Part 1 [140 points It is August 1, 2015, the first business day of the month, and you have just been hired as the accountant for Vision Consulting Inc., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Vision Consulting Inc. sells one product. All of the company's accounting work has been completed through the end of July, 2015. Vision Consulting Inc.'s year end is August 31. The post-closing alphabetized trial balance at July 31, 2015 follows. 1See the Accounts Receivable Subledger below 2See the Accounts Payable Subledger below for details regarding creditor balances 3There are an unlimited number of shares Debt edtd 52.208 onzedwith 10,000 shares issued and 430outstanding as at July 31, 2015. 4Ths a 10% note due July 15, 2019 with 000interest colectible on the 15th ofeach month Refer to the collection schedule below for the note details. 201.50 Values in schedule have been See the Merchandise Inventory Subledger 17000 details of rwertoy holdings The balance in Prepaid Advertising represents 2200payment for 4 months starting August 1, 2015 09.87 309See the Property, Plant and Equipment Subledger below for detaled information below 2A02H9 iies payable You have determined that Vision Consulting Inc. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $213 per unit The following source documents are from August: For all parts of the Case Study, round all calculations to two decimal places unless a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. 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) b) Posting: Posting from the general journal into the subledgers is required. Posting in the general ledger is not required. The subledgers used in this case study are Accounts Receivable (AR), Accounts Payable (AP), Merchandise Inventory(MI) and Property, Plant and Equipment (PPE). The subledgers can be found below. Transactions affecting the subledgers must be posted by using the subledger abbreviations AR, AP, MI, and PPE in the folio (F) column. For transactions that do not affect one of these subledgers, leave the F column blank. The posting reference to be used in the subledgers will be the abbreviation for the general journal (GU1 or GJ2 as appropriate). Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). "All cost/unit calculations should be rounded to two decimal places. Cost of Relus to Inventory) Balance in Inventory Accounts Receivable August 95, 20512 1145335 September 15, 2015 712 11 53 58 15 2015112 1169 43 640 1.178 Decemb15. 20151712 118824 6185 January 15 20161712 118 54 04 March 15, 20112 1218 4403 Apel 15. 2016 May 15, 20 1312 123 73 55.566 y15. 2016 August 15, 201712 120 442 51,78 May 15, 201,-- 1.712 1570 42.82 67.500 Accounts Receivable Subledger July 15, 2015 August 15, 2015.,712 1,149 563 663S1 September 15, 2015 1,712 1,159 553 65,192 Acct #10603, ABC Inc. Acct #10611, welor Inc. F Debt Date 146 300 October 15, 2015 1,712 1,169 543 64 023 November 15, 2015,712 1,178534 62,845 1/Aug Terms 2/10, n/30 BFWD 146.300 December 15, 2015 1,7121,188 524 61,657 January 15, 201671 1,198 514 60,459 February 15, 2016 1,712 1208 04 59.251 March 15, 20161,712 1218 4 58,033 April 15. 2016 May 15, 2016 June 15, 2016 Acct. #10610 Guilf Corp 1,712 1.228484 56.805 1,712 1239 473 55,566 1,712 1249 463 54,317 July 15, 2016 August 15, 20161,712 1.270 442 51,788 1,712 1259 453 53.058 May 15, 2019 June 15, 2019 July 15, 2019 1,712 1,67042 3,382 Accounts Payable Subledger 1,712 1,684 28 1,698 Acct. 820105 Stake Technology Inc Acct #20108, Xcell Inc. 712 1698 4 Desc FDebit 82.178 67.500 14,676 Aug Terms 2/10, n/30 BFWD Acct. #20106; Holden Corp Acct. #20109; Barton Corporation Date loeeTFT Detit[credit Property, Plant and Equipment Subledger Cost Information F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal. Depr. Exp. August Accum. Depr. Bal 31, 2015 July 31, 2015 e Equipment | BFWD | Sep 4, 2013 | Double-Deci ngT150600127,00 110-T - 52.208 T s Office FurnitureAug 10, 2015 (Select One)I 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the asset was used in that fiscal year to get the depreciation per month. Round final values to the months c) What is the next step in the accounting cycle? O Prepare financial statements O Prepare closing entries O This is the last step OPrepare bank reconoliation and adjusting entries O Post transactions OPrepare an adjusted trial balance O Prepare a post-closing trial balance Prepare an unadjusted trial balance Post closing entries O Post adjusting entries Part 1 [140 points It is August 1, 2015, the first business day of the month, and you have just been hired as the accountant for Vision Consulting Inc., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Vision Consulting Inc. sells one product. All of the company's accounting work has been completed through the end of July, 2015. Vision Consulting Inc.'s year end is August 31. The post-closing alphabetized trial balance at July 31, 2015 follows. 1See the Accounts Receivable Subledger below 2See the Accounts Payable Subledger below for details regarding creditor balances 3There are an unlimited number of shares Debt edtd 52.208 onzedwith 10,000 shares issued and 430outstanding as at July 31, 2015. 4Ths a 10% note due July 15, 2019 with 000interest colectible on the 15th ofeach month Refer to the collection schedule below for the note details. 201.50 Values in schedule have been See the Merchandise Inventory Subledger 17000 details of rwertoy holdings The balance in Prepaid Advertising represents 2200payment for 4 months starting August 1, 2015 09.87 309See the Property, Plant and Equipment Subledger below for detaled information below 2A02H9 iies payable You have determined that Vision Consulting Inc. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $213 per unit The following source documents are from August: For all parts of the Case Study, round all calculations to two decimal places unless a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. 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) b) Posting: Posting from the general journal into the subledgers is required. Posting in the general ledger is not required. The subledgers used in this case study are Accounts Receivable (AR), Accounts Payable (AP), Merchandise Inventory(MI) and Property, Plant and Equipment (PPE). The subledgers can be found below. Transactions affecting the subledgers must be posted by using the subledger abbreviations AR, AP, MI, and PPE in the folio (F) column. For transactions that do not affect one of these subledgers, leave the F column blank. The posting reference to be used in the subledgers will be the abbreviation for the general journal (GU1 or GJ2 as appropriate). Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). "All cost/unit calculations should be rounded to two decimal places. Cost of Relus to Inventory) Balance in Inventory Accounts Receivable August 95, 20512 1145335 September 15, 2015 712 11 53 58 15 2015112 1169 43 640 1.178 Decemb15. 20151712 118824 6185 January 15 20161712 118 54 04 March 15, 20112 1218 4403 Apel 15. 2016 May 15, 20 1312 123 73 55.566 y15. 2016 August 15, 201712 120 442 51,78 May 15, 201,-- 1.712 1570 42.82 67.500 Accounts Receivable Subledger July 15, 2015 August 15, 2015.,712 1,149 563 663S1 September 15, 2015 1,712 1,159 553 65,192 Acct #10603, ABC Inc. Acct #10611, welor Inc. F Debt Date 146 300 October 15, 2015 1,712 1,169 543 64 023 November 15, 2015,712 1,178534 62,845 1/Aug Terms 2/10, n/30 BFWD 146.300 December 15, 2015 1,7121,188 524 61,657 January 15, 201671 1,198 514 60,459 February 15, 2016 1,712 1208 04 59.251 March 15, 20161,712 1218 4 58,033 April 15. 2016 May 15, 2016 June 15, 2016 Acct. #10610 Guilf Corp 1,712 1.228484 56.805 1,712 1239 473 55,566 1,712 1249 463 54,317 July 15, 2016 August 15, 20161,712 1.270 442 51,788 1,712 1259 453 53.058 May 15, 2019 June 15, 2019 July 15, 2019 1,712 1,67042 3,382 Accounts Payable Subledger 1,712 1,684 28 1,698 Acct. 820105 Stake Technology Inc Acct #20108, Xcell Inc. 712 1698 4 Desc FDebit 82.178 67.500 14,676 Aug Terms 2/10, n/30 BFWD Acct. #20106; Holden Corp Acct. #20109; Barton Corporation Date loeeTFT Detit[credit Property, Plant and Equipment Subledger Cost Information F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal. Depr. Exp. August Accum. Depr. Bal 31, 2015 July 31, 2015 e Equipment | BFWD | Sep 4, 2013 | Double-Deci ngT150600127,00 110-T - 52.208 T s Office FurnitureAug 10, 2015 (Select One)I 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the asset was used in that fiscal year to get the depreciation per month. Round final values to the months c) What is the next step in the accounting cycle? O Prepare financial statements O Prepare closing entries O This is the last step OPrepare bank reconoliation and adjusting entries O Post transactions OPrepare an adjusted trial balance O Prepare a post-closing trial balance Prepare an unadjusted trial balance Post closing entries O Post adjusting entries