Answer To: The instructions are within the attatchment
Khushboo answered on Jan 19 2021
Instructions
Summative Project
BAF3M
Introduction
This is a simulation of the accounting cycle of a merchandising business. It is part of the summative evaluation. You are the professional accountant for The Green Store owned by S. Redmond. You have the task of preparing the financial statements for The Green Store. The Green Store sells composters and environmentally friendly products. The Green Store uses the Periodic Inventory method.
You have been given the following:
Worksheet #
Tab 1 The introductory page - this page.
Tab 2 The Trial Balance at the end of September 30, 2015.
Tab 3 The Financial transactions for the month of October 2015, the last month of the fiscal year.
and the Journal template
Tab 4 General Ledger with Balances at September 30, 2015
Tab 5 The adjustments and additional information required to complete the accounting cycle for the year.
and the Journal template
Tab 6 Worksheet template.
Tab 7 Income Statement template.
Tab 8 Balance Sheet template.
Tab 9 Journal template for Closing Entries.
NOTE: This business has a fiscal year ended October 31, 2015. When taxes are applicable, you will be given this information. HST is 13%. You will make the adjustments and closing entries for the year.
Instructions
From the information you have received, complete the following steps:
Step 1 Journalize the transactions for the month of October 2015. Journal descriptions are not required at the end of each transaction.
Step 2 Journalize the adjusting entries.
Step 3 Post the transaction journal entries to the General Ledger Accounts. (Tip: Work from a hard copy of the Journal.) Do not post the adjusting entries to the Ledger.
Step 4 Produce a Trial Balance on the Worksheet for the year ended October 31, 2015.
Step 5 Add the adjusting entries and complete the Worksheet.
Step 6 Create the Income Statement (including a detailed cost of goods sold section) and the Balance Sheet from the completed Worksheet.
Step 7 Journalize the closing entries.
USE THE FUNCTION FEATURE OF EXCEL FOR ALL CALCULATIONS AND TO TRANSFER FIGURES FROM ONE CELL TO ANOTHER
If your computer monitor is small, use the zoom slide on the very bottom right corner of the spreadsheet.
Tr.Bal.
The Green Store
Trial Balance
September 30, 2015
No. Account No. Debit Credit
101 Bank 101 54,400.00
105 Accounts Receivable 105 18,400.00
110 Merchandise Inventory 110 62,400.00
115 Supplies 115 5,420.00
120 Prepaid Insurance 120 520.00
135 Office Furniture 135 16,900.00
137 Acc. Amort. - Furniture 137 5,070.00
140 Office Equipment 140 9,800.00
141 Acc. Amort. - Equipment 141 3,920.00
145 Store Equipment 145 21,500.00
146 Acc. Amort. - Equipment 146 10,750.00
170 Automobile 170 32,400.00
171 Acc. Amort. - Automobile 171 9,720.00
201 Accounts Payable 201 18,600.00
202 Interest Payable 202 - 0
205 HST Payable 205 12,810.00
206 HST Recoverable 206 4,810.00
210 Loan Payable 210 4,500.00
215 Mortgage Payable 215 40,500.00
301 S. Redmond, Capital 301 92,958.00
305 S. Redmond, Drawings 305 24,000.00
401 Sales Revenue 401 190,455.00
402 Sales Returns 402 580.00
403 Sales Discounts 403 1,840.00
501 Purchases 501 114,225.00
502 Purchase Returns 502 620.00
503 Purchase Discounts 503 1,460.00
504 Freight-in 504 645.00
601 Advertising Expense 601 420.00
605 Automobile Expense 605 5,775.00
615 Amort. Expense - Furniture 615 - 0
620 Amort. Expense - Equipment 620 - 0
625 Amort. Expense - Store Equipment 625 - 0
640 Amort. Expense - Automobile 640 - 0
650 Insurance Expense 650 1,128.00
665 Maintenance Expense 665 325.00
670 Miscellaneous Expense 670 110.00
675 Rent Expense 675 8,800.00
680 Supplies Expense 680 - 0
685 Utilities Expense 685 1,925.00
690 Interest Expense 690 5,040.00
700 Income Summary 700
391,363.00 391,363.00
Trans.
Transactions The Green Store
General Journal
Oct Item Description Page 1
2015 Date Particulars P.R. Debit Credit
Journalise the following ten (10) transactions for The Green Store, a merchandising business owned by S. Redmond. The Green Store uses the Periodic Inventory method. The HST rate is listed on the Introduction page. No journal descriptions are necessary. 2015
7 Source Document: Sales invoice Journal Entries for October
For the following: Sold Inventory Items (composters) to Jacob Handy Stores Oct 7 Accounts Receivable 1,582.00
Amount: $1,400 plus HST HST Payable 182.00
Terms: Net 30 0.0 Sales revenue 1,400.00
0.0 0.0
0.0 0.0
8 Source Document: Cash Receipts
For the following: Received payment on account from Betty Loo. 8 Bank 685.00
Amount: $ 685.00 Accounts receivable 685.00
Terms: Cash Tendered 0.0 0.0
0.0 0.0
0.0 0.0
9 Source Document: Sales Return Slip
For the following: Jacob Handy returned defective goods 9 HST Payable 18.20
Amount: $ 140.00 plus HST. Sales Returns 140.00
Terms: Credit on account 0.0 0.0 Accounts receivable 158.20
0.0 0.0
0.0 0.0
10 Source Document: Purchase Invoice
For the following: Inventory (composters) purchased for resale from Enviro-friendly Inc. 10 Purchases 460.00
Amount: $ 460.00 plus HST. HST Recoverable 59.80
Terms: Credit - on account 0.0 0.0 Accounts Payable 519.80
0.0 0.0
0.0 0.0
11 Source Document: Sales Return Slip
For the following: Wrong goods mistakenly shipped to customer were returned for credit. 11 Sales Return 1,010.00
Amount: $ 1,010.00 plus HST HST Payable 131.30
Terms: Credit Transaction 0.0 NOTE: goods have already been paid for. Accounts Receivable 1,141.30
0.0 0.0
0.0 0.0
15 Source Document: Memo
For the following: Vendor took a composter for personal use 15 Accounts Payable 113.00
Amount: $ 100.00 plus HST Purchases Returns 100.00
Terms: N/A 0.0 0.0 HST...