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76,000 Initech 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. Initech Inc. showed the following alphabetized post-closing trial balance at February 28, 2014. Account Balance Accounts payable 126,500 Accounts receivable Accumulated depreciation, building, 2,500 Building. 11,500 Cash 178,500 Retained earnings 50,000 Share capital 87,000 Note: There were 1,000 shares issued and outstanding on February 28, 2014. Depreciation on the building is $700 per month. Initech Inc.'s salaries expense is a total of $900 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from March : Deposit slip (March 1) Purchase Order 3849 Inter-Office Memo 1 Receipt 7618 Receipt 7617 Inter-Office Memo 2 Purchase Order 6585 Invoice 3381 Invoice 8579 Receipt from Susan's Diner Raintree Advertising Bill Inter-Office Memo 3 Invoice 3382 Inter-Office Memo 4 Receipt 9080 Invoice 3383 Receipt 7619 Customer Statement for Decker Co Inter-Office Memo 5 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). Page Gj1 F Debit Credit 25,000 25,000 Page GJ2 F Debit Credit 4,392 4,392 General Journal Date Account/Explanation 1/Mar Cash Share Capital shares issued 1/Mar Prepaid Insurance Accounts Payable equipment ordered 1/Mar Prepaid Insurance Cash 88 19,200 General Journal Date Account/Explanation 9/Mar Accounts Receivable Consulting Revenue Earned service decker co 6/Mar Repair Expense Cash made payments to repair expense 15/Mar Food and Drinks Expense Cash Restaurant expenses Cash Accounts Receivable 88 39 10,800 39 25,000 25,000 1/Mar Cash Unearned Consulting Revenue consulting service Accounts Receivable Consulting Revenue Earned. consulting revenue 7,040 23/Mar Utilities Expense Accounts Payable 7,040 General Journal Account/Explanation Page GJ4 F Debit Credit Date Page GJ3 F Debit Credit 9,00 9,000 800 800 General Journal Date Account/Explanation 25/Mar Salaries Expense Cash salaries due 29/Mar Cash Consulting Revenue Earned Cash record 29/Mar Advertising Expense Accounts Payable cash paid 31/Mar Accounts Payable Cash cash paid 31/Mar 7,320 7,320 17,040 7,040 31/Mar Accumulated Depreciation, Equipment Equipment depreciation on newly purchase 31/Mar Rent Earned Prepaid Rent rent for the month 31/Mar Dividends Cash dividend paid in cash Deposit slip (March 1) X TrexCo 7295 29 Street Vancouver, British Columbia HSR 6V3 Inter-Office Memo 1 Date: March 1, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Receipt 7617 Initech Inc. Date: March 1, 2014 9914 47 Avenue Receipt No.: 7617 Vancouver, British Columbia X1D 3P4 Date: March 1, 2014 Account No.: 4227 Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Please write a cheque to Sundown Co in the amount of $10,800. This will pay for insurance for the next 12 months. Customer: BeamerCo 2835 Exchange Trail Vancouver, British Columbia Y2A 4N3 Rep: Mary Graham Thanks Travis Goodall Cash Qty Unit Price Total Description 10 Ongoing consulting regarding security, per month. To begin immediately and end December 31, 2014. Cheques (re: 1,000 shares issued today) $2,500 $25,000 $25,000 Total Deposits $25,000 Total: $25,000 Paid: $25,000 : Balance Due: $0 Purchase Order 6585 x Initech Inc. Date: March 2, 2014 9914 47 Avenue PO No.: 6585 Vancouver, British Columbia X1D 3P4 Vendor: Ship To: George's Furniture Initech Inc 3747 52 Avenue 9914 47 Avenue Vancouver, British Columbia Vancouver, British Columbia B1P APS X1D 3P4 B1P 8P9 Purchase Order 3849 Initech Inc Date: March 5, 2014 Invoice 8570 x 9914 47 Avenue PO No.: 3849 George's Furniture Date March 4, 2014 Vancouver, British Columbia 3747 52 Avenue Invoice No.: 8579 X1D 3P4 Vancouver, British Columbia Vendor: Ship To: BeamerCo Initech Inc. Customer 3336 67 Street 9914 47 Avenue Initech Inc Rep: Travis Goodall Vancouver, British Columbia 9914 47 Avenue Vancouver, British Columbia W5C 711 PO No.: 6585 Vancouver, British Columbia X1D 3P4 X1D 3P4 Item Ordered Description Unit Total Qty Description Unit Total No. Price Price SR28 80 Product training to begin on $88 $7,040 1 Furniture as ordered on March 2, 2014 $19,200 $19,200 April 1, 2014, per hour Estimated useful life: 10 years Estimated residual value: 2,880. Description Item Ordered No. FUR353 1 Unit Total Price $19,200 $19,200 Furniture Estimated useful life : 10 years. Estimated residual value $2,880 Sub- Total: Shipping 0 Total: $7,040 Sub- Total: Sub- Total $19.200 Freight 0 Total: $19,200 $19 200 Shipping x Inter-Office Memo 2 Date: March 9, 2014 Invoice No.: 3381 Receipt 7818 Initech Inc. Date: March 6, 2014 9914 47 Avenue Vancouver, British Columbia Receipt No.: 7818 X1D 3P4 Customer BetaCo Rep: Frank Lovens 4993 70 Avenue Vancouver, British Columbia Invoice No.: Verbal VBZ 907 Date: March 6, 2014 From: Travis Goodall To: Subject: New Hire Office Assistant Invoice 3381 Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Customer Decker Co 9712 78 Avenue Vancouver, British Columbia V4L 1T2 Rep: Jan Taylor PO No.: Verbal Kent Brennan has accepted our job offer and will begin employment with us on April 1. Please get everything ready for that date. Thanks, Travis Goodal Qty Description Qty Description 1 Troubleshooting, per hour 1 Unit Price Total $88 $88 Unit Total Price $61 $4,392 72 System wide testing on new program, per hour Total: $98 Paid: $88 Balance Due: $0 Sub- Total: $4,392 Freight: 0 Total: $4,392 X Inter-Office Memo 3 Date: March 21, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Receipt from Susan's Diner Susan's Diner 234 Falton Road Vancouver, British Columbia 415-2887 Check #: 460212 Raintree Advertising BH Raintree Advertising Customer Name: Initech Inc. 7863 Franklin Place Account No.: 7069 Vancouver, British Columbia W3J 605 Service Period: 01/Mar - 21/Mar Invoice Date: March 21, 2014 Previous Charges Previous balance forward $800 Payment on February 28 $-800 Total previous charges $0 Please prepare a cheque to George's Furniture in the amount of $19,200. This will pay for the invoice received on March 4. Thanks, Travis Goodall Server: Carter Table: 31 Date: March 15, 2014 Time: 12:57 1 Coffee 1 Steak sandwich 1 Club sandwich 2 Hamburger 3.00 13.00 9.00 14.00 Total: $39.00 Cash Received: $39.00 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $250 $250 $300 $800 Thank you for dining with us! Amount Due: $800 Inter-Office Memo 4 Invoice 3382 Initech Inc. Date: March 23, 2014 9914 47 Avenue Invoice No.: 3382 Vancouver, British Columbia X1D 3P4 Date: March 25, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Customer: South Co 2682 Elm Trail Vancouver, British Columbia W4S 9Q8 Rep: Dallas Glynn PO No.: Verbal Please prepare a cheque for salaries owed to employees for the period March 1 to March 25. Thanks, Travis Goodall Qty Description Unit Price Total 80 System wide testing on new program, per hour $88 $7,040 Sub- Total: $7,040 Freight: 0 Total: $7,040 Invoice 3383 Initech Inc. Date: March 29, 2014 9914 47 Avenue Invoice No.: 3383 Vancouver, British Columbia X1D 3P4 Customer: Willaby Co 9773 Falton Crescent Vancouver, British Columbia V6H 9X9 Rep: Judith Grimm PO No.: Verbal Receipt 9080 John's Repair Services Date: March 29, 2014 4320 45 Avenue Vancouver, British Columbia Receipt No.: 9080 C2A 918 Qty Description Unit Total Price $61 $2,440 Customer: Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Rep: Travis Goodall 40 System wide testing on new program, per hour $61 $4,880 Qty Description 1 Repairs to building Unit Price Total $800 $800 80 Training on new computer software, per hour Total: $800 Paid: $800 Balance Due: $0 $7,320 Sub- Total: Freight: 0 Receipt 7619 Initech Inc. Date: March 31, 2014 Invoice 3383 X 9914 47 Avenue Initech Inc. Receipt No.: 7619 Date: March 29, 2014 Vancouver, British Columbia 9914 47 Avenue X1D 3P4 Invoice No.: 3383 Vancouver, British Columbia X1D 3P4 Customer: South Co Customer: 2682 Elm Trail Rep: Dallas Glynn Willaby Co Rep: Judith Grimm 9773 Falton Crescent Vancouver, British Columbia Vancouver, British Columbia PO No.: Verbal W4S 998 V6H 9X9 Qty Description Unit Price Total Qty Description Unit Total Balance forward $0 Price 1 40 System wide testing on new program, per $61 $2,440 Invoice #3382 (on March 23, 2014) $7,040 $7,040 hour 80 Training on new computer software, per $61 $4,880 hour Total: $7,040 Paid: $7,040 Sub- Balance Due: $0 $7,320 Total: Freight: 0 Inter-Office Memo 5 Customer Statement for Decker Co Initech Inc. 9914 47 Avenue Vancouver, British Columbia Date: March 31, 2014 X1D 3P4 Date: March 31, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Customer: Decker Co 9712 78 Avenue Vancouver, British Columbia V4L 1T2 Please prepare a cheque to pay the Raintree Advertising bill received on March 21. Thanks, Travis Goodall Balance Date Description March 1 Balance forward March 9 Invoice #3381 Amount $0 $4,392 $4,392 Amount Due: $4,392 Inter-Office Memo 6 - Date: March 31, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.37 per share to shareholders of record on today's date. Thanks, Travis Goodall 76,000 Initech 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. Initech Inc. showed the following alphabetized post-closing trial balance at February 28, 2014. Account Balance Accounts payable 126,500 Accounts receivable Accumulated depreciation, building, 2,500 Building. 11,500 Cash 178,500 Retained earnings 50,000 Share capital 87,000 Note: There were 1,000 shares issued and outstanding on February 28, 2014. Depreciation on the building is $700 per month. Initech Inc.'s salaries expense is a total of $900 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from March : Deposit slip (March 1) Purchase Order 3849 Inter-Office Memo 1 Receipt 7618 Receipt 7617 Inter-Office Memo 2 Purchase Order 6585 Invoice 3381 Invoice 8579 Receipt from Susan's Diner Raintree Advertising Bill Inter-Office Memo 3 Invoice 3382 Inter-Office Memo 4 Receipt 9080 Invoice 3383 Receipt 7619 Customer Statement for Decker Co Inter-Office Memo 5 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). Page Gj1 F Debit Credit 25,000 25,000 Page GJ2 F Debit Credit 4,392 4,392 General Journal Date Account/Explanation 1/Mar Cash Share Capital shares issued 1/Mar Prepaid Insurance Accounts Payable equipment ordered 1/Mar Prepaid Insurance Cash 88 19,200 General Journal Date Account/Explanation 9/Mar Accounts Receivable Consulting Revenue Earned service decker co 6/Mar Repair Expense Cash made payments to repair expense 15/Mar Food and Drinks Expense Cash Restaurant expenses Cash Accounts Receivable 88 39 10,800 39 25,000 25,000 1/Mar Cash Unearned Consulting Revenue consulting service Accounts Receivable Consulting Revenue Earned. consulting revenue 7,040 23/Mar Utilities Expense Accounts Payable 7,040 General Journal Account/Explanation Page GJ4 F Debit Credit Date Page GJ3 F Debit Credit 9,00 9,000 800 800 General Journal Date Account/Explanation 25/Mar Salaries Expense Cash salaries due 29/Mar Cash Consulting Revenue Earned Cash record 29/Mar Advertising Expense Accounts Payable cash paid 31/Mar Accounts Payable Cash cash paid 31/Mar 7,320 7,320 17,040 7,040 31/Mar Accumulated Depreciation, Equipment Equipment depreciation on newly purchase 31/Mar Rent Earned Prepaid Rent rent for the month 31/Mar Dividends Cash dividend paid in cash Deposit slip (March 1) X TrexCo 7295 29 Street Vancouver, British Columbia HSR 6V3 Inter-Office Memo 1 Date: March 1, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Receipt 7617 Initech Inc. Date: March 1, 2014 9914 47 Avenue Receipt No.: 7617 Vancouver, British Columbia X1D 3P4 Date: March 1, 2014 Account No.: 4227 Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Please write a cheque to Sundown Co in the amount of $10,800. This will pay for insurance for the next 12 months. Customer: BeamerCo 2835 Exchange Trail Vancouver, British Columbia Y2A 4N3 Rep: Mary Graham Thanks Travis Goodall Cash Qty Unit Price Total Description 10 Ongoing consulting regarding security, per month. To begin immediately and end December 31, 2014. Cheques (re: 1,000 shares issued today) $2,500 $25,000 $25,000 Total Deposits $25,000 Total: $25,000 Paid: $25,000 : Balance Due: $0 Purchase Order 6585 x Initech Inc. Date: March 2, 2014 9914 47 Avenue PO No.: 6585 Vancouver, British Columbia X1D 3P4 Vendor: Ship To: George's Furniture Initech Inc 3747 52 Avenue 9914 47 Avenue Vancouver, British Columbia Vancouver, British Columbia B1P APS X1D 3P4 B1P 8P9 Purchase Order 3849 Initech Inc Date: March 5, 2014 Invoice 8570 x 9914 47 Avenue PO No.: 3849 George's Furniture Date March 4, 2014 Vancouver, British Columbia 3747 52 Avenue Invoice No.: 8579 X1D 3P4 Vancouver, British Columbia Vendor: Ship To: BeamerCo Initech Inc. Customer 3336 67 Street 9914 47 Avenue Initech Inc Rep: Travis Goodall Vancouver, British Columbia 9914 47 Avenue Vancouver, British Columbia W5C 711 PO No.: 6585 Vancouver, British Columbia X1D 3P4 X1D 3P4 Item Ordered Description Unit Total Qty Description Unit Total No. Price Price SR28 80 Product training to begin on $88 $7,040 1 Furniture as ordered on March 2, 2014 $19,200 $19,200 April 1, 2014, per hour Estimated useful life: 10 years Estimated residual value: 2,880. Description Item Ordered No. FUR353 1 Unit Total Price $19,200 $19,200 Furniture Estimated useful life : 10 years. Estimated residual value $2,880 Sub- Total: Shipping 0 Total: $7,040 Sub- Total: Sub- Total $19.200 Freight 0 Total: $19,200 $19 200 Shipping x Inter-Office Memo 2 Date: March 9, 2014 Invoice No.: 3381 Receipt 7818 Initech Inc. Date: March 6, 2014 9914 47 Avenue Vancouver, British Columbia Receipt No.: 7818 X1D 3P4 Customer BetaCo Rep: Frank Lovens 4993 70 Avenue Vancouver, British Columbia Invoice No.: Verbal VBZ 907 Date: March 6, 2014 From: Travis Goodall To: Subject: New Hire Office Assistant Invoice 3381 Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Customer Decker Co 9712 78 Avenue Vancouver, British Columbia V4L 1T2 Rep: Jan Taylor PO No.: Verbal Kent Brennan has accepted our job offer and will begin employment with us on April 1. Please get everything ready for that date. Thanks, Travis Goodal Qty Description Qty Description 1 Troubleshooting, per hour 1 Unit Price Total $88 $88 Unit Total Price $61 $4,392 72 System wide testing on new program, per hour Total: $98 Paid: $88 Balance Due: $0 Sub- Total: $4,392 Freight: 0 Total: $4,392 X Inter-Office Memo 3 Date: March 21, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Receipt from Susan's Diner Susan's Diner 234 Falton Road Vancouver, British Columbia 415-2887 Check #: 460212 Raintree Advertising BH Raintree Advertising Customer Name: Initech Inc. 7863 Franklin Place Account No.: 7069 Vancouver, British Columbia W3J 605 Service Period: 01/Mar - 21/Mar Invoice Date: March 21, 2014 Previous Charges Previous balance forward $800 Payment on February 28 $-800 Total previous charges $0 Please prepare a cheque to George's Furniture in the amount of $19,200. This will pay for the invoice received on March 4. Thanks, Travis Goodall Server: Carter Table: 31 Date: March 15, 2014 Time: 12:57 1 Coffee 1 Steak sandwich 1 Club sandwich 2 Hamburger 3.00 13.00 9.00 14.00 Total: $39.00 Cash Received: $39.00 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $250 $250 $300 $800 Thank you for dining with us! Amount Due: $800 Inter-Office Memo 4 Invoice 3382 Initech Inc. Date: March 23, 2014 9914 47 Avenue Invoice No.: 3382 Vancouver, British Columbia X1D 3P4 Date: March 25, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Customer: South Co 2682 Elm Trail Vancouver, British Columbia W4S 9Q8 Rep: Dallas Glynn PO No.: Verbal Please prepare a cheque for salaries owed to employees for the period March 1 to March 25. Thanks, Travis Goodall Qty Description Unit Price Total 80 System wide testing on new program, per hour $88 $7,040 Sub- Total: $7,040 Freight: 0 Total: $7,040 Invoice 3383 Initech Inc. Date: March 29, 2014 9914 47 Avenue Invoice No.: 3383 Vancouver, British Columbia X1D 3P4 Customer: Willaby Co 9773 Falton Crescent Vancouver, British Columbia V6H 9X9 Rep: Judith Grimm PO No.: Verbal Receipt 9080 John's Repair Services Date: March 29, 2014 4320 45 Avenue Vancouver, British Columbia Receipt No.: 9080 C2A 918 Qty Description Unit Total Price $61 $2,440 Customer: Initech Inc. 9914 47 Avenue Vancouver, British Columbia X1D 3P4 Rep: Travis Goodall 40 System wide testing on new program, per hour $61 $4,880 Qty Description 1 Repairs to building Unit Price Total $800 $800 80 Training on new computer software, per hour Total: $800 Paid: $800 Balance Due: $0 $7,320 Sub- Total: Freight: 0 Receipt 7619 Initech Inc. Date: March 31, 2014 Invoice 3383 X 9914 47 Avenue Initech Inc. Receipt No.: 7619 Date: March 29, 2014 Vancouver, British Columbia 9914 47 Avenue X1D 3P4 Invoice No.: 3383 Vancouver, British Columbia X1D 3P4 Customer: South Co Customer: 2682 Elm Trail Rep: Dallas Glynn Willaby Co Rep: Judith Grimm 9773 Falton Crescent Vancouver, British Columbia Vancouver, British Columbia PO No.: Verbal W4S 998 V6H 9X9 Qty Description Unit Price Total Qty Description Unit Total Balance forward $0 Price 1 40 System wide testing on new program, per $61 $2,440 Invoice #3382 (on March 23, 2014) $7,040 $7,040 hour 80 Training on new computer software, per $61 $4,880 hour Total: $7,040 Paid: $7,040 Sub- Balance Due: $0 $7,320 Total: Freight: 0 Inter-Office Memo 5 Customer Statement for Decker Co Initech Inc. 9914 47 Avenue Vancouver, British Columbia Date: March 31, 2014 X1D 3P4 Date: March 31, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Customer: Decker Co 9712 78 Avenue Vancouver, British Columbia V4L 1T2 Please prepare a cheque to pay the Raintree Advertising bill received on March 21. Thanks, Travis Goodall Balance Date Description March 1 Balance forward March 9 Invoice #3381 Amount $0 $4,392 $4,392 Amount Due: $4,392 Inter-Office Memo 6 - Date: March 31, 2014 From: Travis Goodall To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.37 per share to shareholders of record on today's date. Thanks, Travis Goodall
