Practical Completion Point 1

Minnie Armim runs a business Min Armim Wasteage that specialises in energy saving products and advice. She has contacted you for some assistance in setting up a new accounting system. Minnie has managed to collect enough information to create a chart of accounts for you to work from.

This completion point comprises two tasks. Setting up a new system by completing an opening entry and any other relevant journal entries then posting these appropriately; and entering a set of transactions into the general journal and then recording these in the relevant ledgers. After completing these task you will need to review your work and submit.

Task 1

You have been provided with an Excel File which contains the General Journal and Ledger Accounts. The necessary accounts as well as blank accounts to be used if needed have been included. You will need to complete this task by entering the relevant information into the excel spreadsheet provided.

Enter the information below from the chart of accounts and schedules in order to set up Richards new system as an Opening Entry into General Journal and post the relevant information to the General Ledger Accounts provided in the excel file.

Min Armim Wasteage - Chart of Accounts as at 1 July 2017
103	Petty Cash	250.00
105	Bank	3,860.00
107	Accounts Receivable Control	15,038.00
109	Allowance for Bad and Doubtful Debts	462.00
111	Inventory on Hand	8,208.00
113	Stationery on Hand	130.00
115	Prepaid Insurance	1,800.00
116	Prepaid Rent	10,000.00
140	Premises	140,000.00
150	Vehicle	23,000.00
151	Acc. Depreciation Vehicle	229.00
160	Equipment	6,400.00
161	Accumulated Depreciation Equip	1,460.00
199	GST Receivable	1,000.00
207	Accounts Payable Control	5,687.00
205	Wages Expense Payable	862.00
210	Accrued Telephone Expense	481.00
220	Office Supplies Owing	186.00
299	GST Payable	1,950.00
250	Big 4 Bank Mortgage Loan (5-year)	123,000.00
303	Capital Minnie Armim	75,369.00

Additional Notes

Schedule of Accounts Receivable

as at 1 July 2017

Acc. No.

10701 Unplugged Limited 660

10703 Vin Walker 1,795

10705 The Charity Stores 480

10707 Developing Naturally 6,111

10709 Dental Services SA 2,552

10711 Hotels United 3,440

15,038

Schedule of Accounts Payable

as at 1 July 2017

20701 Get Connected Limited 4,250

20703 Reduce, Reuse, Get Rich 568

20705 Flooded Industries 869

5,687

You will need to enter this information into the appropriate subsidiary ledger accounts.

Task 2

Using the excel file you have already been working on, enter the transactions below into the General Journal and then update the Ledger accounts as required.

Transactions

July 1 Sold 40 Energy Saving light globes on credit to Unplugged Ltd for $440 (including GST).

July 2 Received a cheque for $575 from Vin Walker as part payment of their account.

July 5 Issued Cheque number 718 to Flooded Industries. The cheque amount was $782.10 and a discount of $86.9 (including GST of $7.90) was received for early payment.

July 8 Purchased 200 metres of premium low voltage cabling from Get Connected for $4 per metre, plus a total freight charge of $50 and total GST of $85.

July 12 Received $450 cash (net of GST) from Ms Elvia Marks for a full house inspection and energy usage report.

July 13 Purchased 1000 Energy Saving light globes for $3 each from Get Connected Ltd. The delivery charge was $100. All amounts are net of GST. Their invoice No: 726.

July 15 Cash Sale of 12 Energy Saving light globes to Ms Christa Heathers for $10 each (net of GST)