Intro:

Mountain View sells outdoor sporting equipment. You have been working for the company since its inception a few years ago and have been promoted to be their accounting manager. They use the perpetual inventory system and use FIFO to determine value for the inventory. HST is charged on both purchases and sales at 13%.

Opening Balances for the month of September are as follows:

Notes relating to Balances:

The Chart of Accounts (General Ledger #) is as followed:

Record the transactions for the month in the Special Journals and General Journal as applicable.

Notes:

- Mountain View posts daily to the A/R and A/P subsidiary ledger accounts and to the general ledger accounts for any amounts entered in the "Other" column.

- General Journal entries are posted daily

- HST is charged on both purchases and sales at 13%. Calculate and record HST on each sale and purchase.

- Use Inventory Valuation chart to calculate inventory values (Perpetual Inventory Systems, FIFO). Cost of Goods Sold for each transaction is derived from this chart. Update this chart for EVERY SALE and EVERY PURCHASE. note that discounts on inventory purchases and returns will also need to be updated.

- Both the Payroll and HST remitances will use the opening balances from the beginning of the month.

Below are the transactions:

Here are the templates for ledgers.

Special Journals

General Journal

Accounts Receivable Subledger

Accounts Payable Subledger

General Ledger (You can find the account names and General Ledger #'s along with opening balances above)

Inventory Valuation Header

Assets Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Office Supplies Equipment Accumulated Depreciation Mountain View Balance Sheet As at September 30, 2019 Liabilities $5,782 Accounts Payable 15,400 HST Payable -800 HST Recoverable 14,000 CPP Payable 1,200 EI Payable 163,000 Income Tax Payable -19,000 Bank Loan Total Liabilities Owners' Equity Smith, Capital $11,300 8,100 -3,000 700 3001 2,100 15,000 $34,500 $145,082 Total Assets $179,582Total Liabilities & Owners' Equity $179,582 Customers and balances Woodsman Bill Outback Karen Moose Time Hiker Mike Dark Forest Total $1,600 $8,200 $3.3001 $1,800 $500 $15,400 Suppliers and Balances Outdoor T-Shirts Hiking Caps Camping Retailers Total $2,000 $5,800 $3,500 $11,300 The inventory figure includes 280 units purchased at $50 each. Account # Account # 101 105 400 405 410 420 110 115 120 125 130 140 145 Account Description ASSETS Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Office Supplies Equipment Accumulated Depreciation LIABILITIES Accounts Payable Interest Payable HST Payable HST Recoverable CPP Payable El Payable Income Tax Payable Salaries Payable Unearned Revenue Bank Loan OWNER'S EQUITY Capital Account Owner's Drawings Income Summary Account Description REVENUE Sales Revenue Sales Discounts Sales Returns and Allowances Interest Revenue EXPENSES Cost of Goods Sold Employee Benefits Expense Depreciation Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Salaries Expense Bank Charges Expense Maintenance Expense Entertainment Expense 200 205 500 510 515 520 525 530 535 540 545 550 555 210 215 220 225 230 235 240 245 300 305 315 Oct 1 Oct 1 Oct 1 Oct 2 Oct 3 Oct 4 Oct 5 Oct 5 Oct 7 Oct 7 Oct 8 Oct 9 Oct 10 Oct 12 Oct 13 Oct 14 Oct 14 Oct 15 Oct 15 Oct 16 Oct 16 Bought inventory from Outdoor T-Shirts on account, invoice #5455; 340 units at $52 each plus HST. Terms of the purchase were 4/10, net 30. Update the inventory table after each purchase. Paid $1,800 for monthly rent with cheque #142. Established a petty cash fund for $500 with cheque #143. Sold goods to Outback Karen, 330 units at $90 each plus HST with invoice #4565. The invoice terms were 5/10, net 30. Update the inventory table after each sale. Purchased a one year insurance policy from Ultimate Insurance with cheque #144 for $2.400. The owner invested $8,000 cash into the company. Paid $800 with cheque #145 to Outdoor T-Shirts for an amount owing from last month. Bought inventory from Camping Retailers with cheque #146, 180 units at $53 per unit plus HST. Outback Karen returned 40 units from the purchase on October 2. They were ordered incorrectly. Use the cost from the October 1 purchase to put the items back in inventory. Returned 30 defective units to Camping Retailers and received cash. Record this in the general journal. Received $900 from Woodsman Bill for a sale on account last month. Made a cash sale to Woodsman Bill, 70 units at $95 per unit plus HST. Outback Karen paid invoice #4565 on time and took advantage of the early payment discount. The owner went to the bank and received a $5,000 loan. Purchased new equipment with cheque #147 for $5,000 plus HST. Paid $3,000 with cheque #148 to Hiking Caps for an amount owing from last month. Remitted the balance of CPP, EI and income tax owing from the beginning of the month to the receiver general with cheque #149. Paid the amount owing to Outdoor T-Shirts on invoice #5455 with cheque #150. Prepared the payroll for the first half of the month. Gross pay is $7,400, CPP is $366, EI is $139 and income tax is $1,480. The employer matches CPP contributions and pays 1.4 times the El deduction. Use the general journal to record this. The cheque will be prepared later. Purchased office supplies for $500 plus HST with cheque #151 from Staplers Supplies. Paid the employees the net pay from the payroll transaction on October 15. For simplicity, use cheque #152 for the total amount. Received $2,200 from Outback Karen for a sale last month. Purchased inventory on account from Camping Retailers. Invoice #6235; 180 units at $50 each plus HST. Terms of purchase were 2/10, net 30. Sold goods to Hiker Mike on account. Sold 80 units at $95 per unit plus HST with invoice #4566. The invoice terms were 5/10, net 30. Purchased inventory on account from Hiking Caps. Invoice #4528; 90 units at $52 each plus HST. Terms of purchase were 2/10, net 30. Paid Camping Retailers the amount owing from the purchase on October 18 and took advantage of the early payment discount. Paid with cheque #153. Update the inventory table to apply the discount as a reduction to the per unit inventory value. Sold goods to Moose Time on account. Sold 450 units at $90 per unit plus HST with invoice #4567. The invoice terms were 5/10, net 30. Received $600 cash from Moose Time as a deposit for products that will be delived next month. The owner withdrew $2,300 cash from the business with cheque #154 for personal use. Hiker Mike paid the amount owing from the sale on October 20 and took advantage of the early payment discount. The petty cash is replenished and increased to $600 with cheque #155. Receipts in the petty cash box are: office supplies $80 plus HST, maintenance expense for $160 plus HST and entertainment expense for $90 plus HST. Sold goods to Moose Time for 55 units at $100 per unit plus HST. Moose Time paid cash. Prepared the payroll for the second half of the month. Gross pay is $7,700, CPP is $381, EI is $145 and income tax is $1,540. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later. Dark Forest is unable to pay the amount owing. The full amount owing is written off using the AFDA account. Remitted the HST owing to the receiver general with cheque #156. Use the balances from the HST accounts from the beginning of the month Oct 17 Oct 18 Oct 20 Oct 25 Oct 26 Oct 26 Oct 27 Oct 29 Oct 29 Oct 30 Oct 30 Oct 31 Oct 31 Oct 31 Sales Journal Sales (CR) Page 4 COGS / Inventory (DR/CR) Date Account Invoice # HST Payable (CR) Accounts Receivable (DR) Purchases Journal Office Supplies (DR) Page 7 Accounts Payable (CR) Date Account Invoice # PR Inventory (DR) Other (DR) HST Recoverable (DR) Cash Receipts Sales Discounts (DR) Accounts Receivable (CR) Page 9 COGS / Inventory (DR/CR) Date Account PR Cash (DR) Sales (CR) HST Payable (CR) Other (CR) Page 6 Cash Payments Accounts Payable (DR) | Date Account Cha# 1 PR Other (DR) HST Recoverable (DR) Inventory (DR) Inventory (CR) Cash (CR) General Journal Account Title and Explanation Page 3 CR Date I PR DR Accounts Receivable Sub ledger Accounts Account: Woodsman Bill Date Description Opening Balance PR DR CR Balance (DR or CR) 1,600.00 DR Account: Date Outback Karen Description Opening Balance PR DR CR Balance (DR or CR) 8,200.00 DR Account: Date Moose Time Description Opening Balance PR DR CR Balance (DR or CR) 3,300.00 DR Account: Date Hiker Mike Description Opening Balance PR DR CR Balance (DR or CR) 1,800.00 DR Account: Date Dark Forest Description Opening Balance PR DR Balance (DR or CR) 500.00 DR Accounts Receivable Subledger Totals Report Customer Balance Woodsman Bill Outback Karen Moose Time Hiker Mike Dark Forest Total Accounts Payable Sub ledger Accounts Account: Outdoor T-Shirts Date Description Opening Balance PR DR CR Balance (DR or CR) 2,000.00 CR Account: Date Hiking Caps Description Opening Balance PR DR CR Balance (DR or CR) 5,800.00 CR Account: Date Camping Retailers Description Opening Balance PR DR CR Balance (DR or CR) 3,500.00 CR Accounts Receivable Subledger Totals Report Supplier Balance Outdoor T-Shirts Hiking Caps Camping Retailers Total General Ledger Accounts Account: "Account name" Date Description PR Opening Balance | DR CR GL No: Balance (DR or CR) 0.00 DR Date Purchases Unit Cost Sales Unit Cost Quantity Value Quantity | Value | Quantity 280 Balance Unit Cost 50 Value 14,000 Assets Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Office Supplies Equipment Accumulated Depreciation Mountain View Balance Sheet As at September 30, 2019 Liabilities $5,782 Accounts Payable 15,400 HST Payable -800 HST Recoverable 14,000 CPP Payable 1,200 EI Payable 163,000 Income Tax Payable -19,000 Bank Loan Total Liabilities Owners' Equity Smith, Capital $11,300 8,100 -3,000 700 3001 2,100 15,000 $34,500 $145,082 Total Assets $179,582Total Liabilities & Owners' Equity $179,582 Customers and balances Woodsman Bill Outback Karen Moose Time Hiker Mike Dark Forest Total $1,600 $8,200 $3.3001 $1,800 $500 $15,400 Suppliers and Balances Outdoor T-Shirts Hiking Caps Camping Retailers Total $2,000 $5,800 $3,500 $11,300 The inventory figure includes 280 units purchased at $50 each. Account # Account # 101 105 400 405 410 420 110 115 120 125 130 140 145 Account Description ASSETS Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Office Supplies Equipment Accumulated Depreciation LIABILITIES Accounts Payable Interest Payable HST Payable HST Recoverable CPP Payable El Payable Income Tax Payable Salaries Payable Unearned Revenue Bank Loan OWNER'S EQUITY Capital Account Owner's Drawings Income Summary Account Description REVENUE Sales Revenue Sales Discounts Sales Returns and Allowances Interest Revenue EXPENSES Cost of Goods Sold Employee Benefits Expense Depreciation Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Salaries Expense Bank Charges Expense Maintenance Expense Entertainment Expense 200 205 500 510 515 520 525 530 535 540 545 550 555 210 215 220 225 230 235 240 245 300 305 315 Oct 1 Oct 1 Oct 1 Oct 2 Oct 3 Oct 4 Oct 5 Oct 5 Oct 7 Oct 7 Oct 8 Oct 9 Oct 10 Oct 12 Oct 13 Oct 14 Oct 14 Oct 15 Oct 15 Oct 16 Oct 16 Bought inventory from Outdoor T-Shirts on account, invoice #5455; 340 units at $52 each plus HST. Terms of the purchase were 4/10, net 30. Update the inventory table after each purchase. Paid $1,800 for monthly rent with cheque #142. Established a petty cash fund for $500 with cheque #143. Sold goods to Outback Karen, 330 units at $90 each plus HST with invoice #4565. The invoice terms were 5/10, net 30. Update the inventory table after each sale. Purchased a one year insurance policy from Ultimate Insurance with cheque #144 for $2.400. The owner invested $8,000 cash into the company. Paid $800 with cheque #145 to Outdoor T-Shirts for an amount owing from last month. Bought inventory from Camping Retailers with cheque #146, 180 units at $53 per unit plus HST. Outback Karen returned 40 units from the purchase on October 2. They were ordered incorrectly. Use the cost from the October 1 purchase to put the items back in inventory. Returned 30 defective units to Camping Retailers and received cash. Record this in the general journal. Received $900 from Woodsman Bill for a sale on account last month. Made a cash sale to Woodsman Bill, 70 units at $95 per unit plus HST. Outback Karen paid invoice #4565 on time and took advantage of the early payment discount. The owner went to the bank and received a $5,000 loan. Purchased new equipment with cheque #147 for $5,000 plus HST. Paid $3,000 with cheque #148 to Hiking Caps for an amount owing from last month. Remitted the balance of CPP, EI and income tax owing from the beginning of the month to the receiver general with cheque #149. Paid the amount owing to Outdoor T-Shirts on invoice #5455 with cheque #150. Prepared the payroll for the first half of the month. Gross pay is $7,400, CPP is $366, EI is $139 and income tax is $1,480. The employer matches CPP contributions and pays 1.4 times the El deduction. Use the general journal to record this. The cheque will be prepared later. Purchased office supplies for $500 plus HST with cheque #151 from Staplers Supplies. Paid the employees the net pay from the payroll transaction on October 15. For simplicity, use cheque #152 for the total amount. Received $2,200 from Outback Karen for a sale last month. Purchased inventory on account from Camping Retailers. Invoice #6235; 180 units at $50 each plus HST. Terms of purchase were 2/10, net 30. Sold goods to Hiker Mike on account. Sold 80 units at $95 per unit plus HST with invoice #4566. The invoice terms were 5/10, net 30. Purchased inventory on account from Hiking Caps. Invoice #4528; 90 units at $52 each plus HST. Terms of purchase were 2/10, net 30. Paid Camping Retailers the amount owing from the purchase on October 18 and took advantage of the early payment discount. Paid with cheque #153. Update the inventory table to apply the discount as a reduction to the per unit inventory value. Sold goods to Moose Time on account. Sold 450 units at $90 per unit plus HST with invoice #4567. The invoice terms were 5/10, net 30. Received $600 cash from Moose Time as a deposit for products that will be delived next month. The owner withdrew $2,300 cash from the business with cheque #154 for personal use. Hiker Mike paid the amount owing from the sale on October 20 and took advantage of the early payment discount. The petty cash is replenished and increased to $600 with cheque #155. Receipts in the petty cash box are: office supplies $80 plus HST, maintenance expense for $160 plus HST and entertainment expense for $90 plus HST. Sold goods to Moose Time for 55 units at $100 per unit plus HST. Moose Time paid cash. Prepared the payroll for the second half of the month. Gross pay is $7,700, CPP is $381, EI is $145 and income tax is $1,540. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later. Dark Forest is unable to pay the amount owing. The full amount owing is written off using the AFDA account. Remitted the HST owing to the receiver general with cheque #156. Use the balances from the HST accounts from the beginning of the month Oct 17 Oct 18 Oct 20 Oct 25 Oct 26 Oct 26 Oct 27 Oct 29 Oct 29 Oct 30 Oct 30 Oct 31 Oct 31 Oct 31 Sales Journal Sales (CR) Page 4 COGS / Inventory (DR/CR) Date Account Invoice # HST Payable (CR) Accounts Receivable (DR) Purchases Journal Office Supplies (DR) Page 7 Accounts Payable (CR) Date Account Invoice # PR Inventory (DR) Other (DR) HST Recoverable (DR) Cash Receipts Sales Discounts (DR) Accounts Receivable (CR) Page 9 COGS / Inventory (DR/CR) Date Account PR Cash (DR) Sales (CR) HST Payable (CR) Other (CR) Page 6 Cash Payments Accounts Payable (DR) | Date Account Cha# 1 PR Other (DR) HST Recoverable (DR) Inventory (DR) Inventory (CR) Cash (CR) General Journal Account Title and Explanation Page 3 CR Date I PR DR Accounts Receivable Sub ledger Accounts Account: Woodsman Bill Date Description Opening Balance PR DR CR Balance (DR or CR) 1,600.00 DR Account: Date Outback Karen Description Opening Balance PR DR CR Balance (DR or CR) 8,200.00 DR Account: Date Moose Time Description Opening Balance PR DR CR Balance (DR or CR) 3,300.00 DR Account: Date Hiker Mike Description Opening Balance PR DR CR Balance (DR or CR) 1,800.00 DR Account: Date Dark Forest Description Opening Balance PR DR Balance (DR or CR) 500.00 DR Accounts Receivable Subledger Totals Report Customer Balance Woodsman Bill Outback Karen Moose Time Hiker Mike Dark Forest Total Accounts Payable Sub ledger Accounts Account: Outdoor T-Shirts Date Description Opening Balance PR DR CR Balance (DR or CR) 2,000.00 CR Account: Date Hiking Caps Description Opening Balance PR DR CR Balance (DR or CR) 5,800.00 CR Account: Date Camping Retailers Description Opening Balance PR DR CR Balance (DR or CR) 3,500.00 CR Accounts Receivable Subledger Totals Report Supplier Balance Outdoor T-Shirts Hiking Caps Camping Retailers Total General Ledger Accounts Account: "Account name" Date Description PR Opening Balance | DR CR GL No: Balance (DR or CR) 0.00 DR Date Purchases Unit Cost Sales Unit Cost Quantity Value Quantity | Value | Quantity 280 Balance Unit Cost 50 Value 14,000