Now that you have reviewed information about Choco Holly, 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 transactions occurred throughout the first week of June:

Week 1 Date Transaction description 1 Obtained a loan of $44,000 from EastPac Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2020 and the principal of the loan is to be repaid on 1 June 2025. 3 Sold 9 boxes of Liquorice Chocolate to Sweet Tooth for $160 each, Invoice No. 201. 4 Purchased 10 boxes of Chocolate Coated Coffee Beans from Spud's Confectionery for $80 each, terms net 30. 4 Purchased 9 boxes of Pecan Fudge from Hershel's for $140 each, terms 2/10, n/30. 4 Paid the full amount owing to Restlay, Cheque No. 903. Payment fell within discount period. 4 Made cash sales of $6,528 during the first 4 days of the month. 5 Paid the full amount owing to East Tangiers Cooperative, Cheque No. 904. Payment fell within discount period. 7 Purchased 5 boxes of Mixed Truffles with cash for $100 each, Cheque No. 905.