For week 3 transactions. Please show where the numbers should be accounting in. For example, does it go in the special journal? in the subsidiary journal? general journal? screenshots are attached. This is estimated to take about an hour. thanks

Print Close 8. Background Assume it is currently June 1, 2022. You are working for the temporary accounting employment agency known as Acctempo. Today you have been asked to wor at Disc-O-Tech, a small music store that operates in inner city Houston and is owned by Celia Ginzburg. Your task here is to complete the accounting cycle for Disc-O-Tech for the month of June 2022. To assist you in this task, Celia tells you to read the company's accounting policies and procedures. Note that you will be required to follow these policies and procedures when completing the accounts for Disc-O-Tech. Accounting policies Business operations: Disc-O-Tech is set up as a private non- listed corporation based in Houston with Celia Ginzburg as the sole stockholder. The business derives its main source of revenue from retail sales of music related goods. To assist in managing the business, Disc-O-Tech rents a small office space. Note that the business is required to pay for the rent for this premises in advance. The electricity and water expenses incurred during the month relate to the running of the office. Additional expenses include an insurance policy to protect the equipment in the office in th event of theft or fire. All costs associated with the office are classified as general and administrative expenses. Celia is the only full-time employee and her role is to handle all administrative tasks. Celia's salary is paid once at the end of each month. All other employees are sales staff who are employed on a part-time basis. The sales staff receive their wages every two weeks. b. e Accounting cycle: The business adopts a monthly accounting cycle. Purchases: Purchases are recorded when the business receives the goods. All items purchased are received on the same day as recorded in the transaction list, except for purchase orders which are received at a later date. Note that the business uses the gross method of recording purchases and receives trade discounts and early payment discounts from some suppliers. .. Purchase returns: To allow Celia to separately track and analyze the value of goods returned to suppliers, all purchase returns are recorded in the Purchase Returns and Allowances account rather than directly in the Purchases account. Revenue recognition: The business recognizes revenues when goods sold are delivered to customers. All items sold are delivered on the same day as recorded in the transaction list except for sales orders, which are delivered at a later date as agreed with the customer. Note that the business uses the gross method of recording sales and sometimes grants trade discounts to customers. Past experience has shown that offering early payment discounts did not increase the likelihood of accounts receivable being paid promptly. Therefore, discounts for early payment of accounts are not normally offered to credit customers except in exceptional circumstances. Sales returns: So that the business can easily track the level of sales returns in relation to overall sales, all sales returns are recorded using a contra revenue account (Sales Returns and Allowances) rather than being recorded directly in the Sales Revenue account. Sales tax: Celia has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, sales tax cannot be ignored.) Cash: The business accepts cash and checks and uses checks to pay for the majority of its expenses. On the day checks are received, Celia deposits them at the bank. It may take a number of days for the checks to be cleared by the bank. The business holds its checking account with BitiBank. Short-term investments: The business holds a six-month term deposit account with BitiBank at a simple interest rate of 6%. Interest is calculated on a monthly basis and received at the end of the deposit term. The monthly interest earned is calculated as the yearly interest divided by the number of months in a year. Note that when the deposit matures, Celia usually rolls over the principal and interest received at the end of the term. The term deposit account was rolled over on June f. 9 h. i. 1 2022 1, k. Inventories: The business uses the periodic inventory system and and records all purchases of inventory in the Purchases account, rather than recording them directly in the Merchandise Inventory account. At the end of the reporting period, the Purchases account and the opening balance of the Merchandise Inventory account are closed to the Income Summary account and Merchandise Inventory is restated to its ending balance. Note that the company does not use a Cost of Goods Sold account. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the accounting period. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the depreciation charge. Depreciation is allocated on a monthly basis and the monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. Long-term liabilities: The business obtained an interest only loan from MRMC Bank on June 1, 2022 at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2022 and the principal on the loan is due on June 1, 2026. I. m. Accounting procedures Disc-O-Tech adopts a manual accounting system and uses the general journal and special journals for the recording of individual transactions. Celia Ginzburg has tailored the design of those journals to meet the specific needs of the business so the format of those journals may be slightly different to those you have seen before. However, she advises you that the general principles of how to use special journals are followed in her business. The table below shows the journals used by the business and the types of transactions that can be recorded in each of these journals: Journal Code General journal GJ Sales journal SJ Transaction type All transactions that are not able to be recorded in the special journals below. Credit sales of inventory Credit purchases of inventory Cash inflows to the business Cash outflows from the business PJ Purchases journal Cash receipts journal Cash payments journal CRJ CPJ To summarize the effects of transactions recorded in those journals, Celia maintains the general ledger and the following subsidiary ledgers: accounts receivable subsidiary ledger, and accounts payable subsidiary ledger. To summarize the effects of transactions recorded in those journals, Celia maintains the general ledger and the following subsidiary ledgers: accounts receivable subsidiary ledger, and accounts payable subsidiary ledger. Celia then indicates that she is aware other businesses using a manual accounting system may post transactions from journals to ledgers at different times i.e. daily or monthly). Although the posting procedures used in her business may be different to what you have seen before, she asks that you specifically follow her company's accounting policies and procedures. The information below explains when transactions are required to be posted from the journals to the appropriate ledger accounts: Posting of entries recorded in the general journal All transactions that are entered in the general journal are posted on a daily basis. Note that if a transaction recorded in the general journal involves both a control account and a subsidiary ledger account, that journal entry will need to be posted to both ledgers. Posting of entries recorded in the special journals When a transaction is recorded in a special journal, part of the journal entry may need to be posted daily and part of that entry is to be posted monthly. . Daily: . If a transaction affects a subsidiary ledger account, then the entry that involves a subsidiary ledger account is to be posted to that subsidiary ledger on a daily basis. However, the same amount posted to the subsidiary ledger account is not posted to the related control ledger account immediately. This procedure allows the business to keep track of supplier and customer balances on a daily basis. . In the cash receipts journal or the cash payments journal, if a transaction is recorded in the Other Accounts column, then the amount recorded in the Other Accounts column is to be posted to the appropriate general ledger account daily. . Monthly . At the end of the month, the totals of each column in the special journals are manually calculated. Those totals, with the exception of the total e Other Accounts columns in the cash journals, are po. the appropriate general ledger accounts at the end of the month. Pritisee Transactions - Week 3 - Using the company's records that are provided below, you are now required to record transactions that occurred throughout the third week of June. The week 3 transactions are listed below: Week 3 Date Transaction description 15 Returned $2,757 worth of faulty product to Mapster records. Received a Credit Memorandum for $2,757 15 Paid sales staff wages of $5,069 for the two weeks up to and including yesterday, Check No. 607. 16 Sold 120 Boony & the Noobs CDs to The Wikie Wah Hut for $35 each, Invoice No. 503. 16 Obsenity Records paid $800 in partial payment of their account. 16 Brashs world records paid the full amount owing on their account. 17 Made cash sales of $10,785 during the week. 19 Received a purchase order from Obsenity Records. Created a corresponding sales order to deliver 40 My Chemical Imbalance T-shirts to this customer for $38 each, Invoice No. 504. Instructions for week 3 1) Record all week 3 transactions in the relevant journals. Note that special journals must be used where applicable. Any transaction that cannot be recorded in a special journal should be recorded in the general journal. 2) Post entries recorded in the journals to the appropriate ledger accounts according to the company's accounting policies and procedures. Note that the relevant totals of the special journals will be posted to the general ledger accounts at the end of the month. You will do this before you prepare the Bank Reconciliation Statement. Back-On-Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: . You are required to enter all answers to the nearest whole dollar. When calculating a discount, if a discount is not a whole number, round the discount to the nearest whole dollar. Then, to calculate the cash amount, subtract the discount from the original amount. There may be entries in the general journal that require posting to both a control account and a subsidiary ledger. In these cases, after you have posted to both ledgers, you should enter the reference for both the general ledger account and the subsidiary ledger account in the Post Ref. column to indicate that you have posted to both accounts. For example, if the reference number for the control account is 110 and the reference number for the subsidiary ledger account is 110-1, you should type '110/110-1' into the Post Ref. column. . You are also required to apply the journals and ledgers instructions provided in Week 1. Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=501.sales JournalWeek3) Ge Pol All Ad Tri .Sc Ba Ba Jou SALES JOURNAL Invoice Post Date Account Amount No. Ref. Jun 3 ARC - Brashs world records 501 110-3 270 Jun 10 ARC - Obsenity Records 502 110-6 1,920 Jun (select) Jun (select) Jun (select) Jun (select) PURCHASES JOURNAL Post Date Account Terms Amount Ref. Jun net 30 210-3 660 2 APC - Mapster records 2 APC - Toadstool records Jun 2/10, n/30 210-1 480 Jun (select) V Jun (select) Jun select) Jun (select) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indic above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Credit Date Account Post Ref. Cash Sales Discounts Sales Revenue Accounts Receivable Other Accounts Jun 1 Bank Loan Payable 250 57,000 57,000 Jun 3 Sales Revenue 4,796 4,796 Jun 10 Sales Revenue X 10,907 10,907 Jun 13 ARC - Council Records 110-1 3,756 198 3,954 Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indic above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account Account column so that the type of transaction can be determined by the name of the account entered into this column. Check Post Debit Date Account No. Credit Purchase Cash Discounts Ref. Accounts Payable Other Accounts Purchases Jun 2 Purchases 603 X 3,060 3,060 Jun 5 APC-Shack records 604 210-4 3,590 3,518 72 Jun 6 APC-UML records 605 210-2 2,219 22 2,197 1,542 Jun 13 APC - Phin records 606 210-5 1,542 Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=505.generalJou GENERAL JOURNAL Post Date Account and Explanation Debit Credit Ref. Jun 401 1,730 Jun 10 Sales Returns and Allowances 10 ARC - Brashs world records (sales return) 110/110-3 1,730 Jun (select) (select) Jun (select) (select) Jun (select) (select) Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=510-110-3.AcctsRec3_week3) SUBSIDIARY LEDGERS Account: ARC - Brashs world records Account No. 110-3 Date Description Ref. Debit Credit Balance May 31 Balance 3,294 DR Jun 3 Credit sale SJ 270 3,564 DR Jun 10 Sales return GJ 1,730 1,834 DR Jun Jun Jun V Account: ARC - The Wikie Wah Hut Account No. 110-5 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun V Jun Account: ARC - Obsenity Records Account No. 110-6 Date Description Ref. Debit Credit Balance May 31 Balance 0 0 Jun 10 Credit sale SJ 1,920 1,920 DR Jun Jun V Jun V Account: APC - Mapster records Account No. 210-3 Date Description Ref. Debit Credit Balance May 31 Balance 4,864 CR 5,524 CR Jun 2 Credit purchase PJ 660 Jun V V Jun Jun Print Close 8. Background Assume it is currently June 1, 2022. You are working for the temporary accounting employment agency known as Acctempo. Today you have been asked to wor at Disc-O-Tech, a small music store that operates in inner city Houston and is owned by Celia Ginzburg. Your task here is to complete the accounting cycle for Disc-O-Tech for the month of June 2022. To assist you in this task, Celia tells you to read the company's accounting policies and procedures. Note that you will be required to follow these policies and procedures when completing the accounts for Disc-O-Tech. Accounting policies Business operations: Disc-O-Tech is set up as a private non- listed corporation based in Houston with Celia Ginzburg as the sole stockholder. The business derives its main source of revenue from retail sales of music related goods. To assist in managing the business, Disc-O-Tech rents a small office space. Note that the business is required to pay for the rent for this premises in advance. The electricity and water expenses incurred during the month relate to the running of the office. Additional expenses include an insurance policy to protect the equipment in the office in th event of theft or fire. All costs associated with the office are classified as general and administrative expenses. Celia is the only full-time employee and her role is to handle all administrative tasks. Celia's salary is paid once at the end of each month. All other employees are sales staff who are employed on a part-time basis. The sales staff receive their wages every two weeks. b. e Accounting cycle: The business adopts a monthly accounting cycle. Purchases: Purchases are recorded when the business receives the goods. All items purchased are received on the same day as recorded in the transaction list, except for purchase orders which are received at a later date. Note that the business uses the gross method of recording purchases and receives trade discounts and early payment discounts from some suppliers. .. Purchase returns: To allow Celia to separately track and analyze the value of goods returned to suppliers, all purchase returns are recorded in the Purchase Returns and Allowances account rather than directly in the Purchases account. Revenue recognition: The business recognizes revenues when goods sold are delivered to customers. All items sold are delivered on the same day as recorded in the transaction list except for sales orders, which are delivered at a later date as agreed with the customer. Note that the business uses the gross method of recording sales and sometimes grants trade discounts to customers. Past experience has shown that offering early payment discounts did not increase the likelihood of accounts receivable being paid promptly. Therefore, discounts for early payment of accounts are not normally offered to credit customers except in exceptional circumstances. Sales returns: So that the business can easily track the level of sales returns in relation to overall sales, all sales returns are recorded using a contra revenue account (Sales Returns and Allowances) rather than being recorded directly in the Sales Revenue account. Sales tax: Celia has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, sales tax cannot be ignored.) Cash: The business accepts cash and checks and uses checks to pay for the majority of its expenses. On the day checks are received, Celia deposits them at the bank. It may take a number of days for the checks to be cleared by the bank. The business holds its checking account with BitiBank. Short-term investments: The business holds a six-month term deposit account with BitiBank at a simple interest rate of 6%. Interest is calculated on a monthly basis and received at the end of the deposit term. The monthly interest earned is calculated as the yearly interest divided by the number of months in a year. Note that when the deposit matures, Celia usually rolls over the principal and interest received at the end of the term. The term deposit account was rolled over on June f. 9 h. i. 1 2022 1, k. Inventories: The business uses the periodic inventory system and and records all purchases of inventory in the Purchases account, rather than recording them directly in the Merchandise Inventory account. At the end of the reporting period, the Purchases account and the opening balance of the Merchandise Inventory account are closed to the Income Summary account and Merchandise Inventory is restated to its ending balance. Note that the company does not use a Cost of Goods Sold account. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the accounting period. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the depreciation charge. Depreciation is allocated on a monthly basis and the monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. Long-term liabilities: The business obtained an interest only loan from MRMC Bank on June 1, 2022 at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2022 and the principal on the loan is due on June 1, 2026. I. m. Accounting procedures Disc-O-Tech adopts a manual accounting system and uses the general journal and special journals for the recording of individual transactions. Celia Ginzburg has tailored the design of those journals to meet the specific needs of the business so the format of those journals may be slightly different to those you have seen before. However, she advises you that the general principles of how to use special journals are followed in her business. The table below shows the journals used by the business and the types of transactions that can be recorded in each of these journals: Journal Code General journal GJ Sales journal SJ Transaction type All transactions that are not able to be recorded in the special journals below. Credit sales of inventory Credit purchases of inventory Cash inflows to the business Cash outflows from the business PJ Purchases journal Cash receipts journal Cash payments journal CRJ CPJ To summarize the effects of transactions recorded in those journals, Celia maintains the general ledger and the following subsidiary ledgers: accounts receivable subsidiary ledger, and accounts payable subsidiary ledger. To summarize the effects of transactions recorded in those journals, Celia maintains the general ledger and the following subsidiary ledgers: accounts receivable subsidiary ledger, and accounts payable subsidiary ledger. Celia then indicates that she is aware other businesses using a manual accounting system may post transactions from journals to ledgers at different times i.e. daily or monthly). Although the posting procedures used in her business may be different to what you have seen before, she asks that you specifically follow her company's accounting policies and procedures. The information below explains when transactions are required to be posted from the journals to the appropriate ledger accounts: Posting of entries recorded in the general journal All transactions that are entered in the general journal are posted on a daily basis. Note that if a transaction recorded in the general journal involves both a control account and a subsidiary ledger account, that journal entry will need to be posted to both ledgers. Posting of entries recorded in the special journals When a transaction is recorded in a special journal, part of the journal entry may need to be posted daily and part of that entry is to be posted monthly. . Daily: . If a transaction affects a subsidiary ledger account, then the entry that involves a subsidiary ledger account is to be posted to that subsidiary ledger on a daily basis. However, the same amount posted to the subsidiary ledger account is not posted to the related control ledger account immediately. This procedure allows the business to keep track of supplier and customer balances on a daily basis. . In the cash receipts journal or the cash payments journal, if a transaction is recorded in the Other Accounts column, then the amount recorded in the Other Accounts column is to be posted to the appropriate general ledger account daily. . Monthly . At the end of the month, the totals of each column in the special journals are manually calculated. Those totals, with the exception of the total e Other Accounts columns in the cash journals, are po. the appropriate general ledger accounts at the end of the month. Pritisee Transactions - Week 3 - Using the company's records that are provided below, you are now required to record transactions that occurred throughout the third week of June. The week 3 transactions are listed below: Week 3 Date Transaction description 15 Returned $2,757 worth of faulty product to Mapster records. Received a Credit Memorandum for $2,757 15 Paid sales staff wages of $5,069 for the two weeks up to and including yesterday, Check No. 607. 16 Sold 120 Boony & the Noobs CDs to The Wikie Wah Hut for $35 each, Invoice No. 503. 16 Obsenity Records paid $800 in partial payment of their account. 16 Brashs world records paid the full amount owing on their account. 17 Made cash sales of $10,785 during the week. 19 Received a purchase order from Obsenity Records. Created a corresponding sales order to deliver 40 My Chemical Imbalance T-shirts to this customer for $38 each, Invoice No. 504. Instructions for week 3 1) Record all week 3 transactions in the relevant journals. Note that special journals must be used where applicable. Any transaction that cannot be recorded in a special journal should be recorded in the general journal. 2) Post entries recorded in the journals to the appropriate ledger accounts according to the company's accounting policies and procedures. Note that the relevant totals of the special journals will be posted to the general ledger accounts at the end of the month. You will do this before you prepare the Bank Reconciliation Statement. Back-On-Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: . You are required to enter all answers to the nearest whole dollar. When calculating a discount, if a discount is not a whole number, round the discount to the nearest whole dollar. Then, to calculate the cash amount, subtract the discount from the original amount. There may be entries in the general journal that require posting to both a control account and a subsidiary ledger. In these cases, after you have posted to both ledgers, you should enter the reference for both the general ledger account and the subsidiary ledger account in the Post Ref. column to indicate that you have posted to both accounts. For example, if the reference number for the control account is 110 and the reference number for the subsidiary ledger account is 110-1, you should type '110/110-1' into the Post Ref. column. . You are also required to apply the journals and ledgers instructions provided in Week 1. Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=501.sales JournalWeek3) Ge Pol All Ad Tri .Sc Ba Ba Jou SALES JOURNAL Invoice Post Date Account Amount No. Ref. Jun 3 ARC - Brashs world records 501 110-3 270 Jun 10 ARC - Obsenity Records 502 110-6 1,920 Jun (select) Jun (select) Jun (select) Jun (select) PURCHASES JOURNAL Post Date Account Terms Amount Ref. Jun net 30 210-3 660 2 APC - Mapster records 2 APC - Toadstool records Jun 2/10, n/30 210-1 480 Jun (select) V Jun (select) Jun select) Jun (select) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indic above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Credit Date Account Post Ref. Cash Sales Discounts Sales Revenue Accounts Receivable Other Accounts Jun 1 Bank Loan Payable 250 57,000 57,000 Jun 3 Sales Revenue 4,796 4,796 Jun 10 Sales Revenue X 10,907 10,907 Jun 13 ARC - Council Records 110-1 3,756 198 3,954 Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indic above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account Account column so that the type of transaction can be determined by the name of the account entered into this column. Check Post Debit Date Account No. Credit Purchase Cash Discounts Ref. Accounts Payable Other Accounts Purchases Jun 2 Purchases 603 X 3,060 3,060 Jun 5 APC-Shack records 604 210-4 3,590 3,518 72 Jun 6 APC-UML records 605 210-2 2,219 22 2,197 1,542 Jun 13 APC - Phin records 606 210-5 1,542 Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=505.generalJou GENERAL JOURNAL Post Date Account and Explanation Debit Credit Ref. Jun 401 1,730 Jun 10 Sales Returns and Allowances 10 ARC - Brashs world records (sales return) 110/110-3 1,730 Jun (select) (select) Jun (select) (select) Jun (select) (select) Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=510-110-3.AcctsRec3_week3) SUBSIDIARY LEDGERS Account: ARC - Brashs world records Account No. 110-3 Date Description Ref. Debit Credit Balance May 31 Balance 3,294 DR Jun 3 Credit sale SJ 270 3,564 DR Jun 10 Sales return GJ 1,730 1,834 DR Jun Jun Jun V Account: ARC - The Wikie Wah Hut Account No. 110-5 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun V Jun Account: ARC - Obsenity Records Account No. 110-6 Date Description Ref. Debit Credit Balance May 31 Balance 0 0 Jun 10 Credit sale SJ 1,920 1,920 DR Jun Jun V Jun V Account: APC - Mapster records Account No. 210-3 Date Description Ref. Debit Credit Balance May 31 Balance 4,864 CR 5,524 CR Jun 2 Credit purchase PJ 660 Jun V V Jun Jun