Final Summative Project BAF3M Introduction This is a simulation of the accounting cycle for a service business. It is part of the summative evaluation for this course. You are the accountant for Smith Heating and Electric caned by Mae Smith. You have the task of competing the accounting cycle and preparing the financial statements for Smith Heating and Electric Simth Heating and Electric provides mechanical service and instalation to both home and business clients (henace instals and repair, electric systems, etc). The revenue they eam comes from service revenue and the sales of equipment (fumaces, water heaters, electrical equipment, etc) The comapny uses the Periodic Inventory method. You have been given the following: Tab Tab 1 Tab 2 Tub 31 Tab 4 Tab 5 Teb Tab 7 T Tab 9t Tab 10 NOTE The introductory page this page The Trial Balance at the end of November 30, 2010 The Financial transactions for the month of December 2019, the last month of the fiscal year The adjustments and additional information required to complete the accounting cycle for the year Journal paper for Journal entres, Adjusting entries and Closing Entres The General Ledger The Worksheet The income Statement Instructions The Balance Sheet Financial Ratio Calculations This business has a fiscal year ended December 31, 2013. When taxes are applicable, you will be given this information. HST is 13%. You will make the adjustments and closing entries for the year From the information you have received, complete the following steps Step 1 Shep A Sep 6 Sep 7 Jumalize the transactions for the month of December 2019 Joumal descriptions are not required There are ten transactions in total Post the journal entries to the General Ledger Accounts. Don't forget to start try entering the Opening Produce Toal Balance on the Worksheet for the year ended December 31, 2019 Add the austing entries and complete the Worksheet. There are six adjusting entries Create the Financial Statements from the completed Worksheet Jounalus the alpasting and closing antes Calculate the Financial Ratios and comment on the financial health of company Smith Heating and Electric Trial Balance November 30, 2019 No. Account Debit Credit 101 Bank 72,150.00 105 Accounts Receivable 22,300.00 110 Installation Inventory 62,400.00 115 Supplies 6,120.00 120 Prepaid Insurance 520.00 135 Shop Equipment 18,900.00 137 Acc. Amort. - Shop Equipment 5,670.00 170 Automobiles 43,600.00 171 Acc. Amort. Automobiles 13,080.00 201 Accounts Payable 17,400.00 202 Interest Payable 205 HST Payable 12,810.00 206 HST Recoverable 4,810.00 210 Loan Payable 3,200.00 215 Mortgage Payable 38,500.00 301 M.Smith, Capital 89,750.00 305 M.Smith, Drawings 33,000.00 401 Service Revenue 132,555.00 402 Sales Revenue. 89,500.00 501 Purchases 114,225.00 502 Purchase Returns 503 Purchase Discounts 504 Freight-in 620.00 1,460.00 890.00 601 Advertising Expense 420.00 605 Automobile Expense 7,340.00 620 Amort. Expense-Shop Equipment 640 Amort. Expense - Automobile 650 Insurance Expense 1,128.00 665 Maintenance Expense 325.00 670 675 Miscellaneous Expense Rent Expense 652.00 8.800.00 680 Supplies Expense 685 Utilities Expense 1,925.00 690 Interest Expense 5,040.00 700 Income Summary 404,545.00 404,545.00 Joumalize the following ten transactions for Smith Heating and Electric. Remember that Smith Heating and Electric uses the Per Inventory method. HST is 13% Click on the Journal entries tab for journal paper. No journal descriptions are necessary. Dec 2019 Bem 7 B Transactions Description Source Document: Sales Invoice For the following Serviced fumaces for T. Jones Amount Terms $1,400.00 plus HST Not 30 Source Document Cash Receipts For the following Received payment on account from Tina Fey Amount $ 685.00 Terms: Cash Tendered Source Document Sales Invoice For the following Amount Terms Sold and installed furnace for B. Graham Fumace sold for $1,800, install cost of $2,200 $ 4,000.00 plus HST Net 30 10 Source Document: For the following: Amount Terms: 11 Source Document For the following Amount: Terms: Purchase Invoice Installation Inventory-purchased sheet metal fittings from R.W. Sheet Metal Credit on account $ 1,560.00 plus HST Sales Invoice installed two outlets and electric water heater for M. Jordan. Water heater sale price is $325.00 $1,010.00 plus HST Cash Receipts (M. Jordan paid in cash) 15 Source Document Memo For the following Amount: Terms Owner M. Smith took installation supplies for own use N/A $ 350.00 plus HST 15 Source Document Purchase Invoice For the following: Amount Delivery costs of installation inventory shipped to us at our expense. $108.50 plus HST Cash Tendered 15 Source Document: Cheque Copy For the following Amount Terms Payment on account to Lenny Page Plowing Cash 31 Source Document Bank Memo $172.50 For the following Amount Terma 31 Source Document For the following Amount Terms Received a charge for bank fees for December Cash Tendered Cheque Copy Purchased supplies Cash Tendered $38.50 $ 104.75 plus HST Dec 2019 Item Adjustments Interest has accrued on the mortgage but not paid. 31 Source Document Bank Memo For the following: Amount: $ Terms: N/A 31 Asset For the following: Description 575.00 31 Instructions: Ending Supplies inv Asset For the following Instructions: 31 Capital Asset For the following: Instructions: Rate: 31 Capital Asset For the following: Instructions: Rate: 311 Asset For the following: Instructions: Opening Installation Inventory Ending Installation Inventory 115 Adjustment for the period. Make any adjustments as necessary $3,900.00 120 Adjustment for the period. Prepaid insurance shows a total value remaining of $320.00. Adjust as necessary 135 Amortization adjustment for the period. Make any adjustments as necessary 20% 170 Amortization adjustment for the period. Make any adjustments as necessary. 30% 110 Financial Statement preparation. Make any adjustments as necessary $ 62,400.00 $ 43,200.00 Date 2019 General Journal Particulars Closing Entries continued Page: 3 P.R. Debit Credit 12345 Dec 821 3 4 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 16 10 17 17 18 18 19 19 20 20 21 21 22 22 23 24 23 24 25 26 27 25 26 27 28 29 30 31 28 29 30 31 32 33 33 32 34 35 34 35 36 37 36 37 38 38 39 39 40 40 41 41 42 42 43 43 44 44 Account Date 2 3 4 6 6 7 101 2019 Nov 30 General Ledger Bank Account Particulars PR Debit Credt DR Balance Account 105 Accounts Receivable Date Particulars PR Debit Cred CR 85 DR Balance 2019 1 Nov 30 2 3 4 Account 110 Installation Inventory Date Particulars PR Debt Credit DR CR Balance 2019 1 Nov 30 2 3 4 5 Account 115 Supplies Date Particular PR Deb Crede DR CR Balance 2019 Nov 30 2 3 4 5. Account 120 Prepaid Insurance Date Particules PR Debit Credit DR CR Balance 2010 Nov 30 2 3 4 5. Account 135 Shop Equipment Da Particulars PR Debit Credit DR Balance CR 1 2019 Nov 30 2 3 4 5 Account 137 Acc Amort Ship Equment Date Particulars PR DR Debit Credit CR Balance 2019 " Now 30 2 3 4 5 2 4 5 6 1 2 3 4 5 3. 3 4 5 t 2 3 5 1 2 4 2 4 2 Account 1 3. 3 4 S Account 170 Automobiles Particulars PR Date 2019 Nov 30 20 Debit Credit Date 171 Acc Amort Automobiles Particulars PR Debit Credit 2018 1 Now 30 2 3 4 5 88 DR Balance CR 88 DR CR Balance 1 2 4 S 2 3 4 5 Account 201 Accounts Payable Date Particulars PR Debit Cred 85 2019 1 Nov 30 2 3 4 DR Balance CR 1 2 3 4 5 Account Date 202 Interest Payable Particulars PR Debit Credit 85 OR CR Balance 2019 1 Nov 30 2 3 2 3 Account 205 HST Paystre Date Particulars PR Deb Credit DR Balance OR 2019 Now 30 2 3 2 3 4 4 5 Account 206 HST Recoverable Date Particulars PR Dub Crude 88 ON Balance 2019 T Nov R 30 2 2 . 4 5 4 5 210 Loan Payt Particulars PR Dubit Delt Account D 2019 Nov 30 2 3 4 $ Account D 1 2019 teov 30 85 Particulars PR DR Debt Credit ww ON 2 3. S Account Date 2019 Nov 215 30 Mortgage Payable Particulars PR Debit Credit 1 2 3 4 5 Account 301 Date DR 5 CR M. Smith, Capital Particulars PR Debit Credit Balance 55 DR CR Balance 88 2019 1 Nov 30 2 3 4 5 Account 305 M. Smith, Drawings Date Particulars PR Debit Cred 2019 1 Nov 30 2 3 4 5 Account 401 Service Revenue Date Particulars PR Debit Credit 2019 Nov 30 2 3 4 $ 88 DR CR 1 2 3 4 5 Balance 1 2 Balance 4 5542 Account 402 Sales Revenue Date Particulars PR Debit Credit DR Balance CR 2019 Nov 30 2 3 4 5 Account: 001 Purchases Cate Particulars PR Debit Cred 2010 Nov 30 2 3 4 2 3 4 5 85 DR CR Balance Account 502 Purchase Returns Date Particular PR Debit Credit ES DR CR T 2019 Nov 30 B 3 4 5. Account 500 Purchase Discounts Cate Particular PR Debi Crud on 58 2019 T 2 4. S Balance T 2 3. 4 Balance 503 Purchase Discounts Particulars PR Debit Credit Account Date 2 3 4 $ 2019 30 DR CR #5 Balance Account 504 Freight-In DR Date Particulars PR Debit Credit CR 5 Balance 2019 Novi 30 2 3 4 5 601 Advertising Expense Particulars PR Debit Credit Account Date 2019 1 Nov 30 2 3 4 5 Account Date 2019 1 Nov 30 2 3 4 606 Auto Expense Particulars PR Deb Crest 85 DR Balance CR 85 DR Balance 5 Account 620 Amort Expense Shop Equipment Date Particulars PR Debit Credit DR CR Balance 2019 Nov 30 2 3 4 5 Account 640 Amor Expense Automobile Date Particulars PR Debit Credit 55 OR CA Balance 2019 Nov 30 2 3 4 650 murance Expence Account Date 2010 Nov 2 2 4 5 Account Date 2019 2 30 Particulars PR Deb Crede DR C Balance nes Maintenance Expense Parts PR Debit Credit OR CR Balance 2 3 1 2 3 4 5 1 2 3 4 5 2 3 A 2 3 4 $ 3 4 15 Account 665 Maintenance Expense Date 2019 t Nov 30 2 3 4 S Account: Particulars PR Debit Credt 55 DR CR Balance 670 Miscelaneous Expense DR Date Particulars PR Debit Credt Balance CR 2019 1 Now 30 2 3. 4 1 2 3 4 5 1 2 4 5 $ Account 675 Rent Expence Date Particulars PR Debit Credit DR Balance CR 2019 1 Nov 30 2 3 4 B 1 2 3 4 5 Account 680 Supplies Expense DR Date Particulars PR Debit Credit CR 55 Balance 2019 1 Nov 30 2 3 4 2 3 4 5 Account sas Date Utes Expense Particulars PR Deb Credt 88 DR CR Balance 2019 1 Nov 30 2 1 2 3 4 5 5 Account 690 Interest Expense Date Particulars PR Debit Credit 88 CR Balance 2010 Nov 30 2 3 4 S 1 2 3 4 5 Account 700 come Summary Dale Particular PR Debi Cred DR OR Balance 2019 10 + Nov 30 1 2 3 4