Mr John Webber and Mr Richard Eills are the founding partners of Webber Ellis & Company, a home furniture trader that buys furniture from manufacturers and sells them to furniture retailers. The company was set up on 1 July 2003, which is also the first day of commencement of bussiness. The company adopts the standard 12-months financial period, commencing from 1 July 2003.
The Company transacts in the local currency ($) and US Dollars (USD). The USD exchange rates table is found in Appendix A. As a policy, the system's exchange rates table will be update once a month on the last day of the month.
You may assume that there is no tax for all transactions and accounts
Allendix A
USD Exchange Rates (local currency to 1 unit of USD
1-Jul-03 1.7
5-Jul-031.72
7-Jul-031.728
8-Jul-031.75
12-Jul-031.73
15-Jul-031.74
25-Jul-031.72
28-Jul-031.73
31-Jul-031.75
1-Aug-031.745
1, Ste up the company data file by selecting the Industry classification:"Retail" and Type of business:"Furniture Dealer" from sample account list provided by the software, with the following company address:
ID: Your Candidate No
67 Hogget Street
Singapore 034568
(1) Rename the account" 4-1300 Cash Sales " to "4-1300 Credit Sales"
(2) Create the parnership distribution accounts "3-8001" for Mr John Webber and "3-8002" for Mr Richard Ellis
2, The company purchases furniture in US Dollars (USD) from overseas manufacturers and sells them to furniture retailers
(1) Update the exchange rates table for the USD rate on 1 July 2003. Generate the Currency List report
(2) Create the following accounts:"1-2201 Trade Debtors-USD" and "2-2201 Trade Creditors-USD". Link these accounts to the USD currency
3, On 1 July 2003, each partner contributed $100,000 towards the set up of their furniture trading business. The two amounts of $100,000 were deposited into the general cheque account. Record this transaction
4, An order was placed with Evertimber Trade Company for 100 pieces of Dining Chair (Item No. DC01) aty USD25.00 each, and 20 pieces of Dining Table (Item No. DT02) at USD75.00 each. All goods arrived on 5 July 2003, and the supplier bill was received on the same day.
(1) Create these two items in the Item List using the following information:
cost of sales account is "5-100 Purchases"
Income account for sales is "4-1300 Credit Sales"
Asset account for inventory is "1-2300 Merchandise Inventory"
(2) Create a supplier bill (item layout) from Evertimber Trade Company for the purchase above. The supplier requires a 50% payment upon delivery, and the balance 50% within 30 days from date of the bill. Record this partial payment to Evertimber Trade Company. Generate this supplier bill from the system
5, The following sales were made during the month of July 2003. Generate the invoices accordingly
(1)7 July 2003. Sold 11 piece of DT02 and 4 pieces of DC01 to customer Trumpet Home Furnishings at $250.00 and $90.00 each respectively. A 14 Days credit term is offered
(2)8 July 2003. Sold 10 piece of DC01 to customer American Dream Homes at USD75.00 each. A 7 days credit term is offered.
(3) 12 July 2003. Sold 1 piece of DT02 at $280.00 to customer Kelly's Home, and it has been agree with the customer that this will be traded-in with 1 piece of used dining table valued at $50.00. The outstanding balance was settled by the customer on delivery. You should create a new account"1-9990 Contra Cheque Account" and inventory items "Used Dining Table (Item No. UDT)" and "Trade-in Item", to record this transaction and generate this invoice.( Note: Please use the Cash method to handle this transaction
