Ms Jennie Smiles is the major shareholder and chief executive officer of Celebrations Pty Ltd, a small business which provides organisation services and supplies for parties, wedding receptions and other happy occasions.

Due to the relatively small size of the business Jennie is unable to justify a computerised accounting system thus all accounting is completed manually by ABC Accounting.

Celebrations Pty Ltd uses a perpetual inventory system, noting the cost of all inventory sold is 65% of the sales (GST exclusive) price.

It is now the end of February 2018 and Jennie requests ABC Accounting to complete all necessary accounting to enable the preparation of a trial balance as at 28 February 2018. As the ABC Accounting accountant assigned to Celebrations Pty Ltd you are requested to complete the following tasks using Excel:

(a) Prepare general journal entries to record the February transactions as identified below. Notations/descriptions are required.

Date (2018)	Transactions
1 February	Sold inventory on credit to Wendys Parties $3,300 (GST inclusive). Terms 3/7, n/30. Invoice No 1101.
2 February	Received $2,570 commission owing from parties organised in January. Issued Receipt No. 350.
3 February	Paid Party Supplies $2,760 (Cheque No. 201), after receiving a discount of $88, the amount owing for the purchase of inventory on credit in January.
4 February	Cash purchase of office supplies from Discount Office Supplies $1,320 (GST inclusive). Cheque No. 202.
5 February	Issued a $330 (GST inclusive) credit to Wendys Parties for unsuitable inventory returned.
6 February	Received $1,320 (Cheque No. 1020), after allowing a discount of $33, from V. Weeke as payment for a credit sale of inventory made in January. Issued receipt No. 351.
7 February	Paid Party Outfits $965 (Cheque No. 203) owing from a January purchase of inventory.
7 February	Received $2,881 from Wendys Parties being payment for the February 1 sale of inventory. Issued Receipt No. 352.
8 February	Cash sale of inventory $1,210 (GST inclusive). Issued Receipt No. 353.
9 February	Paid Prime Real Estate Pty Ltd $825 (GST inclusive) for February rent. Cheque No. 204.
10 February	Purchased inventory on credit from Weddings RUS $2,860 (GST inclusive). Terms 2/7, n/30.
11 February	Obtained a loan of $15,000 from Aunty Phyllis. Principal and interest of 5% pa is to be paid by August 31, 2018. The proceeds were immediately deposited into the bank. NB: there is no need to make allowance for interest payable.
12 February	Returned unsuitable inventory $429 (GST inclusive) to Weddings RUS.
13 February	Sold inventory on credit to Australiana Entertainers $1,320 (GST inclusive). Terms 2/7, n/30. Invoice No 1102.
14 February	Purchased inventory on credit from Party Outfits $1,870 (GST inclusive). Terms 2/7, n/30.
17 February	Paid $2,382 (Cheque No. 205) owing to Weddings RUS for the February 10 purchase of inventory.
19 February	Purchased inventory from Nuptial Supplies $1,430 (GST inclusive). Paid $800 by cheque (No. 206) as part payment. The remainder of the purchase was on credit.
20 February	Received $1,294 owing from Australiana Entertainers, the amount owing on the February 13 sale of inventory. Issued Receipt No. 354.
22 February	Cash purchase on inventory $550 (GST inclusive). Cheque No. 207.
24 February	Sold inventory on credit to Blinky Bill $1,430 (GST inclusive). Terms 2/7, n/30. Invoice No. 1103.
26 February	Paid monthly electricity account to Origin Power $979 (GST inclusive) by cheque (No. 208).
28 February	Issued Cheque No. 209 for $1,980 to pay sales consultants salary.
28 February	The current months interest $144 on the bank loan was paid to BAN bank via a direct debit to the businesss bank account.
28 February	The current months bank charges of $23 was paid via a direct debit to the businesss bank account

Note: No end of month adjusting entries are required.

Celebrtaions Pty Ltd Trial Balance as at 31 January 2018
Acc. No.	Account	Debit $	Credit $
1-100	Bank	39,000
1-200	Accounts Receivable	15,680
1-210	Provision for Doubtful Debts		1,850
1-300	Commission Receivable	2,570
1-400	Inventory	17,510
1-500	Equipment	13,700
1-510	Equipment - Accumulated depreciation		3,560
1-600	Office Supplies	2,320
2-100	Accounts Payable		6,880
2-110	GST Collected		7,230
2-120	GST Paid	4,980
2-200	Short Term Loans		0
2-300	Bank Loans		23,300
3-100	Capital		30,000
3-200	Retained Earnings		29,398
4-100	Sales Revenue		62,350
4-110	Sales Returns & Allowances	1,350
4-200	Commissions Revenue		12,640
4-300	Discount Received		1,200
5-100	Cost of Sales	43,645
6-100	Office Supplies Expense	2,200

DATE	ACCOUNT NAME (NARRATION)	Post.Ref.	DEBIT	CREDIT
01-Feb-18	Accounts Receivable	1-200	$3,300
	Sales Revenue	4-100		$3,143
	To GST Collected	2-110		$157
	Cost of Goods Sold	5-100	$2,145
	Inventory	1-400		$2,145
	(Being, goods sold on credit to Wendy's Parties Invoice no.1101, Terms 3/7, n/30.
02-Feb-18	Bank	1-100	$2,570
	Commission received	1-300		$2,570
	(Being, Commission from parties organised in January, receipt no. 350)
03-Feb-18	Accounts Payable	2-100	$2,848
	Bank	1-100		$2,760
	Discount Received	4-300		$88
	(Being, creditors paid to the tune of $2,848 & received a discount of $88, cheque no. 201.)
04-Feb-18	Accounts Payable	2-100	$1,257
	GST Paid	2-120	$63
	Bank	1-100		$1,320
	Being, purchases made on cash, cheque no. 202)
05-Feb-18	Sales Returns & Allowances	4-110	$330
	GST Collected	2-110		$16
	Accounts Receivable	1-200		$314
	Inventory	1-400	$215
	Cost of Goods Sold	5-100		$215
	(Being, credit to Wendy's Parties for unsuitable inventories)
06-Feb-18	Bank	1-100	$1,320
	Discount Allowed	6-200	$33
	Accounts Payable			$1,353
	(Being, received from debtors. Cheque no 1020, receipt no. 351)
07-Feb-18	Accounts Payable	2-100	$965
	Bank	1-100		$965
	(Being, paid to creditor, cheque no 203)
07-Feb-18	Bank	1-100	$2,881
	Discount Allowed	6-200	$89
	Accounts receivable	1-200		$2,970
	(Being, received from debtor & allowed 3% discount as per terms, receipt no 352)
08-Feb-18	Bank	1-100	$1,210
	Sales Revenue	4-100		$1,152
	GST Collected	2-110		$58
	(Being, inventory sold for cash, receipt no 353)
09-Feb-18	Rent	6-500	$786
	GST Paid	2-120	$39
	Bank	1-100		$825
	(Being, rent paid for February, cheque no. 204)
10-Feb-18	Inventory	1-400	$2,724
	GST Paid	2-120	$136
	Accounts Payable	2-100		$2,860
	(Being, inventory purchased on credit, terms 2/7, n/30)
11-Feb-18	Bank	1-100	$15,000
	Short Term Loans	2-200		$15,000
	(Being, loan taken at 5% interest per annum, to be repaid by 31st Aug 2018)
12-Feb-18	Sales Returns Allowances	4-110	$409
	GST Paid	2-120	$20
	Accounts Receivables	1-200		$429
	Inventory	1-400	$279
	Cost of goods sold	5-100		$279
	(Being, unsuitable goods returned)
13-Feb-18	Accounts Receivable	1-200	$1,320
	Sales revenue	4-100		$1,257
	GST Collected	2-110		$63
	Cost of Goods Sold	5-100	$858
	Inventory	1-400		$858
	(Being, inventory sold, terms 2/7, n/30, invoice no 1102)
14-Feb-18	Inventory	1-400	$1,781
	GST Paid	2-120	$89
	Accounts Payable	2-100		$1,870
	(Being, inventory purchased on credit, terms 2/7, n/30)
17-Feb-18	Bank	1-100	$2,431
	Discount Received	4-300		$49
	Accounts Receivable	1-200		$2,382
	(Being, creditors paid, and received discount of 2% for prompt payment)
19-Feb-18	Inventory	1-400	$1,362
	GST Paid	2-120	$68
	Accounts Payable	2-100		$630
	Bank	1-100		$800
	(Being, goods purchased on part credit & part cash)
20-Feb-18	Bank	1-100	$1,294
	Discount Allowed	6-200	$26
	Accounts Receivable	1-200		$1,320
	(Being, cash received from debtors, 2% discount allowed)
22-Feb-18	Inventory	1-400	$524
	GST Paid	2-120	$26
	Bank	1-100		$550
	(Being, goods purchased on cash)
24-Feb-18	Accounts Receivable	1-200	$1,430
	Sales Revenue	4-100		$1,362
	GST Collected	2-110		$68
	Cost of Goods Sold	5-100	$930
	Inventory	1-400		$930
	(Being, inventory sold, terms 2/7, n/30, invoice no 1103)
26-Feb-18	Electricity Expenses	6-400	$932
	GST Paid	2-120	$47
	Bank	1-100		$979
	(Being, electricity account paid for, cheque no 208)
28-Feb-18	Salary to Sales Consultant	6-300	$1,980
	Bank	1-100		$1,980
	(Being, sales consultant's salary paid, cheque no 209)
28-Feb-18	Interest Expenses	6-700	$144
	Bank	1-100		$144
	(Being, bank interest paid via direct debit)
28-Feb-18	Bank Charges	6-800	$23
	Bank	1-100		$23
	(Being, bank charges paid via direct debit)
			$53,883	$53,883
	* GST rate has been assumed to be 5%

(b) Open general ledger accounts (Running Balance format) for each account shown on the 31 January 2018 trial balance and - enter the opening balance (for 1 February 2018) for each account using the balance as shown in the 31 January 2018 Trial Balance. - Post the entries from the general journal to the general ledger accounts and enter the posting references in the general journal.

(c) Balance off each general ledger account at 28 February and prepare a trial balance as at 28 February 2018.

Ms Smiles has provided a list of the transactions which occurred during the month of February, as well as the businesss trial balance as at 31 January 2018.

PLEASE NOTE

i) When a discount is received or allowed, you are required to adjust the associated GST Paid or Collected.

ii) Should any GST or discount calculations not result in whole $ values, you can round the result to the nearest whole $.