4 4 4 Now that you have reviewed information about Disc-O-Tech, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions that occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transact ons occurred throughout the first week of June: Week 1 Date Transaction description 1 Obtained a loan of $50,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal of the loan is to be repaid on June 1, 2024. 3 Purchased 13 boxes of The Oblique References CDs from Shadow records for $340 each, terms net 30. Purchased 20 boxes of Evan Handed and the Handymen CDs from Phin records for $400 each, terms 2/10, n/30 Paid the full amount owing to Pony OMC records, Check No. 856. Payment fell outside discount period Paid sales staff wages of $2,875 for the week up to and including yesterday, Check No. 857. Note that $1,250 of this payment relates to the wages expense incurred during the last week of May. 4 Purchased 23 boxes of Fate's Offspring CDs with cash for $200 each, Check No. 858 5 Paid the full amount owing to Mac records, Check No. 859. Payment fell outside discount period. 5 Made cash sale of 68 boxes of Fate's Offspring CDs for $500 each plus 5% sales tax. Sold 19 boxes of The Oblique References CDs to Carrie O'Key for $580 each, plus 5% sales tax, Invoice No. 401 After completing this practice set page, you should know how to record basic transactions in the journals provided below and understand the posting process in the manual accounting system. Note that you will record the remaining June transactions in the following sections of this practice set. Remember, one purpose of using special journals is to make the posting process more efficient by posting the total of most columns in the special journals after all of the transactions for the period have been recorded. However, some parts of a journal entry are still required to be posted on a daily basis. View the company's accounting policies and procedures for details of what is to be posted daily or monthly. Instructions for week 1 1) Record all week 1 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 enter this before you prepare the Bank Reconciliation Statement. 3) Update inventory cards on a daily basis. Remember 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 at bank amount 6 PURCHASES JOURNAL Date Account Terms Post Ref. Accounts Payable Jun Jun Jill Jun select
