TRANSACTIONS

For June 2022

June 1	Avoca Gas Ovens paid the balance of its account and were given a discount of $2448.
	Delivered goods to Bowral Gas Ovens for $263,412 and issued invoice #151. Issued cheque #910 to pay $29,160 for delivery costs of inventory to their premises.
June 4	Paid the amount owing to Penrose Oven Manufacturers Cheque #911 was sent.
June 7	Total Cash Sales for the week were $74,358.
June 9	Gerrigong Electric Ovens paid $105,462 toward the amount it owes us.
June 10	Made a purchase from Southernland Oven Manufacturers for $225,990 for inventory: Terms are 1/10, n/45 and date of invoice was 10 June.
	The firm issued cheque #912 for the purchase of Stationery Supplies amounting to $21,384.
June 11	Avoca Gas Ovens purchased inventory of $265,356. Invoice #152 was issued.
June 12	Some of the inventory purchased on 10 June from Southernland Oven Manufacturers was the incorrect size and design. Returned inventory in exchange for a Credit Note of $72,900.
June 14	Total Cash Sales for the week were $101,574.
June 15	Paid office staff salaries of $283,338. Cheque #913 was issued for payment. Cheque #914 was issued to pay sales staff wages, $240,570.
June 16	Purchased inventory from Penrose Oven Manufacturers for $371,790. The invoice was dated 16 June. Credit terms are 2/10, n/30.
June 17	Sold inventory to Gerrigong Electric Ovens for $479,682 on invoice #153. Issued cheque #915 to pay for delivery costs of $36,450.
June 19	The company issued cheque #916 to pay the amount still owing to Southernland Oven Manufacturers
June 21	Total Cash Sales for the week were $96,471.

June 23	Gerrigong Electric Ovens returned $90,882 of inventory purchased on 17 June. Issued a Credit Note for the transaction.
June 24	Issued Cheque #917 for $48,600 to pay for the annual gift the company donates to the UNESCO World Charity Fund. The gift is to be recorded as a sundry expense in the accounts.
June 25	Purchased inventory from Southernland Oven Manufacturers, worth $362,070. The terms were 1/10, n/45. Date of the invoice was 25 June.
June 26	Received the total amount owing from Gerrigong Electric Ovens.
June 28	Total Cash Sales for the week were $151,632.
June 29	Bowral Gas Ovens paid the entire balance of its still outstanding account.
June 29	Reduced $291,600 of the amount owing to Southernland Oven Manufacturers and Cheque #918 was issued.
June 29	A dividend of $683,100 was declared to the company shareholders. However, the dividend will not be paid until 10 October, 2022.
	Paid sales staff wages, $240,570 and Cheque #919 was issued to meet the payment.
June 30	Issued additional shares to the owners of the Company for cash, and $486,000 was received and banked.
	Total Cash Sales for the week were $90,396.

INSTRUCTIONS

1. Enter the transactions for Weeks 1 5 into the appropriate Journal for the month of June 2022. Next, post all the Journal transactions to the ledger accounts as specified in the Account System Information section of the introduction.
2. Total all Special Journal columns and post to the appropriate ledger account at the end of the month.
3. Prepare the unadjusted Trial Balance as at 30 June 2022 on the Worksheet provided.
4. Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevant ledger accounts. Now enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance.
5. A Stocktake on 30 June 2022 indicates that the balance of Closing Inventory is $5,463,612. Use this information to complete the remaining columns of the worksheet.
6. Use the worksheet to prepare the Income Statement and Balance Sheet.
7. Complete the Schedule of Accounts Receivable and Schedule of Accounts Payable. Ensure the balances agree with the totals in the control accounts.
8. When an Account is only partly paid, a Sales Discount may still be allowed to a Debtor or a Purchase Discount be received from a Creditor, on the portion of the outstanding amount that is paid.
9. Prepare closing entries and post to the relevant general ledger accounts.
10. Complete the Post-Closing Trial Balance as at June 2022.

ADJUSTING ENTRIES

1. The Warehouse Fittings were installed on 1 July, 2021. They have a useful life of 9 years and no salvage value.

The Straight-Line method is used to depreciate the Warehouse Fittings.

2. The Office Equipment was installed on 1 July, 2016. They have a useful life of 10 years and estimated salvage value of $12,150. The Straight-Line method is used to depreciate the Office Equipment.
3. Twelve months of Showroom Rent was prepaid on 1 March, 2022. Of the original prepaid amount, $950,940 worth of showroom rent has now expired.
4. A count of Stationery Supplies indicates that $329,265 still remain on hand at year end.
5. A one-year insurance policy was purchased on 1 November 2021 for $43,740.
6. Interest on the ANZ Bank Mortgage Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense should be rounded up to the nearest dollar). The ANZ Bank Mortgage Loan was originally taken out on the 1 Augut, 2021.
7. The company has been informed that unfortunately, Mittagong Electric Ovens has been officially declared bankrupt and Premier Ovens Pty Ltd has agreed to write off the amount owing as a bad debt. The company uses the direct write-off method to account for any bad debts in their books.
8. A telephone bill for $24,786 for June was received on 3 July, 2022. The amount has not yet been recorded. The company records telephone costs as a utilities expense.
9. Office Staff are paid once per month, $283,338. The Office Staff were last paid on the 15 June, 2022. Exactly half of one month Office Staff wages are still owing.
10. Sales Staff are paid fortnightly and work 7 days per week. The sales staff were last paid on the 29 June, 2022. One day of the wages bill is still owed to the Sales Staff.
11. The estimated Tax Payable for the year ended 30 June, 2022 is $333,261. This amount is to be paid on 30 October, 2022.

QUESTION

Make a general ledger for:

1) Salaries payable

2) Tax payable

3) Dividend payable

4) Mortgage loan

5) Share capital

5) Retained earnings

6) Dividends declared

7) Profit and loss summary

8) Sales revenue

9) Sales discount

10) Sales returns and allowances

11) Purchases

12) Purchase discount

13) Purchase returns and allowances

14)Freight-out

FORMAT EXAMPLE:

Salaries Payable 204

Date

Explanation

Post.Ref.

Debit

Credit

Balance