INTRODUCING ABC CHILD CENTRE A new child centre is opening and has chosen the name ABC Child Centre. It will operate as a cooperative. The centre will open in Winnipeg on January 1, 20XX. It is a licensed facility that will have 32 pre-school (mixed classes of ages 2-5, maintain ratios of 1:8) spaces. You have been hired to keep the books for ABC Child Centre for the first calendar year (January to December). As you progress through these chapters, you will learn and do. Each chapter will introduce new concepts that you will incorporate into the regular bookkeeping activities of ABC Child Centre. Just as in any new job, each step will be explained and practiced before you are asked to apply it to ABC's activities. You will be learning on the job. All the supplies necessary for keeping the books are found within this file. All ledger accounts are printed with the appropriate account names and account numbers. Be sure that the accounts remain in the order given. This will ensure that the ledger is organized and that the accounts are easy to locate. The chart of accounts for this ledger are listed next, for easy reference. D Focus ed States) Accessibility: Unavailable -4C Mostly cloudy W I CHART OF ACCOUNTS ABC CHILD CENTRE ASSETS 101 Bank-Chequing 102 Bank-Savings 103 Bank-Fundraising 104 Term Deposits 105 Petty Cash 106 Accounts Receivable Control 107 Allowance for Doubtful Accounts 108 Grant Receivable 109 Parent Fees Receivable Prepaid Insurance LIABILITIES 201 Accounts Payable Control Salaries Payable 212 Federal Income Tax Payable LIABILITIES Accounts Payable Control Salaries Payable Federal Income Tax Payable Provincial Income Tax Payable CPP Payable 215 EI Payable Life/Health Plan Payable MCCA Dues Payable Vacation Payable 219 Unearned Revenue EQUITY I 301 Accumulated Surplus Current Earnings (Losses) REVENUES 401 Child Fees - Parent 402 Child Fees - Government Operating Grant Wage Grant 405 Equipment Grant 406 Other Grant Fundraising 415 Interest Earned 420 Other Revenue EXPENSES 1 Wages and Benefits 501 Salaries Expense 502 CPP Expense - Employer 503 El Expense - Employer 504 Life/Health Plan Expense 505 Workers Compensation Expense Program 511 Food Expense 512 Kitchen and Cleaning Supplies Expense 513 Activity Supplies Expense 514 Program Equipment & Furniture Purchases Expense 515 Program Equipment & Furniture Repairs Expense 516 Special Projects Expense 517 Other Program Expenses Office and Building 521 Office Equipment & Furniture Purchases Expense 522 Office Equipment & Furniture Repairs Expense 523 Leasehold Improvements Administrative Expenses 531 Telephone Expense 532 Postage & Stationary Expense 533 Insurance Expense 534 Accounting Fees Expense 535 Advertising Expense 536 Travel Expense 537 Staff Training/Conference Expense 538 Association Dues Computer Software and Supp I Annual Meeting Cots 541 542 Annual Return Audit Other Administrative Expense Other 551 Miscellaneous Other Expense Bad Debts Expense JANUARY TRANSACTIONS I Using the General Journal provided you will record the transactions for the first week of January as listed below. The first General Journal Sheet will be titled GJ1 and you will continue numbering the journal pages as you start a new page (GJ2, GJ3 etc). All entries should be recorded in the proper format with suitable explanations. As you proceed further in this case study you will be referring to these journal pages, so keep them handy. (a) Now begin recording these transactions in the General Journal 20XX Jan 2 ABC Child Centre began business with a onetime start up grant of $50,000 from the province. Jan 2 Issues Cheque #1 for advertising in the local newspaper - $110.00 Jan 2 Bought office supplies (postage and stationary), $100.00. Issued Cheque #2 Jan 2 Issued Cheque #3 for installation of a new phone line - $75.00 Jan 2 Bought resources for programs food $120.00, activity supplies $325.00, program equipment $2,200. Issued cheque #4 for the entire amount (tip-each expense account will be a separate debit and the whole amount will be credited to bank-chequing). Jan 3 Information: Staff were hired in December, their start date is Jan 12, and payroll will be bi- weekly: Director - Sally Ashton (ECEII) $30 per hour (full time) Staff Kelsey Stewart (ECEII) $20 per hour (full time) out of date. Please sig 1 2 UN MATEMATEN . Jan 3 Information: Staff were hired in December, their start date is Jan 12, and payroll will be bi- weekly: Director-Sally Ashton (ECEIII) $30 per hour (full time) Staff - Kelsey Stewart (ECE) $20 per hour (full time) Staff -Stephanie Blight (ECEII) $20 per hour (full time) Staff - Paige Lewis (ECEII) $20 per hour (full time) Staff Nicole Jones (CCA) $16 per hour (full time) (b) entries to the General Ledger accounts, the pages are provided with this assignment. (All ledger accounts for ABC Child Centre should be kept separate from your practice exercise material and should be neatly arranged in a binder or file so you can access them easily). (c) After all posting is complete, prepare a trial balance on January 2 using the trial balance form included with this assignment. If your trial balance does not balance on the first attempt, use the steps for locating errors as described in Chapter 3. General Joumall Page Date Account Titles and Explanation P.R. Debit Credit Student ABC Child Centre General Ledger GENERAL LEDGER Bank - Chequing ACCOUNT NO. 101 Date Explanation P.R. DEBIT CREDIT BALANCE Grant Other ACCOUNT NO. 406 Date Explanation P.R. DEBIT CREDIT BALANCE Food Expense ACCOUNT NO. 511 Explanation P.R. DEBIT CREDIT Date BALANCE Activate Go to Set Food Expense ACCOUNT NO. 511 Date Explanation P.R. DEBIT CREDIT BALANCE Activity Supplies Expense ACCOUNT NO. 513 Date Explanation P.R. DEBIT CREDIT BALANCE Program Equipment & Furniture Purchases Expense ACCOUNT NO. 514 DEBIT BALANCE CREDIT P.R. Explanation Date ACCOUNT NO. 531 Telephone Expense DEBIT P.R. CREDIT BALANCE Explanation Date ACCOUNT NO. 532 Postage & Stationary Expense P.R. DEBIT CREDIT BALANCE Date Explanation ACCOUNT NO. 535 Advertising Expense P.R. DEBIT CREDIT BALANCE Date Explanation Advate wi CROSS Advertising Expense 1 ACCOUNT NO. 535 Date Explanation P.R. DEBIT CREDIT BALANCE ACCOUNT NO. Date Explanation P.R. DEBIT CREDIT BALANCE ACCOUNT NO. Date Explanation P.R. DEBIT CREDIT BALANCE ABC Child Centre Trial Balance I Account Number and Title Debit Credit