Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Complete the following questions (the yellow parts) with the information provided below. Account mal Phantom Consulting Inc. is a small computer consulting business. The company
Complete the following questions (the yellow parts) with the information provided below.
Account mal Phantom Consulting Inc. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program development. Phantom Consulting Inc. showed the following alphabetized post closing trial balance at September 30, 2014. Account Balance FOCUS WU Accounts receivable...... 67.000 Accumulated depreciation, computers 4.500 Cash 188,500 Computers.............. 21,000 Retained earrings 19.000 Share capital 96,500 Note: . There were 19,000 shares issued and outstanding on September 30, 2014 Depreciation on the computers is $2,100 per month . Phantom Consulting Inc.'s salaries expense is a total of $500 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from October O Deposkio rctober 11 Orvice 6918 O Receipt from Kimberly's Diner O Receipt 69 Purchase Order 9067 Recept O o inter-Office Momo 2 0 Raintree Advertising BD Inter-Office Momo 1 0 Invoice 6919 0 Receipt 6870 Customer Statement for Decker Co Receipt O Purchase Order 1753 0 Regina Hydro BI o inter-Office Memo 4 Invoice 4601 0 Receipt 9136 O Inter Office Momo 3 O inter-Office Memo a) Analyze each of the prececing source documents and prepare journal entries using this information only. Note that some source documents may not recuire an entry. Also, al 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 (ie. January 15 would be 15/Jan) General Journal Page GU1 1 General Journal Page GJ2 Date Account explanation Debit Credit Pate Accounsexplanation F Debt Credit - General Journal Page 3 General Journal Page GJI Acoounexplanation Debit Credit Date Debit Credit b) What is the next step in the accounting cycle? O Prepare a post-closing trial balance O Post transactions o This is the last step o Prepare adjusting entries O Prepare an adjusted trial balance O Prepare financial statements o Prepare an unadjusted trial balance O Prepare closing entries Deposit slip (October 1) X XYZCo 11142 Falton Place Regina, Saskatchewan A7W 3Q6 Date: October 1, 2014 Account No.: 3505 Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Cash Cheques (re: 6,000 shares issued today) $95,000 Total Deposits $95,000 Invoice 4691 X Tracy's Equipment 849 63 Street Regina, Saskatchewan T6I 4D3 Date: October 2, 2014 Invoice No.: 4691 Customer: Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Rep: Avery Wilson PO No.: 9967 Qty Description Total Unit Price 1 $13,200 $13,200 Equipment as ordered on October 1, 2014. Estimated useful life : 10 years. Estimated residual value : $1,320. Sub- Total: $13,200 Freight: 0 Total: $13,200 Deposit slip (October 1) X XYZCo 11142 Falton Place Regina, Saskatchewan A7W 3Q6 Date: October 1, 2014 Account No.: 3505 Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Cash Cheques (re: 6,000 shares issued today) $95,000 Total Deposits $95,000 Purchase Order 9967 X Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Date: October 1, 2014 PO No.: 9967 Vendor: Tracy's Equipment 849 63 Street Regina, Saskatchewan T6I 4D3 Ship To: Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Ordered Item No. Description Total Unit Price EQU317 1 $13,200 $13,200 Equipment Estimated useful life : 10 years. Estimated residual value : $1,320. Sub- Total: $13,200 Shipping: 0 Inter-Office Memo 1 X Date: October 1, 2014 From: Avery Wilson To: Office Assistant Subject: Cash Disbursement Please write a cheque to South Co in the amount of $2,400. This will pay for rent for the next 12 months. Thanks, Avery Wilson Receipt 6867 X Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Date: October 1, 2014 Receipt No.: 6867 Customer: ABC Co 6474 61 Avenue Regina, Saskatchewan A4K 7U7 Rep: Linda Champion Unit Price Total Qty Description 8 Ongoing consulting regarding security, per month. To begin immediately and end May 31, 2015. $1,600 $12,800 Total: $12,800 Paid: $12,800 Balance Due: $0 Invoice 4691 IX Tracy's Equipment 849 63 Street Regina, Saskatchewan T6I 4D3 Date: October 2, 2014 Invoice No.: 4691 Customer: Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan A3A 9P6 Rep: Avery Wilson PO No.: 9967 Qty Description Total Unit Price 1 $13,200 $13,200 Equipment as ordered on October 1, 2014. Estimated useful life : 10 years. Estimated residual value : $1,320. Sub- Total: $13,200 Freight: 0 Total: $13,200 Invoice 6918 IIXI DOO Invoice No.: 6918 5655 Franklin Avenue Regina, Saskatchewan 9P6 Customer: EastCo 3173 Paper Trail Regina, Saskatchewan D7B 5Y2 Rep: Kelly Young PO No.: Verbal Qty Description Total Unit Price $89 $8,544 96 Initial consultation to determine new program requirements, per hour 56 Follow-up consultation to confirm proposed program specification, per hour $89 $4,984 Sub- Total: $13,528 Freight: 0 Total: $13,528 Invoice 4691 IX Tracy's Equipment 849 63 Street Regina, Saskatchewan T6I 4D3 Date: October 2, 2014 Invoice No.: 4691 Customer: Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan A3A 9P6 Rep: Avery Wilson PO No.: 9967 Qty Description Total Unit Price 1 $13,200 $13,200 Equipment as ordered on October 1, 2014. Estimated useful life : 10 years. Estimated residual value : $1,320. Sub- Total: $13,200 Freight: 0 Total: $13,200 Invoice 6919 XI Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Date: October 7, 2014 Invoice No.: 6919 Customer: Decker Co 3538 Falton Crescent Regina, Saskatchewan F20 5V1 Rep: Bert Zimm PO No.: Verbal Qty Description Total Unit Price $89 $5,696 $89 $3,560 64 Initial consultation to determine new program requirements, per hour 40 Follow-up consultation to confirm proposed program specification, per hour 56 Training on new computer software, per hour $89 $4,984 Sub- Total: $14,240 Receipt 9135 X Jerry's Fix-It 3016 Elm Avenue Regina, Saskatchewan W7G 1W9 Date: October 13, 2014 Receipt No.: 9135 Customer: Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Rep: Avery Wilson Description Unit Price Total Qty 1 Repairs to computers $100 $100 Total: $100 Paid: $100 Balance Due: $0 Receipt from Kimberly's Diner E Kimberly's Diner 1775 Paper Avenue Regina, Saskatchewan 461-1551 Check #: 783581 Server: Linda Table: 27 Date: October 13, 2014 Time: 12:57 2 Pop 1 Coffee 3 Draft, Domestic 3 Club sandwich 2 Pizza, hawaiian 3 Fettucini alfredo 3 Caesar salad with chicken 6.00 1.00 15.00 27.00 24.00 30.00 27.00 Total: $130.00 Cash Received: $130.00 Thank you for dining with us! Inter-Office Memo 2 Date: October 17, 2014 From: Avery Wilson To: Office Assistant Subject: New Hire Linda Champion has accepted our job offer and will begin employment with us on November 1. Please get everything ready for that date. Thanks, Avery Wilson Receipt 6870 XI X Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Date: October 25, 2014 Receipt No.: 6870 Customer: EastCo 3173 Paper Trail Regina, Saskatchewan D7B 5Y2 Rep: Kelly Young Qty Description Unit Price Total Balance forward $0 1 Invoice #6918 (on October 2, 2014) $13,528 $13,528 Total: $13,528 Paid: $13,528 Balance Due: $0 Regina Hydro Bill X Regina Hydro Customer Name: Phantom Consulting Inc. 11176 Sesame Avenue Account No.: 9061902 Regina, Saskatchewan Service Period: 01/Oct - 25/Oct U3W 3R6 Invoice Date: October 25, 2014 Previous Charges Previous balance forward $350 Payment on September 30 $-350 Total previous charges $0 Current Charges Water and sewage Natural Gas Electricity Total current charges $100 $150 $250 $500 Amount Due: $500 X Inter-Office Memo 3 Date: October 25, 2014 From: Avery Wilson To: Office Assistant Subject: Cash Disbursement Please prepare a cheque for salaries owed to employees for the period October 1 to October 25. Thanks, Avery Wilson Phantom Consulting Inc. 5655 Franklin Avenue Regina, Saskatchewan 9P6 Receipt 6869 XL Date: October 26, 2014 Receipt No.: 6869 Customer: EastCo 9777 Falton Road Regina, Saskatchewan G5X 7E7 Rep: Joseph Stiller Invoice No.: Verbal Qty Description Unit Price Total 7 Instructional seminar, per hour $89 $623 Total: $623 Paid: $623 Balance Due: $0 Raintree Advertising Customer Name: Phantom Consulting Inc. 2333 Sesame Trail Account No.: 8252702 Regina, Saskatchewan Service Period: 01/Oct - 27/Oct CON 9N2 Invoice Date: October 27, 2014 Previous Charges Previous balance forward $700 Payment on September 30 $-700 Total previous charges $0 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $300 $100 $300 $700 Amount Due: $700 IX Customer Statement for Decker Co Phantom Consulting Inc. 5655 Franklin Avenue Date: October 31, 2014 Regina, Saskatchewan 9P6 Customer: Decker Co 3538 Falton Crescent Regina, Saskatchewan F20 5V1 Date Description Amount Balance October 1 Balance forward $0 October 7 Invoice #6919 $14,240 $14,240 Amount Due: $14,240 Inter-Office Memo 4 Date: October 31, 2014 From: Avery Wilson To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay the Regina Hydro bill received on October 25. Thanks, Avery Wilson Inter-Office Memo 5 Date: October 31, 2014 From: Avery Wilson To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.47 per share to shareholders of record on today's date. Thanks, Avery Wilson Inter-Office Memo 5 Date: October 31, 2014 From: Avery Wilson To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.47 per share to shareholders of record on today's date. Thanks, Avery WilsonStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started