TRANSACTIONS

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The following transactions occurred during June $2023$ and are INCLUSIVE of GST where appropriate.

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$2023$

June $1$ Scallion Ltd shareholders invested $$60,000$ cash in the business.

Purchased land and an existing retail store for $$110,000$ of which $$77,000$ is considered land cost. Paid $$33,000$ by cheque no$.98$ for the retail store and signed a mortgage payable for the balance. The retails store is depreciated over its useful life of $10$ years.

$2$ Paid Lynwood Ltd $$14,700$ less a discount of $$594$ with cheque no$.99.$

Received cheque from M$.$ Biller for $$10,000$ as part payment of his account

Purchased store furniture on credit terms from Corma Ltd for $$7,480,$ terms n$/60.$

$5$ Purchased inventory on credit terms from Tumult Ltd $$4,400$; invoice date $6$ June, terms $2/10,$ n$/60.$

$6$ Purchased a $3-$year fire insurance policy for $$792,$ cheque no$.100.$

$7$ Sent cheque no$.101$ to Tumult Ltd in full settlement of May invoice

$8$ Purchased inventory for $$5,500,$ cheque no$.102.$

Paid Lynwood Ltd $$15,000$ cheque no$.103$ for balance owing on May account.

$9$ Returned unsatisfactory goods to Tumult Ltd and received a credit note for $$880.$

$13$ Sold inventory to M$.$ Biller on account, $$9,020$; invoice no$.210,$ terms $1/10,$ n$/30.$

$15$ O$.$ Mowen paid his account in full.

Paid Tumult Ltd amount due for June $6$ invoice, cheque no$\mathrm{.}104.$

Cash sales for period to $15$ June were recorded today, $$3,740.$

$16$ Sold inventory to O$.$ Mowen on account $$5,170$; invoice no$.211,$ terms $1/10,$ n$/30.$

Paid salaries for period to $15$ June totaling $$2,650,$ cheque no$.105.$

$17$ M$.$ Biller paid the balance of his May invoice.

$20$ Purchased inventory on credit terms, from Lynwood Ltd$,$ $$5,390$; invoice date $20$ June, terms $1/10,$ n$/30.$

Sent cheque, no$.106$ to Dyson Ltd in full settlement of the account.

$22$ Received account for $$143$ from M$.$ Parson for items chargeable to office expenses, terms n$/30.$

$23$ Received inventory returned by O$.$Mowen and issued a credit note for $$2,200.$

Received a cheque from M$.$ Biller for invoice no$.210.$

$26$ Received a cheque from O$.$ Mowen for balance due on invoice no$.211$

Purchased inventory from Dyson Ltd for $$35,750,$ terms, $1/20,$ n$/30.$

$29$ Sold inventory worth $$15,400$ on credit to J$.$ Rowls; invoice no$.212,$ terms $1/10,$ n$/30.$

Paid $$220$ for electricity expenses, cheque no$.107.$

Paid Lynwood Ltd for the invoice dated $20$ June, cheque no$.108.$

$30$ Purchased inventory on account from Amcor Ltd $$26,400,$ terms $2/10,$ n$/30.$

Cash sales from $16$ June to $30$ June were $$2,145.$

Paid salaries for period $16-30$ June totaling $$2,850,$ cheque no$.109.$

Purchased office supplies for $$330,$ cheque no$.110.$

Received account from C$.$ Bond for $$110$ for delivery expenses for the month.

Sold inventory on credit to O$.$ Mowen for $$17,600,$ invoice no$.213,$ terms $1/10,$ n$/30.$

Purchased printer for use in the business office at a cost of $$825$ using a short$-$term loan.

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Required

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a$)$ Record the transactions in the special journals in the following order: sales journal, purchases journal, cash receipts, cash payments and general journal. You will need to use the general journal for more adjusting entries coming up$,$ so make sure you leave room. The business uses sales and purchases journals for inventory transactions on credit only. Returns are processed through the general journal. $($Remember that special journals replace the general journal, so transactions will be recorded in a special journal or the general journal but not both$).$

b$)$ Prepare the accounts receivable control account as it would appear in the general ledger at the end of the reporting period, together with the related subsidiary ledger. Provide the accounts payable control account as per the general ledger at the end of the financial year and the subsidiary ledger.

c$)$ Prepare general journal entries to record the following information.

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$1.$ Office supplies on hand at $30$ June total $$900$

$2.$ The one$-$year general insurance policy expires on $31$ October $2023$

$3.$ Equipment has a useful life of $4$ years with no residual value. Store furniture and printer have useful life of $5$ years with no residual value. Scallion Ltd uses straight$-$line depreciation for these assets. $($Round all depreciation amounts upwards to nearest whole $$).$

$4.$ Commission revenue of $$39600$ has accrued during June

$5.$ Inventory at $30$ June is $$28800$

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Additional Information

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At the end of the $2023$ financial year, Scallion Ltd identified the following items that need to be resolved before financial statements are prepared. GST has been correctly accounted for on these non$-$current asset transactions.