Assignment 2 - Exercise 6

• Use the BlockChain Consulting Company to complete this exercise.
• It is assumed that you have fully completed your Assignment 2 exercises 1, 2, 3 and 4.
• Exercise 5, 7 and 8 are not available for this assignment.
• Do not create any new G/L accounts; use only the accounts that you have created in exercise 3 to complete this exercise.

As you have successfully configured the General Ledger module, you wanted to record and post the general journal transactions for the month of January 2022. You are told that your bank will be deducting a total monthly bank charges fee of $100.00 as Bank Charges for the month of Jan 2022. The amount will be automatically deducted from your Bank Account every month on the last day of the Month.As the amount is a fixed amount, you have decided to automate the bank charges transaction as a monthly recurring entry. You will start processing the recurring entry from 31 January 2022 with no end date. The total bank charges expense amount will be equally divided between the two services (Software development and software implementation). A reminder will be setup to remind the Administrator one dayin advance.

Questions:

Open the BlockChain Consulting company with a suitable Session Date.

Create new General Ledger batch to journalize and record the following revenue transactions for the month of January 2022 in the same batch. Record each sales invoice transaction as a separate entry.

Batch Description - January 2022 Revenue - type your first name and ID

Entry 1:

January 12, 2022

Customer - Michael Associates

Sales Invoice # - 114 (on-account)

Support Services Revenue	$ 3,000.00
HST	390.00
Total Invoice Amount	$3,390.00

Entry 2:

January 24 2022

Customer - Smith Limited

Sales Invoice # - 115 (on-account)

Implementation Services Revenue	$ 10,000.00
HST	1,300.00
Total Invoice Amount	$11,300.00

Do not post the Revenue Batch.

Create new General Ledger batch to journalize and record the following expense transactions for the month of January 2022 in the same batch. Record each expense transaction as a separate entry.

Batch Description - January 2022 Expenses - type your first name and ID

Entry 1:

January 1, 2022

Vendor - Diamond Realty

Invoice Number - 01012022

Payment by cheque number 1038

Rent Expense for the company (Post to allocation account; Expense will be allocated to services later)	$ 4,000.00
HST	520.00
Total Invoice Amount	$4,520.00

Entry 2:

January 10, 2022

Vendor - Creative Designs

Invoice Number - CD-703

Payment by cheque number 1039

Advertising for Implementation Service - 10	$ 800.00
Advertising for Support Service	200.00
HST	130.00
Total Invoice Amount	$1,130

Entry 3:

January 30, 2022

Vendor - Rogers

Invoice Number - 01302022

Payment by cheque number 1040

Telephone Expense for the company (Post to allocation account; Expense will be allocated to services later)	$ 500.00
HST	65.00
Total Invoice Amount	$565.00

Do not post the Expense Batch.

Create new batch and Journalize the following customer receipt transactions for the month of January 2022 in the same batch. These receipts are from customers whom you have invoiced in the past for on-account revenue transactions. It is assumed that the customers are paying by cheque.

Batch Description - January 2022 Receipts - type your first name and ID

Entry 1:

January 25, 2022

Customer - Smith Limited

cheque number 109

Cheque Receipt Amount

$ 5,000.00

Entry 2:

January 25, 2022

Customer - Enzyme Research

cheque number 2345

Cheque Receipt Amount

$ 1,500.00

Do not post the Receipts Batch.

Preview Batch List report to review the details of the following batches:

• January 2022 Revenue
• January 2022 Expenses
• January 2022 Receipts

Post the following three batches simultaneously together.

• January 2022 Revenue
• January 2022 Expenses
• January 2022 Receipts

Create the automatic allocation batch for the Rent and Telephone expense Allocation accounts as of 31 January 2022.

Let the description for the Allocation Batch be as follows:

January 2022 Allocation - type your first name and ID

Review the allocation entries and post the allocation batch.

Setup a recurring entry code for the monthly deduction of bank charges.

Process the bank charges recurring code as of 31 January 2022 and automatically create a new recurring batch.

Adjust the recurring batch description as follows and post the recurring entry batch.

January 2022 Bank Charges - type your first name and ID

Create new folder (A2 E6 Q12) and dumpthe system and company databases to the folder.