Transactions - week 1 N Now that you have reviewed information about Spine Tinglers, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions that occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transactions occurred throughout the first week of June: Week 1 Date Transaction description 1 Obtained a loan of $47,000 from ZNZ Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2020 and the principal of the loan is to be repaid on June 1, 2025. 2 Paid the full amount owing to Peachson, Check No. 603. Payment fell within discount period. 3 Purchased 100 copies of Barry Potter and the Profits of Revalued Land with cash for $12 each, Check No. 604. 4 Purchased 110 copies of Backpackers Guide to the Universe from Bookheamoth for $11 each, terms 2/10, n/30 4 Paid the full amount owing to Books R Us, Check No. 605. Payment fell within discount period. 4 Sold 145 copies of Barry Plotter and the Deathly Taxes to Attic Books for $50 each, Invoice No. 501. 4 Made cash sales of $6,535 during the first 4 days of the month. 5 Purchased 95 copies of Human Ranch from Deterministic Garage for $19 each, terms net 30. After completing this practice set page, you should know how to record basic transactions in the journals provided below and understand the posting process in the manual accounting system. Note that you will record the remaining June transactions in the following sections of this practice set. Remember, one purpose of using special journals is to make the posting process more efficient by posting the total of most columns in the special journals after all of the transactions for the period have been recorded. However, some parts of a journal entry are still required to be posted on a daily basis. View the company's accounting policies and procedures for details of what is to be posted daily or monthly. Instructions for week 1 1) Record all week 1 transactions in the relevant journals. Note that special journals must be used where applicable. Any transaction that cannot be recorded in a special journal should be recorded in the general journal. 2) Post entries recorded in the journals to the appropriate ledger accounts according to the company's accounting policies and procedures. Note that the relevant totals of the special journals will be posted to the general ledger accounts at the end of the month. You will do this before you prepare the Bank Reconciliation Statement. Remember to enter all answers to the nearest whole dollar. When calculating a discount, if a discount is not a whole number, round the discount to the nearest whole dollar. Then, to calculate the cash amount, subtract the discount from the original amount. Additional instructions Displaying selected accounting records: To save space, not all accounting records (e.g. journals and ledgers) will be displayed on every page. However, on each page you can access all accounting records necessary to answer the questions on that page. . There are several tabs representing different views of the accounting records. The active tab by default is Show All, but you may also select to view just one particular accounting record by selecting the appropriate tab. If you fill in any accounting records and change the view on the page by selecting a different tab, the information that you have entered will remain in that accounting record and be displayed whenever you can see that accounting record. Before submitting your answers, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. You are required to complete all relevant accounting records before pressing the Submit answers button. Once submitted, you will not be able to return to the page to re-enter or alter your answers. Journals: Each transaction recorded in a special journal must be entered in one line. In order to receive full points, you must not split up the relevant transaction into more than one line in the special journal. For certain transactions in special journals, some accounting textbooks do not always require an account to be chosen under the column labeled Account. In this practice set you are required to select an account for each transaction in the special journals. Specifically, in all special journals, under the column labeled Account, you must select the correct account name for each transaction in order to receive full points. Note that for some transactions, this will mean that the account name selected will correspond to the heading of one of the columns in that special journal. For each journal, in the Post Ref. column you will need to correctly type the account number of the account you are posting to. In particular, in special journals, some accounting textbooks do not always require a reference to be recorded in the Post Ref. column. In this practice set, in order to receive full points, every transaction entered in a special journal requires an entry in the Post Ref. column. Note that in the special journals, if the account name selected for a transaction corresponds to the heading of one of the columns in that special journal, the post ref is to be recorded as an X. This is because these transactions are not posted on a daily basis. In order to receive full points, you must record only the letter X in the Post Ref. column for these transactions. There may be entries in the general journal that require posting to both a control account and a subsidiary ledger. In these cases, after you have posted to both ledgers, you should enter the reference for both the general ledger account and the subsidiary ledger account in the Post Ref. column to indicate that you have posted to both accounts. For example, if the reference number for the control account is 110 and the reference number for the subsidiary ledger account is 110-1, you should type '110/110-1' into the Post Ref. column. General journal entries do NOT require a description of the journal entries. Ledgers: When posting a transaction to a ledger account, under the Description column, please type the description of the transaction directly into the field. The exact wording does not matter for grading purposes. For example, it does not matter in an electricity transaction if you type 'Paid for electricity' or 'Paid electricity bill'. For each ledger, under the Ref. column, you need to select the correct journal from a list in the drop- down box provided in order to receive full points. If the balance of a ledger account is zero you do not need to select a debit or credit from the drop-down box. Each transaction posted to the subsidiary ledgers must be entered in one line. In order to receive full points, you must not split up the relevant transaction into more than one line in the subsidiary ledger. Both journals and ledgers: Most journals and ledgers will have blank rows left at the end of the page. Some journals and ledgers may not require any entries. CASH RECEIPTS JOURNAL KIT TIRA Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account credited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. NOON2 CAT RANH E Post Debit Credit Date Account Ref. Cash Sales Sales Accounts Other Discounts Revenue Receivable Accounts - KONTROLIRENGIA Jun (select) DAN HANDY Jun (select) Jun DODON (select) Jun (select) Jun feldon BADON RIVERSE (select) BEZ HARI DIRLANDO Jun (select) ............ OLD ROM (Q=304.cashPaymentsJournalWeeki) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account debited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. RENT CE IS Debit Date Account Check No. Post Ref. Accounts Payable Credit Purchase Discounts Purchases Other Accounts Cash Jun (select) Hali BRANHNIEK Jun (select) Jun (select) YMCA IIIIII 101110 10 Jun (select) TEA ROVERSEE Jun (select) REAL HARI LANDO Jun (select) HAROLD ROM GENERAL JOURNAL DIN CHANGEMENTEN Date Account and Explanation Post Ref. Debit Credit TE 19 DON THE KONTZ CIB Jun (select) (select) DEAN XOONTES CATHENG TO STRANNIENIE Jun (select) (select) DYMO Munka Jun (select) By sheldon ONLY SHELDON De DONT RUST HEART (select) LANDO PNET SHELDON (Q=310-110-3.AcctsRec3_weeki) NOMINE 10 SUBSIDIARY LEDGERS NEL DEMI METRA Account: ARC - Attic Books Account No. 110-3 Date Description Ref. Debit Credit Balance DON ROONIZCIE BANELE 1 May 31 Balance 3,700 DRITA Jun Jun V Mali ANNER Jun (Q=310-210-1. AcctsPay1_week1) Account: APC - Bookheamoth Account No. 210-1 DEN y sheldon EYSHELDON ROUND Date Description Ref. Debit Credit Balance DER May 31 Balance 2,876 CR SHELDON HOLD ON Jun Selain MORRINE Jun Jun ho (Q=310-2 DONA Account: APC - Peachson Account No. 210-2 DERNE Date Description Ref. Debit Credit Balance XCONTEC May 31 Balance 3,575 CR MARINE Jun Jun -Y Jun sheldon DNEYSELDON (Q=310-2 DELANO Account: APC - Deterministic Garage Account No. 210-3 WITH PNET SHELDON HOLD ROU Date Description Ref. Debit Credit Balance May 31 Balance 3,834 CR Jun v DINGAN IL Jun MONTH FREONTZSCHE Jun Account: APC - Books R Us Account No. 210-4 (Q=310-210-4.AcctsPa he BEAN HERE Date Description Ref. Debit Credit Balance May 31 Balance 1,970 CR Jun sheldon LEY SHELDON RMERS Jun DEAN WOONTZ RANDO HARI Jun SHELDON MOLDO NILS (Q=320-100.ca GENERAL LEDGER Account: Cash Account No. 100 TON KOONTZIA Date Description Ref. Debit Credit Balance May 31 Balance 28,252 DR DERNO * XOCHT GEHENGIA Jun Jun ARRANEENE Jun -Yuna (Q=320-110. AcctsRecCont Account: ARC - Accounts Receivable Control Account No. 110 By Sheldon LLYSHEIDON ROVER HEART Date Description Ref. Debit Credit Balance LANDO May 31 Balance 13,177 DR SHELDON HAROLD RO Jun NOR Jun DRAPRANCANTE Jun Account: Sales Revenue Account No. 400 Date Description Ref. Debit Credit Balance May 31 | Balance ODON SKOONTZIRE Jun Jun KOONCHO Jun IRAN KINER Account: Sales Discounts Account No. 402 (Q=320-402.Sales Disc_w || HAIVN. Date Description Ref. Debit Credit Balance sheldon LEYSELDON DEN TREBA RIVERSE HARI May 31 Balance 0 DLANDO Jun SHEINON HAROLD ROU Jun Jun (Q=320-500.Purchases_w Account: Purchases Account No. 500 DON TROONI2 CILI DANIE Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun LEAN MANIS Jun Jun By sheldon (Q=320-502.Purchase Disc_w Account: Purchase Discounts Account: Purchase Discounts Account No. 502 By Sheldon DNEY SHELDON Date Description Ref. Debit Credit Balance SHELDON THE May 31 Balance 0 Jun