Part 1 [70 points) Binarium 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. Binarium Inc. showed the following alphabetized post-closing trial balance at July 31, 2014. Account Balance Accounts payable 64,500 Accounts receivable 46,000 Accumulated depreciation, machinery. 2,500 Cash 157,500 Machinery 35,500 Retained earnings 60,500 Share capital 111,500 Note: . There were 10,000 shares issued and outstanding on July 31, 2014. Depreciation on the machinery is $550 per month. Binarium Inc.'s salaries expense is a total of $750 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from August : Deposit slip (August 1) Inter-Office Memo 2 Invoice 2086 Apex Advertising Bill Invoice 2085 C Invoice 2345 O Invoice 2087 C Receipt 3049 Inter-Office Memo 1 Receipt 5742 Receipt from Steve's Diner Customer Statement for Sundown Co Receipt 3047 Receipt 3048 Receipt 3050 Inter-Office Memo 4 Purchase Order 7581 O Purchase Order 2802 Inter-Office Memo 3 c Inter-Office Memo 5 a) Analyze each of the preceding source documents and prepare journal entries using this information only. Note that some source documents may not require an entry. Also, all bills are recorded in the journal on the day they are received. 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). General Journal Account/Explanation Page Gj1 F Debit Credit General Journal Account/Explanation Page GJ2 F Debit Credit Date Date + L + 1 + - + + + - - General Journal Account/Explanation Page GJ3 F Debit Credit General Journal Account/Explanation Page GJ4 F Debit Credit Date Date + - + -1 + - - + + - + X Deposit slip (August 1) AlfaCo 3643 60 Street Regina, Saskatchewan X2W 208 Date: August 1, 2014 Account No.: 2775 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Cash Cheques (re: 6,000 shares issued today) $65,000 Total Deposits $65,000 Invoice 2085 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 1, 2014 Invoice No.: 2085 Customer: Sundown Co 10929 38 Avenue Regina, Saskatchewan M5M 9D1 Rep: Adam Uppe PO No.: Verbal Qty Description Total Unit Price 56 System wide testing on new program, per hour $134 $7,504 Sub- Total: $7,504 Freight: 0 Total: $7,504 Inter-Office Memo 1 X Date: August 1, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please write a cheque to XYZCo in the amount of $1,200. This will pay for rent for the next 12 months. Thanks, Ryan Player Receipt 3047 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 1, 2014 Receipt No.: 3047 Customer: North Co 7376 45 Street Regina, Saskatchewan HOX 7Y9 Rep: Bonnie Northrup Unit Price Total Qty Description 5 Ongoing consulting regarding security, per month. To begin immediately and end December 31, 2014. $2,400 $12,000 Total: $12,000 Paid: $12,000 Balance Due: $0 Purchase Order 7581 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 2, 2014 PO No.: 7581 Vendor: Hector's Computers 5518 50 Street Regina, Saskatchewan L4N 819 Ship To: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Item No. Ordered Description Total Unit Price COM291 1 $13,200 $13,200 Computers Estimated useful life : 10 years. Estimated residual value : $1,920. Sub- Total: $13,200 Shipping: 0 Total: $13,200 Inter-Office Memo 2 X Date: August 2, 2014 From: Ryan Player To: Office Assistant Subject: New Hire Jack Tasker has accepted our job offer and will begin employment with us on September 1. Please get everything ready for that date. Thanks, Ryan Player Invoice 2345 Hector's Computers 5518 50 Street Regina, Saskatchewan L4N 819 Date: August 4, 2014 Invoice No.: 2345 Customer: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Rep: Ryan Player PO No.: 7581 Qty Description Total Unit Price 1 $13,200 $13,200 Computers as ordered on August 2, 2014. Estimated useful life : 10 years. Estimated residual value : $1,920. Sub- $13,200 Total: Freight: 0 Total: $13,200 Receipt 5742 Stan's Repair Services 11318 Franklin Place Regina, Saskatchewan C5T 3P1 Date: August 6, 2014 Receipt No.: 5742 Customer: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Rep: Ryan Player Qty Unit Price Total Description Repairs to machinery 1 $400 $400 Total: $400 Paid: $400 Balance Due: $0 Receipt 3048 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 8, 2014 Receipt No.: 3048 Customer: Decker Co 7825 Paper Place Regina, Saskatchewan M5T 7C6 Rep: Bob Delgado Invoice No.: Verbal Qty Unit Price Total Description Installation of new network component, 1 $134 $134 per hour Total: $134 Paid: $134 Balance Due: $0 Purchase Order 2802 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 12, 2014 PO No.: 2802 Vendor: Sundown Co 1818 70 Street Regina, Saskatchewan K8U 4U3 Ship To: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Item Ordered No. Description Total Unit Price SR31 80 $134 $10,720 Product training to begin on September 1, 2014, per hour Sub- Total: $10,720 Shipping: 0 Total: $10,720 Invoice 2086 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 12, 2014 Invoice No.: 2086 Customer: AlfaCo 11410 63 Avenue Regina, Saskatchewan E8M 7K1 Rep: Sandra Castell PO No.: Verbal Qty Description Total Unit Price 32 Initial consultation to determine new program requirements, per hour 32 Follow-up consultation to confirm proposed program specification, per hour 40 System wide testing on new program, per hour 8 Training on new computer software, per hour $79 $2,528 $79 $2,528 $79 $3,160 $79 $632 Sub- Total: $8,848 Freight: 0 Total: $8,848 Invoice 2087 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 17, 2014 Invoice No.: 2087 Customer: AlfaCo 11553 Elm Street Regina, Saskatchewan EZY 9E3 Rep: Bob Delgado PO No.: Verbal Qty Description Total Unit Price $79 $1,896 $79 $1,264 24 Initial consultation to determine new program requirements, per hour 16 Follow-up consultation to confirm proposed program specification, per hour 40 System wide testing on new program, per hour 24 Training on new computer software, per hour $79 $3,160 $79 $1,896 Sub- Total: $8,216 Freight: 0 Total: $8,216 Receipt from Steve's Diner X Steve's Diner 10672 Falton Trail Regina, Saskatchewan 273-3482 Check #: 284170 Server: Joseph Table: 30 Date: August 18, 2014 Time: 12:57 1 Pop 1 Coffee 1 Fettucini alfredo 2 Pizza, hawaiian 2.00 3.00 10.00 24.00 Total: $39.00 Cash Received: $39.00 Thank you for dining with us! Receipt 3050 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 22, 2014 Receipt No.: 3050 Customer: AlfaCo 11553 Elm Street Regina, Saskatchewan EZY 9E3 Rep: Bob Delgado Qty Description Unit Price Total Balance forward $0 1 Invoice #2087 (on August 17, 2014) $8,216 $8,216 Total: $8,216 Paid: $8,216 Balance Due: $0 Inter-Office Memo 3 X Date: August 25, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque for salaries owed to employees for the period August 1 to August 25. Thanks, Ryan Player Apex Advertising Bill x Apex Advertising 1127 80 Avenue Regina, Saskatchewan Z7F 9Q2 Customer Name: Binarium Inc. Account No.: 1558783 Service Period: 01/Aug - 27/Aug Invoice Date: August 27, 2014 Previous Charges Previous balance forward Payment on July 31 Total previous charges $550 $-550 $0 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $250 $150 $100 $500 Amount Due: $500 Receipt 3049 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 29, 2014 Receipt No.: 3049 Customer: BeamerCo 11406 29 Street Regina, Saskatchewan F3X OR9 Rep: Bob Delgado Invoice No.: Verbal Unit Price Total Qty Description 5 Troubleshooting, per hour $134 $670 Total: $670 Paid: $670 Balance Due: $0 Customer Statement for Sundown Co X Binarium Inc. 1105 47 Street Date: August 31, 2014 Regina, Saskatchewan M5J 212 Customer: Sundown Co 10929 38 Avenue Regina, Saskatchewan M5M 9D1 Amount Balance Date Description August 1 Balance forward August 1 Invoice #2085 $0 $7,504 $7,504 Amount Due: $7,504 Inter-Office Memo 4 X Date: August 31, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay the Apex Advertising bill received on August 27. Thanks, Ryan Player Inter-Office Memo 5 x Date: August 31, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.42 per share to shareholders of record on today's date. Thanks, Ryan Player Part 1 [70 points) Binarium 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. Binarium Inc. showed the following alphabetized post-closing trial balance at July 31, 2014. Account Balance Accounts payable 64,500 Accounts receivable 46,000 Accumulated depreciation, machinery. 2,500 Cash 157,500 Machinery 35,500 Retained earnings 60,500 Share capital 111,500 Note: . There were 10,000 shares issued and outstanding on July 31, 2014. Depreciation on the machinery is $550 per month. Binarium Inc.'s salaries expense is a total of $750 per day for each work day (Monday-Friday) in the month (for simplicity, please ignore all statutory holidays). The following source documents are from August : Deposit slip (August 1) Inter-Office Memo 2 Invoice 2086 Apex Advertising Bill Invoice 2085 C Invoice 2345 O Invoice 2087 C Receipt 3049 Inter-Office Memo 1 Receipt 5742 Receipt from Steve's Diner Customer Statement for Sundown Co Receipt 3047 Receipt 3048 Receipt 3050 Inter-Office Memo 4 Purchase Order 7581 O Purchase Order 2802 Inter-Office Memo 3 c Inter-Office Memo 5 a) Analyze each of the preceding source documents and prepare journal entries using this information only. Note that some source documents may not require an entry. Also, all bills are recorded in the journal on the day they are received. 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). General Journal Account/Explanation Page Gj1 F Debit Credit General Journal Account/Explanation Page GJ2 F Debit Credit Date Date + L + 1 + - + + + - - General Journal Account/Explanation Page GJ3 F Debit Credit General Journal Account/Explanation Page GJ4 F Debit Credit Date Date + - + -1 + - - + + - + X Deposit slip (August 1) AlfaCo 3643 60 Street Regina, Saskatchewan X2W 208 Date: August 1, 2014 Account No.: 2775 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Cash Cheques (re: 6,000 shares issued today) $65,000 Total Deposits $65,000 Invoice 2085 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 1, 2014 Invoice No.: 2085 Customer: Sundown Co 10929 38 Avenue Regina, Saskatchewan M5M 9D1 Rep: Adam Uppe PO No.: Verbal Qty Description Total Unit Price 56 System wide testing on new program, per hour $134 $7,504 Sub- Total: $7,504 Freight: 0 Total: $7,504 Inter-Office Memo 1 X Date: August 1, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please write a cheque to XYZCo in the amount of $1,200. This will pay for rent for the next 12 months. Thanks, Ryan Player Receipt 3047 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 1, 2014 Receipt No.: 3047 Customer: North Co 7376 45 Street Regina, Saskatchewan HOX 7Y9 Rep: Bonnie Northrup Unit Price Total Qty Description 5 Ongoing consulting regarding security, per month. To begin immediately and end December 31, 2014. $2,400 $12,000 Total: $12,000 Paid: $12,000 Balance Due: $0 Purchase Order 7581 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 2, 2014 PO No.: 7581 Vendor: Hector's Computers 5518 50 Street Regina, Saskatchewan L4N 819 Ship To: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Item No. Ordered Description Total Unit Price COM291 1 $13,200 $13,200 Computers Estimated useful life : 10 years. Estimated residual value : $1,920. Sub- Total: $13,200 Shipping: 0 Total: $13,200 Inter-Office Memo 2 X Date: August 2, 2014 From: Ryan Player To: Office Assistant Subject: New Hire Jack Tasker has accepted our job offer and will begin employment with us on September 1. Please get everything ready for that date. Thanks, Ryan Player Invoice 2345 Hector's Computers 5518 50 Street Regina, Saskatchewan L4N 819 Date: August 4, 2014 Invoice No.: 2345 Customer: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Rep: Ryan Player PO No.: 7581 Qty Description Total Unit Price 1 $13,200 $13,200 Computers as ordered on August 2, 2014. Estimated useful life : 10 years. Estimated residual value : $1,920. Sub- $13,200 Total: Freight: 0 Total: $13,200 Receipt 5742 Stan's Repair Services 11318 Franklin Place Regina, Saskatchewan C5T 3P1 Date: August 6, 2014 Receipt No.: 5742 Customer: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Rep: Ryan Player Qty Unit Price Total Description Repairs to machinery 1 $400 $400 Total: $400 Paid: $400 Balance Due: $0 Receipt 3048 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 8, 2014 Receipt No.: 3048 Customer: Decker Co 7825 Paper Place Regina, Saskatchewan M5T 7C6 Rep: Bob Delgado Invoice No.: Verbal Qty Unit Price Total Description Installation of new network component, 1 $134 $134 per hour Total: $134 Paid: $134 Balance Due: $0 Purchase Order 2802 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 12, 2014 PO No.: 2802 Vendor: Sundown Co 1818 70 Street Regina, Saskatchewan K8U 4U3 Ship To: Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Item Ordered No. Description Total Unit Price SR31 80 $134 $10,720 Product training to begin on September 1, 2014, per hour Sub- Total: $10,720 Shipping: 0 Total: $10,720 Invoice 2086 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 12, 2014 Invoice No.: 2086 Customer: AlfaCo 11410 63 Avenue Regina, Saskatchewan E8M 7K1 Rep: Sandra Castell PO No.: Verbal Qty Description Total Unit Price 32 Initial consultation to determine new program requirements, per hour 32 Follow-up consultation to confirm proposed program specification, per hour 40 System wide testing on new program, per hour 8 Training on new computer software, per hour $79 $2,528 $79 $2,528 $79 $3,160 $79 $632 Sub- Total: $8,848 Freight: 0 Total: $8,848 Invoice 2087 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 17, 2014 Invoice No.: 2087 Customer: AlfaCo 11553 Elm Street Regina, Saskatchewan EZY 9E3 Rep: Bob Delgado PO No.: Verbal Qty Description Total Unit Price $79 $1,896 $79 $1,264 24 Initial consultation to determine new program requirements, per hour 16 Follow-up consultation to confirm proposed program specification, per hour 40 System wide testing on new program, per hour 24 Training on new computer software, per hour $79 $3,160 $79 $1,896 Sub- Total: $8,216 Freight: 0 Total: $8,216 Receipt from Steve's Diner X Steve's Diner 10672 Falton Trail Regina, Saskatchewan 273-3482 Check #: 284170 Server: Joseph Table: 30 Date: August 18, 2014 Time: 12:57 1 Pop 1 Coffee 1 Fettucini alfredo 2 Pizza, hawaiian 2.00 3.00 10.00 24.00 Total: $39.00 Cash Received: $39.00 Thank you for dining with us! Receipt 3050 Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 22, 2014 Receipt No.: 3050 Customer: AlfaCo 11553 Elm Street Regina, Saskatchewan EZY 9E3 Rep: Bob Delgado Qty Description Unit Price Total Balance forward $0 1 Invoice #2087 (on August 17, 2014) $8,216 $8,216 Total: $8,216 Paid: $8,216 Balance Due: $0 Inter-Office Memo 3 X Date: August 25, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque for salaries owed to employees for the period August 1 to August 25. Thanks, Ryan Player Apex Advertising Bill x Apex Advertising 1127 80 Avenue Regina, Saskatchewan Z7F 9Q2 Customer Name: Binarium Inc. Account No.: 1558783 Service Period: 01/Aug - 27/Aug Invoice Date: August 27, 2014 Previous Charges Previous balance forward Payment on July 31 Total previous charges $550 $-550 $0 Current Charges TV advertising campaign Radio advertising campaign Print advertising campaign Total current charges $250 $150 $100 $500 Amount Due: $500 Receipt 3049 X Binarium Inc. 1105 47 Street Regina, Saskatchewan M5J 212 Date: August 29, 2014 Receipt No.: 3049 Customer: BeamerCo 11406 29 Street Regina, Saskatchewan F3X OR9 Rep: Bob Delgado Invoice No.: Verbal Unit Price Total Qty Description 5 Troubleshooting, per hour $134 $670 Total: $670 Paid: $670 Balance Due: $0 Customer Statement for Sundown Co X Binarium Inc. 1105 47 Street Date: August 31, 2014 Regina, Saskatchewan M5J 212 Customer: Sundown Co 10929 38 Avenue Regina, Saskatchewan M5M 9D1 Amount Balance Date Description August 1 Balance forward August 1 Invoice #2085 $0 $7,504 $7,504 Amount Due: $7,504 Inter-Office Memo 4 X Date: August 31, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay the Apex Advertising bill received on August 27. Thanks, Ryan Player Inter-Office Memo 5 x Date: August 31, 2014 From: Ryan Player To: Office Assistant Subject: Cash Disbursement Please prepare a cheque to pay dividends of $0.42 per share to shareholders of record on today's date. Thanks, Ryan Player