Reference no: EM132979943
ACCT1202 Computerized Accounting
You are to start a company and carry out the necessary trade-related transactions for the accounting period of January to December 2021. Read the information carefully before you carry out the tasks.
1. You are the operator of a farm store company in your parish. Create a company using the conventions taught in class (Sales and Service). The company name will be as follows:
i. Students' ID number Farm Store.
2. Your beginning balances as at January 1, 2021, are as follows:
Cash on hand $150 000.00
Scotia Checking Account $300 000.00
Furniture & Fixtures $275 000.00
Sales tax payable $150 000.00
Wages payable $25 000.00
Other current liabilities $75 000.00
Motor Vehicle $350 000.00
Computer $80 000.00
Office Expenses $25 000.00
Utilities Expenses $18 000.00
i. Add a new Chart of Accounts called ‘Machinery' with the appropriate account type. The balance on this account is $90 000.00
3. Enter the following customer information and create a global payment term as follows:
Net due in 28 days, discount in 20 days, discount of 5% and credit limit of $300,000
A. Grow More Farm Supplies
Address: _____________
Telephone: ___________
Contact: ____________
B. Fresh Forever Farm Supplies
Address: _____________
Telephone: ___________
Contact: ____________
C. Your First name Farm Store
ADDRESS- Your SCHOOL ID NUMBER
City
Tele. - your cell number
Jamaica
D. Add SIX (6) additional customers.
E. Set customers' default finance charges on invoices, amount up to $250 000.00, annual rate of 15%, Rate on balance above 5%, minimum charges $30 000.
F. Set the appropriate account aging for both customers and vendors.
G. Customise the customer's payment methods to only include cash, cheques, NCB Midas and Scotia Visa Card.
4. Enter the following Vendor information and create a global payment term as follows: Net due in 28 days, discount in 06 days, discount of 5% and credit limit of $700,000
A. Aggro & More
Address: _____________
Telephone: ___________
Contact: ____________
B. Grains Plus
Address: _____________
Telephone: ___________
Contact: ____________
We have a special business relationship with Aggro & More. They offer us a payment term of net due in 25 days, discount of 12 days, and discount of 08 % and a credit limit of $630, 000.
C. Add SIX (6) additional vendors.
5. Enter the following Inventory Beginning Balances:
Inventory Items
|
Purchase Price
|
Selling Price
|
Beginning Balances
|
Fertilizers
|
|
|
|
11-22-22
|
5 500
|
6 000
|
3
|
14-28-14
|
4 500
|
5 000
|
3
|
Sulphate of Ammonia
|
4 000
|
4 500
|
2
|
15-5-35
|
3 800
|
4 200
|
3
|
Urea
|
3 900
|
4 400
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Feeds
|
|
|
|
Crushed corn
|
2 000
|
2 300
|
2
|
Rabbit Feed
|
1 850
|
2 150
|
3
|
Broiler Ration Crumble
|
1 850
|
2 150
|
3
|
Broiler Ration Pellet
|
1 800
|
2 100
|
3
|
|
|
|
|
|
|
|
|
Grains
|
|
|
|
Corn
|
3 000
|
3 800
|
3
|
Tomatoes
|
1 200
|
1 500
|
2
|
Cabbage
|
1 500
|
1 800
|
3
|
Carrot
|
1 800
|
2 200
|
6
|
Set the default inventory item information to show quantity available in the business. NB: Give appropriate ‘For Sale' description for the inventory items ABOVE. 6. Create the following sales tax:
General Consumption Tax 16.5%. Payable to the Inland Revenue
Department 7. The following transactions took place in January 2021:
2020/2021- Semester 2 [Computerized Accounting]
Purchases
Jan 4 -Agro & More
60 bags Urea
80 bags 12 11-22-22
75 bags 14-28-14
50 bags 15-5-35
70 bags Sulphate of Amona
Jan 6 - Grains Plus
300 lbs corn
150 packs tomatoes
200 packs cabbage
100 packs carrot
Paid $90 000 on Purchase (Reference: Scotia 8749)
Jan 8 - (Vendor of your choice)
70 bags Crushed corn
50 bags rabbit feed
300 bags Broiler Ration Crumble
250 bags Broiler Ration Pellet
8. Sales orders: During January, the customers ordered the following items: Jan 10 Grow More Farm Supplies
120 lbs corn
75 packs cabbage seeds
40 packs carrot seeds
180 bags Broiler Ration Crumble
80 bags Broiler Ration Pellet
Paid $120,000 same day (Reference Scotia 9846)
Jan 12 Fresh Forever Farm Supplies
80 lbs corn
50 packs cabbage seeds
80 packs tomatoes seeds
75 bags Broiler Ration Crumble
50 bags Broiler Ration Pellet
2020/2021- Semester 2 [Computerized Accounting]
A. During January, you are to sell the remaining items to the other FIVE (5) customers you have created for your business. Ensure that each type of item is sold during the process. (Ensure that each inventory item is sold at LEAST once)
Sales
All sales invoices MUST be sent to customers along with the goods one day after the sales order has been received by your organisation.
9. Fresh Forever Farm Supplies found out that 2 bags of Broiler Ration Crumble were damaged in transit and returned it to your place of business on January 21, 2021 (Credit Memo)
10. Collections
Jan. 24 Received from the customers the remaining balances
11. Payments
Particulars Cheque# Amount
Jan 25 Rent (Pete's Plaza) 1075 $75 000 Jan 26 Electricity (JPS) 1076 $ 26 000 Jan 26 Water (NWC) 1077 $ 4 550
Jan 27 Pay Aggro & More and Grains Plus the amount outstanding. Do not pay the other creditors.
Requirements: Prepare the accounts for the company
Print out should include:
i. Purchase order report-
ii. Sales order report
iii. Vendors' list
iv. Customers' list
v. Inventory item list
vi. Purchases journal
vii. Sales journal
viii. General Ledger Trial Balance
ix. Income Statement
x. Balance Sheet
xi. Initial company set up & defaults
Attachment:- Computerized Accounting.rar