Assignment Task
Body Arts
Part 2 is a continuation of Assignment 1 – Part 1: Starting the New Company. The information provided in this test allows you to set up all ledgers for an Ontario company named BODY ART. Let’s briefly recap the company. BODY ART specializes in high quality aesthetic body art with sterile equipment. Before beginning any tattoo work, customers watch a brief consultation video from a dermatologist describing the process and cost of reversing their decisions. The new manager of the store buys tattoo designs and also creates custom designs for patrons with special requests. Most patrons choose from a stock of designs purchased from other artists. Her assistant completes much of the tattoo work. In stock designs are entered as inventory items, with prices based on size and complexity. Temporary tattoos are also available. The ink used for tattoos is charged to customers as inventory sales. The tattoo application and custom design work are charged as services on the basis of time. All ledgers are used.
1. Open Back up.
Continue with the original working copy, BODY.SAI.
2. Change the session date to April 8, 2022 Add the shortcuts you need and then enter the following transactions:
NOTE: Be sure to use the correct bank account for each transaction. If you have set up the accounts correctly, the default account will be correct.
Cheque Purchase Invoice
From Lee Gull, $2 373, including HST, for legal fee to draw up legal waiver form for business. Paid by cheque 432. Create new Group expense account 5240 Legal Expenses. Allocate 20% of expense to Sales Division and 80% to Services. Use Quick Add for the new supplier.
Supplier Order
20 Designs – Small ($13 ea) $260.00
10 Designs – Medium ($27 ea) 270.00
10 Designs – Large ($58 ea) 580.00
Courier Freight Charge 40.00
HST Paid 149.50
Invoice Total $1 299.50
Cash Receipt
From Stan Stoner, cheque 2773 for $2 757 in full payment of invoice 3104, taking into account 1% sales discount of $43 for early payment.
Supplier Invoice
From Ned’s Needles, $250, plus 13% HST for sterilized needles that fit tattoo gun. Invoice total $282.50. Terms: 1/15, net 30. Use Quick Add for new supplier.
Payment Cheque
To Skin Decals, Inc., $3 479.80 in payment of invoices #SD-621 and SD-808, including $30.20 discount for early payment, and $200 as deposit for purchase order #55.
Total cheque amount is $3 679.80.
Supplier Invoice #FS-4972
4 boxes Ink – Permanent Colour ($40 ea) $160.00 USD
4 boxes Ink – Permanent Outline ($45 ea) 180.00 USD
4 boxes Ink – Temporary Colour ($45 ea) 180.00 USD
4 boxes Ink – Temporary Outline ($40 ea) 160.00 USD
HST Paid 88.40 USD
Invoice Total $768.40 USD
The exchange rate is 1.001 (the exchange rate difference amount may not be allocated)
Edit the default prices.
Cheque Copy #119
To Full Spectrum, $970 USD in full payment of invoice #FS-3904. The exchange rate is 0.990. Paid from Bank: USD Chequing Account.
Client Quote #32
Delivery Date April 15, 2014
To Hart Bridal Party (love knot & heart design tattoos for 10 members of wedding party)
10 Ink – Temporary Colour $7 /tube
10 Ink – Temporary Outline 5 /tube
20 Designs – Small 20 each
10 Tattoo applications 70 /session
HST Charged 13 %
Client Invoice #3111
To Wanda Wonder (Use Quick Add for new Regular customer)
15 Ink – Permanent Colour $ 10 /tube
6 Ink – Permanent Outline 6 /tube
2 Designs – Medium 60 each
1 Design – Large 100 each
5 Tattoo applications 80 /session
HST Charged 13 %
Memo #1
Bonnie Hart has accepted the Client quote to Hart Bridal Party and is placing an order. Convert Client Quote #32 to Client Order #32 using the same shipping date, prices and terms.
Cash Receipt #357
From Hart Bridal Party, cheque #188 for $400 as deposit #106 to accept sales order #32.
Deposit Slip #607
Deposit two cheques received in the past week. Total deposit is $ 3157.
Cash Sales Invoice #3111
To One-time cash customers
12 Ink – Permanent Colour $10 /tube
5 Ink – Permanent Outline 6 /tube
6 Ink – Temporary Colour 8 /tube
2 Ink – Temporary Outline 7 /tube
15 Designs – Small 25 each
15 Tattoo applications 80 /session
HST Charged 13 %
$2 019.31 received by cheque #354
Invoice # SD-986
| Bill To | |
| Customer | Body Art |
| Address | 9999-A New St. Toronto, Ontario M5W 1G6 |
| Phone | (647) 523-8191 |
| Payment Terms | 1/10, net 10 |
| Supplier Order | # 55 |
| QTY | Description | Unit Price | Line Total | |
| 20 | Designs – Small | $13 | $260.00 | |
| 10 | Designs – Medium | $27 | 270.00 | |
| 10 | Designs – Large | $58 | 580.00 | |
| Courier Freight Charge | 40.00 | |||
| HST Paid | 149.50 |
Memo#3
Several boxes of supplies and inventory were damaged after a prolonged power failure. The following items were not usable and should be written off:
Sterilized needles $120
Other supplies $80
Tattoo gun $250
30 tubes Ink – Permanent Colour accept cost price
20 tubes Ink – Temporary Colour accept cost price
Allocate 100% of the cost of equipment and supplies to the Services division and 100% of the cost of damaged ink inventory to the Sales division. Create new General Ledger Group expense account 5210 Damaged Supplies and Equipment. (Hint: two journal entries are required.)
Cash Receipt #358
From Wanda Wonder, cheque #344 for $901.67 in payment of invoice #3110, taking into account 1% sales discount of $9.11 for early payment.
Cash Receipt #359
From Stan Stoner, cheque #2789 for $1 000 as deposit #107 in prepayment for tattoo work to be completed over several weeks.
INvoice # 3112
| Bill To | |
| Customer | Stan Stoner |
| Address | 110 Abbey Rd. Toronto, ON M8C 9A1 |
| Phone | (416) 592-9001 |
| Payment Terms | 1/15, net 30 |
| Qty | Description | Unit Price | Line Total |
| 4 | Design – Large | $100 | |
| 10 | Ink – Permanent Outline | $10 / tube | 100 |
| 40 | Ink – Permanent Colour | $10 / tube | 400 |
| 20 | Tattoo Application | $80 / session | 1,600 |
| Subtotal | 2,500 | ||
| HST @13% | 325 |
Note : Allocate 100% of sales to Sales Division and 100% of services to Services Division. Accept message.
Client Invoice #3113
To Hart Bridal Party, to fill sales order #32
10 Ink – Temporary Colour $7 /tube
10 Ink – Temporary Outline 5 /tube
20 Designs – Small 20 each
10 Tattoo application 70 /session
HST Charged 13 %
Credit Card Client Invoice #3114
To One-time credit card customers
20 Ink – Permanent Colour $10 /tube
9 Ink – Permanent Outline 10 /tube
8 Ink – Temporary Colour 8 /tube
4 Ink – Temporary Outline 7 /tube
10 Designs – Medium 60 each
20 Tattoo application 80 /session
HST Charged 13 %
Allocate 100% of sales to Sales Division and 100% of services to Services Division.
Edit the default prices.
Supplier Order #56
From Full Spectrum, one tattoo gun to replace the damaged equipment. The cost of the new gun is $320 plus HST $41.60. Invoice total $361.60 (USD). Terms: 2/15, net 30. The exchange rate
is 0.985.
Supplier Invoice # MS-903
From Medi-Specs, $260 plus $33.80 HST for routine site and equipment inspection. Invoice total $293.80. Terms: net 15. Create new Group expense account 5250 Licenses and Inspections. Allocate 40% of the expense to Sales Division and 60% to the Services Division.
Deposit Slip #608
Deposit three cheques received in the past weeks totaling $3,920.98.
Total deposit amount was $3 920.98.
Memo #6
Transfer $4 000 from Bank: Credit Card to Bank to CAD Chequing Account.
Transfer $2 000 USD from Bank: CAD Chequing Account to Bank: USD Chequing to cover upcoming payments. The exchange rate is 0.985.
Bank Debit Memo #RCU-4433
From Rainbow Credit Union, $600 for loan payment including $100 interest and $500 principal. Total amount withdrawn from CAD Chequing bank account was $600 Allocate 40% of the interest expenses to the Sales Division and 60% to the Services Division.