Customer Statement for AlfaCo X Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 30, 2014 Raintree Advertising Bill Raintree Advertising Customer Name: Apex Consulting Corp. 9753 Falton Road Account No.: 8191757 Ottawa, Ontario FOK 5J5 Service Period: 01/Nov - 26/Nov Invoice Date: November 26, 2014 Previous Charges Previous balance forward $700 Payment on October 31 $-700 Total previous charges $0 Customer: AlfaCo 12327 75 Street Ottawa, Ontario C20 2W2 Amount Balance Date Description November 1 Balance forward November 6 Invoice #1292 $0 $14,608 $14,608 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $500 $250 $50 $800 Amount Due: $14,608 Amount Due: $800 Inter-Office Memo 3 Receipt from Avery's Diner Avery's Diner 7661 Elm Road Ottawa, Ontario 399-0724 Check #: 722993 Date: November 25, 2014 From: Hector Mendez To: Office Assistant Subject: Cash Disbursement Please prepare a cheque for salaries owed to employees for the period November 1 to November 25. Server: Jan Table: 38 Date: November 28, 2014 Time: 12:57 Thanks, Hector Mendez 3 Coffee 1 Pop 2 Draft, Domestic 3 Pizza, hawaiian 1 Steak sandwich 2 Club sandwich 1 Beef dip 3.00 1.00 6.00 39.00 13.00 18.00 10.00 Total: $90.00 Cash Received: $90.00 Thank you for dining with us! Receipt from Steve's Diner X Inter-Office Memo 2 Steve's Diner 2779 42 Avenue Ottawa, Ontario 602-7941 Check #: 80464 Date: November 20, 2014 From: Hector Mendez To: Office Assistant Subject: New Hire Server: Jack Table: 37 Date: November 23, 2014 Time: 12:57 Carrie Ford has accepted our job offer and will begin employment with us on December 1. Please get everything ready for that date. Thanks, Hector Mendez 3 Draft, Import 3 Draft, Domestic 2 Pizza, hawaiian 1 Beef dip 3 Club sandwich 2 Steak sandwich 18.00 15.00 26.00 9.00 27.00 26.00 Total: $121.00 Cash Received: $121.00 Thank you for dining with us! Receipt 9859 Ottawa Hydro Bill X Ottawa Hydro Customer Name: Apex Consulting Corp. 11503 Exchange Place Account No.: 7855975 Ottawa, Ontario 08F 3X4 Service Period: 01/Nov - 20/Nov Invoice Date: November 20, 2014 Previous Charges Previous balance forward $450 Payment on October 31 $-450 Total previous charges $0 Kelly's Fix-It 5707 Elm Place Ottawa, Ontario 021 8T6 Date: November 13, 2014 Receipt No.: 9859 Customer: Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Rep: Hector Mendez Qty Unit Price Total Description Repairs to computers 1 $500 $500 Current Charges Water and sewage Natural Gas Electricity Total current charges $150 $150 $200 $500 Total: $500 Paid: $500 Amount Due: $500 Balance Due: $0 Receipt 2766 X Invoice 1292 Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 10, 2014 Receipt No.: 2766 Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 6, 2014 Invoice No.: 1292 Customer: XYZCo 9081 81 Avenue Ottawa, Ontario 17B 7M2 Rep: Tracy Regis Customer: AlfaCo 12327 75 Street Ottawa, Ontario C20 2W2 Rep: Andrew Martin PO No.: Verbal Qty Unit Price Total Qty Description Total Unit Price $0 Description Balance forward Invoice #1291 (on November 2, 2014) $83 $7,304 $7,304 $7,304 88 Follow-up consultation to confirm proposed program specification, per hour 88 System wide testing on new program, per hour $83 $7,304 Total: $7,304 Paid: $7,304 Balance Due: $0 Sub- Total: $14,608 Freight: 0 Receipt 2764 X Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Receipt 2765 Date: November 5, 2014 Receipt No.: 2765 Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 3, 2014 Receipt No.: 2764 Customer: BetaCo 3691 32 Avenue Ottawa, Ontario C1C 604 Rep: Carlos Young Invoice No.: Verbal Customer: AlfaCo 111 43 Avenue Ottawa, Ontario GOW 9U6 Rep: Carlos Young Qty Unit Price Total Description Instructional seminar, per hour Unit Price Total 8 $55 $440 Qty Description 7 Ongoing consulting regarding security, per month. To begin immediately and end May 31, 2015. $2,400 $16,800 Total: $440 Paid: $440 Balance Due: $0 Total: $16,800 Paid: $16,800 Balance Due: $0 Invoice 1291 X Invoice 2687 X Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 2, 2014 Invoice No.: 1291 Judith's Machinery 10704 70 Street Ottawa, Ontario Y4P 8X4 Date: November 3, 2014 Invoice No.: 2687 Customer: XYZCo 9081 81 Avenue Ottawa, Ontario 17B 7M2 Customer: Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Rep: Tracy Regis PO No.: Verbal Rep: Hector Mendez PO No.: 4937 Qty Description Total Unit Price Qty Description Total Unit Price $83 $1,328 1 $19,200 $19,200 Machinery as ordered on November 2, 2014. Estimated useful life : 10 years. Estimated residual value : $1,200. 16 Initial consultation to determine new program requirements, per hour 16 Follow-up consultation to confirm proposed program specification, per hour 32 System wide testing on new program, per hour $83 $1,328 $83 $2,656 24 Training on new computer software, per hour $83 $1,992 Sub- Total: $19,200 Freight: 0 Total $19 200 Purchase Order 4937 Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Date: November 2, 2014 PO No.: 4937 Inter-Office Memo 1 Date: November 1, 2014 From: Hector Mendez To: Office Assistant Subject: Cash Disbursement Please write a cheque to Decker Co in the amount of $1,200. This will pay for rent for the next 12 months. Vendor: Judith's Machinery 10704 70 Street Ottawa, Ontario Y4P 8X4 Ship To: Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Thanks, Hector Mendez Ordered Item No. Description Total Unit Price MAC154 1 $19,200 $19,200 Machinery Estimated useful life : 10 years. Estimated residual value : $1,200. Sub- Total: $19,200 Shipping: 0 Inter-Office Memo 6 Inter-Office Memo 5 Date: November 30, 2014 From: Hector Mendez To: Office Assistant Subject: Cash Disbursement X Date: November 30, 2014 From: Hector Mendez To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to Sandra's Insurance in the amount of $600. This will pay for this month's insurance expense. Please prepare a cheque to pay dividends of $0.36 per share to shareholders of record on today's date. Thanks, Hector Mendez Thanks, Hector Mendez Inter-Office Memo 4 X Deposit slip (November 1) Date: November 30, 2014 From: Hector Mendez To: Office Assistant Subject: Cash Disbursement EastCo 9551 46 Street Ottawa, Ontario D2P 5F6 Please prepare a cheque to pay the Ottawa Hydro bill received on November 20. Date: November 1, 2014 Account No.: 7227 Thanks, Hector Mendez Apex Consulting Corp. 3000 Exchange Crescent Ottawa, Ontario T3N 9W9 Cash Cheques (re: 17,000 shares issued today) $60,000 Total Deposits $60,000 Apex Consulting Corp. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program development. Apex Consulting Corp. showed the following alphabetized post-closing trial balance at October 31, 2014. Account Balance Accounts payable.. 53,000 Accounts receivable 44,000 Accumulated depreciation, computers 3,000 Cash 203,000 Computers... 24,500 Retained earnings. 46,000 Share capital. 169,500 Note: . There were 18,000 shares issued and outstanding on October 31, 2014. Depreciation on the computers is $550 per month. Apex Consulting Corp.'s salaries expense is a total of $850 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from November : Deposit slip (November 1) Receipt 2764 Ottawa Hydro Bill Inter-Office Memo 1 Receipt 2765 Inter-Office Memo 2 Receipt from Avery's Diner Customer Statement for AlfaCo Purchase Order 4937 Invoice 1292 Receipt from Steve's Diner Inter-Office Memo 4 Invoice 1291 Receipt 2766 Inter-Office Memo 3 Inter-Office Memo 5 Invoice 2687 Receipt 9859 Raintree Advertising Bill Inter-Office Memo 6 a) Analyze each of the preceding source documents and prepare journal entries using this information only. Note that some source documents may not require an entry. Also, all 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 Account/Explanation Date 1/Nov Cash Page Gj1 F Debit Credit 60,000 General Journal Date Account/Explanation 6/Nov Accounts Receivable Notes Receivable, Page GJ2 F Debit Credit 14,608 14,608 Share Capital 7,304 10/Nov Cash Accounts Receivable 1,200 7,304 1/Nov Prepaid Rent Cash 1,200 500 13/Nov Office Supplies Expense. Cash 7,304 500 2/Nov Accounts Receivable Unearned Consulting Revenue 7,304 500 20/Nov Utilities Expense... Accounts Payable.. 16,800 500 3/Nov Cash Unearned Consulting Revenue Consulting Revenue Earned. 2,400 14,800 121 23/Nov Food and Drinks Expense. Cash 121 440 5/Nov Cash Consulting Revenue Earned. 440 F General Journal Date Account/Explanation 28/Nov Food and Drinks Expense. Cash Page GJ3 Debit Credit 90 90 General Journal Date Account/Explanation 30/Nov Depreciation Expense, Equipment Accumulated Depreciation, Computers Page GJ4 F Debit Credit 550 550 21,250 25/Nov Salaries Expense Cash 1,800 30/Nov Depreciation Expense, Machinery Accumulated Depreciation, Machinery 21,250 1,800 12,600 26/Nov Advertising Expense. Accounts Payable 12,600 600 30/Nov Insurance Expense. Cash 600 30/Nov Accounts Payable Cash Note that any incorrect entries are highlighted red, but there may also be some entries missing. b) What is the next step in the accounting cycle? Prepare financial statements Prepare closing entries Prepare a post-closing trial balance O Post transactions Prepare adjusting entries O Prepare an adjusted trial balance Prepare an unadjusted trial balance This is the last step Accounts Payable Accounts Receivable Accumulated Depreciation, Boats Accumulated Depreciation, Building Accumulated Depreciation, Computers Accumulated Depreciation, Equipment Accumulated Depreciation, Furniture Accumulated Depreciation, Land Improvements Accumulated Depreciation, Machinery Accumulated Depreciation, Trucks Advertising Expense Boats Bonds Payable Building Cash Commissions Earned Computers Consulting Revenue Earned Copyright Depreciation Expense, Automobiles Depreciation Expense, Boats Depreciation Expense, Building Depreciation Expense, Equipment Depreciation Expense, Furniture Depreciation Expense, Machinery Depreciation Expense, Trucks Dividends Equipment Food and Drinks Expense Furniture Income Summary Insurance Expense Interest Earned Interest Expense Interest Payable Interest Receivable Investment in Bonds Land Land Improvements Long-Term Notes Payable Long-term Investment in Shares Machinery Mortgage Payable Notes Receivable Office Supplies Expense Patents Prepaid Advertising Prepaid Insurance Prepaid Interest Prepaid Rent Property Taxes Expense Property Taxes Payable Rent Earned Rent Expense Retained Earnings Salaries Expense Salaries Payable Share Capital Short-Term Notes Payable Supplies Supplies Expense Trademark Trucks Unearned Consulting Revenue Unearned Rent Utilities Expense