Accounting Software application project II (30 points)

Part 1: Creating a New Company (5 marks)

1- Company Name and Address Information
 Ethiopia Retail Company
 Sole proprietorship
 Burqa Jato K09
 P.O.Box 2000
 Tel +251-011-5-15 17 67
 Nekemte Ethiopia
2- Chart of Accounts
 Build your own chart of Accounts
3- Methods of Accounting
 Accrual
4- Method of Posting
 Batch time
5- Accounting Period
 No of periods -12
 First period data will be entered- January 2015
Part 2:
Set up the following Chart of Accounts along with its beginning balance as of December 31 2014.
(10 marks)

Acc. No Account Description Account type Beginning Balance

Debit Credit
1110 Petty cash Cash 2,000
1120 Cash in bank-saving Cash 18,000
1130 Cash in bank-checking Cash 15,000
1150 Accounts receivable Account Receivable 550
1151 Allowance for uncollectible Account Receivable 150
1170 Inventory Inventory 1,893
1180 Supplies Other current asset 2,500
1211 Equipment Fixed Asset 28,000
1213 Accumulated Depreciation Acc. Depreciation 2,000
2100 Accounts payable Account payable 778
2225 Sales tax payable Other current liability
3110 Invested capital Equity doesn’t close 35,015
3210 Retained earnings Equity retained 30,000
earning
4110 Sales Income
5110 Cost of sales Cost of sales
5225 Sales tax expense Expense
5240 Depreciation expense- Equip. Expense
5225 Supplies expense Expense
Grand Total 67,943 67,943

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 Part 3: Set up Ethiopia Retail Vendor Ledger Balances as of January 1, 2015 ( 5 marks)
Vendor Name Code Address Inv. date Inv # Balance
Bilisumma supply co B2001 Merkato 11/20/09 0074 360
Walabumma co. W2001 Friendship Building 12/15/09 0076 218
Tokkummaa Share.co T2001 Megenagna 12/23/09 0077 200

Part 4: Set up Ethiopia Retail Company’s customer ledger balances as of January 1, 2015. (5
marks)

Customer Name Code Address Inv. Date Inv # Balance

Elias Gabula E1001 Baka Jama 12/15/09 0041 350
Kaba Fido K1001 Board
Dula Begna D1001 Darge 12/23/09 0039 200

Part 5: Set up Ethiopia retail company’s inventory items as of January1, 2015( 5 marks)
Item ID Description Costing method Selling price Quantity Unit cost
S1001 Digital receiver Average 2,000 25 1,700
T1012 Television Average 2,000 10 4,500
C1013 Smart card Average 2,000 50 2,800
Grand Total 9,000

S.No Name of students ID.No Mark Awarded

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