Now that you have reviewed information about Cover 2 Cover, 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 $57,000 from MRMC 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 June 1, 2023. 2 Purchased 15 boxes of copies of Accidental Accountant from Stompson for $260 each, terms net 30. 2 Paid the full amount owing to Peachson, Check No. 639. Payment fell outside discount period. 3 Purchased 28 boxes of copies of Human Ranch with cash for $240 each, Check No. 640. 5 Paid the full amount owing to Books R Us, Check No. 641. Payment fell outside discount period. 5 Sold 13 boxes of copies of Accidental Accountant to Outlines for $440 each, plus 5% sales tax, Invoice No. 287. 5 Made cash sale of 53 boxes of copies of Human Ranch for $480 each plus 5% sales tax. 5 Paid sales staff wages of $3,693 for the week up to and including yesterday, Check No. 642. Note that $2,000 of this payment relates to the wages expense incurred during the last week of May. 6 Purchased 19 boxes of copies of A Shortened History of Space from Bookheamoth for $400 each, terms 2/10, n/30 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. SALES JOURNAL Date Account Invoice Post Accounts No. Ref. Receivable Sales Tax Sales Revenue Cost of Goods Sold Jun 5 ARC - Outlines select) 287 Cr -5720 5 286 -6006 Jun 5 Interest Receivable select) 288 Cr 25440 5 1272 -26712 Kselect) Jun Kselect) Jun (Q=302.purchasesJournalWeek1) PURCHASES JOURNAL Date Post Account Terms Ref. Accounts Payable (select) Jun 2 | APC - Stompson net 30 Dr 3900 Jun (select) 3 Cash net 7 Dr 6720 Jun 6 APC - Bookheamoth select) 2/10 n/30 Dr 7600 (select) Jun (Q=303.cash Receipts JournalWeek1) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account credited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Date Account Post Ref. Cost of Goods Sold Credit Sales Accounts Other Tax Receivable Accounts Sales Revenue Cash Jun 1 Bank Loan Payable select) 57000 57000 Jun select) Jun select) Jun select) Jun select) Vselect) (Q=304.cashPaymentsJournalWeek1) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account debited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Credit Date Account Check No. Post Ref. Debit Accounts Merchandise Wages Other Payable Inventory Expense Accounts Cash Jun select) Jun select) Jun select) Jun Kselect) Jun Kselect) select) Jun (Q=305.generalJournalWeek1) GENERAL JOURNAL Date Account and Explanation Post Ref. Debit Credit Jun (select) (select) Jun select) select) Jun select) select) (Q=310-110-3.AcctsRec3_weeki) SUBSIDIARY LEDGERS Account: ARC - Outlines Account No. 110-3 SUBSIDIARY LEDGERS Account: ARC - Outlines Account No. 110-3 Date Description Ref. Debit Credit Balance May 31 Balance 40.693 DR Jun Jun Jun (Q=310-210-1.AcctsPay1_week Account: APC - Bookheamoth Account No. 210-1 Date Ref. Debit Credit Balance Description 31 Balance May 5,754 CR Jun Jun 4 Jun (Q=310-210-2.AcctsPay2_week Account: APC - Peachson Account No. 210-2 Date Ref. Debit Credit Balance Description 31 Balance May 6,100 CR Jun Jun Jun (Q=310-210-3.AcctsPay3_week Account: APC - Stompson Account No. 210-3 Date Description Ref. Debit Credit Balance May 31 Balance 43,467 CR Jun Jun DOO Jun Account No. 210-4 Date Description Ref. Debit Credit Balance May 31 Balance 5,900 CR Jun Jun Jun (Q=320-100.Cash_week1) GENERAL LEDGER Account: Cash Account No. 100 Date Description Ref. Debit Credit Balance May 31 Balance 65,236 DR Jun OOO Jun Jun (Q=320-110.AcctsRecControl_week1) Account: ARC - Accounts Receivable Control Account No. 110 Date Description Ref. Debit Credit Balance May 31 Balance 62,715 DR Jun Jun Jun (Q=320-120. Inventory_week1) Account: Merchandise Inventory Account No. 120 Date Description Ref. Debit Credit Balance May 31 Balance 118,460 DR Jun Jun Jun Account: APC - Accounts Payable Control Account No. 210 Date Description Ref. Debit Credit Balance May 31 l Balance 68,321 CR Jun Jun 000 Jun (Q=320-220. WagesPayable_week) Account: Wages Payable Account No. 220 Date Ref. Debit Credit Balance Description 31 Balance May 2,000 CR Jun Jun Jun (Q=320-240. TaxCollected_week1) Account: Sales Tax Payable Account No. 240 Date Description Ref. Debit Credit Balance May 31 Balance 15,206 CR Jun Jun Jun + (Q=320-250.LoanPayable_week1) Account: Bank Loan Payable Account No. 250 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun OOO. Jun Jun . (Q=320-400.SalesRevenue_weeki) (Q=320-400.SalesRevenue_week1) Account: Sales Revenue Account No. 400 Date Ref. Debit Credit Balance Description 31 Balance May 0 0 Jun . Jun . Jun (Q=320-500.CostOfSales_weekl) Account: Cost of Goods Sold Account No. 500 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun (Q=320-516. WagesExpense_week1) Account: Wages Expense Account No. 516 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun (Q=330.Inventory2_week1) INVENTORY CARDS Boxes Of Copies of Human Ranch Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost May 31 53 220 11660 27840 116 240 INVENTORY CARDS Boxes Of Copies of Human Ranch Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) ($) ($) May 31 53 220 11660 116 240 27840 Jun Jun Jun Jun (Q=330. Inventory_weekl) Boxes Of Copies Of Accidental Accountant Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) ($) May 31 109 240 26160 Jun Jun Jun Boxes Of Copies of Accidental Accountant Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) 109 240 26160 May 31 Jun Jun Jun Jun (Q=330.Inventory5_week1) Boxes Of Copies Of A Shortened History Of Space Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost May 31 102 300 30600 Jun Jun Jun Jun Now that you have reviewed information about Cover 2 Cover, 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 $57,000 from MRMC 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 June 1, 2023. 2 Purchased 15 boxes of copies of Accidental Accountant from Stompson for $260 each, terms net 30. 2 Paid the full amount owing to Peachson, Check No. 639. Payment fell outside discount period. 3 Purchased 28 boxes of copies of Human Ranch with cash for $240 each, Check No. 640. 5 Paid the full amount owing to Books R Us, Check No. 641. Payment fell outside discount period. 5 Sold 13 boxes of copies of Accidental Accountant to Outlines for $440 each, plus 5% sales tax, Invoice No. 287. 5 Made cash sale of 53 boxes of copies of Human Ranch for $480 each plus 5% sales tax. 5 Paid sales staff wages of $3,693 for the week up to and including yesterday, Check No. 642. Note that $2,000 of this payment relates to the wages expense incurred during the last week of May. 6 Purchased 19 boxes of copies of A Shortened History of Space from Bookheamoth for $400 each, terms 2/10, n/30 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. SALES JOURNAL Date Account Invoice Post Accounts No. Ref. Receivable Sales Tax Sales Revenue Cost of Goods Sold Jun 5 ARC - Outlines select) 287 Cr -5720 5 286 -6006 Jun 5 Interest Receivable select) 288 Cr 25440 5 1272 -26712 Kselect) Jun Kselect) Jun (Q=302.purchasesJournalWeek1) PURCHASES JOURNAL Date Post Account Terms Ref. Accounts Payable (select) Jun 2 | APC - Stompson net 30 Dr 3900 Jun (select) 3 Cash net 7 Dr 6720 Jun 6 APC - Bookheamoth select) 2/10 n/30 Dr 7600 (select) Jun (Q=303.cash Receipts JournalWeek1) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account credited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Date Account Post Ref. Cost of Goods Sold Credit Sales Accounts Other Tax Receivable Accounts Sales Revenue Cash Jun 1 Bank Loan Payable select) 57000 57000 Jun select) Jun select) Jun select) Jun select) Vselect) (Q=304.cashPaymentsJournalWeek1) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account debited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Credit Date Account Check No. Post Ref. Debit Accounts Merchandise Wages Other Payable Inventory Expense Accounts Cash Jun select) Jun select) Jun select) Jun Kselect) Jun Kselect) select) Jun (Q=305.generalJournalWeek1) GENERAL JOURNAL Date Account and Explanation Post Ref. Debit Credit Jun (select) (select) Jun select) select) Jun select) select) (Q=310-110-3.AcctsRec3_weeki) SUBSIDIARY LEDGERS Account: ARC - Outlines Account No. 110-3 SUBSIDIARY LEDGERS Account: ARC - Outlines Account No. 110-3 Date Description Ref. Debit Credit Balance May 31 Balance 40.693 DR Jun Jun Jun (Q=310-210-1.AcctsPay1_week Account: APC - Bookheamoth Account No. 210-1 Date Ref. Debit Credit Balance Description 31 Balance May 5,754 CR Jun Jun 4 Jun (Q=310-210-2.AcctsPay2_week Account: APC - Peachson Account No. 210-2 Date Ref. Debit Credit Balance Description 31 Balance May 6,100 CR Jun Jun Jun (Q=310-210-3.AcctsPay3_week Account: APC - Stompson Account No. 210-3 Date Description Ref. Debit Credit Balance May 31 Balance 43,467 CR Jun Jun DOO Jun Account No. 210-4 Date Description Ref. Debit Credit Balance May 31 Balance 5,900 CR Jun Jun Jun (Q=320-100.Cash_week1) GENERAL LEDGER Account: Cash Account No. 100 Date Description Ref. Debit Credit Balance May 31 Balance 65,236 DR Jun OOO Jun Jun (Q=320-110.AcctsRecControl_week1) Account: ARC - Accounts Receivable Control Account No. 110 Date Description Ref. Debit Credit Balance May 31 Balance 62,715 DR Jun Jun Jun (Q=320-120. Inventory_week1) Account: Merchandise Inventory Account No. 120 Date Description Ref. Debit Credit Balance May 31 Balance 118,460 DR Jun Jun Jun Account: APC - Accounts Payable Control Account No. 210 Date Description Ref. Debit Credit Balance May 31 l Balance 68,321 CR Jun Jun 000 Jun (Q=320-220. WagesPayable_week) Account: Wages Payable Account No. 220 Date Ref. Debit Credit Balance Description 31 Balance May 2,000 CR Jun Jun Jun (Q=320-240. TaxCollected_week1) Account: Sales Tax Payable Account No. 240 Date Description Ref. Debit Credit Balance May 31 Balance 15,206 CR Jun Jun Jun + (Q=320-250.LoanPayable_week1) Account: Bank Loan Payable Account No. 250 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun OOO. Jun Jun . (Q=320-400.SalesRevenue_weeki) (Q=320-400.SalesRevenue_week1) Account: Sales Revenue Account No. 400 Date Ref. Debit Credit Balance Description 31 Balance May 0 0 Jun . Jun . Jun (Q=320-500.CostOfSales_weekl) Account: Cost of Goods Sold Account No. 500 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun (Q=320-516. WagesExpense_week1) Account: Wages Expense Account No. 516 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun (Q=330.Inventory2_week1) INVENTORY CARDS Boxes Of Copies of Human Ranch Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost May 31 53 220 11660 27840 116 240 INVENTORY CARDS Boxes Of Copies of Human Ranch Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) ($) ($) May 31 53 220 11660 116 240 27840 Jun Jun Jun Jun (Q=330. Inventory_weekl) Boxes Of Copies Of Accidental Accountant Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) ($) May 31 109 240 26160 Jun Jun Jun Boxes Of Copies of Accidental Accountant Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost ($) 109 240 26160 May 31 Jun Jun Jun Jun (Q=330.Inventory5_week1) Boxes Of Copies Of A Shortened History Of Space Date Purchases Cost of Goods Sold Balance Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost May 31 102 300 30600 Jun Jun Jun Jun