Project 1
1. Project 1
1.24. Page 5
Training Room 6: Posting and the Trial Balance
Time to Work
The following assessment assignment includes journalizing, posting, and preparing the trial balance.
You may wish to refer to the rubrics available earlier in this training room, or in the Toolkit, to be sure you didn’t forget anything.
Assignment 1
Rita Ricardo has recently purchased the Waterfall Hotel, near the entrance to the Rocky Mountain parks area.
- Open General Journal Template, and save it in your Course Folder as pr1-tr6-journal.
- Use the account titles from Waterfall Hotel’s chart of accounts below. You will need to supply the correct source documents for each cash transaction. Start with Receipt #1 for any money received, and with Cheque #1 for any money paid, and number subsequent transactions accordingly.
Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.
- Journalize the following transactions for June of the current year on page 2 of the journal.
June Transaction 1
Established a Petty-Cash fund of $200.00
1
Received cash for room sales, $1000.00
2
D. Woloshyn stayed in Room 401.
Room rate was $100.00 per night.
He stayed for four nights, and will pay at the end of the month, Invoice #1.
3
Received cash from coffee shop sales, $2500.00
5
Received cash from vending machine sales, $1200.00
6
Paid $200.00 to repair a vending machine
8
Bought a new machine for the office from Motel Supply Co., on credit.
The machine cost $3400.00.
The bill will be paid at the end of the month, Purchase Order #1.
10
The owner, Rita Ricardo, withdrew $2000.00 for personal use.
11
Sold an old office machine for cash, $500.00
12
Paid a utility bill, $700.00
15
Paid the employees’ wages, $1800.00
18
Room sales amounted to $3600.00 for the week.
Of the $3600.00, $2500.00 was cash, and $1100.00 was on account to J. Unser.
J. Unser will pay at the end of the month, Receipt #5 and Invoice #2.
20
Bought a new oven for the coffee shop from Motel Supply Co. for $2000.00.
The bill will be paid at the end of the month, Purchase Order #2.
21
Sold an old microwave oven to a member of the staff for $200.00 cash. 22
Discovered Office Equipment was debited for $1000.00, which should have been a debit to Vending Machines, Memo #12. Open General Journal Template, and start the next transaction on page 3. 25
Rita Ricardo, the owner, invested $8000.00 cash and also coffee shop equipment worth $4000.00.
Total investment is $12 000.00
26
Received cash for room sales, $2500.00 27
Received cash from vending machine sales, $1100.00 28
Paid Motel Supply Co. $2500.00 on account 30
Paid Jay’s Janitorial Service $1500.00 to clean the coffee shop 30
There was $73.00 left in the petty-cash box.
Replenish the petty-cash fund using the following vouchers:
Bought some small items for the office $50.00, Voucher #1
Paid to fix the vending machine $75.50, Voucher #2
- Open Ledger for the Waterfall Hotel, and save it in your Course Folder as pr1-tr6-ledger.
- Post the journal to the ledger.
- Open Trial Balance Template, and save it in your Course Folder as pr1-tr6-tb.
- Complete a trial balance for the Waterfall Hotel.
Training Room 6 Summary
You have now completed all four steps in Accounting Cycle 1: Source Documents, Journalizing, Posting, and the Trial Balance. You used source documents to journalize transactions in the general journal. You then posted these transactions to the ledger accounts and verified these postings by completing a trial balance.
If, at any time, you need to refer to the concepts in this project, go to the Toolkit and choose the Interactive Accounting Cycle.
You are now ready to begin your position as an entry-level accounting clerk and continue on to Project 2, a simulation of completing the books for a business.