UNIT 8 Apply Your Knowledge Exercises Part A 10. Following is the opening balance sheet on November 30 for the Mountainview Motel, owned by Paula Lenardon. Assets Cash Supplies Office Equipment Land Building Furniture Automobile Mountainview Motel Balance Sheet As at November 30, 20-- Liabilities $ 3 000 Accounts Payable/ 12 000 Acme Supply 2 000 Bank Loan 100 000 Mortgage Payable 400 000 Total Liabilities 50 000 36 000 Owner's Equity P. Lenardon, Capital Total Liabilities and $603 000 Owner's Equity $ 3 000 25 000 260 000 288 000 315 000 Total Assets $603 000 9. Veronika Klaus opened an office services business on September 1 with the following assets and liabilities: Cash $2200; Furniture and Equipment $6300; Bank Loan $3500. (a) Prepare an opening entry in a general journal. (b) The following events occurred during September. Journalize the items that must be entered in the books of the company. Revenue should be recorded in the Fees from Clients account. Create appropriate accounts when necessary. The business keeps a separate account for each account receivable and for each account payable. (C) Explain your reasons for omitting any events. Sep. 1 Paid the first month's rent on the office, $1500, Cheque 1. 1 Completed keying a report for a client, J. Jamison, and mailed the bill for $250, Invoice 1. 2 Received Invoice 6789 from the Express for advertising $175. 3 Purchased office supplies from Lowe's Stationery, $115 on credit, Invoice 2694. 4 Received $85 from a client for work completed today, Sales Slip 1. 5 Mailed a cheque for $1075 drawn on the company bank account to pay Ms. Klaus's apartment rent, Cheque 2. 6 Signed a contract with Continental Inc. to provide overload keying services. It is anticipated this will result in $1000 worth of business each month. 8 J. Jamison paid the bill issued September 1 in full. 9 Returned a $50 box of envelopes purchased September 3 to Lowe's Stationery; incorrect size. Lowe's Stationery gave a credit for the amount. (This means the firm now owes Lowe's Stationery $50 less as a result of the transaction.) 10 Paid the Express bill of September 2, Cheque 3. Paid Lowe's the balance owing, Cheque 4. 11