Accounting System Information & Procedures
The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year.To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accounting records:
- Sales Journal (SJ): to record all sales of Inventory on credit
- Purchases Journal (PJ): to record all Purchases of Inventory on credit
- Cash Receipts Journal (CRJ): to record all Cash Receipts
- Cash Payments Journal (CPJ): to record all Cash Payments
- General Journal (GJ): to record all transactions other than the above.
Business transactions are recorded for Western Suburbs Car Products Pty Ltd on a daily basis in one of these five journals in the accounts.
Date Transaction Week 1 June 1 Granville Alarms & Locks paid the balance of its account and were given a discount of $17,136 by us. Delivered goods to Lidcombe Oils & Tools for $614.628 and issued invoice #981. Issued cheque #530 to pay $68,070 for delivery costs of inventory to their premises. June 4 Paid the amount owing to Cherrybrook Car Accessories and Cheque #531 was sent to the Creditor. June 7 Total Cash Sales for the week were $173,502. Week 2 June 9 Macquarie Covers & Seats paid $246,078 toward the amount it owes us. June 10 Made a purchase from Pennant Hills Car Accessories for $527,310 for inventory: Terms are 1/10, n. 45 and date of invoice was 10 June. The fimm issued cheque #532 for the purchase of Stationery Supplies amounting to $49,896. June 11 Granville Alarms & Locks purchased inventory of $619,164. Invoice #982 was issued. June 12 Some of the car products purchased on 10 June from Pennant Hills Car Accessories were the incorrect colour. We returned the inventory in exchange for a Credit Note of $170,100. June 14 Total Cash Sales for the week were $237,006. Week 3 June 15 Paid office staff salaries of $661,122. Cheque #533 was issued for payment. Cheque #534 was issued to pay sales staff wages, $561,330. June 16 Purchased inventory from Cherrybrook Car Accessories for $867,510. The invoice was dated 16 June. Credit terms are 2/10, n/30. June 18 Sold inventory to Macquarie Covers & Seats for $1,119,258 on invoice #983. Issued cheque #535 to pay for delivery costs of $85,050. June 19 The company issued cheque #536 to pay the amount still owing to Pennant Hills Car Accessories June 21 Total Cash Sales for the week were $225,099. Week 4 June 23 Macquarie Covers & Seats returned $212,058 of inventory purchased on 18 June. Issued a Credit Note for the transaction. June 24 Issued Cheque #537 for $113,400 to pay for the annual gift the company donates to the World Peace Charity Fund. The gift is to be recorded as a Sundry Expense in the accounts. June 25 Purchased inventory from Pennant Hills Car Accessories, worth $844,830. The terms were 1/10, n'45. Date of the invoice was 25 June. June 26 Received the total amount owing from Macquarie Covers & Seats. June 28 Total Cash Sales for the week were $353,808. Week 5 June 29 Lidcombe Oils & Tools paid the entire balance of its still outstanding account. June 29 Reduced $680,400 of the amount owing to Pennant Hills Car Accessories and Cheque #538 was issued. June 29 A dividend of $1,593,900 was declared to the company shareholders. However, the dividend will not be paid until 28 November 2023. Paid sales staff wages, $561,330 and Cheque #539 was issued to meet the payment. June 30 Issued additional shares to the Shareholder owners of the Company for cash, and $1,134,000 was received and banked from the share issue. Total Cash Sales for the week were $210,924. INSTRUCTIONS 1) Enter the transactions for Weeks 1-5 into the appropriate Journal for the month of June 2023. Next, post all the Journal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction. Date Transaction Week 1 June 1 Granville Alarms & Locks paid the balance of its account and were given a discount of $17,136 by us. Delivered goods to Lidcombe Oils & Tools for $614.628 and issued invoice #981. Issued cheque #530 to pay $68,070 for delivery costs of inventory to their premises. June 4 Paid the amount owing to Cherrybrook Car Accessories and Cheque #531 was sent to the Creditor. June 7 Total Cash Sales for the week were $173,502. Week 2 June 9 Macquarie Covers & Seats paid $246,078 toward the amount it owes us. June 10 Made a purchase from Pennant Hills Car Accessories for $527,310 for inventory: Terms are 1/10, n. 45 and date of invoice was 10 June. The fimm issued cheque #532 for the purchase of Stationery Supplies amounting to $49,896. June 11 Granville Alarms & Locks purchased inventory of $619,164. Invoice #982 was issued. June 12 Some of the car products purchased on 10 June from Pennant Hills Car Accessories were the incorrect colour. We returned the inventory in exchange for a Credit Note of $170,100. June 14 Total Cash Sales for the week were $237,006. Week 3 June 15 Paid office staff salaries of $661,122. Cheque #533 was issued for payment. Cheque #534 was issued to pay sales staff wages, $561,330. June 16 Purchased inventory from Cherrybrook Car Accessories for $867,510. The invoice was dated 16 June. Credit terms are 2/10, n/30. June 18 Sold inventory to Macquarie Covers & Seats for $1,119,258 on invoice #983. Issued cheque #535 to pay for delivery costs of $85,050. June 19 The company issued cheque #536 to pay the amount still owing to Pennant Hills Car Accessories June 21 Total Cash Sales for the week were $225,099. Week 4 June 23 Macquarie Covers & Seats returned $212,058 of inventory purchased on 18 June. Issued a Credit Note for the transaction. June 24 Issued Cheque #537 for $113,400 to pay for the annual gift the company donates to the World Peace Charity Fund. The gift is to be recorded as a Sundry Expense in the accounts. June 25 Purchased inventory from Pennant Hills Car Accessories, worth $844,830. The terms were 1/10, n'45. Date of the invoice was 25 June. June 26 Received the total amount owing from Macquarie Covers & Seats. June 28 Total Cash Sales for the week were $353,808. Week 5 June 29 Lidcombe Oils & Tools paid the entire balance of its still outstanding account. June 29 Reduced $680,400 of the amount owing to Pennant Hills Car Accessories and Cheque #538 was issued. June 29 A dividend of $1,593,900 was declared to the company shareholders. However, the dividend will not be paid until 28 November 2023. Paid sales staff wages, $561,330 and Cheque #539 was issued to meet the payment. June 30 Issued additional shares to the Shareholder owners of the Company for cash, and $1,134,000 was received and banked from the share issue. Total Cash Sales for the week were $210,924. INSTRUCTIONS 1) Enter the transactions for Weeks 1-5 into the appropriate Journal for the month of June 2023. Next, post all the Journal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction
