Transactions - week 1 Your progress INTRODUCTION TRANSACTIONS WEEK 1 TRANSACTIONS WEEK 2 TRANSACTIONS WEEKS TRANSACTIONS WEEK 4 TRANSACTIONS WEEK 3 END OF MONTH POSTING BANK RECONCILIATION WORKSHEET 4 Now that you have reviewed information about Cover 2 Cover, 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 $46,000 from BitiBank 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, 2024. 4 Paid the full amount owing to Deterministic Garage, Check No. 603. Payment fell within discount period. 4 Made cash sales of $5,426 during the first 4 days of the month. Purchased 60 copies of Barry Potter and the Chart of Accounts with cash for $19 each, Check No. 604. 5 Purchased 90 copies of Slaughterhouse 4+1=5 from Books R Us for $20 each, terms net 30. 5 Sold 250 copies of Then Ending Story to Boundaries for $52 each, Invoice No. 201. 6 6 Purchased 75 copies of Barry Plotter and the Order of the Stock from Booked Inn for $17 each, terms 2/10, n/30 6 Paid the full amount owing to Stompson, 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. FINANCIAL STATEMENTS SCHEDULES OF ACCOUNTS ADJUSTING ENTRIES CLOSING ENTRIES POST CLOSING TRIAL BALANCE YOU HAVE NOW FINISHED Completed: 3% (approximately) This page will take: up to 2 hours Remaining pages will take: up to 14.5 hours The time frames we provide are a guide only. It may take you more or less time to complete each page. Instructions for week 1 Your grading 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 Your grading outcome (still in progress) Awarded Total Points (prior to this page) 0 0 Points (on this page) 184 Points (after this page) 872 Total 0 1,056 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 Information from previous pages General instructions Policies and procedures All transactions Adjusting entries information Trial balance - May Schedules of accounts - May Bank reconciliation - May Bank statement - June 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 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. Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=301.salesJournalWeek1) SALES JOURNAL Date Account Invoice No. Post Ref. Amount Jun (select) Jun select) Jun select) (select) Jun (Q=302.purchasesJournalWeek1) PURCHASES JOURNAL Date Account Terms Post Ref. Amount Jun (select) Jun (select) Jun (select) Jun (select) (Q=303.cash ReceiptsJournalWeek1) CASH RECEIPTS 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 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. Debit Date Account Post Ref. Sales Discounts Cash Sales Revenue Credit Accounts Other Receivable Accounts Jun 1 Bank Loan Payable (select) 250 46000 46000 Jun (select) Jun select) select) Jun Jun (select) (select) Jun (Q=304.cashPaymentsJoumalWeeki) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transection 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. Debit Date Account Check No. Poar Ref. Other Accounts Payable Credit Cash Purchase Discounts Purchases Accounts Jun Tibe! Jun Tiek! Jun isalec) Jun select) Jun Iselect Jun select (Q-305.generaloumalwanki) GENERAL JOURNAL Date Post Ref. Debit Credit Account and Explanation ( isclct Jun scle Jun SAAT HA IR:// Jun ale | Best {Q-310-110-3.ActsRec3_weeki) Q- SUBSIDIARY LEDGERS Account: ARC - Boundaries Account No. 110-3 Ref. Debit Credit Date May Description 31 Balance Balance 2,549 DR | Jun Jun Jun (Q-310-210-1 AcetsPayi_wonki) Account: APC - Booked Inn Account No. 210-1 Date Description Ref. Debit Credit Balance 1,809 CR May 31 Balance Jun V Jun y Jun V (Q-310-210-2. Accs Pay2 week Account: APC - Stompson Account No. 210-2 Date Description Rel. Debit Credit Balance 3,300 CR May 31 Balance Jun Jun Jun (Q=310-210-3.Accts Pay_weekl) Account: APC - Books R Us Account No. 210-3 Date Description Ref. Dobit Credit Balance May 31 Balance 4,511 CR Jun Jun Jun (Q-310-210-4 AcetsPayd_weeki) (Q=310-210-4.AcctsPay4_weeki) Account: APC - Deterministic Garage Account No. 210-4 Date Description Ref. Debit Credit Balance May 31 Balance 1.778 CR Jun V Jun V Jun y (Q-320-100. Cash_weeki) GENERAL LEDGER Account: Cash Account No. 100 Ref. Debit Credit Balance Date May Description 31 Balance 23,076 DR Jun Jun Jun V (Q-320-110.AcctsRecControl_week1) Account: ARC - Accounts Receivable Control Account No. 110 Date Ref. Debit Credit Balance Description 31 Balance May 7,990 DR Jun Jun 7 Jun V (Q=320-120.Inventory_week 1) Account: Merchandise Inventory Account No. 120 Description Ref. Debit Credit Balance Date May 31 Balance 82,043 DR Jun Jun V Jun in 10 (Q-320-210. Acts Papoantro_week 1) Account: APC - Accounts Payable Control Account No. 210 Ref. Debit Credit Date May Description 31 Balance Balance 14,112 CR Jun Jun Jun (0-320-250. LoanPayable week) Account: Bank Loan Payable Account No. 250 Date Ref. Dobit Credit Balance Description 31 Balance May Jun 1 borrow from BitiBank CRJ 46000 48000 || CRV Jun Jun (Q=320-400. SalesRevenue_weekl) Account: Sales Revenue Account No. 400 Date Ref. Debit Credit Balance Description 31 Balance May Jun Jun Jun (Q=320-02.Sales Dise_weeki) ( Account: Sales Discounts Account No. 402 Ref. Debit Credit Balance Date May Jun Description 31 Balance Jun V Jun 20-320-500.Purchases 11 (Q=320-500.Purchases_week1) Account: Purchases Account No. 500 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun (Q=320-502.PurchaseDisc_week1) Account: Purchase Discounts Account No. 502 4C Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun Jun Jun Submit answers Chart of accounts [X] X Clear account selection 100 Cash 102 Short-term Investments 110 ARC - Accounts Receivable Control 110-1 ARC - Congo.com 110-2 ARC - Outlines 110-3 ARC - Boundaries 110-4 ARC - Cough-up bookstore 110-5 ARC - Cliff's Notes 110-6 ARC - Bovine & Hobbitson 112 Interest Receivable 120 Merchandise Inventory 130 Office Supplies 140 Prepaid Rent 141 Prepaid Advertising 142 Prepaid Insurance 150 Office Furniture 151 Accum Depn: Office Furniture 160 Office Equipment 161 Accum Depn: Office Equipment Chart of accounts [X] 161 Accum Depn: Office Equipment 210 APC - Accounts Payable Control 210-1 APC - Booked Inn 210-2 APC - Stompson 210-3 APC - Books R Us 210-4 APC - Deterministic Garage 210-5 APC - Quickdraw Peak 210-6 APC - Albatross 220 Wages Payable 221 Electricity Payable 222 Water Payable 225 Interest Payable 250 Bank Loan Payable 300 Common Stock 301 Retained Earnings 310 Income Summary 400 Sales Revenue 401 Sales Returns and Allowances 402 Sales Discounts 403 Interest Revenue POS Chart of accounts [X] TITUOTT UTILITY 400 Sales Revenue 401 Sales Returns and Allowances 402 Sales Discounts 403 Interest Revenue 500 Purchases 501 Purchase Returns and Allowances 502 Purchase Discounts 511 Advertising Expense 516 Wages Expense 540 Rent Expense 541 Electricity Expense 542 Water Expense 543 Insurance Expense 544 Office Supplies Expense 545 Salary Expense 560 Depn Expense: Office Furniture 561 Depn Expense: Office Equipment 571 Interest Expense 572 Admin. Expense - Bank Charges