Source Documents

Session Date $$ August $7,2025$

Cheque Purchase Invoice #PFU$-4877$

Dated August $2/25$

From Places For Us$,$ $$1800$ plus $$234$ HST for monthly rent. Invoice total $$2034$ paid by cheque #$3421.$ Terms: payable on first day of each month.

Purchase Invoice #BC$-10116$

Dated August $2/25$

From Bell Canada, $$145$ plus $$18\mathrm{.}85$ HST for monthly telephone and Internet service. Invoice total $$163\mathrm{.}85.$ Terms: net $15.$ Create new Group account $2140$ A$/$P $-$ Bell Canada.

Purchase Invoice #WD$-2919$

Dated August $4/25$

From Wearable Designs, $$210$ plus $$27\mathrm{.}30$ HST for new store uniform T$-$shirts for volunteer sales staff. Invoice total $$237\mathrm{.}30$ due in $30$ days.

Memo #$1$

Dated August $4/25$

From Fischer: Give T$-$shirts to volunteer sales staff. Cost of T$-$shirts given out is $$210.$ Reduce T$-$shirt asset account and charge the cost to Miscellaneous Expenses account.

Cash Purchase Invoice #PI$-2168$

Dated August $6/25$

From Picture It$,$ $$110$ plus $$14\mathrm{.}30$ HST for printing large poster to place in store window to solicit Halloween costumes and other donations. Invoice total $$124\mathrm{.}30$ paid from Cash on Hand.

Notes

The HST rate in Ontario is $13$ percent.

HST is applied to rent for commercial property but not for residential property.

Notes

In most businesses, the Cash on Hand balance is usually small and is used only for paying small amounts. In this application, we are using the Cash on Hand account to record merchandise sales and to pay for any purchases that normally would require cash or credit card payments.

Session Date $$ August $14,2025$

Purchase Invoice #KS$-9493$

Dated August $8/25$

From Kids Stuff, $$900$ plus $$45$ GST for children$$s clothing from store liquidation sale. Invoice total $$945.$ Terms: net $20$ days.

Purchase Invoice #KIM$-10990$

Dated August $8/25$

From Kids In Motion, $$1100$ plus $$143$ HST for toys that were returned and strollers that were discontinued styles or slightly marked floor models. Invoice total $$1243.$ Terms: net $30$ days.

Cash Purchase Invoice #LT$-4632$

Dated August $10/25$

From Loonie$-$Toonies, $$150$ plus $$19\mathrm{.}50$ HST for holiday decorations for store. Invoice total $$169\mathrm{.}50.$ Paid from Cash on Hand. $($Debit Other Supplies account.$)$

Notes

Children$$s clothing and books are not subject to HST; GST at $5\%$ only applies to sales and purchases of these items.

Session Date $$ August $21,2025$

Funds Raised Form #FR$-25-08$

Dated August $16/25$

Received $$3000$ in donations to purchase new computer for store. Amount deposited to Bank: Love It Again.

Purchase Invoice #DC$-5306$

Dated August $17/25$

From Data Connections, $$2600$ plus $$338$ HST for new computer with point$-$of$-$sale software. Invoice total $$2938.$ Terms: net $25$ days. Create new account $2420$ A$/$P $-$ Data Connections.

Cheque Purchase Invoice #P$-44982$

Dated August $17/25$

From Pizzaz, $$650$ plus $$84\mathrm{.}50$ HST to repair and repaint store sign $$ replace the word Love with heart logo$.$ Invoice total $$734\mathrm{.}50$ paid by cheque #$3423.$

Session Date $$ August $28,2025$

Cash Purchase Invoice #PH$-9976$

Dated August $24/25$

From Pizza House, $$320$ plus $$41\mathrm{.}60$ HST for pizza and soft drinks to show appreciation to volunteers. Invoice total $$361\mathrm{.}60.$ Paid from Cash on Hand.

Payment Cheque #$3424$

Dated August $26/25$

To Wearable Designs, $$576\mathrm{.}30$ in payment of account. Reference invoices #WD$-2919$ and #WD$-1813.$

Bank Debit Memo #HB$-3881$

Dated August $28/25$

From Heartfelt Bank, $$45\mathrm{.}50$ in bank charges for cheques and statement preparation. Create new Group account $5010$ Bank Charges.

Bank Debit Memo #HB$-3996$

Dated August $28/25$

From Heartfelt Bank, $$4200$ for payroll including all payroll expenses to pay store manager Jeremy Fischer wages for one month.

Notes

Charge pizza purchase to Miscellaneous Expenses.

Advancing the Session Date

Sage $50$ warns you as you approach the end of a fiscal period because important end$-$of$-$period adjusting entries are usually required.

Change

the session date to August $31.$

An Advisor message about preparing for year$-$end opens. Sage $50$ displays this message about one month before the end of the fiscal period:

Click

to close the Advisor, back up your data files and continue with the transactions for August $31.$

Notes

No taxes are charged on sales of donated goods. Children$$s clothing and books are subject to $5\%$ GST$,$ while HST at $13\%$ is charged on sales of other purchased items.

Memo #$2$

Dated August $31/25$

From Fischer: Deposited $$18200$ from Cash on Hand $($receipts from sales$)$ to Bank: Love It Again.

Payment Cheque #$3425$

Dated August $31/25$

To Kids Stuff, $$1849$ in full payment of account. Reference invoices #KS$-9493$ and #KS$-6279.$

Session Date $$ September $15,2025$

When you change the session date to September $15,$ you will receive a date warning:

Normally a business would advance the session date by a shorter period, so the warning helps you avoid e