Student’s Manual

Witness Fitness Centre

An Accounting Simulation
for Students

Module 1: Business Startup

Background Information
Chart of Accounts
Source Documents
Accounting Forms
Computer Instructions
 School Accounting Modules

Background Information
Ted Winslow, a physical education teacher at a local high school, felt his efforts to promote high standards of
physical fitness were somewhat unappreciated by his students. Therefore, after a long summer of contemplation,
he decided to venture out into a business of his own. With some personal savings, a bank loan, and a daring
entrepreneurial spirit, the WITNESS FITNESS CENTRE was born.
One nagging problem Ted did face was the bookkeeping: he was too busy to do it, and he was concerned that
hiring an accountant would be too expensive. A solution was close at hand, however—you! Since you are a
beginning accounting student and a friend of the Winslow family, you offered to perform the bookkeeping functions
of the centre free of charge! Ted, who was slightly concerned that your services would be worth the offered price,
reluctantly agreed.
The requirements are clear: Ted will give you the source document(s) for each transaction, you will select the
proper accounts to debit and credit, and then you will make an entry in the General journal.
After the transactions for the month of September are completed, you will post the data, prepare a trial balance,
and produce the financial statements—an income statement and a balance sheet.

CGA–Canada Module 1 /page 2

 School Accounting Modules

CHART OF ACCOUNTS
Assets Owner’s Equity
101 Bank 301 Ted Winslow, Capital
105 A/R Lynn Ayles 302 Ted Winslow, Drawings
106 A/R Betty Shantz
Revenue
107 A/R Laura Coburn
401 Membership Fees
108 A/R Judy Jurnus
402 Drop-in Fees
125 Supplies
150 Equipment Expenses
155 Furniture 501 Salaries Expense
Liabilities 505 Rent Expense
510 Advertising Expense
201 Bank Loan Payable
515 Renovations Expense
205 A/P Jim’s Gymnastic Equipment
520 Loan Interest Expense
206 A/P Handyperson Hardware Ltd.
525 Miscellaneous Expense
207 A/P Fun ’N’ Fair Furniture Ltd.
530 Telephone Expense
208 A/P Outstanding Office Supplies
535 Utilities Expense
209 A/P Signs and Wonders Ltd.
540 Choreography Expense
210 A/P CWHY Radio Station
545 Bank Charges
211 A/P Presto Printing
550 Bookkeeping Expense
212 A/P Tell Telephone Company
240 GST Charged on Sales Note: It is Ted’s desire to use the above account titles
only. Also, when setting up the ledger, the following need
245 GST Paid on Purchases multiple accounts: GST Charged on Sales (3), GST Paid
on Purchases (4), and Membership Fees (2).

CGA–Canada Module 1 /page 3

 FORM 1

Sep 2

P lease record the entry for my personal investment in the business of $5,000.
It was deposited in the business’ bank account today.
TW

FORM 2

20-1 09 02

On demand, after date for value received, I promise to pay the NORTH
49 COMMERCIAL BANK the sum of $ 10,000.00 payable at a monthly
rate of 13 % per annum.
Ted Winslow
Ted Winslow
Witness Fitness Centre

FORM 3 FORM 4
001 September 2 002 September 2
ø 13,074 –
9/2 5,000 –
9/2 10,000 –
15,000 –
15,000 – 13,074 –
1,800 – 92 –
126 –

1,926 – 92 –
13,074 – 12,982 –
Reliable Realty Ciborea City Hall
September Rent Business Licence–Charge to Miscellaneous Exp.

CGA–Canada Module 1/page 4

 FORM 5

8370B
20-1 09 03
Net 15

Witness Fitness Centre

10 Dun Street Ciborea City
Quantity Particulars Unit Price Amount

6 Weight Sets 109.75 658.50

4 Exercise Bikes 213.60 854.40
Sub-total 1,512.90
GST 7% 105.90
Total $1,618.80

FORM 6

Sep 4

In keeping with the rental agreement , we are responsible for some renovations.
P lease charge the following invoice from Handyperson Hardware Ltd . to the
Renovations Expense Account.
TW
FORM 7

2572 Main St.

Ciborea City
V4B 6C8 Sold To: Witness Fitness Centre
430-9221 10 Dun Street
Ciborea City V8A 6L2
Date: Sep 4,-1
Terms: N30
Order Number: 21945
Quantity Description Unit Price Amount
60 litres Paint - Indoor/Outdoor 6.47 388.20
12 Indoor lights and fixtures 9.99 119.88
1 Paint brush 4.39 4.39

Sub-total 512.47
GST 7% 35.87
GST Registration No. 677539290 Total $548.34

CGA–Canada Module 1/page 5

 FORM 8

003 September 4
12,982 –

12,982 –
615.72
43.10
658 82
12,323 18
Useful Used Office Equipment
Computer, printer, and filing cabinet

FORM 9

FUN ’N’ FAIR FURNITURE LTD.

“Enjoy exciting styles at reasonable prices”
4717 6th Ave.
Witness Fitness Centre Ciborea City Date: 20-1 09 04
TO: 10 Dun Street V7H AY2 772-4119
Terms: N/30
Ciborea City V8A 6L2 Invoice: 3452 A
GST Reg. No. R339023902
Quantity Number Description Unit Price Amount
1 #0314 Desk 215.00 215.00
5 #1214 Chairs 39.00 195.00
1 #0004 Sofa 302.72 302.72
Sub-total 712.72
GST 7% 49.89
Total 762.61

FORM 10

Witness Fitness Centre Sep 5, 20-1

10 Dun Street Ciborea City V8A 6L2 Net 30
Quantity Description Unit Price Amount
1,000 20 lb bond paper - white 8.73
200 file folders 17.33/c 34.66
2,000 invoices 49.37/m 98.74

142.13
9.95
152.08

CGA–Canada Module 1/page 6

 FORM 11

Witness Fitness Centre

10 Dun Street
Ciborea City V8A 6L2
20-1 09 05

Invoice 5563
GST Reg. R459294029

Quantity Description Amount

500 Advertising Flyers 265.00

Sub-total 265.00
4
i th ch eq u e 0 0 TW
GST 7% 18.55
√ Paid w Total 283.55

FORM 12

SIGNS AND WONDERS LTD.

We’ll paint you a better profit picture 6224 Elm Street
Ciborea City
Witness Fitness Centre V4L 1B1
10 Dun Street 787-6333
Ciborea City V8A 6L2
Invoice #43001 Date: 20-1 09 06 Terms: N/30
Quantity Particulars Amount
2 Billboard Rentals — One Month 1,115.12

Sub-total 1,115.12
GST 7% 78.06
Total $1,193.18
GST No. R882923922

FORM 13

Sold To: Witness Fitness Centre

10 Dun Street
Ciborea City V8A 6L2
697-4007
Date: September 6, 20-1
3947 Eton St. Terms: Net 30 days No. 062472
Ciborea City V8M 3P2
Quantity Description Unit Price Amount
500 8 1/2 X 11 sheets with letterhead .17 85.00
500 envelopes .11 55.00
140.00
GST 7% 9.80
GST Registration:
R984304994 149.80

CGA–Canada Module 1/page 7

 FORM 14

Date: Sep 6, -1
Invoice 3401
GST reg. R993883212
Terms: Cash

Quantity Description Amount

5 Choreographed music tapes—aerobic theme 350.00

Paid with Cheque 005 350.00

TW 24.50
374.50

FORM 15 FORM 16
006 September 8 007 September 9
11,665 13 10,819 83

11,665 13 10,819 83
790.00 1,215.50
55.30 85.09
845 30 1,300 59
10,819 83 9,519 24
Morning Bugle Newspaper Fidelity Sound
Advertisements Stereo Equipment

FORM 17
0001A
20-1 09 10
Cash

1 Quarterly Membership to Rob Beck 90 00

90 00
6 30
96 30

CGA–Canada Module 1/page 8

 FORM 18
0002A
20-1 09 11
N/15

1 Quarterly Membership to Lynn Ayles 90 00

90 00
6 30
30 00
66 30

FORM 19 FORM 20

008 September 13 009 September 13

9,519 24 8,845 54
9/10 96.30
9/11 30.00
126 30
9,645 54 8,845 54

800 00 600 00
8,845 54 8,245 54
Taryn Gordon Ted Winslow
Bi-weekly salary Personal use

FORM 21

September 8-13, 20-1

Monday Tuesday Wednesday Thursday Friday Saturday Totals

40 - 60 - 56 - 52 - 48 - 72 - 328-
2.80 4.20 3.92 3.64 3.36 5.04 22.96

42.80 64.20 59.92 55.64 51.36 77.04 350.96

CGA–Canada Module 1/page 9

 FORM 22
010 September 15
8,245 54
9/13 350.96
350 96
8,596 50

1,618 80
6,977 70
Jim’s Gymnastic Equipment
Full settlement of account

FORM 23
0003A
20-1 09 19
Cash

1 Quarterly Membership to Lisa Miller 90 00

90 00
6 30
96 30
0 00

FORM 24
0004A
20-1 09 19
N/15

1 Quarterly Membership to Betty Shantz 90 00

90 00
6 30
30 00
66 30

CGA–Canada Module 1/page 10

 FORM 25

September 15-20, 20-1

Monday Tuesday Wednesday Thursday Friday Saturday Totals

48 .00 56.00 64 .00 48.00 56 .00 80 .00 352.00

3.36 3.92 4.48 3.36 3.92 5.60 24.64

51.36 59.92 68.48 51.36 59.92 85.60 376.64

FORM 26
0005A
20-1 09 20
N/15

1 Quarterly Membership to Laura Coburn 90 00

90 00
6 30
30 00
66 30

FORM 27

Invoice #5612C
GST No. 456920497
Sold To:
Witness Fitness Centre
10 Dun Street Ciborea City V8A 6L2
20-1 09 22
Quantity Description Unit Price Amount
12 30 SEC. ADVERTISEMENTS 25.00 300.00

Sub-total 300.00
GST 7% 21.00
Cash Charge Terms
X N/30 Total $321.00

CGA–Canada Module 1/page 11

 FORM 28
0006A
20-1 09 24
30/60/90

1 Annual Membership to Judy Jurnus 320 00

320 00
22 40
80 00
262 40

FORM 29 FORM 30
011 September 26
#001 6,977 70
Six deposits
from 9/15 to
✓ 9/25: 679 24
66.30 7,656 94

From L. Ayles in full payment

of account 800 –
6,856 94
Taryn Gordon
TW Sep 25 Bi-weekly salary

FORM 31

Statement 18934

September 24, 20-1

Quantity Details Amount

Sep 27 W
1 Commercial access line 42.00
ed o n
Receiv
1 Phone rental T 4.50
Total New Charges 46.50
GST 7% 3.26
GST Reg. # Total Due 49.76
R450358933 NEW CHARGES ARE DUE ON OCTOBER 15, 20-1

CGA–Canada Module 1/page 12

 FORM 32

September 22-27, 20-1

Monday Tuesday Wednesday Thursday Friday Saturday Totals

48.00 64.00 60.00 64.00 56.00 80.00 372.00

3.36 4.48 4.20 4.48 3.92 5.60 26.04

51.36 68.48 64.20 68.48 59.92 85.60 398.04

FORM 33

Witness Fitness Centre

10 Dun Street
Ciborea City V8A 6L2

20-1 09 30

Interest on demand loan 103 29

0240121

FORM 34

Witness Fitness Centre

10 Dun Street
Ciborea City V8A 6L2

20-1 09 30

Monthly Service Charges 8 90

0240121

CGA–Canada Module 1/page 13

 FORM 35

September 29-30, 20-1

Monday Tuesday Wednesday Thursday Friday Saturday Totals

52.00 64.00 116.00

3.64 4.48 8.12

55.64 68.48 124.12

FORM 36 FORM 37

012 September 30 013 September 30

6,856 94 6,566 91
9/27 398.04
9/30 124.12
522 16
7,379 10 6,566 91
456.78
Total bank debit 31.97
memos on 9/30: 112 19
700 00 488 75
6,566 91 6,078 16
Ted Winslow Northern Lights Electric Co.
Personal use Utilities bill for September

FORM 38

014 September 30
6,078 16

6,078 16

100 00
5978 16
You
A bonus for commendable bookkeeping!

CGA–Canada Module 1/page 14