Transactions $-$ week $1$

Now that you have reviewed information about Ball$-$Mart, 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

$1$ Purchased $11$ pairs of Football Boots from Hike for $$140$ each, terms net $30.$

$1$ Obtained a loan of $$57,000$ from Earth Bank at a simple interest rate of $6\%$ per year. The first interest payment is due at the end of August $2024$ and the principal of the loan is to be repaid on June $1,2028.$

$3$ Paid the full amount owing to Addax Sports, Check No$.859.$ Payment fell outside discount period.

$3$ Paid the full amount owing to Sport Borders, Check No$.860.$ Payment fell outside discount period.

$4$ Purchased $24$ boxes of radio$-$chipped Golf Balls with cash for $$160$ each, Check No$.861.$

$5$ Sold $11$ pairs of Football Boots to Mick's Sporting Goods for $$240$ each, plus $5\%$ sales tax, Invoice No$.208.$

$5$ Paid sales staff wages of $$2,091$ for the week up to and including yesterday, Check No$.862.$ Note that $$1,000$ of this payment relates to the wages expense incurred during the last week of May.

$6$ Purchased $11$ Quidditch Snitches from Extreme Sports Inc for $$560$ each, terms $\frac{2}{10},\frac{n}{30}$

$7$ Made cash sale of $20$ boxes of radio$-$chipped Golf Balls for $$320$ each plus $5\%$ sales tax.

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 $1$

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.

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 enter this before you prepare the Bank Reconciliation Statement.

Update inventory cards on a daily basis.

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 at bank 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.

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