Question
Q1. The following balances appears in the general ledger of MIE design on 1 July. Accounts Receivable Control$157,400.00 Accounts Payable Control$81,800.00 A summary of transactions
Q1. The following balances appears in the general ledger of MIE design on 1 July.
Accounts Receivable Control$157,400.00
Accounts Payable Control$81,800.00
A summary of transactions during July follows (GST is included)
Cash Sales$75,600
Credit Sales$329,700
Cash Purchases$24,100
Credit Purchases$107,300
Credit Sales Returns$4,200
Cash received from accounts receivable$335,300
Cash paid to suppliers$119,100
Discount allowed to customers$1,800
Required:
Prepare the accounts receivable and accounts payable control accounts
Q2. Using the following values, calculate the Cost of Goods Sold (COGS).
May 01Inventory Balance was $8,500
May 06Bought inventory for $6,600
May 31Inventory take disclosed inventory to be $9,000
Q3. C. Walton sold inventory on 1 August to M. Jones for $990 (including $90 GST). On 20 August, Jones paid Walton in full settlement. On 31 August, the bank advised the cheque from Jones had been dishonored.
Required:
i)Record Jones's receipt of the cheque, and its dishonor in the general journal
ii)Show Jones's account in the ledger to 31 August
Q4. On 31 July, a cheque was received by Peter Perfect from Sam Sancho for $660 (including GST) being part payment of an account that had been written off as a bad debt two years ago.
Show the entries in the general journal of Peter Perfect to account for the above transaction.
Q5.Beau Guest has the following ledger account balances at December 31:
Telephone$1,980
Insurance$1,584
Cost of Goods Sold$124,200
Rates$3,872
Wages & Salaries$26,400
Bad Debt$3,124
Interest expense$3,080
Sales$264,000
Required:
A.Closing general journal entries
B.Trading account in the general ledger
C.Profit and Loss account in the general ledger
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