Now that you have reviewed information about Hi-Fi Way, 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 thefirst weekof 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 1DateTransaction description

1Purchased 12 DK800 Desktop Computers from Pony for $1,240 each, terms 2/10, n/30

1Obtained a loan of $58,000 from Earth 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, 2024.

2Purchased 23 BG90 Plasma Televisions with cash for $600 each, Check No. 815.

4Purchased 15 BlueBerry Phones from Big Telco for $580 each, terms net 30

.4Made cash sale of 9 BG90 Plasma Televisions for $1,100 each plus 5% sales tax.

5Paid the full amount owing to Pear Technology, Check No. 816. Payment fell outside discount period.

5Paid sales staff wages of $12,874 for the week up to and including yesterday, Check No. 817. Note that $6,500 of this payment relates to the wages expense incurred during the last week of May.

7Paid the full amount owing to Moon Megasystems, Check No. 818. Payment fell outside discount period

.7Sold 11 BlueBerry Phones to Pikea for $780 each, plus 5% sales tax, Invoice No. 489.