Elite 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. Elite Consulting Inc. showed the following alphabetized post-closing trial balance at August 31, 2014.
AccountBalance
Accounts payable49,500
Accounts receivable89,500
Accumulated depreciation, furniture4,500
Cash141,500
Furniture59,000
Retained earnings89,000
Share capital147,000 - There were 17,000 shares issued and outstanding on August 31, 2014.
- Depreciation on the furniture is $450 per month.
- Elite Consulting Inc.'s salaries expense is a total of $800 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays).
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).
h + c Deposit slip (September 1) X BetaCo 7821 Falton Crescent Winnipeg, Manitoba 011 1L7 Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 1, 2014 Account No.: 3685 al Cash Cheques (re: 10,000 shares issued today) $25,000 Total Deposits $25,000 Purchase Order 7875 ces Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 1, 2014 PO No.: 7875 Vendor: Travis' Machinery 5484 Franklin Avenue Winnipeg, Manitoba U1K 1T8 Ship To: Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 astal Ordered Item No. Description Total Unit Price MAC761 1 $13,200 $13,200 Machinery Estimated useful life : 10 years. Estimated residual value : $840. $13,200 Sub- Total: Shipping: 0 Invoice 6918 X ences Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 1, 2014 Invoice No.: 6918 Customer: AlfaCo 13895 81 Avenue Winnipeg, Manitoba B5F 264 Rep: Avery Wilson PO No.: Verbal instal Qty Description Unit Price Total $58 $4,176 72 Follow-up consultation to confirm proposed program specification, per hour 24 System wide testing on new program, per hour 32 Training on new computer software, per hour $58 $1,392 $58 $1,856 Sub- Total $7,424 Preferences Date: x Inter-Office Memo 1 September 1, 2014 From: Sandra Castell To: Office Assistant Subject: Cash Disbursement Please write a cheque to EastCo in the amount of $7,200. This will pay for rent for the next 12 months. Thanks, Sandra Castell ystem instal statutory holidays). -ot require an entry. Also, all bills are recorded in the journal on the day they are would be 15/Jan) Receipt 7353 ces Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 1, 2014 Receipt No.: 7353 Customer: North Co 599 81 Avenue Winnipeg, Manitoba R9M 113 Rep: Jack Tasker Unit Price Total nstal Qty Description 6 Ongoing consulting regarding security, per month. To begin immediately and end February 28, 2015. $2,000 $12,000 Total: $12,000 Paid: $12,000 Balance Due: $0 Invoice 8352 rences Travis' Machinery 5484 Franklin Avenue Winnipeg, Manitoba U1K 118 Date: September 2, 2014 Invoice No.: 8352 Customer: Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Rep: Sandra Castell PO No.: 7875 instal Qty Description Unit Price Total 1 $13,200 $13,200 Machinery as ordered on September 1, 2014. Estimated useful life : 10 years. Estimated residual value: $840. Sub- Total: $13,200 Freight: 0 Total: $12.200 Purchase Order 3995 es Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 9, 2014 PO No.: 3995 Vendor: Decker Co 6090 80 Street Winnipeg, Manitoba S1X 3G1 Ship To: Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 tal Item Ordered No. Description Total Unit Price JR21 96 Product training to begin on October 1, 2014, per hour $58 $5,568 Sub- Total: $5,568 Shipping: o Total: $5,568 Inter-Office Memo 2 X nces Date: September 14, 2014 From: Sandra Castell To: Office Assistant Subject: New Hire Steve Moore has accepted our job offer and will begin employment with us on October 1. Please get everything ready for that date. Thanks, Sandra Castell nsta Invoice 6919 es Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 15, 2014 Invoice No.: 6919 Customer: WestCo 2241 50 Street Winnipeg, Manitoba V4P 165 Rep: Carrie Ford PO No.: Verbal tal Qty Description Total Unit Price $58 $2,784 48 Initial consultation to determine new program requirements, per hour 56 Follow-up consultation to confirm proposed program specification, per hour 32 Training on new computer software, per hour $58 $3,248 $58 $1,856 Sub- $7,888 Total Invoice 6920 ces Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 15, 2014 Invoice No.: 6920 Customer: EastCo 6235 Paper Avenue Winnipeg, Manitoba JAW 814 Rep: Sandra Castell PO No.: Verbal stal Qty Description Total Unit Price $58 $928 $58 $2,320 16 Initial consultation to determine new program requirements, per hour 40 Follow-up consultation to confirm proposed program specification, per hour 32 System wide testing on new program, per hour 16 Training on new computer software, per hour $58 $1,856 $58 $928 Schafer Advertising Bill X Schafer Advertising Customer Name: Elite Consulting Inc. 1007 Sesame Trail Account No.: 9960187 Winnipeg, Manitoba Q5T 2N5 Service Period: 01/Sep - 22/Sep Invoice Date: September 22, 2014 Previous Charges Previous balance forward $450 Payment on August 31 $-450 $0 Total previous charges al Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $250 $150 $100 $500 Amount Due: $500 Receipt 7354 X es Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 24, 2014 Receipt No.: 7354 Customer: Decker Co 5534 Franklin Trail Winnipeg, Manitoba 18A 709 Rep: Tracy Regis Invoice No.: Verbal cal Qty Description 8 Troubleshooting, per hour Unit Price Total $90 $720 Total: $720 Paid: $720 Balance Due: $0 Inter-Office Memo 3 Date: September 25, 2014 From: Sandra Castell To: Office Assistant Subject: Cash Disbursement Please prepare a cheque for salaries owed to employees for the period September 1 to September 25. Thanks, Sandra Castell al Receipt 5662 Sandra's Repair Services 9310 65 Avenue Winnipeg, Manitoba P5B 104 Date: September 25, 2014 Receipt No.: 5662 Customer: Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Rep: Sandra Castell al Qty Unit Price Total Description Repairs to furniture 1 $300 $300 Total: $300 Paid: $300 Balance Due: $0 ces Winnipeg Public Utilities Bill X Winnipeg Public Utilities Customer Name: Elite Consulting Inc. 6555 35 Street Account No.: 4422894 Winnipeg, Manitoba E1T 4W4 Service Period: 01/Sep - 26/Sep Invoice Date: September 26, 2014 Previous Charges Previous balance forward $400 Payment on August 31 $-400 Total previous charges $0 tal Current Charges Water and sewage Natural Gas Electricity Total current charges $150 $50 $300 $500 Amount Due: $500 ces Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Receipt 7355 Date: September 29, 2014 Receipt No.: 7355 Customer: WestCo 2241 50 Street Winnipeg, Manitoba V4P 165 Rep: Carrie Ford stal Qty Unit Price Total H Description Balance forward Invoice #6919 on September 15, 2014) $0 1 $7,888 $7,888 Total: $7,888 Paid: $7,888 Balance Due: $0 Customer Statement for AlfaCo X es Elite Consulting Inc. 10135 35 Street Winnipeg, Manitoba J1F 8L5 Date: September 30, 2014 Customer: AlfaCo 13895 81 Avenue Winnipeg, Manitoba B5F 2G4 tal Amount Balance Date Description September 1 Balance forward September 1 Invoice #6918 $0 $7,424 $7,424 Amount Due: $7,424 Inter-Office Memo 4 s Date: September 30, 2014 From: Sandra Castell To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay the Winnipeg Public Utilities bill received on September 26. Thanks, Sandra Castell al Inter-Office Memo 5 X Date: September 30, 2014 From: Sandra Castell To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.14 per share to shareholders of record on today's date. Thanks, Sandra Castell Receipt from Joseph's Diner Joseph's Diner 11735 Franklin Place Winnipeg, Manitoba 585-2051 Check #: 440682 Server: Shawna Table: 47 Date: September 30, 2014 Time: 12:57 2 Draft, Import 3 Draft, Domestic 1 Club sandwich 2 Fettucini alfredo 12.00 15.00 8.00 22.00 Total: $57.00 Cash Received: $57.00 Thank you for dining with us! General Journal Account Explanation Date Page Gj1 F Debit Credit General Journal Account/Explanation Date Page GJ2 F Debit Credit + - + - + General Journal Account Explanation Page GJ3 F Debit Credit General Journal AccountExplanation Page GJ4 Credit Date Date F Debit +1 b) What is the next step in the accounting cycle? Prepare an unadjusted trial balance Prepare closing entries Prepare financial statements Prepare adjusting entries Post transactions Prepare an adjusted trial balance Prepare a post-closing trial balance This is the last step
