Now that you have reviewed information about iCandy, 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: 1 1 Week 1 Date Transaction description Issued Check No. 343 for $8,800 to pay Advanced Property Management for two month's worth of rent in advance 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 2021 and the principal of the loan is to be repaid on June 1, 2024. Paid sales staff wages of $2,077 for the week up to and including yesterday, Check No. 344. Note that $1,162 of this payment relates to the wages expense incurred during the last week of May. 5 Paid the full amount owing to Hershel's, Check No. 345. 5 Sugar-hi paid the full amount owing on their account. Issued Check No. 346 to Office Supplies Warehouse for the purchase of $343 worth of office supplies. Made payment of $737 to State Power for 3 months of electricity up to and including May 31, Check No. 4 6 7 347 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. 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 amount, subtract the discount from the original amount. Additional instructions Ir Displaying selected accounting records: . To save space, not all accounting records (e.g. journals and ledgers) will be displayed on every page. However, on each page you can access all accounting records necessary to answer the questions on that page. There are several tabs representing different views of the accounting records. The active tab by default is Show All, but you may also select to view just one particular accounting record by selecting the appropriate tab. . If you fill in any accounting records and change the view on the page by selecting a different tab, the information that you have entered will remain in that accounting record and be displayed whenever you can see that accounting record. . Before submitting your answers, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. You are required to complete all relevant accounting records before pressing the Submit answers button. Once submitted, you will not be able to return to the page to re-enter or alter your answers. Journals: . Each transaction recorded in a special Journal must be entered in one line. In order to receive full points, you must not split up the relevant transaction into more than one line in the special journal. . For certain transactions in special Journals, some accounting textbooks do not always require an account to be chosen under the column labeled Account. In this practice set you are required to select an account for each transaction the special journals. Specifically, in all special journals, under the column labeled Account, you must select the correct account name for each transaction in order to receive full points. Note that for some transactions, this will mean that the account name selected will correspond to the heading of one of the columns in that special journal. . For each journal, in the Post Ref. column you will need to correctly type the account number of the account you are posting to. In particular, in special journals, some accounting textbooks do not always require a reference to be recorded in the Post Ref. column. In this practice set, in order to receive full points, every transaction entered in a special Journal requires an entry in the Post Ref. column. Note that in the special journals, If the account name selected for a transaction corresponds to the heading of one of the columns in that special journal, the post ref is to be recorded as an X. This is because these transactions are not posted on a daily basis. In order to receive full points, you must record only the letter X in the Post Ref. column for these transactions. Note that in special journals, the Other Accounts column should not be used to record movements of inventory . There may be entries in the general Journal that require posting to both a control account and a subsidiary ledger. In these cases, after you have posted to both ledgers, you should enter the reference for both the general ledger account and the subsidiary ledger account in the Post Ref. column to indicate that you have posted to both accounts. For example, if the reference number for the control account is 110 and the reference number for the subsidiary ledger account is 110-1, you should type '110/110-1' Into the Post Ref. column. General journal entries do NOT require a description of the journal entries. Ledgers: When posting a transaction to a ledger account, under the Description column, please type the description of the transaction directly into the field. The exact wording does not matter for grading purposes. For example, it does not matter in an electricity transaction if you type 'Paid for electricity or 'Paid electricity bill. . For each ledger, under the Ref. column, you need to select the correct Journal from a list in the drop- down box provided in order to receive full points. . If the balance of a ledger account is zero you do not need to select a debitor credit from the drop- . Each transaction posted to the subsidiary ledgers must be entered in one line. In order to receive full points, you must not split up the relevant transaction into more than one line in the subsidiary ledger Both journals and ledgers: Most journals and ledgers will have blank rows left at the end of the page. Some journals and ledgers may not require any entries. When purchases and sales are recorded in special Journals, changes in Inventory must not be posted M Both journals and ledgers: . Most journals and ledgers will have blank rows left at the end of the page. Some journals and ledgers may not require any entries. . When purchases and sales are recorded in special journals, changes in inventory must not be posted to the Merchandise Inventory account in the general ledger on a daily basis. . Show All Special Journals General Journal Subsidiary Ledgers General Ledger SALES JOURNAL Date Account Invoice No. Post Ref. Accounts Receivable Cost of Goods Sold Jun (select) Jun (select) Jun (select) Jun Kselect) PURCHASES JOURNAL Date Account Terms Post Ref. Accounts Payable Jun select) Jun Kselect) Jun (select) . Jun Kselect) CACH DECE PC TOPIAI CASH RECEIPTS JOURNAL Notes in order to receive points for each transaction you must select an account under the collabeled Account, as indicated that structions above. Since transactions in this journal affect the cash account, you are to be the name of the count credite transactions into the Account columns that the type of transaction can be conta com Data Credit Cest of Date Account Case Goode Sales Are de Arendavate Acero Sol Jun An Jun un un (630) CASH PAYMENTS JOURNAL Note: In order to receive points for each transaction you must select an account under the counted Account, as indicated under the sot Instructions above. Since transactions in this four affect the Cash account, you read to enter theme 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 Mois column De Credit Date Account Check Pear Ret Account Merchandises Other Parallery ap Accom Casa Jan Jun Jun Sun Jun un GENERAL JOURNAL Dato Account and Explanation Post Ref. Debit Credit Jun Select Jun select (select) Jun select sele (Q-310-110-5.AccRec week) SUBSIDIARY LEDGERS Account: ARC - Sugar-hi Account No. 110-5 Date Ref. Debit Credit Description 31 Balance Balance 3,481 DR May Jun 3481 0 . 5 Receipt . Jun Jun : (Q-310-210-1 AcetsPayl week Account APC - Restlay Account No. 210-1 Debil Date Rer. Debit Credit Description 31 Balance Balance 4,577 CR May Jun s 4577 2 payment DOO Jun . Jun Account: APC - Hershel's Account No. 210-6 (Q-310-210-6 Accts Pays weekd) Ref. Date May Description 31 Balance Debit Credit Balance 3.417 CR Jun . Jun . Jun (Q-320-100 Cash week) GENERAL LEDGER Account: Cash Account No. 100 52 Date Rel. Description 31 Balance Debit Credit Balance May 72,393 DR Jun Jun ORD Jun 20120-110 Acts control weekly Account: ARC - Accounts Receivable Control Account No. 110 Date Rel. Debit Credit Description 31 Balance Balance 30.237 DR May Jun HOBB Jun S2 Jun Account: Office Supplies Account No. 130 IQ-370-130 Store Supplies weekly Date May Description 31 Balance Ref. Debil Credit Credit Balance 2.917 DR Jun : Jun ODO Jun Account: Prepaid Rent Account No. 140 (Q-310-140. Prepaident week) Date May Description 31 Balance Ref. Debit Credit Balance Jun + Jun DOO Jun (0)20-210 Actsy Control) Account: APC - Accounts Payable Control Account No. 210 Rel. Date May Description 31 Balance Debit Credit Balance 44,247 CR Jun 3 Jun Jun : XQ-320-220, wages Payable_week) Account: Wages Payable Account No. 220 Ref. Debit Credit Date May Description 31 Balance Balance 1.162 CR Jun . Jun :) Jun 1Q-320-221. Electricity Payable week) Account Electricity Payable Account No. 221 Date Rel. Debit Description 31 Balance Credit May Balance 808 CR Jun Jun O DO Jun Account: Bank Loan Payable Account No. 250 (0-120.250.mwable week) Rel. Date May Dell Description 31 Balance Credit Balance Jun Jun : Jun 3 Account: Sales Revenue Account No. 400 Rel. Description 31 Balance Debit Credit Date May Balance 0 Jun i DOO 2 Jun Jun (Q-320-402. Sales Disc_weeki Account: Sales Discounts Account No. 402 Date Description May 31 Balance Ref. Debit Credit Balance Balance 0 Jun Jun OOO Jun (Q-320-500. Costorsales weeks) Account: Cost of Goods Sold Account No. 500 Rer. Dobit Credit Date May Description 31 Balance Credite Balance Jun Jun Jun (Q-320-516 Wages Expense week) Account: Wages Expense Account No. 516 Ref. Debit Credit Balance Date May Jun Description 31 Balance 0 Jun 0 0 0 Jun (Q-320-541. ElectricityExpense_week1) Account: Electricity Expense Account No. 541 Date Doble Ref. Debit Credit Balance Description 31 Balance 0 May Jun Jun DOO Jun (Q=320-544. SuppliesExpense_wookl) Account: Office Supplies Expense Account No. 544 Date Ref. Debit Credit Balance Description 31 Balance 0 May Jun Jun Jun