TRANSACTIONS For June 2024 Note: Daykwood Flooring Pry LAd offers all customers Credit Terms 2/10,n/30, unless ofherwise stated INTRODUCTION The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. Company Background Darkwood Flooring Pty Ltd has been in business in Coldstream, Victoria since July, 2018. The company was started by William Davidson and operates a large warehouse / showroom which sells a variety of dark wood timber products and engineered tiles for both commercial and residential flooring. The business sells on both credit and cash terms to customers who are predominantly small flooring retailers in the areas surrounding the large Yarra Valley district. The company's Share Capital consists of 2,835,000 Ordinary Shares, that were originally issued at $2 each and which are owned by various members of the Davidson Family. Overall, the financial performance of the company has been solid and the financial position is considered to be sound with outstanding debt at a manageable level. Accounting System Information \& Procedures The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. To ensure efficiency of its accounting procedures, the company uses Journals to maintain its accounting records. Four Special Journals and one General Journal are used in the business. They are as follows: 1. 2. 3. 4. 5. Sales Journal (SJ): to record all sales of Inventory on Credit Purchases Journal (PJ): to record all Purchases of Inventory on Credit Cash Receipts Journal (CRJ): to record all Cash Receipts Cash Payments Journal (CPJ): to record all Cash Payments General Journal(GJ): to record all transactions other than the above. Business transactions are recorded for Darkwood Flooring Pty Ltd on a daily basis in one of these five journals in the accounts. Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers are use to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted immediately to th relevant ledger account if they are entered into the general journal, the "other" column of the Cash Receipts Journal Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts Payable subsidiary ledg accounts. Apart from these transactions, totals of the special journals are taken at the end of the month and then poste to the appropriate accounts. The company uses a periodic inventory system. [In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its Sales and Purchas However, for the purposes of this exercise, GST has been excluded.] Please Note: All amounts in this practice set can be rounded off to the nearest dollar. \begin{tabular}{|l|l|r|r|} \hline 610 & Tax Expense & & \\ \hline 611 & Sundry Expenses & 15,120 & \\ \hline 612 & Salaries Expense-Office Staff & 3,803,310 & \\ \hline 613 & Bad Debts Expense & & \\ \hline & & & \\ \hline & & 35,115885 & 35,115885 \\ \hline \end{tabular} Schedule of Accounts Payable As at 31 May 2024 \begin{tabular}{|l|l|} \hline June 19 & The company issued cheque 1216 to pay the amount still owing to Yering Tiling Supplies. \\ \hline & \\ \hline June 21 & Total Cash Sales for the week were $125,055. \\ \hline & \\ \hline \end{tabular} t INSTRUCTIONS 1) Enter the transactions for Weeks 15 into the appropriate Journal for the month of June 2024. Next, post all the Joumal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction. 2) Total all Special Joumal columns and post to the appropriate ledger account at the end of the month. 3) Prepare the unadjusted Trial Balance as at 30 June 2024 on the Worksheet provided. TRANSACTIONS For June 2024 Note: Daykwood Flooring Pry LAd offers all customers Credit Terms 2/10,n/30, unless ofherwise stated INTRODUCTION The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. Company Background Darkwood Flooring Pty Ltd has been in business in Coldstream, Victoria since July, 2018. The company was started by William Davidson and operates a large warehouse / showroom which sells a variety of dark wood timber products and engineered tiles for both commercial and residential flooring. The business sells on both credit and cash terms to customers who are predominantly small flooring retailers in the areas surrounding the large Yarra Valley district. The company's Share Capital consists of 2,835,000 Ordinary Shares, that were originally issued at $2 each and which are owned by various members of the Davidson Family. Overall, the financial performance of the company has been solid and the financial position is considered to be sound with outstanding debt at a manageable level. Accounting System Information \& Procedures The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. To ensure efficiency of its accounting procedures, the company uses Journals to maintain its accounting records. Four Special Journals and one General Journal are used in the business. They are as follows: 1. 2. 3. 4. 5. Sales Journal (SJ): to record all sales of Inventory on Credit Purchases Journal (PJ): to record all Purchases of Inventory on Credit Cash Receipts Journal (CRJ): to record all Cash Receipts Cash Payments Journal (CPJ): to record all Cash Payments General Journal(GJ): to record all transactions other than the above. Business transactions are recorded for Darkwood Flooring Pty Ltd on a daily basis in one of these five journals in the accounts. Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers are use to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted immediately to th relevant ledger account if they are entered into the general journal, the "other" column of the Cash Receipts Journal Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts Payable subsidiary ledg accounts. Apart from these transactions, totals of the special journals are taken at the end of the month and then poste to the appropriate accounts. The company uses a periodic inventory system. [In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its Sales and Purchas However, for the purposes of this exercise, GST has been excluded.] Please Note: All amounts in this practice set can be rounded off to the nearest dollar. \begin{tabular}{|l|l|r|r|} \hline 610 & Tax Expense & & \\ \hline 611 & Sundry Expenses & 15,120 & \\ \hline 612 & Salaries Expense-Office Staff & 3,803,310 & \\ \hline 613 & Bad Debts Expense & & \\ \hline & & & \\ \hline & & 35,115885 & 35,115885 \\ \hline \end{tabular} Schedule of Accounts Payable As at 31 May 2024 \begin{tabular}{|l|l|} \hline June 19 & The company issued cheque 1216 to pay the amount still owing to Yering Tiling Supplies. \\ \hline & \\ \hline June 21 & Total Cash Sales for the week were $125,055. \\ \hline & \\ \hline \end{tabular} t INSTRUCTIONS 1) Enter the transactions for Weeks 15 into the appropriate Journal for the month of June 2024. Next, post all the Joumal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction. 2) Total all Special Joumal columns and post to the appropriate ledger account at the end of the month. 3) Prepare the unadjusted Trial Balance as at 30 June 2024 on the Worksheet provided