Accounting 110-003 Summer 2021
Financial Accounting I
Assignment #2
Welcome to Assignment 2! This assignment provides an opportunity to apply your accounting
knowledge to a realistic business scenario. It is to be completed using the Excel template provided
on D2L. You are to work on this assignment on your own. While you are encouraged to ask
questions to Keri and your peers online via the discussion board, it is not a group project and
therefore each student is to submit his/her own work. Failure to submit your own work, such as
copying or assisting others with their response, is in violation of Camosun College’s Academic
Honesty policy. The College’s Academic Honesty policy will be strictly enforced.
Pi’s Portable Pet Pitstop (“P4”)
In Assignment #1, you recorded journal entries for Pi’s Portable Pet Pitstop (“P4”) until May 18
and posted them to the general ledger. Given your excellent help, Pi was able to record the rest
of the entries for the month of May using your entries as a guide. Pi remembered journal entries
from taking introductory financial accounting in school.
Pi properly prepared an unadjusted trial balance and now needs your help with the adjusting
entries for the business, including the bank reconciliation for May.
You will have received the following documents:
?
?
?
A copy of the Coast Capital bank statement for May for you to use to reconcile to the
Cash account 1010 in the General Ledger.
An email from Pi providing the information that you need to complete the adjusting entries.
A scan of an invoice from BC Hydro as well as an invoice for P4 for services provided in
May but not billed until June.
Required
1. It is highly recommended that you first watch my short video to introduce Assignment #2
which review the below steps. Note: Belmont students- you can alternatively review the
Assignment in class with your instructor
2. Using the bank statement from Coast Capital, prepare the bank reconciliation (blue tab
in Excel). From the bank reconciliation, you will prepare any necessary adjusting journal
entries in the General Journal (yellow tab in Excel) and post them to the General Ledger
(green tab in Excel). Note: When posting to the General Ledger, you will see that I have
already entered the May 31 date, written Adjusting Entry in the Account and Explanation
column, and highlighted the row in blue so that you can clearly see where to post the entry.
3. In addition to any adjusting entries from the bank reconciliation in Step 2, prepare all other
necessary adjusting entries. Pi has provided you with the additional information to help you in
an email (see attached). Prepare any necessary adjusting journal entries in the General
Journal (yellow tab in Excel) and post them to the General Ledger (green tab in Excel)
Accounting 110-003 Summer 2021
Financial Accounting I
Assignment #2
Hint: You should have the following adjusting entries, in addition to the adjustments from the
bank reconciliation:
1) Record the BC Hydro invoice for May utilities
2) Record the P4 invoice to its client for May services
3) Record the amount of office supplies used in May
4) Record the amount of pet and grooming supplies used in May
5) Record depreciation for the renovated van for May
6) Record depreciation for the grooming and spa equipment for May
7) Record the using up of Prepaid rent for May (see the May 1 information from
Assignment 1)
8) Record the using up of Prepaid insurance for May (see the May 1 information from
Assignment 1)
4. After you have completed the adjusting journal entries in the General Journal and posted
them to the General Ledger, the Adjusted Trial Balance should automatically update with the
updated figures (I have done the formulas for you). Check that it balances.
5. Based on the Adjusted Trial Balance, once it is balanced, prepare the Income Statement,
Statement of Owner’s Equity, and Classified Balance sheet in good form (purple tab in
Excel). All numbers in the financial statements must be linked to the Adjusted Trial Balance.
Note: I have already prepared the template for you of the financial statements. You just need
to link the numbers from the adjusted trial balance and complete any formatting such as dollar
signs, and lines.
6. Once the financial statements are prepared, you will prepare any necessary closing journal
entries in the General Journal (yellow tab in Excel) and post them to the General Ledger
(green tab in Excel). Note: I have linked the Post-Closing Trial Balance already for you so
check that it is in balance.
7.
Lastly, now that you have prepared the accounting for the month of May including the
financial statements, the owner has asked for your advice regarding the business. Answer
the two questions located on the Financial Statements sheet (purple tab in Excel).
You will then have completed an entire accounting cycle for a small business!
Please review the below confirmation statements and then type in your name in the blue box to confirm you un
Confirmation Statements:
Name:
Date:
the below confirmation statements and then type in your name in the blue box to confirm you understanding and compliance with the
1) I confirm that this assignment has been completed by me.
2) I understand that each student is to submit his/her/their own work and failture to submit own work,
such as copying or assisting others with their response, is in violation of Camosun College’s Academic Honesty policy.
3) I understand that questions about the assignment can be asked in office/class time as well as on the
discussion board; solutions however are not to be shared.
4) I understand that if a potential violation is detected, I will take an oral exam with my instructor about the
assignment concepts and depending on the outcome, it will then be reviewed further consistent with the
5) I understand that by including my name and date below, I am confirming that I understand the above
statements and have complied with them for this assignment.
8/18/2022
nd compliance with these statements.
Pi’s Portable Pet Pitstop
General Journal
Page 2
Date
Account
Ref
Debit
Credit
Pi’s Portable Pet Pitstop
Chart of Accounts
31-May
Balance Sheet and Statement of Owner’s Equity
Account
Number
1010
1015
1020
1030
1035
1040
1045
Assets
Current Assets
Cash
Accounts Receivable
GST Receivable
Office Supplies
Pet and Grooming Supplies
Prepaid Insurance
Prepaid Office Rent
Account
Number
2010
2020
2030
Liabilities
Current Liabilities
Accounts Payable
GST Payable
Unearned Revenue
Owner’s Equity
1055
1056
1065
1066
Capital Assets
Renovated Van
Accumulated Depreciation Renovated Van
3010
Pi Anders, Capital
3020
Pi Anders, Withdrawals
Grooming and Spa Equipment
Accumulated Depreciation Grooming and Spa Equipment
Income
Statement
Account
Number
4010
4020
10-May
15-May
18-May
Revenues
Day Care Revenue
Spa Service Revenue
Account
Number
5010
5020
5025
5030
5040
5045
5050
5090
5100
5200
Expenses
Accounting, Legal, & Licensing Expense
Office Supplies Expense
Pet and Grooming Supplies Expense
Depreciation Expense
Bank Charges
Credit Card Charges
Insurance Expense
Rent Expense
Utilities & Telephone Expense
Contractor Expense
Pi’s Portable Pet Pitstop
General Ledger
ACCOUNT NAME
0
0
Cash
Date
0
ACCOUNT NUMBER
Account & Explanation
1-May
Ref
Debit
J1
1010
Credit
Balance
20,000
325
6300
3600
4-May
6-May
9-May
57.75
199.5
10-May
15-May
15-May
18-May
430.5
3360
581.7
1103.2
850
246.75
425.25
204.75
199.5
25-May
26-May
31-May
31-May Adjusting Entry
ACCOUNT NAME
Accounts Receivable
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
Ref
Credit
ACCOUNT NUMBER
Ref
Balance
288.75
288.75
288.75
288.75
288.75
288.75
288.75
288.75
Debit
1020
Credit
Balance
655.42
655.42
655.42
655.42
655.42
ACCOUNT NUMBER
Ref
Debit
1030
Credit
Balance
1053.95
1053.95
1053.95
1053.95
1053.95
1053.95
Pet and Grooming Supplies
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
Debit
1015
288.75
Office Supplies
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
ACCOUNT NUMBER
GST Receivable
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
850
ACCOUNT NUMBER
Ref
Debit
1035
Credit
5472.29
20000
19675
13375
9775
9832.75
10032.25
6672.25
6090.55
6521.05
5417.85
4567.85
4814.6
5239.85
5444.6
5644.1
4794.1
4794.1
4794.1
4794.1
Balance
5472.29
5472.29
5472.29
5472.29
5472.29
5472.29
5472.29
ACCOUNT NAME
Prepaid Insurance
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
Ref
Credit
Ref
Debit
1045
Credit
Ref
6000
6000
6000
6000
6000
6000
6000
Ref
Balance
7000
7000
7000
7000
7000
7000
7000
7000
Debit
1056
Credit
Balance
0
0
0
0
0
0
ACCOUNT NUMBER
Ref
ACCOUNT NAME
Accumulated Depreciation – Grooming and Spa Equipment
Date
Account & Explanation
31-May Adjusting Entry
Credit
ACCOUNT NUMBER
ACCOUNT NAME
Grooming and Spa Equipment
Date
Account & Explanation
Balance Carried forward
Debit
1055
7000
ACCOUNT NAME
Accumulated Depreciation – Renovated Van
Date
Account & Explanation
31-May Adjusting Entry
Balance
6000
ACCOUNT NUMBER
Account & Explanation
Balance
3600
3600
3600
3600
3600
3600
3600
3600
ACCOUNT NUMBER
Renovated Van
Date
Balance Carried forward
Debit
1040
3600
Prepaid Office Rent
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
ACCOUNT NUMBER
Debit
8,261.93
1065
Credit
ACCOUNT NUMBER
Ref
Debit
Balance
8,261.93
8261.93
8261.93
8261.93
8261.93
8261.93
8261.93
8261.93
1066
Credit
Balance
0
0
0
0
0
0
0
0
ACCOUNT NAME
ACCOUNT NUMBER
Accounts Payable
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
Ref
Debit
ACCOUNT NAME
Account & Explanation
Debit
Credit
0 ACCOUNT NUMBER
Ref
Balance
Debit
97.75
97.75
97.75
97.75
97.75
97.75
97.75
97.75
2030
Credit
Balance
0
0
0
0
0
0
0 ACCOUNT NUMBER
Account & Explanation
Ref
Pi Anders, Withdrawals
Date
Balance Carried forward
2020
97.75
Pi Anders, Capital
Date
Balance Carried forward
31-May Closing Entries
ACCOUNT NAME
Ref
Unearned Revenue
Date
Balance Carried forward
Balance
2820.26
2820.26
2820.26
2820.26
2820.26
2820.26
2820.26
2820.26
0
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
ACCOUNT NAME
Credit
2820.26
ACCOUNT NUMBER
GST Payable
ACCOUNT NAME
2010
0
Account & Explanation
Debit
3010
Credit
35,100.00
0 ACCOUNT NUMBER
Ref
Debit
Balance
35,100.00
35100
35100
35100
35100
35100
35100
35100
35100
35100
35100
35100
35100
35100
3020
Credit
Balance
0
0
0
0
0
0
ACCOUNT NAME
Day Care Revenue
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Account & Explanation
ACCOUNT NAME
ACCOUNT NAME
Ref
Debit
845
845
845
845
845
845
845
845
4020
Credit
ACCOUNT NUMBER
Ref
Balance
Debit
1110
1110
1110
1110
1110
1110
1110
1110
5010
Credit
Balance
325
325
325
325
325
325
325
ACCOUNT NUMBER
Ref
Debit
5020
Credit
Balance
0
0
0
0
0
0
ACCOUNT NUMBER
Ref
Debit
5025
Credit
Balance
0
0
0
0
0
0
0
Depreciation Expense
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
Balance
1110
Pet and Grooming Supplies Expense
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
Credit
ACCOUNT NUMBER
Office Supplies Expense
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
Debit
4010
845
Accounting, Legal, & Licensing Expense
Date
Balance Carried forward
31-May Closing Entries
ACCOUNT NAME
Ref
Spa Service Revenue
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
ACCOUNT NUMBER
ACCOUNT NUMBER
Ref
Debit
5030
Credit
Balance
0
0
0
0
0
0
ACCOUNT NAME
Bank Charges
ACCOUNT NUMBER
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Credit Card Charges
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Ref
Debit
Credit
ACCOUNT NUMBER
Ref
Debit
5050
Credit
Balance
0
0
0
0
0
0
0
Ref
Debit
5090
Credit
Balance
0
0
0
0
0
0
0
ACCOUNT NUMBER
Ref
Debit
5100
Credit
Balance
821.57
821.57
821.57
821.57
821.57
821.57
821.57
821.57
Contractor Expense
Account & Explanation
Balance
0
0
0
0
0
0
Utilities & Telephone Expense
Date
Balance Carried forward
31-May Closing Entries
Balance
5045
ACCOUNT NUMBER
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Credit
ACCOUNT NUMBER
Rent Expense
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Debit
0
0
0
0
0
0
0
Insurance Expense
Date
Account & Explanation
Balance Carried forward
31-May Adjusting Entry
31-May Closing Entries
ACCOUNT NAME
Ref
5040
ACCOUNT NUMBER
Ref
Debit
5200
Credit
1700
Balance
1700
1700
1700
1700
1700
1700
ACCOUNT NAME
Date
ACCOUNT NUMBER
Account & Explanation
Ref
ACCOUNT NAME
Date
Debit
Credit
Balance
Credit
Balance
ACCOUNT NUMBER
Account & Explanation
Ref
Debit
Pi’s Portable Pet Pitstop
Pi’s Portable Pet Pitstop
Unadjusted Trial Balance
At May 31, 2021
Account Name
Cash
Accounts Receivable
GST Receivable
Office Supplies
Pet and Grooming Supplies
Prepaid Insurance
Prepaid Office Rent
Renovated Van
Accumulated Depreciation – Renovated Van
Grooming and Spa Equipment
$
Debit
4,794.10
288.75
655.42
1,053.95
5,472.29
3,600.00
6,000.00
7,000.00
Credit
$
–
8,261.93
Accumulated Depreciation – Grooming and Spa Equipment
2,820.26
97.75
35,100.00
Accounts Payable
GST Payable
Unearned Revenue
Pi Anders, Capital
Pi Anders, Withdrawals
Day Care Revenue
Spa Service Revenue
Accounting, Legal, & Licensing Expense
Office Supplies Expense
Pet and Grooming Supplies Expense
Depreciation Expense
Bank Charges
Credit Card Charges
Insurance Expense
Rent Expense
Utilities & Telephone Expense
Contractor Expense
845.00
1,110.00
$
325.00
821.57
1,700.00
39,973.01 $
39,973.01
Pi’s Portable Pet Pitstop
Adjusted Trial Balance
At May 31, 2021
Debit
$
Pi’s Portable Pet Pitstop
Post-Closing Trial Balance
At May 31, 2021
Credit
Debit
4,794.10
288.75
655.42
1,053.95
5,472.29
3,600.00
6,000.00
7,000.00
$
$
4,794.10
288.75
655.42
1053.95
5472.29
3,600.00
6,000.00
7,000.00
–
8,261.93
8261.93
2,820.26
97.75
35,100.00
0
0
845.00
1,110.00
$
325.00
0
821.57
1,700.00
39,973.01 $
39,973.01
$
325
0
0
0
0
0
0
0
821.57
1,700.00
39,973.01
‘s Portable Pet Pitstop
st-Closing Trial Balance
At May 31, 2021
Helpful hint:
I have already linked the post-closing trial balance for you.
With the closing entries, the Pi Anders, Capital account should now be updated with the revenues
and withdrawals that occurred during the month, with the balance in the Capital account equal
to the Capital balance at May 31 on the statement of equity and the balance sheet. The revenues
zero balance after you have posted the closing entries. Double check that this is what you see
on this post-closing trial balance. If not, then review your closing entries from the general journal
Credit
$
–
0
2820.26
97.75
0
35100
845
1110
$
39,973.01
entries from the general journal and your posting of them to the general ledger and correct any errors.
Pi’s Portable Pet Pitstop
Bank Reconciliation Sheet
31-May-21
Cash balance according to bank statement
Add:
5,321.55
Total additions
0.00
Total deductions
0.00
Deduct:
0.00
Cash balance according to General Ledger
4,794.10
Add:
Total additions
0.00
Deduct:
0.00
4,794.10
Helpful hint: Remember to compare what is recorded on the bank statement to what has been recorded in the Cash general
account. If there is a difference in the dollar amount reported on the bank statement, assume that it
was an error by the bank, rather than an error in recording the transaction by P4 (which of course there would be no errors s
Helpful hint: Remember to link the balance to the cash account in the most recent balance in the Cash account. Use Excel, d
Also remember to use Excel for any calculations in this bank reconciliation; adjust the existing formulas as needed to meet yo
here would be no errors since you have done the accounting for P4 :))
Pi’s Portable Pet Pitstop
Financial Statement Sheets
Pi’s Portable Pet Pitstop
Income Statement
For the month ended May 31, 2021
Revenue
Day Care Revenue
Spa Service Revenue
Expenses
Accounting, legal and licensing expense
Office supplies expense
Pet and Grooming Supplies expense
Depreciation expense
Bank charges
Credit card charges
Insurance expense
Rent expense
Utilities and telephone expense
Contractor expense
Net
Pi’s Portable Pet Pitstop
Statement of Owner’s Equity
For the month ended May 31, 2021
Pi Anders, Capital, May 1, 2021
Investment during month
Net loss for the month
less: withdrawals
Increase in owner’s equity
Pi Anders, Capital, May 31, 2021
Pi’s Portable Pet Pitstop
Balance Sheet
May 31, 2021
Assets
Current assets
Cash
Accounts Receivable
GST Receivable
Office supplies
Pet and Grooming Supplies
Prepaid insurance
Prepaid office rent
Total current assets
Grooming and Spa Equipment
Accumulated depreciation- Grooming and Spa Equipment
Renovated van
Accumulated depreciation- Renovated van
Total assets
Helpful hint: Remember to link the balances to the Adjusted Trial Bala
Remember proper formatting for the financial statements (headings, u
and you are preparing a classified balance sheet so remember to separ
to have the current assets in declining order of liquidity. I have provide
help guide you which you can adjust as you wish.
Owner’s two questions:
1) I am interested in a bank loan. What will the bank find to be
positive about the business performance from my financial statements
What will they potentially consider as a negative? Please provide
two reasons for each.
2) Now that you have reviewed my business for one month, what
suggestions do you have for me to improve my performance for the
upcoming months? Generic comments, such as ‘earn more revenue’
aren’t as helpful compared to advice tailored to my business.
Please provide me with at least two practical recommendations.
Liabilities and Owner’s Equity
Current liabilitiies
Accounts Payable
Unearned revenue
GST Payable
Total current liabilities
Owner’s Equity
Pi Anders, Capital
Total liabilities and owner’s equity

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