Comprehensive Exercise 6. Pat Schelling began a business called Royal City Engineering. His chart of accounts are shown below. 101 Bank III A/R-L. Pero ROYAL CITY ENGINEERING CHART OF ACCOUNTS 301 Pat Schelling, Capital 302 Pat Schelling, Drawings 113 A/R-K. Puna 115 A/R-Spectrum Co. 117 A/R-W.J. Thomson 120 Supplies 401 Service Revenue 505 Automobile Expense 510 Bank Charges Expense 515 General Expense 520 Rent Expense 125 Equipment 130 Automobiles 525 Telephone Expense 201 Bank Loan 530 Wages Expense 211 A/P-Imperial Garage 535 Loss on Sale of Equipment 213 A/P-Home Hardware 220 HST Payable 225 HST Recoverable His beginning financial position is shown on the balance sheet on the next page. A ROYAL CITY ENGINEERING BALANCE SHEET AUGUST 313 $7000 Bark Lan Supplies $35000 1450 Event 14732 Automobiles 28957 Owner's Signity TA 351179 Scheling C Ty 27.139 $52139 A Journalize the opening entry and post it in the accounts B. Journalize and post the transactions for September gives below. Where applicable, the HST has been calcalated for you at rate of 13% TRANSACTIONS September 1 Cheque Copy To Howell Investments for the rent for the month, 12700.00 plus HST of $35100, total $3051.00 3 Parch Ini From Home Hardware for the purchase of supplies an account $32.00 plus HST of $45 76, total & Sales Invoice To WJ. Thomson for services rendered on aerum, $5000.00 plas HST of $600.00, total $50.00 5 Sales Ice To L. Pere for services rendered an account, $3000.00 plus HST of 8390.00, total 83300.00 Cash Sales Slip Seld a piece of equipment for $300.00 cash. (This sale is not tax- able). This pase of equipment had originally cost $1200.00 and was incladod in the Equipment account at that figure. (Note: Although s sale has been made, this transaction does not affect the revena account, which is used only for the normal revenue of the business) 10 Sales Invoice To Spectrum Co. for services rendered on account, $1200.00 plus HST of $156.00, total $150.00 11 Chege Copy To the owner for personal use, 81000.00 12 Cheque Copy To Home Hardware on acount, $39.76 16 Purchase Inoce Received from Imperial Garnge for repairs to the business automo biles, $1513.00 plus 1ST of $194.80 $170.00 16 Choque Copy lared to the Marketplace for the cash purchase of supplies. 8247.0 plus HST of $32.18 18 Cash Receipt $279. Received a cheque from WJ. Thomson, in fall payment of the aunt balance. compled Sage S Armeting or Qu 18 Cheque Copy To the owner reimbursement for out-of-pocket expenses postag $22.00 plus HST of 82.8 courier, $26 plus HST of $1.38, and gaso line and oil for business purposes, $177.00 plus HST of $23.01; total 8254.25 19 Bank Debit Memo Received a memorandum from the bank stating that $125.00 had been deducted from the businese bank account to pay for bank interest and charges 19 Cheque Copy To un employee for part-time wagen, 8900.00. (For simplicity, pay. roll deductions are not considered.) 19 Sales Invoice To K. Puns for services rendered on account. $900.00 plus HST of $117, total $1017.00 22 Memorandum From the owner stating that the bank had acted on his instructions to reduce the bank loan by $2000.00. 24 Cheque Caps To Call Canada in payment of the phone bill, $185.00 plus HST of $24.05, total $206.06. 25 Cash Receipt Received a cheque from 1. Pero on account, $1500.00 26 Sales Inooice To W.J. Thomson for services rendered on account, $600.00 plus HST of $78.00, total $678.00 26 Cheque Copy To the owner for personal use, $1250.00 29 Memorandum From the owner stating that he paid $190.00 plas HST of $24.70 total $214.70, ot of his own pocket for supplies used for business purposes, and that his Drawings amunt is to be credited for the 30 Cheque Copy Th an employee for part-time wages, 850.00 30 Cheque Copy To Imperial Garage, paying $500.00 an account 30 Cheque Capy Purchased a new computer and printer for the office, $1796.00 plus HST of $335, total $202835 C. Balance the ledger by means of a trial balance. D. Prepare an income statement for the month of September. E. Prepare a balance sheet as at September 30. Use Figure 5.8 on page 155 as your guide