Transactions - week 1 - Now that you have reviewed information about Disc-O-Tech, 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 22 2 3 Obtained a loan of $47,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2022 and the principal of the loan is to be repaid on June 1, 2026. Purchased 25 Fate's Offspring CDs from Phin records for $12 each, terms 2/10, n/30. Sold 95 AC/BC T-shirts to Council Records for $55 each, Invoice No. 201. Purchased 150 Best of the 1870s, 80s & 90s Albums with cash for $11 each, Check No. 603. Purchased 230 Sounds of Meerkats CDs from Global records for $6 each, terms net 30. 4 Made cash sales of $5,623 during the first 4 days of the month. 66 Paid the full amount owing to Shack records, Check No. 604. Payment fell within discount period. Paid the full amount owing to Toadstool records, Check No. 605. Payment fell within discount period. 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.