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Quiz Trial Balance March 31 2008

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Quiz Trial Balance March 31 2008 Powered By Docstoc
					Vanier College                                      Accounting for Commerce             Section 1221 1222




John Howard Services Registered
Unadjusted 'Trial Balance As at 31/03/2008
                                   UNADJUSTED TRIAL BALANCE
                                                           Debits             Credits
1050        Petty Cash                                        0                  0
1055        Saving Bank Account ROYAL BANK                 28,598                0
1060        Chequing Bank Account                             0                  0
1090        Prepaid Expense & Deposits (Note 3)            12,000               0
1100        Marketable Securities (Note 6)                 96,000               0
1200        Accounts Receivable                              0                  0
1201        Account receivable                             77,350               0
1205        Allowance for Doubtful Accounts                  0                  0
1250        LOAN RECEIVABLE                                  0                  0
1300        Account not used
1810        Notes Receivable due in March 2010              22,000                0
1811        Land                                            50,000                0
1812        Land and Building (note 1 )                   1,000,000               0
1813        Accumulated Amortization Building                  0                  0
1820        Office Furniture & Equipment (Note 2)           55,030                0
1825        Accum. Amort. -Furn. & Equip.                      0                5,503
1835        Computer Equipment (Note 2)                      9,512                0
1840        Accum. Depr'n Computer Equipment                   0                8,817
1910        Computer Software                                  0                  0
1920        Goodwill                                         1,453                0
1930        Account Payable                                    0                  0
2100        Accrued Liabilities                                0                4,072
2120        Bank Loan - Current Portion                        0               16,000
2130        Mortgage Payable                                   0              925,000
2160        Payroll Taxes payable                              0                4,933
2310        GST Charged on Sales                               0                  0
2312        GST Charged on Sales - Rate 2                      0                  0
2315        GST Paid on Purchases                              0                  0
2320        GST Payroll Deductions                             0                  0
2325        GST Adjustments                                    0                  0
2330        ITC Adjustments                                    0                  0
2340        QST Charged on Sales                               0                  0
2342        QST Charged on Sales - Rate 2                      0                  0
2345        QST Paid on Purchases                              0                  0
2350        QST Payroll Deductions                             0                  0
2355        QST Adjustments                                    0                  0
2620        Bank Loans                                         0                  0
2630        Mortgage Payable                                   0                  0
3350        Mr John Howard Capital previous years              0              440,000
3390        Withdrawals during the current year             90,000                0
4200        Sales_                                             0              207,603
4220        Commission                                         0               11,874
4222        Comm. renewal Life                                 0                  0
4230        Comm. first yr. Group                              0                  0
4232         Comm. renewal Group                               0                  0
4240        Comm. first yr.Invest. Funds                       0                  0
4242        Comm. Renewal Invest.Funds                         0                  0
4250        Charge Back                                       844                 0
            Deposits received in Advance of work done
4420                                                          0               35,399
                                          (note 4)
4426        Capital Gains                                     0                 0
5130        Adjustment Write-off                              0                 0




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Vanier College                                       Accounting for Commerce                         Section 1221 1222



5140        Transfer Costs                                      0               0
5240        Purchase Discounts                                  0               0
5300        Freight Expense                                     0               0
5605        Management fees                                     0               0
5608        Commission paid                                  20,000             0
5609        Referral fees                                      718              0
5610        Accounting & Legal                                4,441             0
5615        Advertising AND ASSOCIATION FEES                   360              0
5620        Promotions                                          0               0
5630        Subscriptions                                      306              0
5640        Courier & postage                                  550              0
5660        Courier & postage                                  965              0
5680        Depreciation expense                                0               0
5681        Interest on late payments                          527              0
5685        Insurance                                         3,661             0
5690        Interest & Bank Charges                            347              0
5695        Interest & Penalties                              1,313             0
5700        Office Supplies                                   8,728             0
5710        Salaries                                         48,201             0
5720        Taxes and Permits                                  664              0
5730        Capital and Interest on the mortgage Note 1      60,000             0
5735        Contributions                                         0              0
5740        Professional development                            487              0
5750        Membership Fees                                      57              0
5760        Rent                                              10,848             0
5765        Repair & Maintenance Computer Note 2              20,000             0
5780        Telephone                                          5,379             0
5785        MEALS AND PROMO                                    7,183             0
5786        Car expense                                       11,365             0
5790        Donations                                          4,192             0
5800        Software                                           1,189             0
5805        Suspense                                              0            1,000
5810        Personal Expenses of John Howard's son             5,933             0
                                                          ____________     ____________
                                                            1,660,201        1,660,201
                                                          ============     ============




Required:

1. Provide all the required Adjusting Entries

2. Prepare in Good Format, with proper Classification: The Balance Sheet, the Income Statement and
the Statement of Owner's Equity.




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Vanier College                                         Accounting for Commerce                                          Section 1221 1222




                                                        Adjusting Entries

Note 1      During the year on April 1, 2007 Mr. Howard bought a commercial property for $1,000,000 , the portion of land
            is 30% the remaining balance is building. The building is amortized over a period of 40 years. Mr. Howard,
            paid at the Notary $75,000 cash and obtained a 5 year mortage for the remaining balance. The mortage is
            paid monthly capital and interest of $5,000. The portion of capital is fixed at $1,000 per month and the
            remaining amount is interest.

            The bookkeeper, posted the full amount to expense: Prepare the reclass entry, posting capital payments to
            the proper account.

            The current portion of Mortgage Payable is $12,000




Note 2      Office Furniture and Equipment : Is amortized straight line 10 years, the current year amortization of $5,503
            was not recorded

            New Computer equipment of $20,000 was purchased and posted in error as Repair and Maintenance
            Computer, this amount should be reclassed to Fixed Assets. This new computer was purchased on Sept. 1,
            2007. The Computer is to be amortized over a 3 year period using Straight Line Method of Amortization.

            The present Computer Equipment has $695 remaining amortization, and the bookkeeper did not record the
            Journal Entry. This adjusting entry should be done.




Note 3      Prepaid deposits of $12,000 represents insurance paid in advance, the full amount has expired at year end.
            The amount should be recorded as insurance expense. The bookkeeper was not sure what to do.




Note 4       During the year Mr. Howard signed a new contract and received an advance payment of $ 35,399 . This
            amount should be recorded as unearned revenue. Somehow the bookkeeper recorded it as revenue. The
            bookkeeper wasn't sure what to do.




Note 5       At year end: The client, showed the following unrecorde expenses to the accountant.

            Accured Commission expense of $30,000
            Accrued Rent expense of      $12,000




Note 6      Marketable Securities are available for trading, and the Fair Market Value at year end is $106,000. Record the
            unrealized gain of $10,000 in Owners' Equity as "Other Comprehensive Income".




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