Please use below information by excel to do the General Journal, sales and purchase Journal, CRJ, CRP, Pay and Rec Ledger, inventory Sub Ledger, General Ledger, Bank Reconciliation, Schedules of Sub, Trial Balance, and Financial Statements.
Information Concerning the Business:
Penny White is a sole trader who operates Penny's Patchworks, a wholesale business selling old fashioned patchwork quilts to retail bedding and linen shops in Tasmania, and on the internet.Penny operates her business from a small, rented warehouse in Hobart.Penny's Patchworks is not registered for GST (you can therefore Ignore GSTwhen recording transactions). She employs a casual worker for four days a week.Penny's bookkeeper has just retired and she asks you if you can help her to record the transactions for June.As you are studying accounting, she also asks you to finish off the books for the year and prepare some financial statements for her.She is thinking of expanding and needs the statements to apply for a bank loan. The bookkeeper has been keeping the records manually but Penny is keen for you to use Excel to complete the various records each month.
Other Information:
Penny sells two products, the Country Garden Quilt and the Crazy Patchwork Quilt.
She uses a perpetual inventory system and the First-in, First-out method to assign costs to Cost of Goods Sold.
Prepayments (prepaid expenses or unearned revenue) are treated as an Asset or Liability when paid.
Assume transactions are on credit unless it is stated otherwise.
All transactions are recorded on the day they occur.
For convenience, round all figures to the nearest dollar
Below you will find the schedules of balances from the subsidiary ledgers, the Bank Reconciliation Statement and the Trial Balance from the end of May 2019.These are followed by the transactions for the month of June, which you are to record, and the June Bank Statement received by Penny from her bank.
Schedule of Accounts Receivable at 31 May 2019 Age No Account Amount 101 B Stow 7 250 102 T Liner 4 277 103 B Winder 2 055 13 582 Schedule of Accounts Payable at 31 May 2019 Age No Account Amount 201 L Sheets 5 618 202 C Woolley 5 557 203 S Satin 5 360 16 535 Inventory Subsidiary Ledger at 31 May 2019 Item No Product Name Units Unit Cost Amount 5001 10 290 5002 4 368 14 658 The May Bank Reconciliation Statement is as follows: Penny's Patchworks Bank Reconciliation Statement As at 31 May 2019 Balance as per Cash at Bank Account Balance as per Bank Statement 76 645 Cr Add Outstanding Deposit 2 940 79 585 Less Ungresented chegues No 491 3 125 No 500 480 No 502 1 450 5 055 74 530 Dr The Trial Balance as at 31 May 2019 prepared by the old bookkeeper is as follows: Account Name 3%? Debit Credit Cash at Bank 1.1100 74 530 Accounts Receivable Control 1.1104 13 582 Allowance for Doubtful Debts 1.1105 565 Inventory Control 1.1115 14 658 Packaging h/Iaterials 1.2121 2 480 Prepaid Insurance 1.2125 1 890 Warehouse Fixtures and Fittings 1.3175 42 000 W W' Warehouse Fixtures and Fittings 1.3175 15 000 Delivery Truck 1.3130 65 000 Accum WDMERIA' Delivery Truck 1.3131 47 000 Accounts Payable Control 2.1200 16 535 Accrued Expense Payable 21215 P White, Capital 3.1300 120 600 P White Drawings 3.1310 48 205 Prot and Loss Summary 3.9000 Sales 4.1000 165 244 Sales Returns and Other Allowances 4.1005 410 Interest Revenue 4.2410 130 Discount Received 4.8420 74 Cost of Goods Sold 5.1000 79 540 Salaries and Wages Expense 5.2540 17 350 Telephone and Internet Expense 5.2545 2 145 Electricity Expense 5.2547 3 035 Insurance Expense 6-2550 Packaging Materials Expense 5.2555 DWeNRnAExpense Warehouse Fixtures and Fittings 5.2553 Rem Expense , Delivery Truck 5.2554 Bank Fee Expense 5.3580 205 Bad Debts Expense 6-3590 Discount Allowed 5.3595 118 $365 148 $365 148 qr. Transactions for the month of June are as follows: June 1 1 14 15' 16' 18' 18' 19 21 22 23 24 25 26 28 29 Received $2 000 'om B Winder for mu payment of her debt as at 31 May, Receipt No ' 103 (hint, we may have given her a discount). Paid the annual insurance premium of $2 472, Cheque 503. ' Traded in the delivery truck for $7 000 in part payment for a new delivery truck costing $83 000. The remaining $76 000 was paid in cash, Cheque 504 (see depreciation 5 information below). NOTE: You will need to wait until we have learn; Topic 8 to do the general journal part of this entry but you can enter the amount of cash in the appropriate cash journal before then. Cash Sales, 12 Crazy Patchwork Quilts @ $180 each, Receipt No 104. Paid S Satin the amount owing to them less 5% cash discount for early payment, Cheque 505. Credit sales to T Liner of 20 Country Garden Quilts @ $340, Invoice No. 56. Paid L Sheets the amount owing at 31 May and received a 7.5% discount for early payment, Cheque 506. Paid wages owing for the fortnight $520, Cheque 507. Paid C Woolley the full amount owing as at 31 May, Cheque 508. Received $7,170 from B W as full payment ofher debt as at 31 May, Receipt No 105. Paid Electricity Account $670, Cheque 509. Purchased 30 Country Garden Quilts @ $250 from C Woolley, Invoice 1290. Purchased 25 Crazy Patchwork Quilts @ $115 from S Satin, Invoice 101. Credit sales to B Winder of 33 Country Garden Quilts @ $348 each, Invoice No 57. Cash sales, 15 Country Garden Quilts @ $300, Receipt No 106. Credit sales to B Studley 25 Crazy Patchwork Quilts @ $184 each, Invoice No. 58. i B Studle returned 5 Crazy Patchwork Quilts as she decided she only wanted 20. Penny issued Credit Note 19 and gave B Studley a credit. As the Quilts were not damaged, they were returned to the inventory. Paid wages owing for the fortnight $520, Cheque 510. Received $5,100 from T Liner, Receipt No 107. Credit sales to B Winder of 15 Crazy Patchwork Quilts @ $185, Invoice No. 59. Purchased 40 Country Garden Quilts @ $252 each from L Sheets, Invoice 277. Cash Sales, 10 Country Garden Quilts @ $365 and 10 Crazy Patchwork Quilts @ ' $185, Receipt No 108. Received $3 000 from B WSW, Receipt No 109. Paid S Satin amount owing less 5% discount for early payment, Cheque 51 1. 30 End of accounting period adjustments I Insurance is paid once a year in advance on 1 June each year. No adjustment has been made during the year. 0 Wages owing at 30 June $220. I A stocktake in the ofce reveals that Packaging Materials on Hand are $680. I Depreciation: > Warehouse Fixtures and Fittings depreciation is based on 12 years usage and the straight line method (residual value $6 000) > The old Delivery Truck sold on 30 June is depreciated at 18% using the diminishing balance method (residual $8 000). > The new Delivery Truck bought on 1 June is to be depreciated at 25% using the diminishing balance method (residual $10,000). I The Telephone and Internet account for June for $320 has not been received or paid. I Allowance for DoubtJl Debts needs to be adjusted to equal 7% of Accounts Receivable Control at 30 June. I A stocktake revealed the following closing balances: Country Garden Quilt 34 Crazy Patchwork Quilt 7 l.Ll _' Penny received the following bank statement from her bank for the month of June. Penny's Patchworks Naunal Park Bank Ale No 2 3 5 0 BANK STATEMENT Date Particulars Debits Credits Balance Balance forward Cash and m Cheque 505 Returned Cheque (B Winder) Interest Earned Cheque 500 Cash and m 30 ITransactlonFees ' 37 . ' 16 76 ' Cr
