I attached both homework i just need more explanationhow to find sales journal

thanks

The information on this page will continue to be made available to you through a link on each subsequent page of the practice set. However, it may be useful to print this page because you will be referring to it regularly. Once you have read this page, click the Continue button below to receive further information that you will need to complete the practice set. Background Your progress Completed: 0% (approximately) This page will take: up to 0.15 hour Remaining pages will take: up to 18.85 hours The time frames we provide are a guide only. It may take you more or less time to complete each page. Information from previous pages General instructions Assume it is currently June 1, 2015. You are working for the temporary accounting employment agency known as Uptempo. Today you have been asked to work at Moondollars, a small coffee supplies store that operates in inner city San Francisco and is owned by Miranda Hall. Your task here is to complete the accounting cycle for Moondollars for the month of June 2015. To assist you in this task, Miranda 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 Moondollars. Accounting policies a.Business operations: Moondollars is set up as a private non-listed corporation based in San Francisco with Miranda Hall as the sole stockholder. The business derives its main source of revenue from retail sales of coffee supplies. To assist in managing the business, Moondollars 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 the event of theft or fire. All costs associated with the office are classified as general and administrative expenses. Miranda is the only full-time employee and her role is to handle all administrative tasks. Miranda'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 on a weekly basis. b.Accounting cycle: The business adopts a monthly accounting cycle. c.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 from some suppliers. d.Revenue recognition: The business recognizes revenue 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. e.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. f.Sales tax: Miranda has advised you to ignore the effect of the 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.] g.Cash: The business accepts cash and checks and uses checks to pay for the majority of its expenses. On the day checks are received, Miranda 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 MRMC Bank. h.Inventories: The business uses the perpetual inventory system and applies the FIFO method to allocate costs to inventory and cost of goods sold. Note that the business maintains a set of inventory cards with multiple pairs of lines to keep track of changes in inventory. In each inventory card under the Balance column, items with different unit costs are listed in separate lines with the items purchased earlier listed first in the pair of lines provided. i.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 during the accounting period. j.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. k.Long term liabilities: The business obtained an interest only loan from BitiBank on June 1, 2015 at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2015 and the principal on the loan is due on June 1, 2019. Accounting procedures Moondollars adopts a manual accounting system and uses the general journal and special journals for the recording of individual transactions. Miranda Hall 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 Transaction type General journal GJ All transactions that are not able to be recorded in the special journals below. Sales journal SJ Credit sales of inventory Purchases journal PJ Credit purchases of inventory Cash receipts journal CRJ Cash inflows to the business Cash payments journal CPJ Cash outflows from the business To summarize the effects of transactions recorded in those journals, Miranda maintains the general ledger and the following ledgers: accounts receivable subsidiary ledger, accounts payable subsidiary ledger, and inventory cards. Miranda 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 procedures. The information below explains when transactions are required to be posted from the journals to the appropriate ledger accounts and inventory cards: 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. a.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. If a transaction results in a change in the number of inventory items on hand, then the entry that affects inventory is to be posted to the appropriate inventory card on a daily basis. In this way, the business is able to track the balance of inventory on hand. b.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 totals of the Other Accounts columns in the cash journals, are posted to the appropriate general ledger accounts at the end of the month. Transactions for June You will use the following five weeks of transactions as you complete the books for June. Note that the transactions are divided into five separate weeks. This is because you will not enter this whole list of transactions on any one page. You will be given five separate pages in which to enter the transactions for each of the five weeks. Date Description Week 1 1 Issued Check No. 863 for $9,200 to pay Blue Blazer Realty for two month's worth of rent in advance. 1 Obtained a loan of $49,000 from BitiBank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2015 and the principal of the loan is to be repaid on June 1, 2019. 3 Paid the full amount owing to Klam Wholesalers, Check No. 864. 4 Paid sales staff wages of $2,489 for the week up to and including yesterday, Check No. 865. Note that $1,189 of this payment relates to the wages expense incurred during the last week of May. 4 Issued Check No. 866 to Office Supplies Warehouse for the purchase of $493 worth of office supplies. 5 Con's Coffee paid the full amount owing on their account. 5 Made payment of $851 to State Power for 3 months of electricity up to and including May 31, Check No. 867. Week 2 8 Purchased 15 boxes of Condiment Containers from Klam Wholesalers for $450 each, terms net 30. 10 Paid the full amount owing to East Tangiers Cooperative, Check No. 868. Payment fell outside discount period. 11 Sold 10 boxes of Plastic Plates to KavaJava for $420 each, Invoice No. 813. 11 Paid sales staff wages of $1,514 for the week up to and including yesterday, Check No. 869. 12 Paid the full amount owing to Dominga Wholesalers, Check No. 870. 12 SloZone paid the full amount owing on their account. Since SloZone has been a loyal customer from the day the business commenced, a 10% discount was given for this early repayment. 13 Paid the full amount owing to Abejundio Coffee, Check No. 871. 13 Made cash sale of 3 boxes of Chocolate Sprinkles for $580 each. Week 3 16 Purchased 19 boxes of Chocolate Sprinkles from Abejundio Coffee for $340 each, terms net 30. 17 Purchased 19 boxes of Condiment Containers from Dominga Wholesalers for $520 each, terms 2/10, n/30. 17 Sold 5 boxes of Diposable Spoons to Con's Coffee for $460 each, Invoice No. 814. 18 Central Coffee paid $1,700 in partial payment of their account. 18 Paid sales staff wages of $2,201 for the week up to and including yesterday, Check No. 872. 20 Made cash sale of 24 packs of Coffee Syrups for a list price of $448 each. A trade discount of 25% applies. 20 KavaJava returned 9 boxes of Plastic Plates that were originally sold for $420 each on 11 June. These items cost $250 each and were not faulty or damaged. Issued a Credit Memorandum for $3,780. 21 Received a purchase order from Central Coffee. Created a corresponding sales order to deliver 21 boxes of Diposable Spoons to this customer for $460 each, Invoice No. 816. Week 4 23 KavaJava paid the full amount owing on their account. 24 Sold 86 boxes of Condiment Containers to Con's Coffee for $770 each, Invoice No. 815. 25 Delivered 21 boxes of Diposable Spoons to Central Coffee for $460 each, Invoice No. 816. These items were ordered on the 21st. 25 Paid sales staff wages of $2,129 for the week up to and including yesterday, Check No. 873. 26 Ordered 14 boxes of Condiment Containers from Croup Coffee for $520 each. Agreed terms with Croup Coffee are 2/10, n/30. 27 Made cash sale of 20 boxes of Plastic Plates for $420 each. 28 Paid the full amount owing to Dominga Wholesalers, Check No. 874. Payment fell outside discount period. 28 Returned 8 faulty boxes of Chocolate Sprinkles, originally purchased for $340 each, to Abejundio Coffee. Received a Credit Note for $2,720. Week 5 29 Made cash sale of 14 boxes of Chocolate Sprinkles for $580 each. 30 Received 14 boxes of Condiment Containers for $520 each, which were ordered on the 26 th. Agreed terms with Croup Coffee are 2/10, n/30. 30 Jandesh's Hot Spot paid the full amount owing on their account. 30 Purchased 15 packs of Coffee Syrups with cash for a list price of $256 each. A trade discount of 25% applies, Check No. 875. 30 Paid monthly salary of $4,900 to Miranda Hall, Check No. 876. Adjusting entries information Using the following information, you will record end of month adjustments: Office Furniture owned by the business: original purchase price was $7,000, estimated useful life was 5 years, and estimated residual value was $500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. Office Equipment owned by the business: original purchase price was $49,000, estimated useful life was 11 years, and estimated residual value was $4,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. The water usage for the month of June is estimated to be $1,175. The estimated electricity payable as at the end of June is $301. Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from June 25 to June 30 inclusive) are estimated to have been $300 per day. Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $245. Office supplies totaling $2,448 are still on hand at June 30. One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two month's worth of rent in advance. 3 months of advertising remained pre-paid at the start of June. 5 months of insurance remained pre-paid at the start of June. Note that when calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month. After taking a physical count of inventory at the end of the month, the balance of inventory on hand as at June 30 is found to be equal to the closing balance of the Merchandise Inventory account. This means there is no adjusting entry required for inventory shrinkage. Continue Manual Accounting Practice Set Moondollars, US GAAP Edition 3 (VSU3q) 2009 - 2014 Perdisco / latin /. v., learn thoroughly http://www.perdisco.com Terms Of Use | Privacy Policy | Wednesday, August 26, 2015, 01:41 Post-closing trial balance ~ May Moondollars Post-closing Trial Balance May 31, 2015 Account No. Name Debit ($) 100 Cash 67,219 110 ARC - Accounts Receivable Control 29,189 120 Merchandise Inventory Credit ($) 83,100 130 Office Supplies 2,353 140 Prepaid Rent 141 Prepaid Advertising 12,000 142 Prepaid Insurance 4,250 150 Office Furniture 7,000 151 Accum Depn: Office Furniture 160 Office Equipment 1,517 49,000 161 Accum Depn: Office Equipment 18,542 210 APC - Accounts Payable Control 47,419 220 Wages Payable 1,189 221 Electricity Payable 913 222 Water Payable 1,250 225 Interest Payable 250 Bank Loan Payable 300 Common Stock 40,000 301 Retained Earnings 143,281 310 Income Summary 400 Sales Revenue 401 Sales Returns and Allowances 402 Sales Discounts 403 Interest Revenue 500 Cost of Goods Sold 511 Advertising Expense 516 Wages Expense 540 Rent Expense 541 Electricity Expense 542 Water Expense 543 Insurance Expense 544 Office Supplies Expense 545 Salary Expense 560 Depn Expense: Office Furniture 561 Depn Expense: Office Equipment 571 Interest Expense 572 Admin. Expense - Bank Charges Total 254,111 Schedule of accounts receivable ~ May Moondollars Schedule of Accounts Receivable May 31, 2015 254,111 Account No. Debit ($) Name Credit ($) 110-1 ARC - SloZone 2,600 110-2 ARC - Quick Bolt Coffee 4,462 110-3 ARC - KavaJava 13,548 110-4 ARC - Jandesh's Hot Spot 2,861 110-5 ARC - Con's Coffee 2,468 110-6 ARC - Central Coffee 3,250 Total 29,189 Please note: Moondollars does not generally give a discount for early payment except in exceptional circumstances. All debtors are on net 30 credit terms. Schedule of accounts payable ~ May Moondollars Schedule of Accounts Payable May 31, 2015 Account No. Debit ($) Name Credit ($) Terms 210-1 APC - Dominga Wholesalers 4,648 2/10, n/30 210-2 APC - East Tangiers Cooperative 2,419 1/15, n/30 210-3 APC - Jordo Gourmet Coffee 28,967 net 30 210-4 APC - Croup Coffee 4,161 2/10, n/30 210-5 APC - Abejundio Coffee 2,956 net 30 210-6 APC - Klam Wholesalers 4,268 net 30 Total 47,419 Inventory cards ~ May Boxes Of Chocolate Sprinkles Purchases Date May Unit s 1 Unit Cost ($) Cost of Goods Sold Total Cost ($) Unit s Unit Cost ($) Total Cost ($) Balance Unit s 38 Unit Cost ($) 300 Total Cost ($) 11400 May 340 7820 16 31 9 300 300 4800 2700 11400 340 7820 22 300 6600 340 7820 13 300 3900 23 28 300 23 May 23 38 23 May 5 340 7820 Packs Of Coffee Syrups Purchases Date May Unit s Unit Cost ($) Cost of Goods Sold Total Cost ($) Unit s Unit Cost ($) Total Cost ($) Unit s Unit Cost ($) Total Cost ($) 25 31 16 256 230 1840 1150 4096 9728 24 230 5520 256 9728 19 230 4370 256 9728 19 5 230 256 230 4370 54 May 8 7360 38 9 230 38 May 32 38 May 1 Balance 256 13824 Boxes Of Plastic Plates Purchases Date May Unit s 1 Unit Cost ($) Cost of Goods Sold Total Cost ($) Unit s Unit Cost ($) Total Cost ($) Balance Unit s Unit Cost ($) Total Cost ($) 48 210 10080 37 250 9250 May 21 250 5250 31 25 250 210 10080 250 210 10080 250 14500 44 250 11000 69 48 14 May 27 48 58 May 6 250 17250 3500 6250 Boxes Of Diposable Spoons Purchases Date Unit s Unit Cost ($) Cost of Goods Sold Total Cost ($) Unit s Unit Cost ($) May 9 17 230 May 26 4 230 May 31 Total Cost ($) 1 May Balance Unit s Unit Cost ($) Total Cost ($) 44 256 10120 3910 27 230 6210 920 23 230 5290 23 230 5290 16 16 230 256 4096 4096 Boxes Of Condiment Containers Purchases Date May Unit s Unit Cost ($) Cost of Goods Sold Total Cost ($) Unit s Unit Cost ($) Total Cost ($) Unit s Unit Cost ($) Total Cost ($) 41 16 41 25 450 11250 360 14760 3 May 5 450 360 14760 37 May 1 Balance 450 16650 34 450 15300 59 450 26550 1350 Bank reconciliation statement ~ May Moondollars Bank Reconciliation Statement May 31, 2015 $67,94 9 Balance per bank: Add: deposit in transit from Jandesh's Hot Spot $3,99 0 deposit in transit from SloZone 1,500 5,490 73,439 Deduct: outstanding check No. 862 $5,60 0 outstanding check No. 861 620 6,220 Adjusted balance per bank $67,21 9 Balance per book: $66,94 9 Add: interest earned 283 67,232 Deduct: bank service charge 13 $67,21 9 Adjusted balance per book Bank statement ~ June San Francisco branch Miranda Hall 980 Diamond Lane Account No. 32558494 Page No. 1 San Francisco, CA 94104 Moondollars Date Particulars Debit Credit Balance JUN 1 BALANCE BROUGHT FORWARD $67,949 CR JUN 1 862 JUN 3 DEPOSIT - Jandesh's Hot Spot $3,990 $66,339 CR JUN 3 DEPOSIT - SloZone $1,500 $67,839 CR JUN 3 861 $620 $67,219 CR JUN 4 864 $4,268 $62,951 CR JUN 5 LOAN JUN 6 DEPOSIT - Con's Coffee JUN 6 865 $2,489 $111,930 CR JUN 6 863 $9,200 $102,730 CR JUN 7 866 $493 $102,237 CR JUN 11 867 $851 $101,386 CR JUN 13 868 $2,419 $98,967 CR JUN 13 870 $4,648 $94,319 CR JUN 13 869 $1,514 $92,805 CR JUN 15 871 $2,956 $89,849 CR JUN 16 DEPOSIT - Cash sales $1,740 $91,589 CR JUN 18 DEPOSIT - SloZone $2,340 $93,929 CR JUN 20 DEPOSIT - Central Coffee $1,700 $95,629 CR JUN 21 872 $2,201 $93,428 CR JUN 22 NSF CHECK - Central Coffee $1,700 $91,728 CR JUN 23 DEPOSIT - Cash sales JUN 26 873 JUN 28 DEPOSIT - Cash sales $8,400 $106,063 CR JUN 30 DEPOSIT - Jandesh's Hot Spot $2,861 $108,924 CR JUN 30 875 JUN 30 INTEREST JUN 30 SERVICE CHARGE $5,600 $62,349 CR $49,000 $111,951 CR $2,468 $114,419 CR $8,064 $2,129 $97,663 CR $2,880 $106,044 CR $552 $13 Last statement to This statement to 05/31/15 06/30/15 Total debits $43,981 $99,792 CR $106,596 CR $106,583 CR Total credits $82,615 Final balance $106,583 CR Proceeds of checks will not be available until cleared. All entries for the last business day are subject to verification and authorization. Any items not paid, or withdrawn, will be adjusted by reversal entry on a later statement