Unit 6 Final Assignment ####-1

a)
b)
c)
d)
e)
f)
g)
Pat Delbord is the owner of Lakeside Watersports, a business that rents out watersport equipment..
The worksheet for Pat's business for the fiscal year which ends September 30, 2020 is provided on the next sheet.
the end of year procedures for Pat as outlined below.
Complete the worksheet using the following additional information.
i) Late bills arrived during the first week of October but were for items relating to September:
Telephone bill for September, $225 plus HST
Supplies purchased in September, $450 plus HST
ii) A count of the supplies revealed $2,150 remaining.
iii) The insurance policy was purchased on February 1 and will last one year.
iv) Information regarding depreciation:
The building is depreciated using the straight line method. The building is expected to last 25 years and hav
The building was purchased several years ago. The CRA rate of depreciation on buildings is 5%.
The watersport equipment is depreciated using the declining balance method. The equipment is expected to
have a salvage value of $4,000. The equipment was purchased on March 1 of this year. The CRA rate of de
equipment is 15%.
The truck is depreciated using the declining balance method. It is expected to last 5 years with a salvage va
CRA rate of depreciation on equipment is 20%. The truck was purchased several years ago.
Prepare the income statement for the year ended September 30, 2020
Prepare the classified balance sheet at year end, September 30, 2020
Record the adjusting entries in the journal.
Record the closing entries in the journal.
Post the adjusting and closing entries to T accounts.
Prepare the post-closing trial balance at September 30, 2020
Lakeside Watersports Worksheet
Trial Balance Adjustments
Debit Credit Debit Credit
Bank 7,500.00
Accounts Receivable 2,700.00 254.25
Supplies 15,000.00 450.00 12,850.00
Prepaid Insurance 2,880.00 1,920.00
Land 100,000.00
Building 80,000.00
Accumulated Depreciation - Building 21,600.00 3,200.00
Equipment 32,000.00
Accumulated Depreciation - Equipment 4,800.00
Truck 48,000.00
Accumulated Depreciation - Truck 17,280.00 6,144.00
Accounts Payable 5,700.00 508.50
HST Payable 2,700.00 29.25
HST Recoverable 1,300.00 58.50
Bank Loan (due March, 2022) 22,500.00
Mortgage Payable 63,500.00
P. Delbord, Capital 129,460.00
P. Delbord, Drawings 62,000.00
Rental Revenue 105,200.00
Lesson Revenue 94,680.00
Advertising Expense 2,500.00
Bank Charges Expense 9,600.00
Dock Expenses 4,440.00
Utilities Expense 3,600.00
Telephone Expense 4,100.00 225.00
Wages Expense 87,000.00
462,620.00 462,620.00
Supplies Expense 12,850.00

Insurance Expense 1,920.00
Depreication Expense 14,144.00
29,676.75 29,676.75
year ended September 30, 2020
Income Statement Balance Sheet
Debit Credit Debit Credit
7,500.00
2,445.75
2,600.00
960.00
100,000.00
80,000.00
24,800.00
32,000.00
4,800.00
48,000.00
23,424.00
6,208.50
2,670.75
1,358.50
22,500.00
63,500.00
129,460.00
62,000.00
105,200.00
94,680.00
2,500.00
9,600.00
4,440.00
3,600.00
4,325.00
87,000.00
12,850.00
1,920.00
14,144.00
140,379.00 199,880.00 336,864.25 277,363.25
59,501.00 59,501.00
199,880.00 199,880.00 336,864.25 336,864.25
Pat Delbord
Income Statement
year ended September 30,2020
Revenue
Rental Revenue 105,200.00
Lesson Revenue 94,680.00 199,880.00
Expenses
Advertising Expense 2,500.00
Bank Charges Expense 9,600.00
Dock Expenses 4,440.00
Utlities Expense 3,600.00
Telephone Expense 4,325.00
Wages Expense 87,000.00
Supplies Expense 12,850.00
Depreciation Expense 14,144.00
Insurance Expense 1,920.00 140,379.00
Net Income 59,501.00

Pat Delbord. Lakeside Waterports
Balance Sheet
September 30,2020
ASSETS (-) (+) Total

Current Assets
Bank 7,500.00
Accounts Receivable 2,445.75
Supplies 2,600.00
Prepaid Insurance 960.00 13,505.75
Long Term Assets

Land 100,000.00
Building 80,000.00
Less: Accumulated Depreciation 24,800.00 55,200.00
Equipment 32,000.00
Less: Accumulated Depreciation 4,800.00 27,200.00
Truck 48,000.00
Less: Accumulated Depreciation- 23,424.00 24,576.00 206,976.00
Total Assets 220,481.75
LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable 6,208.50
HST Payable 2,670.75
Less: HST Recoverable 1,358.50 1,312.25 7,520.75
Long Term Liabilities

Bank Loan 22,500.00
Mortgage Payable 63,500.00 86,000.00
Total Liabilities 93,520.75
P. Delbord, Capital
Balance, August 1,2019 129,460.00
Net Income 59,501.00
Less Drawings 62,000.00 (2,499.00)
Balance, September 30,2020 126,961.00
Total Liabilities and Equity 220,481.75

Page 58
Date Particulars PR Debit Credit
Sept 30 Adjusting Entries
Telephone Expense 525 225.00
HST Payable 210 29.25
Accounts Receivable 110 254.25
Supplies 115 450.00
HST Recoverable 211 58.50
Accounts Payable 205 508.50
30 Supplies Expense 535 12,850.00

Supplies 115 12,850.00
30 Insurance Expense 540 1,920.00

Prepaid Insurance 120 1,920.00
30 Depreciation Expense 545 14,144.00

Accumulated Depreciation- Building 131 3,200.00
Accumulated Depreciation- Equipment 136 4,800.00
Accumulated Depreciation- Truck 141 6,144.00
30 Closing Entries
Rental Revenue 405 105,200.00
Lesson Revenue 410 94,680.00
Income Summary 595 199,880.00
30 Income Summary 595 140,379.00

Advertising Expense 505 2,500.00
Bank Charges Expense 510 9,600.00
Dock Expenses 515 4,440.00
Utilities Expense 520 3,600.00
Telephone Expenses 525 4,325.00
Wages Expense 530 87,000.00
Supplies Expense 535 12,850.00
Insurance Expense 540 1,920.00
Depreciation Expense 545 14,144.00
30 P. Delbord, Capital 301 62,000.00

P.Delbord, Drawings 302 62,000.00
30 Income Summary 595 59,501.00

P Delbord, Capital 301 59,501.00
Account Bank Number 105
Date Particulars PR Debit Credit DR/CR Balance
Sep 30 forwarded DR 7,500.00
Account A/R Number 110

30 J58 254.25 DR 2,445.75
Account Supplies Number 115

30 J58 450.00 DR 15,450.00
30 J58 12,850.00 DR 2,600.00
Account Prepaid Insurance Number 120

30 J58 1,920.00 DR 960.00
Account Land Number 125

Account Building Number 130

Sep ### forwarded DR 80,000.00
Account Acc. Dep'n Building Number 131

Sep ### forwarded CR 21,600.00
### J58 3,200.00 CR 24,800.00
Account Watersport Equipment Number 135

Account Acc. Dep'n Watersport Equipment Number 136

Sep 30 J58 4,800.00 CR 4,800.00
Account Truck Number 140

Account Acc. Dep'n Truck Number 141

Sep 30 forwarded CR 17,280.00
30 J58 6,144.00 CR 23,424.00
Account A/P Number 205

30 J58 508.50 CR 6,208.50
Account HST Payable Number 210

30 J58 29.25 CR 2,670.75
Account HST Recoverable Number 211

30 J58 58.50 DR 1,358.50
Account Bank Loan Number 215

Account Mortgage Payable Number 225

Account P. Delbord, Capital Number 301

30 J58 62,000.00 CR 67,460.00
30 J58 59,501.00 CR 126,961.00
Account P. Delbord, Drawing Number 302

30 J58 62,000.00 -
Account Rental Revenue Number 405

30 J58 105,200.00 -
Account Lesson Revenue Number 410

30 J58 94,680.00 -
Account Advertising Expense Number 505

30 J58 2,500.00 -
Account Bank Charges Expense Number 510

30 J58 9,600.00 -
Account Dock Expenses Number 515

30 J58 4,440.00 -
Account Utilities Expense Number 520
30 J58 3,600.00 -
Account Telephone Expense Number 525

30 J58 225.00 DR 4,325.00
30 J58 4,325.00 -
Account Wages Expense Number 530

30 J58 87,000.00 -
Account Supplies Expense Number 535

Sep 30 J58 12,850.00 12,850.00
30 J58 12,850.00 -
Account Insurance Expense Number 540

Sep 30 J58 1,920.00 DR 1,920.00
30 J58 1,920.00 -
Account Depreciation Expense Number 545

Sep 30 J58 14,144.00 DR 14,144.00
30 J58 14,144.00 -
Account Income Summary Number 595

Sep 30 J58 199,880.00 CR 199,880.00
30 J58 140,379.00 CR 59,501.00
30 J58 59,501.00 -
Account Number
Account Number
Lakeside Waterports
Post-Closing Trial Balance
September 30,2020
Bank 7,500.00
Accounts Receivable 2,445.75
Supplies 2,600.00
Prepaid Insurance 960.00
Land 100,000.00
Building 80,000.00
Accumulated Depreciation Building 24,800.00
Equipment 32,000.00
Accumulated Depreciation Equipment 4,800.00
Truck 48,000.00
Accumulated Depreciation Truck 23,424.00
Accounts Payable 6,208.50
HST Payable 2,670.75
HST Recoverable 1,358.50
Bank Loan 22,500.00
Mortgage Payable 63,500.00
P. Delbord Capital 126,961.00
274,864.25 274,864.25

Unit 6 Final Assignment ####-1

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Unit 6 Final Assignment ####-1

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a)

Supplies Expense 12,850.00

Net Income 59,501.00

ASSETS (-) (+) Total

Long Term Assets

Total Assets 220,481.75

LIABILITIES AND EQUITY

Long Term Liabilities

Total Liabilities and Equity 220,481.75

30 Supplies Expense 535 12,850.00

30 Insurance Expense 540 1,920.00

30 Depreciation Expense 545 14,144.00

30 Income Summary 595 140,379.00

30 P. Delbord, Capital 301 62,000.00

30 Income Summary 595 59,501.00

Account A/R Number 110

Account Supplies Number 115

Account Prepaid Insurance Number 120

Account Land Number 125

Account Building Number 130

Account Acc. Dep'n Building Number 131

Account Watersport Equipment Number 135

Account Acc. Dep'n Watersport Equipment Number 136

Account Truck Number 140

Account Acc. Dep'n Truck Number 141

Account A/P Number 205

Account HST Payable Number 210

Account HST Recoverable Number 211

Account Bank Loan Number 215

Account Mortgage Payable Number 225

Account P. Delbord, Capital Number 301

Account P. Delbord, Drawing Number 302

Account Rental Revenue Number 405

Account Lesson Revenue Number 410

Account Advertising Expense Number 505

Account Bank Charges Expense Number 510

Account Dock Expenses Number 515

Account Telephone Expense Number 525

Account Wages Expense Number 530

Account Supplies Expense Number 535

Account Insurance Expense Number 540

Account Depreciation Expense Number 545

Account Income Summary Number 595

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