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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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