Witness Fitness Centre - Essential...

Student's Manual.

Witness Fitness Centre An Accounting Simulation

for Students

Module• 1: Business Startup Background Information

Chart of Accounts

Source Documents

Accounting Forms

Computer Instructions

C 11 A 0

School Accounting Modules Witness

Fitness-

Centr

Background Information

Ted Winslow, a physical education teacher at a local high school, felt his efforts to promote high standards

of physical fitness were somewhat unappreciated by his students. Therefore, after a long summer of

contemplation, he decided to venture out into a business of his own. With some personal savings, a bank

loan, and a daring entrepreneurial spirit, the WITNESS FITNESS CENTRE was born. One nagging problem Ted did face was the bookkeeping: he was too busy to do it, and he was

concerned that hiring an accountant would be too expensive. A solution was close at hand, however—you!

Since you are a beginning accounting student and a friend of the Winslow family, you offered to perform

the bookkeeping functions of the centre free of charge! Ted, who was slightly concerned that your

services would,be worth the offered price, reluctantly agreed. The requirements are dear: Ted will give you the source document(s) for each transaction, you will

select the proper accounts to debit and credit, and then you will make an entry in the General journal.

After the transactions for the month of September are completed, you will post the data, prepare a trial

balance, and produce the financial statements—an income statement and a balance sheet. _

CGALCeeede-. Module 1 /pade-2

Witness

Fitness'

Cent

School Accounting Modules

Assets

CHART OF ACCOUNTS

Owner's Equity . 101 Bank • 301 Ted Winslow, Capital 105 A/R Lynn Ayles 302 Ted Winslow, Drawings 106 A/R Betty Shantz 107 A/R Laura Coburn Revenue 108 A/R Judy Jurnus 401 Membership Fees 125 Supplies 402 Drop-in Fees 150 Equipment 155 Furniture Expenses

Liabilities 501 Salaries Expense 505 Rent Expense

201 Bank than Payable 510 Advertising Expense 205 A/P Jim's Gymnastic Equipment 515 Renovations Expense 206 A/P liandyperson Hardware Ltd. 520 Loan Interest Expense 207 MP Thin 'N' Fair Furniture Ltd. 525 Miscellaneous Expense 208 A/P Outstanding Office Supplies 530 Telephone Expense 209 A/P Signs and Wonders Ltd. 535 Utilities Expense 210 A/P CWHY Radio Station 540 Choreography Expense 211 A/P Presto Printing 545 Bank Charges 212 MI Tell Telephone Company 550 Bookkeeping Expense 240 GST Charged on Sales Note: It is Ted's desire to use the above account titles only. 245 GST Paid on Purchases Alw, when setting up the ledger, the following need

multiple accounts: GST Chatged on Sales (3), GST Paid on Purchases (4), and Membership Fees (2).

CGA—Canada

Module 1 /page 3

Bate: get 2 20 To: 3/ 461, Mf kO6otr

From: &Wale

13 071 Balance Forward

Deposits

92 —

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To eikte4 11/4"

For &viten liatifes—ekar to itizeirmeotor Erik

FORM 1

Witness Fitness Centre Memoraunwhount

Phan& nconl de eery for 'tread aeetmegt S ettalef 0055) 000. /e-

toe dvart e zit a( tie kriese7ad aatabre eday.

FORM 2

73 Current Sea Road Ciborea Cif)/ V8H 1L7

Commercial Bank 7344344

TNor h 9 la , artS

.0krai • uø Ss( trade Date: 20-1 09 02

On demand, after date for value received, I promise to pay the NORTH 49 COMMERCIAL BANK the sum of $ NO00.00 payable at a monthly rate of

% per annum. Tedgrelata Ted Winslow Witness Fitness Centre

FORM 3

Datecceib1asria/P2

0 2/2 50c12- 9/2 10 000-

15 000 1800 —

126—

• 1 926 — 13071 —

Cheque Amount

Balance

To AAA fejt For gerte,,der AOnft

Bahl& Forward

Deposits

-To..1 Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

I FORM 4

002 Date gaibtedar 2

13071

92 12982

GGA-Canada Modulel/page 4

Gymnastic u' nnent

1003 POMMEL AVE. CIBOFIEA CITY V9Z 1M3 742-6904

INVOICE: 8370B DATE: 20-1 09 03 TERMS: Net 15 GST REG. 495039458 SOLD TO:

Witness Fitness Centre

10 Dun Street Ciborea City

FORMS

ouANTITY AR.TICU LARS-- - U N I--T PR I C E - ikkablO:WQ7

6 Weight Sets 109.75 658.50

4 Exercise Bikes 213.60 854.40

Sub-total 1,512.90 GST 7% 105.90 Total $1,618.80

FORM 6

Witness Fitness Centre Memorandum

To:

From:

my hatiever

7id /Arlo/

Date- frizi_ 20.L

..614, 404 taz real arorext, aie. are "As-peg for sotto r&gavamts. Pleas& cheye ae iota* ikahe. ipar Ilattalweesodfatoar& Lei. ta

keitatfraao. fro& Ileockurt, 7W

2572 Main St. Cibaraa City V411 GCB 430-9221

llaBff)p IOfl

Hardware Ltd.

1 FORM7

Sold To: Witness Fitness Centre 10 Dun Street Ciborea City V8A 6L2

Date: Sep 4,-1

Terms: N30 Order Number: 21945

Quantity Description Unit Price Amount

60 litres Paint - lndoorYOutdoor 6.47 388.20

12 1

Indoor lights and fixtures Paint brush

9.99 4.39

119.88 4.39

Sub-total 512.47 GST 7% 35.87

GST Registration No. 677539290 Total $548.34

CGA—Canada ModWel/pege5

FORM 8

Balance Forward 12 982 Deposits

Total Deposits Sub-total 12 982 Invoice (Pre-tax) 61572. GST Portion ale Other Cheque Amount 658 82 Balance 12 323 18 To geetfirilaceaPe tidfrxreirt For 7i/seairiter, waif p erackie, aria, alike:

003 Datescio_420=J____

FORM 9

FUN 'N' FAIR FURNITURE LTD "ENJOY EXCITING STYLES AT REASONABLE PRICES"

4717 6TH AVE. Witness Fitness Centre CIBORIA CITY DATE: 20-1 09 04

TO: /0 Dun Street V7H AY2 772-4119 TERMS: N/30

Ciborea City V8A 6L2 INVOICE: 34524 GST REG. NO. R339023902

Quantity Number Description Unit Price Amount

1 #0314 Desk 215.00 215.00 5 #1214 Chairs 39.00 195.00 1 #0004 Sofa 302.72 302.72

Sub-total 712.72 GST 7% 4929 Total 762.61

FORM 10

Outstanding Office

-Supplies - _

1 2999 Oxford Ave. Ciborea City

(12V VIC9 624-3972

- _ , _„.

- 0 ,

2.7 , Ilit wreftiZj

Sold To: Witness Fitness Centre i 5/ e Date: Sep 5, 20-1 10 Dun Street Ciborea City V8A 6L2 Terms:Net 30


1,000 20 lb bond paper - white 8.73 200 file folders 17.33/c 34.66

2,000 invoices 49.37/m 98.74

Sub-total 142.13 GST 7% 9.95

CST Reg. #R839458219 Total 152 . 0 8

OGA-Canada Module4/page 6

FORM 11

Amount Quantity Description

T Witness Fitness Centre 0 10 Dun Street

Ciborea City V8A 6L2 20-1 09 05

Invoice 5563 GST Reg. R459294029

500 Advertising Flyers 265.00

Sub-total 265.00

pad wo atellifr°4 fiti GST 7% Total

18.55 Cash Net 30 Days 283.55

Mo's ,,Marketing

9776 Cannon Drive Ciborea City V8Y 27C.2 Mo's

Ong 738-1309

Oumnity Amount Particulars

Billboard Rentals — One Month 2 1,115.12

FORM 12

SIGNS AND WONDERS LTD. We'll paint you a better profit picture

Witness Fitness Centre 10 Dun Street Ciborea City V8A 6L2

Invoice #43001. Date: 20-1 09 06 Terms: N/30

6224 Elm Street Ciborea City

V4L 1B1 787-6333

Sub-total GST 7%

Total

1,115.12

GST No. R882923922

7 8 . 0 6

$1,193.18

FORM 13

Sold To: Witness Fitness Centre / 0 Dun Street Ciborea City V8A 6L2

im Presto kJ Printing

697-4007

3947 Eton St. September Date: 6,20-1

Ciborea City V8M 3P2 Terms: Net 30 days No. 062472

Quantity Description Amount Unit Price

500 8112 X 11 sheets with letterhead .17 85.00 500 envelopes .11 55.00

140.00 GST 7% 9.80

GST Itegistxation: R984304994 149,80

GSA-Canada Module 1/page 7

FORM 14

323 cambridge st. ciborea city v9u 4c4 788-4821

ou nal\ vings•

Date: Sep 6,-I Invoice 3401

GST reg. 11993883212 Terms: Cash

Sold To: Witness Fitness Centre 10 Dun St. Ciborea City, V8A 6L2

Description

Choreographed music tapes—aerobic theme

Pab'a&% e ieft& 005

77/

Amount

350.00

350.00 24.50

374.50 GST 7% Total

Quantity

5

FORM 15

006 Date 4tunriee-8

77:66573

11,665 13 790.00 55.30

845 30 10,819 83

felVeldleafter

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

nentirtgat Mette-4r

To

For

FORM 16

007 Datesrivare9_20,-/___

10,819 83

10819 83 1/15,50 85.09

1,300 59 9,519 21

Balance Forwent

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To fiat fowte For Stereo ifutieratt

Invoice: Date:

Terms: GST Beg. No.

000IA 20. 3. 0.9 10 Cash 1t712367927

"Become a Fitness Witlessr

10 Mut Signet Canna City V8A 612 (703) 6974007

Witness fitness Centre

I FORM 17

Quantity

Particulars

Amount • 1 Quarterly' Merdbership to Rob Beck 90 00

Sub-total 90 00 GST 7% 6 30

Received in Cash 96 30 Amount Owed

GSA-Canada - Module- /page 8 -

Amount • Particulars

FORM 18

Invoice: 0002A Date: 20-1 09 11

%arms: N/15 GRIP Beg. Na.. B712367927

10 Dan Street Clborea City VIIA 612 (703) 697-4007

"Recent° a fitness Witness" Quantity

Quarterly Membership to Lynn Ayles 90 00

Sub-total 90 00 GST 7% 6 30

Received in Cash 30 00 Amount Owed 66 30


I FORM 19

008 Date &leader 1320=1_

9,519 21 9/10 96.30 9/11 30 00

126 30 9645 54

800 00 8,815 51

For stage,hbeaSt

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To rats Odor

I FORM- 20

009 Datege,torier 13 20 —7

8845 51

8,845 51

600 00 ,

8,215 54

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Bartion

Other

Cheque Amount

Balance

To 7i4i/Waica/ For Penaraf«es

FORM 21

0 Witness -- 'ii li.Ftness \*-‘ ee *Centr le 4 k

Weekly Summary

-

e , C." .-H,...,./..,,

dtk& goof a

1;tagg do

of Drop-in Fees Week

,. te,s K 61' r ,r a

IWO . °I'

of gelateder 8-13, 20-1 '''re-

Monday Tuesday Wednesday Thursday Friday Saturday Totals

Drop-in Fees

GST

40- 240

60- 1.20

56- 3,92

52- 3.61

18 - 3,36

72- 5,01

328- 495

Totals 4280 61.20 59,92 55.64 51,36 7701 350,96

CGA-Canada Module 1/page 9

Quantity Particulars Amount

I FORM 23

Invoice: Date:

Terms: GST Reg. No.

0001& 20-1 09 19 Cash

11712367927

"Become a Fitness Witness"

10 Dun Street €11. urea City V114 612 (703) 6974007


1 Quarterly Membership to Lisa Miller 90 00

Sub-total 90 00 CST 7% 6 30


FORM 22

Date 4re/irk 1520 —/

8,245 54 i 9713 350.96

350 96 4596 50

46115 80 6,977 70

For fair edam's' gi aecoot

Cheque Amount Balance

ci/k,l'Orlivtarai 4/Orme

010

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other


"Become a Fitness Witness

10 aim Sfrotat Ciborea City VITA 612 (703) 6974007

I FORM 24

Invoice: 00044 Date: 20-1 09 19

'Wins: N/15 GST Beg. No. R712367927

Quantity Particulars Amount

1 Quarterly MeMbership to Betty Shantz 90 00

Sub-total 90 00 GST 6 30


CatiCanada

- Module /page 10

I FORM 26 Invoice: 00054

Date: 20-1 09 20 Terms: N/15

GST Reg. No. R712367927

10 Dun Street Ciborea City V8A 612 (703) 6974007

'gleesome a Fitness Witness" Amount Particulars Quantity

1 Quarterly Membership to Laura Coburn 90 00

Sub-total 90 00 GST 6 30



FORM 25 _ Witness

Ø ritness t

foeii•eo.i..... , --o-----

Weekly Summary of prop-in Fees Week of 444er 15-20, 204


torilia Fees 18.00 55.00 61,00 18,00 56.00 80.00 352.00

GST 3,36 3.92 118 3 .36 3.92 5.60 2161

Totals 51,36 69.92 68,18 51,36 59,92 85,60 376,61

FORM 27 AM Radio

4711 Airway Road Chorea City V4P 2M1

Invoice #5612C 732-0671 1 GST No. 456920497 Sold To:

ear Why°, 17159.

Witness Fitness Centre .0 10 Dun Street Ciborea City V8A 6L2 4.2 o '24n 20-1 09 22 'es. SP'


12 30 SEC ADVERTISEMENTS 25.00 300.00

Sub-total 300.00

GST 7% 21.00 cad, Terms

Cre

Total $321.00

CGA—Canada Module 1/page 11

Invoice: Date:

Terms: GST Beg. No.

0006A 20-1 09 24 30/60/90

R712367927

"Become a Fitness Witness"

10 Dun Street Ciborea City VOA 6L2 (703) 697-4007


Date gv 25 20-1 Received by: ne

FORM 29

Witness Fitness Centre Ittetnittankee Slip mu

Cash

Cheque Amount $ 66.30

Explanation:

from 1, licyksa jeal tare of mead

OW 30

011 Datavtemigt 26 20_72_

6,977 70

So epar . bit 9/15 Is

9/25. 679 24

7,656 94

800 —

6,856 94

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To ratio cantor

For &ma, eaSe

I FORM 31

Statement 18934

Account: Witness Fitness Centre Telephone: (703) 697-4007 Bill Date: September 24,20-1

Amount

n ka Sq 21w

rmi

Fe° Total New Charges GST 7%

Total Due

42.00 4.50

46.50 3.26

49.76 NEW CHARGES ARE DUE ON OCTOBER 15,20-1

Quantity

1 1

GST Reg. # R450358933

Details

Coraniercial access line Phone rental

700 ExtensiOnioad Char' ea Qty V30 2A7

FORM 28

Quantity

Particulars

Amount

1 Annual Mehbership to Judy Junius 320 00

Sub-total 320 00 GST 7% 22 40


COie-Canada - Module 1/page-12

FORM 32

ce

\art -

Weekly


* ir% - -...---- --, - ----,--_,----

of Drorin Fees Week of &premier 22-24 20-1 Summary --

Monday Tuesday Wednesday Thursday Fnday Saturday Totals

Brop-in Fees

CST

18,00

3.36

61.00

118

60.00

120

6100

1,18 56,00

3.92

80.00

5,60

372.00

250

%flab 51.36 68,18 61.20 68,18 59,92 85.60 398,01

FORM 33

iNorA --p -N

To: Witness Fitness Centre 10 Dun Street

adlitilind=e1 tare, 73 Current Sea Road Ciborea City V8A 612 mum? moat Ciborea City WM I L7

Commercial Bank} 734-4344 Date: 20-1 09 30

Your account has been charged with:

Interest on demand loan

Account Number: 0240121

Coffers CetlIS

103 29

FORM 34

-\ cNorll / To: Witness Fitness Centre

10 Dun Street Eilar?

73 Current Sea Road Ciborea City V8A 6L2 arm?' _JEW Ciborea City WM IL?

\.. Commercial Bankj 734-4344 Date: 20-1 09 30

You r account has been chaged with:

Monthly Service Charges

Account Number: 0240121

Dollars Cents

8 90

GSA-Canada Module 1/page 13

I FORM 36

012 Datege, kt 3020 -1

6 856 91 9/27 398 Of

9/30 12112 522 16

7,379 10

reeatia alie new wt. 9/30: 772 79

700 00 6,566 91

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pm-tax)

GST Portion

Other

Cheque Amount Bala I re

T° 7c-rafairekta For PeAfOoraft(e&

FORM 17

013 Date:V&A/sr 30 20 -7

456691

6,566 91 156.78

31.W

438 75 40816

For mar ester semAdee

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pm-tax)

GST Peution

Other

Cheque Amount

Balance

To iveracedoe, fleark

—014— Dategt,tennier 30 20 —1

Balance Forward

Deposits

Total baiXiiiti

6,078 16

Sub-total

Invoice (Pre-tax)

GST Pordon

Other

6,078 16

Cheque Amount 100 oo Balance 5978 16 To ca

For ilknefertAtoreitz

FORM 35

' e.

_ ft Witness

Vol 'Fitness A\%\ ---• ,yrSyCentre

t {t -------z--=---- - Weekly Summary of Drop-in Fees Week of Sytender 29-30, 204


Drop-in Fees 5249 61.00 116.00

3,61 1.98 812 GST

Totals 55.61 68,18 121.12

CGA-Canada Module 1/page 14

Witness Fitness Centre - Essential...

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