Wayang, also spelled Wajang, (Javanese: "shadow"), is a classical Javanese puppet drama that uses the shadows thrown by puppets manipulated by rods against a translucent screen lit from behind. Developed before the 10th century, the form had origins in the Thalubomalata, the leather puppets of southern India. Indah Dewei had fallen involve with ancient cultural artform and started her own production facility for her business Shadow Light (SL) in Melbourne, Australia in 1990 and was examining select accounts form last year (Exhibit 1) and want to start by recording all cash receipts and disbursements for the 2021 fiscal year (Exhibit 2). SL had sold only to commercial customers on credit consisting of cultural groups around the globe who she offered credit terms of 5/10 net 90 and Shipped FOB destination. Based on the fiscal year's collections she believed 40% paid in time for the discount and with no outstanding accounts. She started the year with no outstanding delivery fee invoices. THE MANUFACTURING PROCESS SL used two suppliers for the fabrics and wood. Indo-Fabrica (IF) produced various fabrics they would use to form the puppets and screens. Slyfox Materials (SM) provided the wood used for the framing of puppets and screens. The fabric consumption was spread even throughout the process. Dewei would assist from time to time with finishing touches but left the majority to the labourers. TRANSPORTATION AND RAW MATERIALS Dewei employed the services of a delivery company for both delivery of the finished good and to pick up raw materials when necessary and paid cash on arrival. At year end (for fiscal 2021), a bill for $800 of transit services remained outstanding. Dewei estimated that 25% of the cost for transit related to bringing in raw materials and the rest was delivering to customers. The Fabric was order several times per year from IF who shipped FOB Shipping point. Each pickup of raw materials was allocated the same cost per trip regardless of the number of units being picked up. Dewei used Specific Id to account for ending Inventory. Order Net Number Date Shipped Date Delivered Date Paid Quantity (units) Cost Units Remaining at year end 101 0 November 1st, 2020 November 24th, 2020 December 16th, 2020 140 1180 102 0 February 4th, 2021 February 7th, 2021 320 $1400 February 17th, 2021 August 15th 2021 103 20 July 27th, 2021 August 3rd, 2021 60 $540 104 October 29th, 600 November 27th, 2021 600 $3600 2021 SM shipped FOB Melbourne and did not offer credit terms for the wood. Dewei would transfer funds upon taking ownership of the wood and no orders were outstanding or in transit at year end. The wood was a fairly homogeneous, so Dewei used the average method of inventory valuation with 2000ft being available for use all year and 75ft remaining on unused at year end. PRODUCTION FACILITY A new space was rented September 1st, 2021 with an agreed upon rate of $6000 per month with first and last being paid. 75% of the space was for production and 5% was for storage of finish goods with the rest being office space. INSURANCE An insurance policy was signed to replace the expiring existing one with similar terms on August 1st, 2021 for 48 months. The insurance covered 25% of production. THE WORKERS The production labourers directly worked to create the puppets from fabric and wood to finish product. They were paid on Friday for the weeks work. With fiscal year end falling on a Tuesday they had $777 of unpaid wages. At fiscal year-end (2021) they had spent $45 on labour of the partially built goods. Dewei also did many roles with the company. She spent 10% of her time directly producing puppets, 40% of her time as administrator not related to production and 50% of her time supervising production. Dewei was paid on the last day of the month for that month's work. Dewei also gave herself a $2,000 dividend as the sole owner of the business. She had not spent any time on the partially built items at physical year end. BANK LOAN The bank loan was paid back in monthly installments of interest plus principle on the last day of the month. END OF YEAR Dewei was not involved in the production during the last two weeks and at year end she estimated there was $70 of raw materials used in the partially completed puppets. Dewei estimated that they produced 400 finished units. At year end they had 22 unsold units. REQUIRED Using the super-T provided, post all transactions beginning with the cash receipts and disbursements. After posting cash receipts and disbursements perform adjusting entries Closing entries are not required. Failure to post the cash receipts and disbursements prior to performing the required adjusting entries will result in a score of zero on any transaction impacted. Exhibit 1 Select Accounts As at November 30, 2020 ASSETS Cash $ 12,450 2,000 Accounts receivable 380 Prepaid insurance Prepaid Rent Inventory 1600 1800 Sewing Machine Accumulated depreciation - Sewing Machine 700 LIABILITIES AND SHAREHOLDERS' EQUITY Current portion, bank loan 850 Income tax payable 166 Bank Loan, LT 2050 3,000 Common stock (10,000 outstanding, unlimited authorization) Retained earnings 11,184 Exhibit 2 1,000 300 BOOKKEEPER RECORDS: POSTING OF CASH RECEIPTS AND DISBURSEMENTS For Fiscal 2021 CASH RECEIPTS ACCOUNT POSTED TO Cash sales $ 235,450 Sales revenue Accounts receivable collections 1550 Accounts receivable Cash Total 237,000 Rental payments $ 21,600 Rent expense Bank loan? 931 Current portion, bank loan Delivery fees $11,200 Delivery Expense Insurance 6780 Wages 91,400 Insurance expense Wages expense Dewei Salary expense Dewei's Salary 60,000 Raw materials payments - Wood 4,534 Raw materials, Wood 3,120 Raw materials, Fabric Raw materials payments - Fabric Dividend 2000 Dividend Payable Cash Total $ 201,565 CASH DISBURSEMENTS Wayang, also spelled Wajang, (Javanese: "shadow"), is a classical Javanese puppet drama that uses the shadows thrown by puppets manipulated by rods against a translucent screen lit from behind. Developed before the 10th century, the form had origins in the Thalubomalata, the leather puppets of southern India. Indah Dewei had fallen involve with ancient cultural artform and started her own production facility for her business Shadow Light (SL) in Melbourne, Australia in 1990 and was examining select accounts form last year (Exhibit 1) and want to start by recording all cash receipts and disbursements for the 2021 fiscal year (Exhibit 2). SL had sold only to commercial customers on credit consisting of cultural groups around the globe who she offered credit terms of 5/10 net 90 and Shipped FOB destination. Based on the fiscal year's collections she believed 40% paid in time for the discount and with no outstanding accounts. She started the year with no outstanding delivery fee invoices. THE MANUFACTURING PROCESS SL used two suppliers for the fabrics and wood. Indo-Fabrica (IF) produced various fabrics they would use to form the puppets and screens. Slyfox Materials (SM) provided the wood used for the framing of puppets and screens. The fabric consumption was spread even throughout the process. Dewei would assist from time to time with finishing touches but left the majority to the labourers. TRANSPORTATION AND RAW MATERIALS Dewei employed the services of a delivery company for both delivery of the finished good and to pick up raw materials when necessary and paid cash on arrival. At year end (for fiscal 2021), a bill for $800 of transit services remained outstanding. Dewei estimated that 25% of the cost for transit related to bringing in raw materials and the rest was delivering to customers. The Fabric was order several times per year from IF who shipped FOB Shipping point. Each pickup of raw materials was allocated the same cost per trip regardless of the number of units being picked up. Dewei used Specific Id to account for ending Inventory. Order Net Number Date Shipped Date Delivered Date Paid Quantity (units) Cost Units Remaining at year end 101 0 November 1st, 2020 November 24th, 2020 December 16th, 2020 140 1180 102 0 February 4th, 2021 February 7th, 2021 320 $1400 February 17th, 2021 August 15th 2021 103 20 July 27th, 2021 August 3rd, 2021 60 $540 104 October 29th, 600 November 27th, 2021 600 $3600 2021 SM shipped FOB Melbourne and did not offer credit terms for the wood. Dewei would transfer funds upon taking ownership of the wood and no orders were outstanding or in transit at year end. The wood was a fairly homogeneous, so Dewei used the average method of inventory valuation with 2000ft being available for use all year and 75ft remaining on unused at year end. PRODUCTION FACILITY A new space was rented September 1st, 2021 with an agreed upon rate of $6000 per month with first and last being paid. 75% of the space was for production and 5% was for storage of finish goods with the rest being office space. INSURANCE An insurance policy was signed to replace the expiring existing one with similar terms on August 1st, 2021 for 48 months. The insurance covered 25% of production. THE WORKERS The production labourers directly worked to create the puppets from fabric and wood to finish product. They were paid on Friday for the weeks work. With fiscal year end falling on a Tuesday they had $777 of unpaid wages. At fiscal year-end (2021) they had spent $45 on labour of the partially built goods. Dewei also did many roles with the company. She spent 10% of her time directly producing puppets, 40% of her time as administrator not related to production and 50% of her time supervising production. Dewei was paid on the last day of the month for that month's work. Dewei also gave herself a $2,000 dividend as the sole owner of the business. She had not spent any time on the partially built items at physical year end. BANK LOAN The bank loan was paid back in monthly installments of interest plus principle on the last day of the month. END OF YEAR Dewei was not involved in the production during the last two weeks and at year end she estimated there was $70 of raw materials used in the partially completed puppets. Dewei estimated that they produced 400 finished units. At year end they had 22 unsold units. REQUIRED Using the super-T provided, post all transactions beginning with the cash receipts and disbursements. After posting cash receipts and disbursements perform adjusting entries Closing entries are not required. Failure to post the cash receipts and disbursements prior to performing the required adjusting entries will result in a score of zero on any transaction impacted. Exhibit 1 Select Accounts As at November 30, 2020 ASSETS Cash $ 12,450 2,000 Accounts receivable 380 Prepaid insurance Prepaid Rent Inventory 1600 1800 Sewing Machine Accumulated depreciation - Sewing Machine 700 LIABILITIES AND SHAREHOLDERS' EQUITY Current portion, bank loan 850 Income tax payable 166 Bank Loan, LT 2050 3,000 Common stock (10,000 outstanding, unlimited authorization) Retained earnings 11,184 Exhibit 2 1,000 300 BOOKKEEPER RECORDS: POSTING OF CASH RECEIPTS AND DISBURSEMENTS For Fiscal 2021 CASH RECEIPTS ACCOUNT POSTED TO Cash sales $ 235,450 Sales revenue Accounts receivable collections 1550 Accounts receivable Cash Total 237,000 Rental payments $ 21,600 Rent expense Bank loan? 931 Current portion, bank loan Delivery fees $11,200 Delivery Expense Insurance 6780 Wages 91,400 Insurance expense Wages expense Dewei Salary expense Dewei's Salary 60,000 Raw materials payments - Wood 4,534 Raw materials, Wood 3,120 Raw materials, Fabric Raw materials payments - Fabric Dividend 2000 Dividend Payable Cash Total $ 201,565 CASH DISBURSEMENTS