Case Study Part $1$ Solution

Name: Elise Getson

Date: $2024-08-209$:$35$

Part points$]$

showed the following alphabetized post$-$closing trial balance at June $30,2023.$

$\backslash$table$[[$Account$,$Balance$],[$Accounts payable,$55,000],[$Accounts receivable,$117,000],[$Accumulated depreciation, equipment,$3,500],[$Cash$,121,000],[$Equipment$,79,000],[$Retained earnings,$87,500],[$Share capital,$171,000]]$

Note: $$

There were $16,000$ shares issued and outstanding on June $30,2023.$

Depreciation on the equipment is $$700$ per month.

Phantom Consulting Inc.$\text{'}$s salaries expense is a total of $$700$ per day for each work day $($Monday$-$Friday$)$ in the month $($for simplicity, please ignore all statutory holidays$).$

The following source documents are from July:

Deposit slip $($July $1)$

Receipt $8179$

Calgary Hydro Bill

Invoice $5912$

Purchase Order $2655$

Invoice $5910$

Receipt $8180$

Receipt $8181$

Inter$-$Office Memo $1$

Invoice $5911$

Inter$-$Office Memo $2$

Customer Statement for WestCo

Invoice $4711$

Receipt from Bob's Diner

Inter$-$Office Memo $3$

Inter$-$Office Memo $4$

Receipt $8178$

Receipt $1358$

Second Time Around Advertising Bill

Inter$-$Office Memo $5$

Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd$/$mmm $($ie$.$ January $15$ would be $15/$Jan$).$

The correct answer was :

$\backslash$table$[[$General Journal,Page GJ$1],[$Date$,$Account$/$Explanation$,$F$,$Debit,Credit,$],[1/$Jul$,$Cash,,$65,000,,]]$

$\backslash$table$[[$General Journal,Page GJ$2],[$Date$,$Account$/$Explanation$,$F$,$Debit,Credit,$],[11/$Jul$,$Accounts Receivable,,$28,416,,]]$

Part points$]$

showed the following alphabetized post$-$closing trial balance at June $30,2023.$

$\backslash$table$[[$Account$,$Balance$],[$Accounts payable,$55,000],[$Accounts receivable,$117,000],[$Accumulated depreciation, equipment,$3,500],[$Cash$,121,000],[$Equipment$,79,000],[$Retained earnings,$87,500],[$Share capital,$171,000],[$Note:$,]]$

Note: $$

There were $16,000$ shares issued and outstanding on June $30,2023.$

Depreciation on the equipment is $$700$ per month.

Phantom Consulting Inc.$\text{'}$s salaries expense is a total of $$700$ per day for each work day $($Monday$-$Friday$)$ in the month $($for simplicity, please ignore all statutory holidays$).$

The following source documents are from July:

Deposit slip $($July $1)$

Receipt $8179$

Calgary Hydro Bill

Invoice $5910$

Invoice $5912$

Purchase Order $2655$

Receipt $8180$

Inter$-$Office Memo $1$

Receipt $8181$

Invoice $5911$

Inter$-$Office Memo $2$

Invoice $4711$

Customer Statement for WestCo

Receipt from Bob's Diner

Inter$-$Office Memo $3$

Inter$-$Office Memo $4$

Receipt $8178$

Receipt $1358$

Second Time Around Advertising Bill

Inter$-$Office Memo $5$

Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd$/$mmm $($ie$.$ January $15$ would be $\frac{15}{J}an).$

Part $3[15$ points$]$

a$)$ Prepare an unadjusted trial balance at July $31,2023.$ HINT: Where do you get the information needed to prepare the unadjusted trial balance?

$\backslash$table$[[\backslash$table$[[$Phantom Consulting Inc.$],[$Unadjusted Trial Balance$],[$July $31,2023]]],[,$Debit,Credit$],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[$Totals$,,]]$

Part $3[15$ points$]$

a$)$ Prepare an unadjusted trial balance at July $31,2023.$ HINT: Where do you get the information needed to prepare the unadjusted trial balance?

Part $1[70$ points$]$

Phantom Consulting Inc. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program development. Phantom Consulting Inc. showed the following alphabetized post$-$closing trial balance at June $30,2023.$

$\backslash$table$[[$Account$,$Balance$],[$Accounts payable,$55,000],[$Accounts receivable,$117,000],[$Accumulated depreciation, equipment,$3,500],[$Cash$,121,000],[$Equipment$,79,000],[$Retained earnings,$87,500],[$Share capital,$171,000]]$

Note:

There were $16,000$ shares issued and outstanding on June $30,2023.$

Depreciation on the equipment is $$700$ per month.

Phantom Consulting Inc.$\text{'}$s salaries expense is a total of $$700$ per day for each work day $($Monday$-$Friday$)$ in the month $($for simplicity, please ignore all statutory holidays$).$

The correct answer was :

$\backslash$table$[[$General Journal,Page GJ$2],[$Date$,$Account$/$Explanation$,$F$,$Debit,Credit$],[11/$Jul$,$Accounts Receivable.,,$28,416,28,416],[,$Consulting Revenue Earned...,,$],[,$Earned consulting revenue,,$],[11/$Jul$,$Accounts Receivable....,,$10,680,10,680],[,$Consulting Revenue Earned,,$],[,$Earned consulting revenue,,$],[\frac{11}{?}$ Jul,Food and Drinks Expense...,,$62,62],[,$Cash...,,$],[,$Paid for dinner with client,,$],[19/$Jul$,$Repair Expense...,,$200,200],[,$Cash....,,$],[,$Paid for repairs to equipment,,$],[21/$Jul$,$Utilities Expense....,,$800,800],[,$Accounts Payable,,$],[,$Received bill for utilities expense,,