Transcript CLASS 2

CLASS 2
Account Receivable
&
Account Payable
ACC1215 Accounting Simulation
1
A/P- Case: Chai Tea Room
• Business Background
Chai Tea Room serving specialty teas from all around world, also provides light lunches
and superb dessert,coffee and other beverage
Chai Tea Room does not pay HST on its food purchase, but its other purchases subject
to HST, and HST 13% is charged to customer on all good and service in cafe.
To keep the cafe clean, their supplier “Sudbury Cleaning” do clean and wax the floor,
and steam clean the carpets and furniture once a week.
Instruction:
 Supplier Information
 Accounting Procedures
1. Open Invoice Accounting for Payable, not using General Journal
2. Discount: when payment term are set up correctly for supplier, and the date are
entered correctly, discount are calculated automatically and credit to “ purchase
discount”, contra expense account with credit balance and reduce overall
expenses
3. Purchase of Inventory Item and Cost of Good Sold
Food purchased are recorded in inventory asset account, usually at month end,
manager will count inventory and determine the value of item remaining in
inventory. Then, manger will issue the memo to reduce the inventory (assets
account) and charge the cost price to Cost of Good Sold (expenses account).
Chai Tea Room (1)
Session Date: August 7,2013
#
Input
Date
Source Type
Sourc Description
e
Code
Accounting
Prodedure
1
August
1,2013
Purchase Invoice
FG642
Purchase from Fundy Gift House, $800
plus $104 HST for eight tea services set,
invoice total $904, term net 30
Open-Invoice
Accounting
2
August
1,2013
Purchase Invoice
BF1243
From Bathurst Food Supplies, $800 for
bread, there is no HST on food products,
term 1/10,n/30.
Store as weekly recurring entry
Open Invoice
Accounting,
Recurring
entry
“ Recall Tool”
August
7, 2013
Purchase Invoice
SC701
From Sudbury Cleaning Company, $250
plus $32.5 HST for weekly cleaning of
store premise, purchase invoice total
$282.5.
Store as weekly recurring entry
Recurring
Entry
Chai Tea Room (1)
Session Date: August 7,2013
Input
Date
Source
Type
Source
Code
Description
Accounting
Prodedure
3
August
2,2013
Payment
Cheque
#171
To Fundy Gift House, $700 in
payment, to reference invoice #FG361
Accounting for
Payment
4
August
3, 2013
Cash
Purchase
Invoice
ACA-3492
From All Campus Ads, $200 pluse $26
HST for advertising brochures, term:
due on receipt, paid by cheque #173
Adding a New
Supplier
Record
Chai Tea Room (1)
Session Date: August 7,2013
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
5
August
4,2013
Memo
#13
From Owner, adjust purchase invoice
FG-642, the order recieved from Fundy
House was 10 tea services, not 8
services, the invoice amount is $900
plus $117 HST.
Change
purchase
invoice by
open invoice
method
6
August 4,
2013
Payment
Cheque
#174
The payment to Bathurst Food Supply,
$792 in payment, including $8 discount Accounting for
for early payment, reference invoice
earlier
BF-1044
payment
Chai Tea Room (1)
Session Date: August 14,2013
7
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
August
8,2013
Purchase
Invoice
#BF2100
Recall
Restored
entry
From Bathurst Food Supplies, $800 for
bread, there is no HST on food
products, term 1/10,n/30.
Recall restored entry
8
August 9,
2013
Memo
#14
From Owner: Edit the supplier record
for NB Gas to include the default
expenses account, create a new Group
account 5110 Heating expenses
Set up or
change
supplier’s
information
Chai Tea Room (1)
Session Date: August 21,2013
9
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
August
21,2013
Purchase
Invoice
SC-1790 Cleaning company “ Sunbury Cleaning”
$300 plus $39 HST for weekly service,
purchase invoice total $339.
Change a
Stored Entry
Restore the changed entry
10
August 21,
2013
Memo
#17
From Owner: making adjusting entry
to reflect inventory used in tea room
during August, inventory was sold as
following:
Beverage inventory: $2200
Food inventory: $3300
All used inventory is charged to COST
OF GOOD SOLD.
Record month
end inventory
count and
journal entry
for COGS.
Chai Tea Room (1)
Session Date: August 21,2013
• Report:
1. Display Supplier Aged Report
2. Display purchase journal
3. Display payment journal
4. Recurring Transactions Report
A/R- Case: AirCare Services
• Business Background: providing solar energy.
Revenue come from installation, repair and
subcontracting.
Instruction:
Customer Information
Accounting Procedures:
1. Open Invoice Accounting for receivables
2. Discount for earlier payment
3. NSF Cheques
4. Cash & Credit Card Sales of Services
AirCare Services (1)
Session Date: May 8, 2013
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
1
May 1,
2013
Sales Invoice
A-710
Sales To Selkirk Community Centre,
Open Bill
$1800 plus $90 GST & $126 PST for
method
removing and reapplying solar panels
for roof replacement, term: 1/10, n/30 Customize the
Sales Invoice
Create a new account 4120 Repair
revenue
Previewing
Invoice
2
May 2,
2013
Cash Receipt
#20
From Grande Pointe Tower,
cheque#3499 for $8662 including
$6662 in full payment of invoice #A696 AND $2000 partial payment of
invoice #A-698.
Allowing $138 discount for earlier
payment.
Customize the journal by changing
tabbing orders
Customer
Payment
AirCare Services (1)
Session Date: May 8, 2013
3
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
May 3,
2013
Cash Sales
Invoice
A-711
payment
Sales to Midwestern Funeral Home,
$19000 plus $950 GST and $1330PST
for installation solar panel.
Term: cash on completion of work
Received cheque #394 for full payment
4
May 3,
2013
Sales Invoice
A-712
To Hazel Estates, $1200 plus $60 GST &
$84 PST for one year service contract
*use Full Add fro new customer
Add new
customer
AirCare Services (1)
Session Date: May 8, 2013
5
Input
Date
Source
Type
Source Description
Code
Accounting
Prodedure
May 4,
2013
Bank Debit
Memo
14321
NSF cheque
From Flatlands Credit Union, cheque
#3499 for $8662 from Grande Pointe
Tower has been returned because of
non-sufficient fund
Reverse the payment and notify
customer of outstanding charge
6
May 4,
2013
Credit Card
Sales Invoice
A-713
Sales Summary from various customer
1. Repair revenue: $3600
2. Service contract revenue: $2800
3. HST charge: $320 GST & 448 PST
Credit Card
Sales
ASSISGNMENT 2- Due: Oct 17/18
• Format: In Class Group Project
• Requirement: review the cases of today
1. Chai Tea Room
2. Aircare Services
Complete all entries as per request
• Submission methods
1. Submit in class with instructor’s review
2. Submit in backup format with your USB.
Midterm – Oct 17/18
• Multiple Choices: 18x 4marks/question=72
• Short Answers: 4x7marks/question=28
• Total Marks 100
How to prepare?
1. Install the Simply Accounting Software
2. Do sample exams, get yourself familiar with the each
modules: General Journal, A/R, A/P
3. Find your sample exam attached in your student
account in Words Doc.
4. Answers to Sample exam are blue colored.