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OAEX244 Assignment 2 Winter 2018

Company Profile

The Stationery Station (TSS) is a store in Saskatoon, Saskatchewan that sells personal and business stationery supplies. These supplies include paper, pens and marking devices, greeting cards, giftware, and small electronic devices such as personal computer devices. Wanda Wang, the owner, decided that the store would cater to individuals and small business and sell quality products for reasonable prices.

Individual customers are allowed to pay with cash only. Cheques, credit cards, and debit cards are not accepted.

Ms. Wang has accounts setup with vendors and usually writes cheques to pay the goods on purchase date or to pay against an account balance outstanding.

Currently, all products sold are subject to HST, except sales to first-nation persons.

The year-end date for TSS is July 31, 2018.

The Chart of Accounts for The Stationery Station is as follows:

Assets:

Current:

Bank Chequing Account 894312

Bank Savings Account 971200

Supplies

Office Supplies Inventory

Giftware Inventory

Electronics Inventory

Prepaid Insurance

Long-Lived Assets:

Delivery Vehicle

Computers

Point of Sale Equipment

Store Cabinets and Shelving

Office Furniture

Liabilities:

Current:

HST Payable

Accounts Payable

Long-Term:

Bank Loan Payable

Equity:

Capital, Wanda Wang

Drawings, Wanda Wang

Income:

Office Supplies Revenue

Electronics Revenue

Interest Revenue

Expenses:

Cost of Goods Sold:

Cost of Office Supplies

Cost of Giftware

Cost of Electronics

Operating Expenses:

Advertising Expense

Supplies Expense

Insurance Expense

Rent Expense

Telephone Expense

Utilities Expense

Interest Expense

Store Maintenance Expense

Vendor Information

Adams Advertising Inc.(Attention: Marnie Haines, [email protected])

101 Advertising Ave.

Saskatoon, SK S3E 4H4

Tel: (921) 338-1010

Fax: (921) 338-9100

Business No.: 434 322 472

Terms: n/20

Credit Limit of $7,500

Office Supply Importation Ltd. (OSI) (Attention: Jasprinder Singh, [email protected])

88 No Supply Ave.

Saskatoon, SK S7H 1S3

Tel: (921) 367-3030

Fax: (921) 367-8100

Business No.: 434 872 862

Terms: n/15

Credit Limit of $10,000

Electronics Distribution Warehouse Inc. (EDW)

(Attention: Jacques Deschamps, Warehouse Mgr, [email protected])

41 Short Circuit Ave.

Saskatoon, SK S0U 7Y4

Tel: (921) 658-2020

Fax: (921) 658-1000

Business No.: 497 222 322

Terms: n/30

Credit Limit of $20,000

SaskTel (Attention: Marnie Haines, [email protected])

34 Tel Someone Ave.

Saskatoon, SK S3E 4H4

Tel: (921) 338-9988

Fax: (921) 338-9133

Business No.: 434 322 878

Terms: n/30

Credit Limit of $1,250

Vendor Information (Continued)

North Saskatchewan Giftware Suppliers (NSG) (Attention: Gloria Presents, [email protected])

387 Giftware Ave.

Saskatoon, SK S0T 9H4

Tel: (921) 878-9988

Fax: (921) 878-9133

Business No.: 545 322 878

Terms: n/30

Credit Limit of $8,500

Prairie Properties (Attention: Jill Landlord, [email protected])

394 Rental Ave.

Saskatoon, SK S9W 4H9

Tel: (921) 667-9988

Fax: (921) 667-9133

Business No.: 909 622 878

Terms: Due on receipt

Receiver General for Canada

902 Government Road

Saskatoon, SK S9W 1B5

Tel: (921) 432-9988

Fax: (921) 432-9133

Terms: Due on receipt

Outstanding Vendor Transactions Summary

Vendor Trans.Date Terms Due Date Bill No. Amount Bal. Owing

Adams Advertising Inc

06/21/2018 n/20 07/11/2018 AA-00988 $3,200 $2,500

Office Supply Importation Ltd.

06/28/2018 n/15 07/13/2018 OSI-1003 $9,400 $7,600

Electronics Distribution Warehouse Inc.

06/9/2018 n/30 07/9/2018 EDW-8712 $7,200 $7,200

06/23/2018 n/30 07/23/2018 EDW-8789 $5,700 $4,600

North Saskatchewan Giftware Suppliers

06/29/2018 n/30 07/29/2018 NSG-0121 $9,400 $6,600

Total $28,500

Customer Transactions Summary

Customers pay with cash only.

Inventory

Office Supplies Inventory

Giftware Inventory

Electronics Inventory

(All inventory taxable except sales to first-nations persons)

The Stationery Station

Trial Balance

June 30, 2018

Dr Cr

Bank Chequing Account 894312		$36,500
Bank Savings Account 971200		24,325
Supplies					1,350
Office Supplies Inventory			27,135
Giftware Inventory			11,325
Electronics Inventory			21,988
Prepaid Insurance				1,200
Computers				8,900
Point of Sale Equipment			6,700
Store Cabinets and Shelving			4,670
Office Furniture				5,210
HST Payable						650
Accounts Payable						28,500
Bank Loan Payable						36,000
Capital, Wanda Wang					25,000
Drawings, Wanda Wang			40,500
Office Stationery Revenue					176,945
Giftware Revenue						30,000
Electronics Revenue						66,540
Interest Revenue						650
Cost of Office Stationery			74,750
Cost of Giftware				14,000
Cost of Electronics				17,452
Advertising Expense				5,790
Supplies Expense				1,450
Insurance Expense				1,980
Rent Expense				28,000
Telephone Expense				2,700
Utilities Expense				6,800
Interest Expense				1,800
Store Maintenance Expense			800
Salary Expense				18,960
Account Totals					364,195		364,195

The following transactions are conducted by TSS for the month of July 2018:

TR1: July 1, 2018: Write cheque #1008 to Prairie Properties, in payment of one monthJuly’s rent valued at $2,545.46. Cheque to be printed now (describe how this is done without printing).

TR2: July 2, 2018: Bill OSI-1232 from OSI, for school binders and exercise booklets worth $621.88 plus HST, terms n/15.

TR3: July 3, 2018: Bill DW-009 from Discount Wholesalers (set up new vendor), for no-name school calculators, erasers, pens, and pencils worth $409.00 plus HST, terms n/10.

TR4: July 4, 2018: Bill OSI-1256 from OSI, for school pen and pencil sets worth $345.90 plus HST, terms n/15.

TR5: July 6, 2018: Bill NSG-0267 from NSG, for greeting cards, trinkets, nature booklets, and figurines worth $966.02 plus HST, terms n/30.

TR6: July 8, 2018: Bill EDW-8975 from EDW, for ipads and personal computers worth $4,750.00 plus HST, terms n/30.

TR7: July 9, 2018: Write cheque #1009 to EDW, in payment of account with bill reference EDW-8712 valued at $7,100. Cheque will be printed later.

TR8: July 9, 2018: Sales to customers worth $850 for stationery (plus HST), $945 for giftware (plus HST), and $1,840 for electronics (plus HST), for first week of July. Customers paid cash for these purchases.

TR9: July 11, 2018: Write cheque #1010 to Adams Advertising Inc., in payment of account with bill reference AA-00988 valued at $2,500. Cheque will be printed later.

TR10: July 11, 2018: Memo from owner: Cheque #1009 to EDW, was incorrect. Correct amount should have been $7,200. Edit the cheque to make the correction.

TR11: July 13, 2018: Write cheque #1011 to OSI, in payment of account with bill reference OSI-1003 valued at $7,600. Cheque will be printed later.

TR12: July 13, 2018: Write cheque #1012 to Discount Wholesalers, in payment of account with bill reference DW-009 valued at $462.17. Cheque will be printed later.

TR13: July 13, 2018: Memo from owner: Bill EDW-8975 from EDW, worth $4,750.00 plus HST, was incorrect. The correct amount should be $4,900.00. Edit the bill to make the correction.

TR14: July 14, 2018: Memo from owner: Print cheques #1009, #1010, #1011, and #1012 to respective vendors. (do not perform the actual printing, indicate how you would do it).

TR15: July 15, 2018: Bill EDW-9210 from EDW, for scientific calculators and personal computers worth $3,305.00 plus HST, terms n/30.

TR16: July 16, 2018: Bill DW-123 from Discount Wholesalers, for no-name school calculators, erasers, pens, and pencils worth $790.00 plus HST, terms n/10.

TR17: July 16, 2018: Sales to customers worth $920 for stationery (plus HST), $1,005 for giftware (plus HST), and $2,310 for electronics (plus HST), for second week of July. Customers paid cash for these purchases.

TR18: July 17, 2018: Write cheque #1013 to OSI, in payment of account with bill reference OSI-1232 valued at $702.72. Cheque will be printed later.

TR19: July 18, 2018: Bill SKT-5001-09 from SaskTel, for business telephone and cell phone services worth $261.00 plus HST, terms n/10.

TR20: July 19, 2018: Write cheque #1014 to OSI, in payment of account with bill reference OSI-1256 valued at $390.87. Cheque will be printed later.

TR21: July 20, 2018: Bill FC-0067 from Funky Cards (new vendor), for talking greeting cards worth $168.02 plus HST. Since it is a first-time purchase, cash was paid for the cards.

TR22: July 21, 2018: One-time sale to first-nation customers worth $120 for stationery (no HST), $425 for giftware (no HST), and $790 for electronics (no HST). Customers paid cash for these purchases.

TR23: July 23, 2018: Write cheque #1015 to EDW, in payment of account with bill reference EDW-8789 valued at $4,600. Cheque will be printed later.

TR24: July 23, 2018: Sales to customers worth $895 for stationery (plus HST), $1,120 for giftware (plus HST), and $3,760 for electronics (plus HST), for the third week of July. Customers paid cash for these purchases.

TR25: July 26, 2018: Bill NSG-0333 from NSG, for greeting cards, trinkets, nature booklets, and figurines worth $736.02 plus HST, terms n/30.

TR26: July 26, 2018: Write cheque #1016 to Discount Wholesalers, in payment of account with bill reference DW-123 valued at $892.70. Cheque will be printed later.

TR27: July 27, 2018: Bill DW-176 from Discount Wholesalers, for no-name school calculators, erasers, pens, and pencils worth $430.00 plus HST, terms n/10.

TR28: July 28, 2018: Write cheque #1017 to SaskTel, in payment of account with bill reference SKT-5001-09 valued at $294.93. Cheque will be printed later.

TR29: July 29, 2018: Write cheque #1018 to NSG, in payment of account with bill reference NSG-0121 valued at $6,600. Cheque will be printed later.

TR30: July 31, 2018: Sales to customers worth $1,025 for stationery (plus HST), $1,350 for giftware (plus HST), and $4,560 for electronics (plus HST), for the fourth week of July. Customers paid cash for these purchases.

TR31: July 31, 2018: Memo from owner: Print cheques #1013, #1014, #1015, #1016, #1017, and #1018 to respective vendors. (do not perform the actual printing, indicate how you would do it).

TR32: July 31, 2018: Memo from owner: Complete adjusting entries for cost of goods sold for:

Cost of Office Supplies $1,200

Cost of Giftware $1,400

Cost of Electronics $3,600

TR33: July 31, 2018: Memo from owner: Complete adjusting entries for the prepaid insurance.

TR34: July 31, 2018: Memo from BMO bank: Loan payment of $2,240 which consists of $2,000 in principal and $240 in interest. The payment was withdrawn from TSS’s Bank Chequing account.

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Provide the following reports as Excel documents :

1) General Journal for July 2018 38 Marks

2) A/P Aging Detail 8 Marks

3) Vendor Balance Summary 4 Marks

4) Transaction List By Vendor 8 Marks

5) Accounts Payable Graph 2 Marks

Total 60 Marks

Please attach the above reports to Assignment 2 dropbox.