1. Project 2

1.1. Assignment 1

Project 2: Final Project

Project 2: Final Project

 

Assignment 1: Working as an Entry-Level Accounting Clerk (Suggested Weighting 35%)

 

Three people exercising in a fitness centre.

© Petrafler/shutterstock

Ted Winslow, a physical education teacher at a local high school, felt his efforts to promote high standards of physical fitness were somewhat unappreciated by his students. After a long summer of contemplation, he decided to start a business of his own. With some personal savings, a bank loan, and a daring entrepreneurial spirit, the Witness Fitness Centre was born.

 

One nagging problem Ted faced was the bookkeeping. He was too busy to do it, and he was concerned that hiring an accountant would be too expensive. A solution was close at hand, however—you! Since you are a beginning accounting student and a friend of the Winslow family, you offered to perform the bookkeeping functions of the business in exchange for a membership with the Witness Fitness Centre! Ted, who was not totally confident with a student bookkeeper, reluctantly agreed.

 

What I Need to Know

 

The following requirements are clear:

  1. Ted will give you the source document(s) for each transaction.
  2. You will select the proper accounts to debit and credit.
  3. You will make an entry into the general journal.

    After the transactions for September are completed

  4. You will post the data.
  5. You will prepare a trial balance.

Notice that Witness Fitness Centre uses a three-digit accounting system. You may want to print the chart of accounts for easy referral while journalizing.

 

CHART OF ACCOUNTS

 

Assets

Owner’s Equity

101 Bank

301 Ted Winslow, Capital

105 A/R Lynn Ayles

302 Ted Winslow, Drawings

106 A/R Betty Shantz

Revenue

107 A/R Laura Coburn

401 Membership Fees

108 A/R Judy Jurnus

402 Drop-in Fees

125 Supplies

Expenses

150 Equipment

501 Salaries Expense

155 Furniture

505 Rent Expense

Liabilities

510 Advertising Expense

201 Bank Loan Payable

515 Renovations Expense

205 A/P Jim’s Gymnastic Equipment

520 Loan Interest Expense

206 A/P Handyperson Hardware Ltd.

525 Miscellaneous Expense

207 A/P Fun ’N’ Fair Furniture Ltd.

530 Telephone Expense

208 A/P Outstanding Office Supplies

535 Utilities Expense

209 A/P Signs and Wonders Ltd.

540 Choreography Expense

210 A/P CWHY Radio Station

545 Bank Charges

211 A/P Presto Printing

550 Bookkeeping Expense

212 A/P Tell Telephone Company

 

240 GST Charged on Sales

 

245 GST Paid on Purchases

 

 

Note: Ted chooses to use only the above account titles. For some accounts in the ledger, rows will need to be inserted for all the transactions to be recorded.

 

What Do I Need to Do?

 

When recording the source documents in the journal, Ted would like you to put the reason for the transaction and, if possible, the cheque number, invoice number, purchase order number, and so on. The first eight entries are provided for your reference. After row 50 of your general journal, start a new page by clicking on the page 2 tab at the bottom of your form, as shown. Continue to insert as many pages as you need to complete all of the transactions. If you have any questions, consult your teacher.

 

 

Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.

 

Time to Work

 

 

Complete the journal entries, posting, and trial balance for “Source Documents1”. Open the appropriate accounting forms and save them in your FIN1020 Course Folder as final journal, final ledger, and final trial balance (respectively) for your teacher to mark. You may refer to any of the preceding projects and/or training rooms to complete your work.

 

audit test: a sampling of numbers in accounting records to check for accuracy

 

 

When you are finished, complete the Audit Test, and save it in your FIN1020 Course Folder as Final Audit Test. An audit test is a sampling of numbers in your accounting records to check for accuracy.


 

 

Refer to the following rubrics for journal, posting, and trial balance to make sure you didn’t forget anything.

 


 

You might also find the following items helpful:

Adapted from the Certified General Accountants Association of Alberta, School Accounting Modules.

 

1 School Accounting Modules published by the Certified General Accountants Association of Canada © 2008 CGA-Canada www.cga.org/canada. Reproduced with permission. All rights reserved. For updates of the CGA-Canada School Accounting Modules, check with www.cga-alberta.org.