BAF 3M1

CULMINATING PERFORMANCE TASK

Instructions:
Please read the entire assignment before starting.
On the MS Excel workbook (found in D2L), you will find an updated trial balance
for your commercial cleaning business called ARC Corporate Cleaners, owned
by Ella Vader. This trial balance covers every accounting detail from June 1,
2020, all the way through to April 30, 2021. Your task will be to enter the May
2021 transactions and complete all the required year-end financial statements.
(Fiscal year: June 1, 2020 to May 31,2021)

Complete the following:

1. List 10 new and unique transactions that are to be added to the existing
fifteen “May 2021 transactions” that are found on the next page. Be
creative, but if you add new accounts, leave them at the bottom of the
ledger.

2. Record the 25 transactions for the month of May 2021 in the journal.

3. Post the 25 transactions to the Ledger (T-accounts). Do not forget to

include your opening balances from the trial balance.

4. Complete the updated trial balance. (This goes on your Worksheet)

5. Complete the Adjusting Entries. Record these entries in the ledger.

6. Prepare the 8-Column Work Sheet that covers the entire year.

7. Prepare the closing entries and record them in the journal.

8. Prepare a classified Balance Sheet for the fiscal year.

9. Prepare an Income Statement for the fiscal year.

10. Prepare a post-closing trial balance.

11. Compose a business letter to a potential investor or financial organization.

Purpose: After the first year of business, you would like to expand the
business but will need additional money to fund your growth plan. This
letter will outline why you think your business is a success up to this point
as well as ask for a loan to expand the business. Include a convincing
rationale to support your request.
Transaction ~ May 2021 Transactions for ARC Corporate Cleaners ~
Number
Purchase Invoice: New cleaning supplies $675.00 plus HST. Supplies were
1
purchased from Cleaner Supply Limited.
Cheque Copy: Made the monthly payment for rental of the office. The amount is
2
$2,000. HST was included in the $2,000.
Purchase Invoice: Purchased a carpet shampooer on account from Justin’s
3
Industrial. The cost was $4,000.00 plus HST.
Cheque Copy: $200.00 was sent to Cleaner Supply Limited for partial payment
4
on account.
Cheque Copy: Took out an advertisement in the Toronto Star. Paid $200.00 in
5
cash plus HST.
Sales Invoice: Performed cleaning services for Pepsico. Charged Pepsico
6
$2,000.00, plus HST.
Cheque Copy: Vader withdrew $500.00 of company funds to buy an Apple iPad
7
for your nephew’s birthday.
8 Cash sales for the first two weeks amounted to $6,500.00, plus HST.
Cheque Copy: Sent a cheque to the C.R.A to pay the amount owing for October
9 H.S.T. In October, the H.S.T. Payable had a credit balance of $1,200 and the HST
Recoverable had a debit balance of $800.
Purchase Invoice: Received an invoice from Bell Canada for the monthly phone
10
service for $150.00, plus HST.
Bank Debit Memo: Bank charges for the month amounted to $25.00. These
11
were paid immediately.
Purchase Invoice: Had an oil change done on the company van at Gary’s Garage.
12
The amount was $100. Plus HST.
Cash sales for the last two weeks of December amounted to $5,000.00, plus
13
HST.
14 Cheque Copy: Paid wages to employees in the amount of $11,000.
15 Cheque Copy: Paid $1,000.00 toward the bank loan.

Note: Only use one account for Accounts Receivable

and one account for Accounts Payable.
Adjustment Information
The following adjustments are to be made once all May 2021 transactions have
been completed and balanced (Trial Balance). This trial balance is to be entered
on The Worksheet.

1. Late Invoice: Two invoices arrived on June 4, 2021. One for advertising
services in the amount of $400 and the other was for cleaning supplies.
These supplies were shipped to ARC Corporate Cleaners on May 20,
2021, so they were included in the year-end inventory count.

2. Supplies: As of May 31, 80% of the supplies were used up.

3. Insurance: The one-year Insurance policy was purchased on July 1,

2020.

4. Unearned Revenue: Arc Corporate Cleaners was not able to complete a

project that was originally paid for by a customer on May 5 and entered as
a sales transaction. This work will be completed in July 2021. The amount
of work outstanding is $1,600.

5. Depreciation: For the equipment use the declining balance

method. The CRA depreciation rate is 20% per year. For the
truck, use the straight-line method. The truck is estimated to last
5 years with a salvage value of 20%.

Additional Information
• When completing the May 2021 journal (Question #1), please
use both sheets (pg1 and pg2) and do not go past line #32.
• Use only one “control account” for Accounts Receivable and one for
Accounts Payable.
• HST is 13%.
• Question #11 is to be done in MS Word.
• The CPT is due on Friday November 5th, 2021.

Evaluation:
KNOWLEDGE /30

APPLICATION /30

THINKING /25

COMMUNICATION /15