruno		140	$705	Revenue simple arrangement
June 6th		Bruno		15	$720	Revenue flowers
June 7th		Bruno		130	$850	Revenue complex arrangement
June 8th	4	Flowers Bulk Mart		500	$350	Purchase of fresh flowers
		Bruno		100	$450	Revenue flowers and arrangements
June 9th		Bruno		300	$750	Revenue flowers and arrangements
June 10th		Bruno		360	$1.110	Revenue flowers and arrangements
June 11th		Bruno		140	$1.250	Revenue flowers and arrangements
June 12th		Bruno		25	$1.275	Revenue flowers and arrangements
June 15th	5	Flowers Bulk Mart		500	$775	Purchase of fresh flowers
		Bruno		320	$1.095	Revenue flowers and arrangements
June 16th		Bruno		440	$1.535	Revenue flowers and arrangements
June 17th		Bruno		40	$1.575	Revenue flowers and arrangements
June 18th		Bruno		340	$1.915	Revenue flowers and arrangements
June 19th		Bruno		530	$2.445	Revenue flowers and arrangements
June 22th	6	Flowers Bulk Mart		500	$1.945	Purchase of fresh flowers
		Bruno		400	$2.345	Revenue flowers and arrangements
June 23th		Bruno		100	$2.445	Revenue flowers and arrangements
June 24th		Bruno		400	$2.845	Revenue flowers and arrangements
June 25th		Bruno		600	$3.445	Revenue flowers and arrangements
June 26th		Bruno		200	$3.645	Revenue flowers and arrangements
June 29th	7	Flowers Bulk Mart		500	$3.145	Purchase of fresh flowers
June 30th		Bruno		505	$3.650	Revenue flowers and arrangements
		Bruno		TBD	????	Dividends
End of month cash that must be available	$5,145minus the dividends paid on June 30th

Other information (which may or may not be relevant to your bookkeeping activities)The following information is provided in a narrative format. Some of it may not be needed to complete the required. A skill set accountants must develop is being able to differentiate information that is relevant and requires recognition in the financial statements from that which does not.

1.Bank Loan:Brunos business used a portion from the approved line of credit on June 1st. By June 30ththe amount owed was still outstanding.

2.Bruno is the owner:On June 1stGorgeous Tulip issues 10 shares to Bruno in exchange for $1,900.

3.Rent:Bruno is using a detached garage of her house as the basis of her operations. As rent he pays himself and his partner a symbolic amount of $100 per month. Another $100 are paid in concept of the business share of utilities including the telephone land line.

4.Furniture and hand tools:Bruno did not purchase any new furniture or equipment as all the elements he has for his hobby as a florist at home are now used in his business.

5.Car:Bruno has a Jeep under his name that he uses to bring in materials and to make deliveries. He pays a symbolic rent for using it of $100 per month, gas included.

6.Supplies:Brunos supplies are of two kinds: dry and wet. Dry supplies such as dirt, pots, ribbons and other decorative elements can stay in his inventory for long periods of time. Wet supplies are flowers and other living ornaments, they can stay in inventory only for a couple of days; therefore, he has decided to treat them as expenses when purchased.

7.Revenue:minor floral arrangements are paid in cash, but those more elaborated and expensive are normally paid by credit or debit card. The table below shows the number of floral arrangements made each week per type of work done (ignore credit card fees and HST).

Week		Flowers	Simple	Complex	Cash	Credit/Debit
			arrangements	arrangements	receipts	cards receipts
June 1	7	2	1	1	$100	$200
June 8 14	7	6	2	$220	$705
June 15	21	10	16	2	$370	$1.300
June 22	28	8	14	3	$200	$1.500
June 29	30	11	2	1	$55	$450
Total		38	39	9	$ 945	$ 4.155

8.Accounts Receivables:At June 30th, Gorgeous Tulip was owed $1,500 by Mr. Bill Gates, a very wealthy person that has just moved in to a large and secluded cottage in the area. He knows Mr. Gates will pay him when he hands in the summary for the floral arrangements done and delivered in the month of June.

9.Dividends:Bruno projected that dividends can be paid to him by June 30th. Dividends declared and paid on Bruno's 10 shares are not shown in the cash journal but they were effectively paid on June 30thright before midnight. No other amounts were paid or owed to Bruno. Note: make the amount of dividends paid per share equal to the triple of the last 2 digits of your student number.

10.Errors:Bruno has a difference between his cash journal and the money he has at hand. He remembered that on June 12thhe paid that amount for a delivery that he was unable to make. Note: make the difference between the two amounts equal to the double of the last 2 digits of your student number.

11.Dry supplies at hand:On June 30thBruno estimated that he still has dry supplies in stock for an amount equivalent to the last 3 digits of your student number.

12.Income tax:Bruno estimated that the income tax accrued for the first month is $200.

13.Line of credit:Bruno is highly interested in paying back the line of credit, so he plans to take directly to the bank the collection of $1,500 from Mr. Gates.

14.Accountants fees:Marco, who is also an accountant, has advised Bruno to set aside some money so he can pay him for his accounting services for the year. Marco normally charges $600 per year to provide full accounting services to small businesses; those services include the annual income tax and HST preparation among others.

REQUIRED: Prepare the accounting records for Gorgeous Tulip Inc.

Note: this task is based on the analysis of very extensive narrative and detailed project documents. Please check the password protected course website for announcements of any errors, omissions and clarifications to the term project description or project documents.

1.Set up the Chart of Accounts

2.Prepare the bank reconciliation at June 30th, 2016

3.Prepare the General Journal for the month of June 2016

4.Post all transactions to theT-accounts

5.Prepare a trial balance at June 30, 2016

6.Prepare the Financial Statements in good form for June 2016 including footnotes for a Summary of Significant Accounting Policies and for contingency disclosures that are exclusive of the transactions of this case (do not include general notes).

7.Special instructions:

Each General Journal entry should have an explanation under.

Every place where the word Bruno appears in items 1, 2, 3 and 4 of the required substitute with your own first name.

8.Based on all the information provided in this project, prepare a memo to Bruno where you as a professional accountant evaluate his business. Specifically address his concerns:

a)How much can be paid in dividends by June 30th?

b)How much dividends he expects to collect per share per month (during 12 months) to achieve the $2,300 monthly that Bruno set as target?

c)What is the target net income to achieve item b) if only working the 7 months of the cottage county season per year?

d)With the data of the financial statements that you have completed, did Bruno achieved his target as set in item c)?

e)Make two clear suggestions of how the business can be improved so he can achieve and surpass the target.