Prepare, General journal, Sales journal, Purchase journal, Cash receipts journal and Cash payment journal
Accounting procedures Transactions are recorded in the appropriate journals (rounded to the nearest dollar) from source documents on a daily basis. All cash receipts from customers and other sources are banked into the business cheque account at the Community Bank. A deposit slip is prepared for this purpose. Cash sales, other than those paid electronically by EFT, are often not banked until a few days after receipt. All payments are made by cheque drawn on the Community Bank; appropriate details are recorded on the cheque butt and these provide information for recording in the cash payments journal. When invoices are paid as soon as received, they are recorded in the cash payments journal and note is made on the invoice of the date paid and the cheque number. The business maintains subsidiary ledgers for accounts receivable and accounts payable, with separate accounts for each customer and each supplier. Transactions that affect the subsidiary ledger accounts, or general ledger accounts where transactions have been entered in the 'Other column of the special journals, and general joumal transactions, are posted daily. At the end of the month, special journals are totalled and posted to the general ledger. A worksheet is then prepared from the general ledger and adjusting general journal entries are recorded and posted to the general ledger. A statement of profit or loss and a statement of financial position are produced, together with schedules of accounts receivable and accounts payable. At the end of the financial year closing general journal entries are prepared and posted to the general ledger accounts. The business uses a periodic inventory system and a physical stocktake is undertaken at the end of the financial year to determine the value of inventory on hand at that date. Note: General ledger accounts in both running balance' and 'T account formats are included. Check which format to use with your tutor before commencing the exercise. Account balances Opening balances for customers, including invoice details, are shown in figure 1.1. Supplier opening balances, including invoice details, are shown in figure 1.2. The trial balance for Mario's Pizza Palace as at 31 May 2016 is shown in figure 1.3. Schedule of Accounts Receivable as at 31 May 2016 Customer Invoice No. Terms Date of invoice Amount Due Port City Motors Princess May Theatre 389 N30 N30 $ 400 385 30/05/2016 13/05/2016 330 FIGURE 1.1 Accounts receivable as at 31 May 2016 $ 730 Schedule of Accounts Payable as at 31 May 2016 Invoice No. Terms Amount Due Supplier Foodmart Wholesalers Fresh Food Markets Italian Store 27369 4182 19265 N30 5/10, N30 N15 Date of Invoice 1/05/2016 31/05/2016 9/05/2016 FIGURE 1.2 Accounts payable as at 31 May 2016 $1090 320 860 $ 2270 2 MARIO'S PIZZA PALACE Mario's Pizza Palace Trial Balance as at 31 May 2016 Account Debit Credit Account Number 100 110 120 130 $ 33 705 500 730 1 250 140 980 640 1 980 17 700 11 680 150 160 170 171 180 181 200 210 220 34 860 11 500 2 270 840 266 18 900 51 674 300 310 400 38 400 410 420 500 Cash at Bank - Community Bank Cash Float Accounts Receivable Inventory-Food Inventory - Packaging Prepaid Advertising Prepaid Insurance Motor Vehicles (Cost) Accumulated Depreciation - Motor Vehicles Store Equipment (Cost) Accumulated Depreciation - Store Equipment Accounts Payable PAYG Withholding Payable Superannuation Payable Bank Loan Owner's Capital Owner's Drawings Sales Income Sales Returns & Allowances Discounts Received Food Purchases Purchase Returns & Allowances Packaging Costs Discount Given Accountancy Fees Advertising Electricity & Gas Insurance Expense Interest Expense Motor Vehicle Expenses Printing, Postage & Stationery Rent Expense Repairs & Maintenance Sundry Expenses Superannuation Telephone Wages 49 870 510 520 530 600 605 615 620 625 630 8 375 70 1 200 3520 2 310 2030 1010 4820 450 24 200 660 635 640 645 650 320 655 660 3 190 3580 33 600 665 FIGURE 1.3 Trial balance as at 31 May 2016 $ 270 000 $ 270 000 Instructions 1. Read the information provided in this chapter and the appendices to gain familiarity with the various source documents, business op its, business operations, and accounting procedures. Confirm that the opening balances at 1 June 2016 in the general ledger and the subsidiary ledgers, agree with the amounts shown in the figures above. 2. CHAPTER 1: INTRODUCTION 3 3. Record the transactions for the month of June from the source documents provided on pages 5 to 15 in the appropriate general or special journals. Post all transactions in accordance with accounting procedures. 4. Total all special journal columns and post to the appropriate ledger account in the general ledger. 5. Prepare schedules of accounts receivable and accounts payable as at 30 June 2016, and reconcile these with the control accounts in the general ledger. unadjusted trial balance as at 30 June 2016 on the worksheet provided. 7. Record balance-day adjustments and complete the worksheet. 8. Record the balance-day adjustments in the general journal and post to the general ledger 9. Prepare a statement of profit or loss for the period 1 July 2015 to 30 June 2016 and a statement of financial position as at 30 June 2016. 10. Prepare and post the closing general journal entries for the period. 11. Prepare a post-closing trial balance. Conclusion This concludes the introduction to the practice set. The structure of the practice set is listed below. Chapter 2 contains the source documents to be used for the transactions for the month of June 2016 to be entered into the manual accounting system. The intervening segments of the practice set contain the journals, ledgers and reports. Appendix 1 is a glossary of source documents. Appendix 2 provides guidance on how to record transactions in special journals. At the conclusion of the practice set, users will have acquired a greater understanding of the functioning of a manual accounting system. 4 MARIO'S PIZZA PALACE CHAPTER TWO Source documents - June 2016 Transactions for Mario's Pizza Palace for the month of June 2016 are to be recorded from these source documents. A glossary is provided in appendix 1. Daily cash sales are recorded on the cash register and banked on Monday or Friday. When a customer pays by cheque, it is banked together with other money received prior to or on the date shown on the bank deposit slip. MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No. Date: 1/06/2016 Terms: N15 PO#: 1345 Sold To: Fremantle Arts Centre 26 Ord Street Fremantle WA 6160 Qty 12 Description Pizza 1 lt bottles soft drink Price $18 $4 Sale Amount: Freight: Total Amount: Amount $216 32 $248 $0 $248 The Professionals PO Box 1066 Fremantle WA 6960 Phone: 9335 1000 Tax Invoice Invoice No.: 779263 Invoice Date: 1/06/2016 Terms: On Receipt ABN 25 138 411 986 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 2/06/16 Cheque 1001 Amount Description Rent for the period 1 June to 30 June $2 200 $2 200 Total (including $200 GST) CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 5 Date: 2/06/16 Date: 2/06/16 Date: 3/06/16 To: The Professionals For: Rent Expense To: Italian Store For: Inv. 19265 To: Sam Conti For: Wages $1 400 less PAYG Withholding $210 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 2 200 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 860 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Cha: $ 1 190 Bal. C/F $ 001001 001002 001003 Fresh Food Markets ABN 36 349 769 505 63 Karel Ave Jandakot WA 6164 Phone: (08) 3260 9710 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Tax Invoice Invoice No.: 4346 Invoice Date: 3/06/2016 Terms: 5/10, N30 PO #: 1015 Item Description Amount ($) Qty 100 kg 50 kg 15 bunches 50 kg Unit Price 50C $4.00 $2.00 $6.00 Total Onions Capsicum Baby spinach Mushrooms 50 200 30 300 580 Cash Register Totals 30/05/16 $370 31/05/16 $480 1/06/16 $570 2/06/16 $950 Community Bank DEPOSIT 3/06/2016 Fremantle 2 200 170 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 2 370 Particulars of Cheques Drawer Bank Branch Amount 6 MARIO'S PIZZA PALACE Date: 4/06/16 Date: 4/06/16 To: Foodmart Wholesalers For: Inv. 27369 To: Fresh Food Markets For: Inv. 4182 less discount Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 1 090 Bal. C/F $ Bal. B/F: $ Deposit: $ Balance: $ This Cha: $ 304 Bal. C/F: $ 001004 001005 Foodmart Wholesalers ABN 23 982 884 801 17 Bannister Road Canning Vale WA 6155 Phone: (08) 9455 8545 Tax Invoice Invoice No.: 28488 Invoice Date: 7/06/2016 Terms: Net 30 PO #: 1016 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Price GST 50 Qty 500 100 100 100 25 Item Description Assorted soft drinks 10kg bag flour Grated Mozzarella cheese Cans tomato paste Cans olives 100 12 20 Amount 500 1 000 1 200 500 500 3 700 370 $4 070 50 20 Subtotal GST Total Cash Register Totals 3/06/16 $870 4/06/16 $950 5/06/16 $690 6/06/16 $905 Community Bank Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: DEPOSIT 7/06/2016 Fremantle 3 000 415 330 3 745 Particulars of Cheques Drawer Princess May Theatre Bank Branch Fremantle Amount 330 CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 7 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4221 Date: 10/06/2016 Terms: N30 PO #: 16267 Sold To: Fremantle Port Authority PO Box 600 Fremantle WA 6960 Qty 20 Description Pizza 300ml bottles soft drink 20 Price $18 $3 Sale Amount: Freight: Total Amount: Amount $360 60 $420 $0 $420 Cash Register Totals 7/06/16 $280 8/06/16 $550 9/06/16 $790 Community Bank DEPOSIT 10/06/2016 Fremantle 1550 70 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 1 620 Particulars of Cheques Drawer Bank Branch Amount Date: 11/06/16 Date: 11/06/16 Australia Post ABN 42 720 097 886 Tax Invoice To: Fresh Food Markets For: Inv. 4346 less discount To: Australia Post For: Stamps & Stationery 11/06/16 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 551 Bal. C/F: $ Postage stamps Stationery Total Cheque 70.00 35.00 105.00 105.00 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 105 Bal. C/F: $ Total includes GST $9.55 001006 001007 8 MARIO'S PIZZA PALACE Cash Register Totals 10/06/16 $845 11/06/16 $830 12/06/16 $570 Community Bank DEPOSIT 13/06/2016 Fremantle 2 200 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 45 400 2 645 Particulars of Cheques Drawer Port City Motors Bank NAB Branch Fremantle Amount 400 Westside Packaging Co. 229 Railway Parade Bassendean WA 6054 Phone: (08) 9273 5333 Tax Invoice Invoice No.: 7789 Invoice Date: 14/06/2016 Terms: N30 PO#: 1017 ABN 28 091 724 739 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description 10,000 pizza boxes Amount $5 500 55 Freight Total (including $505 GST) $5 555 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4222 Date: 15/06/2016 Terms: 10/10, N30 Sold To: Angel Sailors Club 8 Elder Place Fremantle WA 6160 Qty Description Price $25 Amount $2 000 Family Size Pizza $2 000 Sale Amount: Freight: Total Amount: $0 $2 000 CHAPTER 2: SOURCE DOCUMENTS - JUNE 2016 9 Foodmart Wholesalers ABN 23 982 884 801 17 Bannister Road Canning Vale WA 6155 Phone: (03) 9455 8545 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Adjustment Note Invoice No.: 28498 Invoice Date: 15/06/2016 Terms: Net 30 Price GST Qty 10 Item Description 10kg bag flour (weevils in the bags) Amount 10 L 10 1 Subtotal GST Total $11 Date: 17/06/16 Date: 17/06/16 To: Sam Conti For: Wages $1 400 less PAYG Withholding $210 To: Australian Super For: Super Payable Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 1 190 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Chg:$ 266 Bal. C/F: $ 001008 001009 Cash Register Totals 13/06/16 $170 14/06/16 $360 15/06/16 $620 16/06/16 $1050 Community Bank DEPOSIT 17/06/2016 Fremantle 2 200 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 2 200 Particulars of Cheques Drawer Bank Branch Amount 10 MARIO'S PIZZA PALACE OFFICE MEMORANDUM Date: 20/06/2016 To: Maria Italiano SUBJECT: Loan repayment Transfer $1 000 from the cheque account to the bank loan account. Signed: Mario Italiano Stan Jarvis Electrics 18 Findlay Street Fremantle WA 6160 Phone: 9335 4190 Tax Invoice Invoice No. Invoice Date: 20/06/2016 ABN 86 197 948 729 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 20/06/16 Cheque 1010 Description Amount Electrical repairs $550 $550 Total (including $50 GST) Date: 20/06/15 To: Stan Jarvis Electrics For: Inv. 2338 for repairs Bal. B/E: $ Deposit: $ Balance: $ This Chq: $ 550 Bal. C/F $ 001010 Cash Register Totals 17/06/16 $825 18/06/16 $995 19/06/16 $530 Community Bank DEPOSIT 20/06/2016 Fremantle 2 305 45 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 2 350 Particulars of Cheques Drawer Bank Branch Amount CHAPTER 2: SOURCE DOCUMENTS - JUNE 2016 11 Telstra GPO Box 990 Melbourne VIC 3001 Phone: 13 3333 Tax Invoice Invoice No.: 289467 Invoice Date: 21/06/2016 ABN 25 465 815 356 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description Telephone line rental and phone calls Amount $297 $297 Total (includes $27 GST) MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice No.: Date: Terms: PO # Invoice 4223 24/06/2016 N30 16277 Sold To: Fremantle Port Authority PO Box 600 Fremantle WA 6960 Qty Price Description Pizza 300ml bottles soft drink Amount $360 20 60 $18 $3 Sale Amount: Freight: Total Amount: $420 $0 $420 ITALIAN STORE ABN 95 000 029 729 237 Oxford Street Leederville WA 6007 Phone: (08) 9444 9644 Tax Invoice Invoice No.: 19356 Invoice Date: 24/06/2016 Terms: N15 PO #: 1018 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Qty Item Description 10 kg Anchovies 60 kg Italian sausage 60 kg Ham 60 kg Pepperoni Basil & oregano (fresh) Price $ 40 20 30 20 Amount $ 400 1 200 1 800 1 200 GST $ 40 120 180 120 40 4 640 20 Subtotal Freight GST Total 466 $5 126 12 MARIO'S PIZZA PALACE Cash Register Totals 20/06/16 $310 21/06/16 $280 22/06/16 $570 23/06/16 $830 Community Bank DEPOSIT 24/06/2016 Fremantle 1990 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 1 800 3 790 Particulars of Cheques Amount Drawer Angel Sailors Club Bank WBC Branch Fremantle 1 800 Western Power GPO Box 6060 Perth WA 6001 Tax Invoice Account No.: 111177 Invoice Date: 24/06/2016 ABN 25 465 815 356 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 27/06/16 Cheque 1011 Description Amount Electricity supplied for the period 21/04/16 to 23/06/16 Total (including GST) $475 $475 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4224 Date: 25/06/2016 Terms: N30 PO #: 917 Sold To: Princess May Theatre 17 Cantonment Street Fremantle WA 6160 Qty Description Small size pizza 11t bottles soft drink Amount $200 10 40 Price $10 $4 Sale Amount: Freight: Total Amount: $240 $10 $250 CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 13 Cash Register Totals 27/06/16 $380 28/06/16 $510 29/06/16 $420 Community Bank DEPOSIT 30/06/2016 Fremantle 1 295 15 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 1 310 Particulars of Cheques Drawer Bank Branch Amount Pakenham St Service Station 727 Pakenham St Fremantle WA 6160 Phone: 9335 2000 Tax Invoice Invoice No.: 1221 Invoice Date: 30/06/2016 Terms: Net 7 days ABN 36 091 500 319 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description Fuel purchases for the month Amount 360 $360 TOTAL OFFICE MEMORANDUM Date: 30/06/2016 To: Maria Italiano SUBJECT: End of period adjustments Adjusting journal entries are required for the following: 1. Wages payable at the end of June are $1300 2. Transfer 1/3rd of the prepaid insurance to the expense account 3. Transfer 50% of the prepaid advertising to the expense account 4. Superannuation payable for June is $266 5. Record depreciation for the year. Use the straight line (prime cost) method and the rates shown below: a. Motor Vehicles - 20% b. Store Equipment -10% 6. Interest charged on the bank loan for the month was $84 7. Cash from sales of pizzas on 30/06/16 were $760 and this money was not banked until July (Hint: post to the cash float account) 8. The end of June stocktake has determined that the closing inventory value of food is $1840 and packaging $4125. Signed: Accountant CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 15 Accounting procedures Transactions are recorded in the appropriate journals (rounded to the nearest dollar) from source documents on a daily basis. All cash receipts from customers and other sources are banked into the business cheque account at the Community Bank. A deposit slip is prepared for this purpose. Cash sales, other than those paid electronically by EFT, are often not banked until a few days after receipt. All payments are made by cheque drawn on the Community Bank; appropriate details are recorded on the cheque butt and these provide information for recording in the cash payments journal. When invoices are paid as soon as received, they are recorded in the cash payments journal and note is made on the invoice of the date paid and the cheque number. The business maintains subsidiary ledgers for accounts receivable and accounts payable, with separate accounts for each customer and each supplier. Transactions that affect the subsidiary ledger accounts, or general ledger accounts where transactions have been entered in the 'Other column of the special journals, and general joumal transactions, are posted daily. At the end of the month, special journals are totalled and posted to the general ledger. A worksheet is then prepared from the general ledger and adjusting general journal entries are recorded and posted to the general ledger. A statement of profit or loss and a statement of financial position are produced, together with schedules of accounts receivable and accounts payable. At the end of the financial year closing general journal entries are prepared and posted to the general ledger accounts. The business uses a periodic inventory system and a physical stocktake is undertaken at the end of the financial year to determine the value of inventory on hand at that date. Note: General ledger accounts in both running balance' and 'T account formats are included. Check which format to use with your tutor before commencing the exercise. Account balances Opening balances for customers, including invoice details, are shown in figure 1.1. Supplier opening balances, including invoice details, are shown in figure 1.2. The trial balance for Mario's Pizza Palace as at 31 May 2016 is shown in figure 1.3. Schedule of Accounts Receivable as at 31 May 2016 Customer Invoice No. Terms Date of invoice Amount Due Port City Motors Princess May Theatre 389 N30 N30 $ 400 385 30/05/2016 13/05/2016 330 FIGURE 1.1 Accounts receivable as at 31 May 2016 $ 730 Schedule of Accounts Payable as at 31 May 2016 Invoice No. Terms Amount Due Supplier Foodmart Wholesalers Fresh Food Markets Italian Store 27369 4182 19265 N30 5/10, N30 N15 Date of Invoice 1/05/2016 31/05/2016 9/05/2016 FIGURE 1.2 Accounts payable as at 31 May 2016 $1090 320 860 $ 2270 2 MARIO'S PIZZA PALACE Mario's Pizza Palace Trial Balance as at 31 May 2016 Account Debit Credit Account Number 100 110 120 130 $ 33 705 500 730 1 250 140 980 640 1 980 17 700 11 680 150 160 170 171 180 181 200 210 220 34 860 11 500 2 270 840 266 18 900 51 674 300 310 400 38 400 410 420 500 Cash at Bank - Community Bank Cash Float Accounts Receivable Inventory-Food Inventory - Packaging Prepaid Advertising Prepaid Insurance Motor Vehicles (Cost) Accumulated Depreciation - Motor Vehicles Store Equipment (Cost) Accumulated Depreciation - Store Equipment Accounts Payable PAYG Withholding Payable Superannuation Payable Bank Loan Owner's Capital Owner's Drawings Sales Income Sales Returns & Allowances Discounts Received Food Purchases Purchase Returns & Allowances Packaging Costs Discount Given Accountancy Fees Advertising Electricity & Gas Insurance Expense Interest Expense Motor Vehicle Expenses Printing, Postage & Stationery Rent Expense Repairs & Maintenance Sundry Expenses Superannuation Telephone Wages 49 870 510 520 530 600 605 615 620 625 630 8 375 70 1 200 3520 2 310 2030 1010 4820 450 24 200 660 635 640 645 650 320 655 660 3 190 3580 33 600 665 FIGURE 1.3 Trial balance as at 31 May 2016 $ 270 000 $ 270 000 Instructions 1. Read the information provided in this chapter and the appendices to gain familiarity with the various source documents, business op its, business operations, and accounting procedures. Confirm that the opening balances at 1 June 2016 in the general ledger and the subsidiary ledgers, agree with the amounts shown in the figures above. 2. CHAPTER 1: INTRODUCTION 3 3. Record the transactions for the month of June from the source documents provided on pages 5 to 15 in the appropriate general or special journals. Post all transactions in accordance with accounting procedures. 4. Total all special journal columns and post to the appropriate ledger account in the general ledger. 5. Prepare schedules of accounts receivable and accounts payable as at 30 June 2016, and reconcile these with the control accounts in the general ledger. unadjusted trial balance as at 30 June 2016 on the worksheet provided. 7. Record balance-day adjustments and complete the worksheet. 8. Record the balance-day adjustments in the general journal and post to the general ledger 9. Prepare a statement of profit or loss for the period 1 July 2015 to 30 June 2016 and a statement of financial position as at 30 June 2016. 10. Prepare and post the closing general journal entries for the period. 11. Prepare a post-closing trial balance. Conclusion This concludes the introduction to the practice set. The structure of the practice set is listed below. Chapter 2 contains the source documents to be used for the transactions for the month of June 2016 to be entered into the manual accounting system. The intervening segments of the practice set contain the journals, ledgers and reports. Appendix 1 is a glossary of source documents. Appendix 2 provides guidance on how to record transactions in special journals. At the conclusion of the practice set, users will have acquired a greater understanding of the functioning of a manual accounting system. 4 MARIO'S PIZZA PALACE CHAPTER TWO Source documents - June 2016 Transactions for Mario's Pizza Palace for the month of June 2016 are to be recorded from these source documents. A glossary is provided in appendix 1. Daily cash sales are recorded on the cash register and banked on Monday or Friday. When a customer pays by cheque, it is banked together with other money received prior to or on the date shown on the bank deposit slip. MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No. Date: 1/06/2016 Terms: N15 PO#: 1345 Sold To: Fremantle Arts Centre 26 Ord Street Fremantle WA 6160 Qty 12 Description Pizza 1 lt bottles soft drink Price $18 $4 Sale Amount: Freight: Total Amount: Amount $216 32 $248 $0 $248 The Professionals PO Box 1066 Fremantle WA 6960 Phone: 9335 1000 Tax Invoice Invoice No.: 779263 Invoice Date: 1/06/2016 Terms: On Receipt ABN 25 138 411 986 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 2/06/16 Cheque 1001 Amount Description Rent for the period 1 June to 30 June $2 200 $2 200 Total (including $200 GST) CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 5 Date: 2/06/16 Date: 2/06/16 Date: 3/06/16 To: The Professionals For: Rent Expense To: Italian Store For: Inv. 19265 To: Sam Conti For: Wages $1 400 less PAYG Withholding $210 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 2 200 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 860 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Cha: $ 1 190 Bal. C/F $ 001001 001002 001003 Fresh Food Markets ABN 36 349 769 505 63 Karel Ave Jandakot WA 6164 Phone: (08) 3260 9710 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Tax Invoice Invoice No.: 4346 Invoice Date: 3/06/2016 Terms: 5/10, N30 PO #: 1015 Item Description Amount ($) Qty 100 kg 50 kg 15 bunches 50 kg Unit Price 50C $4.00 $2.00 $6.00 Total Onions Capsicum Baby spinach Mushrooms 50 200 30 300 580 Cash Register Totals 30/05/16 $370 31/05/16 $480 1/06/16 $570 2/06/16 $950 Community Bank DEPOSIT 3/06/2016 Fremantle 2 200 170 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 2 370 Particulars of Cheques Drawer Bank Branch Amount 6 MARIO'S PIZZA PALACE Date: 4/06/16 Date: 4/06/16 To: Foodmart Wholesalers For: Inv. 27369 To: Fresh Food Markets For: Inv. 4182 less discount Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 1 090 Bal. C/F $ Bal. B/F: $ Deposit: $ Balance: $ This Cha: $ 304 Bal. C/F: $ 001004 001005 Foodmart Wholesalers ABN 23 982 884 801 17 Bannister Road Canning Vale WA 6155 Phone: (08) 9455 8545 Tax Invoice Invoice No.: 28488 Invoice Date: 7/06/2016 Terms: Net 30 PO #: 1016 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Price GST 50 Qty 500 100 100 100 25 Item Description Assorted soft drinks 10kg bag flour Grated Mozzarella cheese Cans tomato paste Cans olives 100 12 20 Amount 500 1 000 1 200 500 500 3 700 370 $4 070 50 20 Subtotal GST Total Cash Register Totals 3/06/16 $870 4/06/16 $950 5/06/16 $690 6/06/16 $905 Community Bank Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: DEPOSIT 7/06/2016 Fremantle 3 000 415 330 3 745 Particulars of Cheques Drawer Princess May Theatre Bank Branch Fremantle Amount 330 CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 7 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4221 Date: 10/06/2016 Terms: N30 PO #: 16267 Sold To: Fremantle Port Authority PO Box 600 Fremantle WA 6960 Qty 20 Description Pizza 300ml bottles soft drink 20 Price $18 $3 Sale Amount: Freight: Total Amount: Amount $360 60 $420 $0 $420 Cash Register Totals 7/06/16 $280 8/06/16 $550 9/06/16 $790 Community Bank DEPOSIT 10/06/2016 Fremantle 1550 70 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 1 620 Particulars of Cheques Drawer Bank Branch Amount Date: 11/06/16 Date: 11/06/16 Australia Post ABN 42 720 097 886 Tax Invoice To: Fresh Food Markets For: Inv. 4346 less discount To: Australia Post For: Stamps & Stationery 11/06/16 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 551 Bal. C/F: $ Postage stamps Stationery Total Cheque 70.00 35.00 105.00 105.00 Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 105 Bal. C/F: $ Total includes GST $9.55 001006 001007 8 MARIO'S PIZZA PALACE Cash Register Totals 10/06/16 $845 11/06/16 $830 12/06/16 $570 Community Bank DEPOSIT 13/06/2016 Fremantle 2 200 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 45 400 2 645 Particulars of Cheques Drawer Port City Motors Bank NAB Branch Fremantle Amount 400 Westside Packaging Co. 229 Railway Parade Bassendean WA 6054 Phone: (08) 9273 5333 Tax Invoice Invoice No.: 7789 Invoice Date: 14/06/2016 Terms: N30 PO#: 1017 ABN 28 091 724 739 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description 10,000 pizza boxes Amount $5 500 55 Freight Total (including $505 GST) $5 555 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4222 Date: 15/06/2016 Terms: 10/10, N30 Sold To: Angel Sailors Club 8 Elder Place Fremantle WA 6160 Qty Description Price $25 Amount $2 000 Family Size Pizza $2 000 Sale Amount: Freight: Total Amount: $0 $2 000 CHAPTER 2: SOURCE DOCUMENTS - JUNE 2016 9 Foodmart Wholesalers ABN 23 982 884 801 17 Bannister Road Canning Vale WA 6155 Phone: (03) 9455 8545 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Adjustment Note Invoice No.: 28498 Invoice Date: 15/06/2016 Terms: Net 30 Price GST Qty 10 Item Description 10kg bag flour (weevils in the bags) Amount 10 L 10 1 Subtotal GST Total $11 Date: 17/06/16 Date: 17/06/16 To: Sam Conti For: Wages $1 400 less PAYG Withholding $210 To: Australian Super For: Super Payable Bal. B/F: $ Deposit: $ Balance: $ This Chq: $ 1 190 Bal. C/F: $ Bal. B/F: $ Deposit: $ Balance: $ This Chg:$ 266 Bal. C/F: $ 001008 001009 Cash Register Totals 13/06/16 $170 14/06/16 $360 15/06/16 $620 16/06/16 $1050 Community Bank DEPOSIT 17/06/2016 Fremantle 2 200 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 2 200 Particulars of Cheques Drawer Bank Branch Amount 10 MARIO'S PIZZA PALACE OFFICE MEMORANDUM Date: 20/06/2016 To: Maria Italiano SUBJECT: Loan repayment Transfer $1 000 from the cheque account to the bank loan account. Signed: Mario Italiano Stan Jarvis Electrics 18 Findlay Street Fremantle WA 6160 Phone: 9335 4190 Tax Invoice Invoice No. Invoice Date: 20/06/2016 ABN 86 197 948 729 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 20/06/16 Cheque 1010 Description Amount Electrical repairs $550 $550 Total (including $50 GST) Date: 20/06/15 To: Stan Jarvis Electrics For: Inv. 2338 for repairs Bal. B/E: $ Deposit: $ Balance: $ This Chq: $ 550 Bal. C/F $ 001010 Cash Register Totals 17/06/16 $825 18/06/16 $995 19/06/16 $530 Community Bank DEPOSIT 20/06/2016 Fremantle 2 305 45 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 2 350 Particulars of Cheques Drawer Bank Branch Amount CHAPTER 2: SOURCE DOCUMENTS - JUNE 2016 11 Telstra GPO Box 990 Melbourne VIC 3001 Phone: 13 3333 Tax Invoice Invoice No.: 289467 Invoice Date: 21/06/2016 ABN 25 465 815 356 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description Telephone line rental and phone calls Amount $297 $297 Total (includes $27 GST) MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice No.: Date: Terms: PO # Invoice 4223 24/06/2016 N30 16277 Sold To: Fremantle Port Authority PO Box 600 Fremantle WA 6960 Qty Price Description Pizza 300ml bottles soft drink Amount $360 20 60 $18 $3 Sale Amount: Freight: Total Amount: $420 $0 $420 ITALIAN STORE ABN 95 000 029 729 237 Oxford Street Leederville WA 6007 Phone: (08) 9444 9644 Tax Invoice Invoice No.: 19356 Invoice Date: 24/06/2016 Terms: N15 PO #: 1018 Sold To: Mario's Pizza Palace 95 Adelaide Street, Fremantle WA 6160 Qty Item Description 10 kg Anchovies 60 kg Italian sausage 60 kg Ham 60 kg Pepperoni Basil & oregano (fresh) Price $ 40 20 30 20 Amount $ 400 1 200 1 800 1 200 GST $ 40 120 180 120 40 4 640 20 Subtotal Freight GST Total 466 $5 126 12 MARIO'S PIZZA PALACE Cash Register Totals 20/06/16 $310 21/06/16 $280 22/06/16 $570 23/06/16 $830 Community Bank DEPOSIT 24/06/2016 Fremantle 1990 Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano Date: Branch: Notes: Coins: Cheques: Total: 1 800 3 790 Particulars of Cheques Amount Drawer Angel Sailors Club Bank WBC Branch Fremantle 1 800 Western Power GPO Box 6060 Perth WA 6001 Tax Invoice Account No.: 111177 Invoice Date: 24/06/2016 ABN 25 465 815 356 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 PAID 27/06/16 Cheque 1011 Description Amount Electricity supplied for the period 21/04/16 to 23/06/16 Total (including GST) $475 $475 MARIO'S PIZZA PALACE ABN 19 463 520 440 95 Adelaide Street Fremantle WA 6160 Phone: (08) 9335 5555 Invoice Invoice No.: 4224 Date: 25/06/2016 Terms: N30 PO #: 917 Sold To: Princess May Theatre 17 Cantonment Street Fremantle WA 6160 Qty Description Small size pizza 11t bottles soft drink Amount $200 10 40 Price $10 $4 Sale Amount: Freight: Total Amount: $240 $10 $250 CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 13 Cash Register Totals 27/06/16 $380 28/06/16 $510 29/06/16 $420 Community Bank DEPOSIT 30/06/2016 Fremantle 1 295 15 Date: Branch: Notes: Coins: Cheques: Total: Account Name: Mario's Pizza Palace Account Number: 512-170 11595 Signature of Depositor: Maria Italiano 1 310 Particulars of Cheques Drawer Bank Branch Amount Pakenham St Service Station 727 Pakenham St Fremantle WA 6160 Phone: 9335 2000 Tax Invoice Invoice No.: 1221 Invoice Date: 30/06/2016 Terms: Net 7 days ABN 36 091 500 319 To: Mario's Pizza Palace 95 Adelaide Street Fremantle WA 6160 Description Fuel purchases for the month Amount 360 $360 TOTAL OFFICE MEMORANDUM Date: 30/06/2016 To: Maria Italiano SUBJECT: End of period adjustments Adjusting journal entries are required for the following: 1. Wages payable at the end of June are $1300 2. Transfer 1/3rd of the prepaid insurance to the expense account 3. Transfer 50% of the prepaid advertising to the expense account 4. Superannuation payable for June is $266 5. Record depreciation for the year. Use the straight line (prime cost) method and the rates shown below: a. Motor Vehicles - 20% b. Store Equipment -10% 6. Interest charged on the bank loan for the month was $84 7. Cash from sales of pizzas on 30/06/16 were $760 and this money was not banked until July (Hint: post to the cash float account) 8. The end of June stocktake has determined that the closing inventory value of food is $1840 and packaging $4125. Signed: Accountant CHAPTER 2 SOURCE DOCUMENTS - JUNE 2016 15
