You will recall from Chapter 2 that 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 the extent of service capacity available, ABC might later reconsider Software's offer.

Emily obtains a copy of ABC's partial trial balance at June 30, 2017, 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.

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 5Emily attends to the receipt of advertising supplies. 5,000 marketing brochures were purchased on account from Nakhooda Printing for $2,500. (Hint: Use the Supplies account.)
14 ABC purchases computer equipment for $2,520 cash to accommodate the growth of services. (Hint: Use the Equipment account.)
16 Emily's good friend is starting a tour boat business in July and wants ABC to set up the accounting system. A $1,000 cash deposit is received in advance.
19 Emily teaches a "Tips on using Facebook" class to a group of seniors that was booked a number of months ago. A $100 deposit had been received in advance and is included in the Unearned Revenue account. $300 is collected in cash at the end of the class, representing the remaining balance due. (Hint: ABC uses the Sales account for both the provision of services and the sale of goods.)
21 50 training manuals are delivered to a client in Calgary. An invoice of $2,040 for the preparation of these manuals is included.
27 A $200 invoice for use of Emily's cellphone is received. The cellphone is used exclusively for ABC's business. The invoice is for services provided in June and is due on July 21. (Hint: Use the Utilities Expense account.)
29 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 document its procedures.
30 Emily receives her first pay cheque from ABC, for $3,250.
30 The client for which 50 training manuals were delivered in the June 21 transaction requests another 50 manuals. These are delivered to its Calgary office and an invoice of $2,550 for the preparation of these manuals is included.
Instructions
(a) Journalize the above accounting transactions for June.
(b) Set up T accounts, enter the opening balances in the general ledger from the partially completed trial balance at June 30, and post the remaining June journal entries to the general ledger.
(c) Prepare an updated trial balance at June 30.

Transcribed Image Text:

ANTHONY BUSINESS COMPANY LTD Trial Balance (partial) June 30, 2017 Debit Credit Cash Accounts receivable Inventorv Supplies Prepaid insurance Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Vehicles Accounts payable Unearned revenue Bank loan payable Mortgage payable Common shares Retained earnings $39,004 5,900 16,250 1,875 12,000 100,000o 165,000 $137,500 42,000 14,000 52,500 3,540 100 22,500 53,200 300 146,788 Dividends declared Rent revenue Cost of goods sold Salaries expense Office expense Utilities expense Advertising expense Property tax expense Interest expense Income tax expense Total 30,000 633,768 102,386 387,532 18,000 12,000 9,000 5,950 5,299 13.000 $1,017,696 $1,017,696