Software Solutions Inc. had asked ABC to consider a proposal to provide it with approximately 500 hours a month of support services, After much discussion with her parents, Doug and Bev, Emily decides ABC should not accept Software Solutions' proposal. At this point, Emily believes it too large a commitment for the current size of the business and that it is best to focus on providing quality service to the company's existing and other new clients. After becoming comfortable with these contractual commitments and determining how much service capacity it has, ABC might later reconsider Software's offer. Emily obtains a copy of ABC's partial trial balance at June 30, 2020, to start to become familiar with the organization's accounting position. The accounting records have not yet been fully updated for the month, so the trial balance is not yet complete. ANTHONY BUSINESS COMPANY LTD. Trial Balance (partial) June 30, 2020 Debit Credit Cash $41.310 Accounts receivable 6,320 Inventory Supplies 1.750 Accounts receivable 6,320 6,320 0 Inventory Supplies Prepaid insurance 1,750 12.600 Land Buildings 105.000 174.000 Accumulated depreciation-buildings $145,000 Equipment 42.000 Accumulated depreciation equipment 14,000 Vehicles 52.000 Accounts payable 3.530 Deferred revenue 100 Bank loan payable 22.700 Mortgage payable 53,100 Common shares 400 86,050 Retained earnings Dividends declared 32,000 Rent income 5,800 Service Revenue 637,840 Salaries expense 386,860 Supplies expense 51.250 Office expense 18.100 Utilities expense 12.100 Advertising expense 8.900 Property tax expense 5.890 Interest expense 5.340 386,860 Salaries expense Supplies expense Office expense 51.250 18,100 Utilities expense 12.100 Advertising expense 8.900 Property tax expense 5.890 Interest expense 5.340 Income tax expense 13.100 Total $968.520 $968.520 While a number of transactions have already been recorded and posted for the month of June, there are other transactions listed below that have not yet been recorded in the accounting records: June 5 Emily attends to the receipt of advertising supplies 5.000 marketing brochures were purchased on account from Nakhoods Printing for $2.550. (Hint: Use the Supplies account: 14 16 19 ABC purchases computer equipment for $2,490 cash to accommodate the growth of services. (Hint:Use the Equipment account.) Emily's good friend is starting a tour boat business in July and wants ABC to set up the accounting system. A $1,100 cash deposit is received in advance. Emily teaches a "Tips on using Facebook" class to a group of seniors that was booked a number of months ago. A $110 deposit had been received in advance and is included in the Deferred Revenue account. $320 is collected in cash at the end of the class, representing the remaining balance due. 50 training manuals are delivered to a client in Calgary. An invoice of $2,070 for the preparation of these manuals is included. A $210 invoice for use of Emily's cell phone is received. The cell phone is used exclusively for ABC's business. The invoice is for services provided in June and is due on July 15. (Hint: Use the Utilities Expense account.) A new client has just had its computer data hacked. Emily has agreed to work with the client next month to help the company strengthen its firewall, tighten up its privacy controls, and documentits procedures. 21 27 29 30 Emily receives her first paycheque from ABC for $3,210. 130 The client for which 50 training manuals were delivered in the June 21 transaction requests another 50 manuals. These are delivered to its Calgary ofhce and an invoice of $2,590 for the preparation of these manuals is included Software Solutions Inc. had asked ABC to consider a proposal to provide it with approximately 500 hours a month of support services, After much discussion with her parents, Doug and Bev, Emily decides ABC should not accept Software Solutions' proposal. At this point, Emily believes it too large a commitment for the current size of the business and that it is best to focus on providing quality service to the company's existing and other new clients. After becoming comfortable with these contractual commitments and determining how much service capacity it has, ABC might later reconsider Software's offer. Emily obtains a copy of ABC's partial trial balance at June 30, 2020, to start to become familiar with the organization's accounting position. The accounting records have not yet been fully updated for the month, so the trial balance is not yet complete. ANTHONY BUSINESS COMPANY LTD. Trial Balance (partial) June 30, 2020 Debit Credit Cash $41.310 Accounts receivable 6,320 Inventory Supplies 1.750 Accounts receivable 6,320 6,320 0 Inventory Supplies Prepaid insurance 1,750 12.600 Land Buildings 105.000 174.000 Accumulated depreciation-buildings $145,000 Equipment 42.000 Accumulated depreciation equipment 14,000 Vehicles 52.000 Accounts payable 3.530 Deferred revenue 100 Bank loan payable 22.700 Mortgage payable 53,100 Common shares 400 86,050 Retained earnings Dividends declared 32,000 Rent income 5,800 Service Revenue 637,840 Salaries expense 386,860 Supplies expense 51.250 Office expense 18.100 Utilities expense 12.100 Advertising expense 8.900 Property tax expense 5.890 Interest expense 5.340 386,860 Salaries expense Supplies expense Office expense 51.250 18,100 Utilities expense 12.100 Advertising expense 8.900 Property tax expense 5.890 Interest expense 5.340 Income tax expense 13.100 Total $968.520 $968.520 While a number of transactions have already been recorded and posted for the month of June, there are other transactions listed below that have not yet been recorded in the accounting records: June 5 Emily attends to the receipt of advertising supplies 5.000 marketing brochures were purchased on account from Nakhoods Printing for $2.550. (Hint: Use the Supplies account: 14 16 19 ABC purchases computer equipment for $2,490 cash to accommodate the growth of services. (Hint:Use the Equipment account.) Emily's good friend is starting a tour boat business in July and wants ABC to set up the accounting system. A $1,100 cash deposit is received in advance. Emily teaches a "Tips on using Facebook" class to a group of seniors that was booked a number of months ago. A $110 deposit had been received in advance and is included in the Deferred Revenue account. $320 is collected in cash at the end of the class, representing the remaining balance due. 50 training manuals are delivered to a client in Calgary. An invoice of $2,070 for the preparation of these manuals is included. A $210 invoice for use of Emily's cell phone is received. The cell phone is used exclusively for ABC's business. The invoice is for services provided in June and is due on July 15. (Hint: Use the Utilities Expense account.) A new client has just had its computer data hacked. Emily has agreed to work with the client next month to help the company strengthen its firewall, tighten up its privacy controls, and documentits procedures. 21 27 29 30 Emily receives her first paycheque from ABC for $3,210. 130 The client for which 50 training manuals were delivered in the June 21 transaction requests another 50 manuals. These are delivered to its Calgary ofhce and an invoice of $2,590 for the preparation of these manuals is included
