YOUR ASSIGNMENT

The firm$$s in$-$house accountant has gone overseas for one month. You have been hired by Scallion Ltd to carry out the accounting duties in the accountant$$s absence$.$ This assignment provides you with the unadjusted trial balance at the end of May and requires you to record typical transactions for a retail business for the last month of the financial year. Once these transactions have been recorded and posted, you are required to complete the accounting cycle by journalising and posting adjusting and closing entries and preparing financial statements.

UNADJUSTED TRIAL BALANCE

The unadjusted trial balance as at $1$ June $2023$ is presented below:

ACCOUNT NAME $1$ June Opening Balances

Cash $ $70,785$

Accounts Receivable $25,740$

Allowance for doubtful debts $2,645$

Inventory $32,400$

Office Supplies $1,800$

Prepaid General Insurance $3,600$

GST Paid $6,300$

Equipment $13,500$

Machinery $65,000$

Truck $46,100$

Land $350,000$

Accounts Payable $69,300$

GST Collected $15,795$

Share Capital $340,000$

Discount received $13,200$

Repairs and maintenance $7,400$

Purchases $486,200$

Purchases returns & allowances $7,040$

Salaries expense $83,600$

Sales $789,800$

Sales returns & allowances $8,800$

Electricity expense $12,100$

Telephone expense $2,505$

Office expenses $13,500$

Discount allowed $8,450$

$$

SUBSIDIARY LEDGERS

The individual balances of Accounts receivable and Accounts payable as at $1$ June $2023$ are shown below. Amounts include GST$.$

Accounts Receivable Subsidiary Ledger

CUSTOMER $1$ June Opening Balances

Croft Ltd $ $2,970$

M$.$ Biller $14,850$

O$.$ Mowen $7,920$

TOTAL $25,740$

Accounts Payable Subsidiary Ledger

CREDITOR $1$ June Opening Balances

Tumult Ltd $ $17,820$

Lynwood Ltd $29,700$

Dyson Ltd $21,780$

TOTAL $69,300$

ACCOUNTING PROCEDURES

Transactions are recorded by the accountant on a daily basis in the appropriate journal. Transactions are posted daily from the General Journal and the Cash Receipts and Cash Payments Journal to the Accounts receivable and Accounts payable subsidiary ledgers. Totals of the special journals are posted to the appropriate accounts at the end of the month.

Note: Amounts are to be recorded as the exact amounts in the journals and ledgers but are to be rounded to the nearest dollar when preparing financial statements.

TRANSACTIONS

The following transactions occurred during June $2023$ and are INCLUSIVE of GST where appropriate.

$2023$

June $1$ Scallion Ltd shareholders invested $$60,000$ cash in the business.

Purchased land and an existing retail store for $$110,000$ of which $$77,000$ is considered land cost. Paid $$33,000$ by cheque no$.98$ for the retail store and signed a mortgage payable for the balance. The retails store is depreciated over its useful life of $10$ years.

$2$ Paid Lynwood Ltd $$14,700$ less a discount of $$594$ with cheque no$.99.$

Received cheque from M$.$ Biller for $$10,000$ as part payment of his account

Purchased store furniture on credit terms from Corma Ltd for $$7,480,$ terms n$/60.$

$5$ Purchased inventory on credit terms from Tumult Ltd $$4,400$; invoice date $6$ June, terms $2/10,$ n$/60.$

$6$ Purchased a $3-$year fire insurance policy for $$792,$ cheque no$.100.$

$7$ Sent cheque no$.101$ to Tumult Ltd in full settlement of May invoice

$8$ Purchased inventory for $$5,500,$ cheque no$.102.$

Paid Lynwood Ltd $$15,000$ cheque no$.103$ for balance owing on May account.

$9$ Returned unsatisfactory goods to Tumult Ltd and received a credit note for $$880.$

$13$ Sold inventory to M$.$ Biller on account, $$9,020$; invoice no$.210,$ terms $1/10,$ n$/30.$

$15$ O$.$ Mowen paid his account in full.

Paid Tumult Ltd amount due for June $6$ invoice, cheque no$\mathrm{.}104.$

Cash sales for period to $15$ June were recorded today, $$3,740.$

$16$ Sold inventory to O$.$ Mowen on account $$5,170$; invoice no$.211,$ terms $1/10,$ n$/30.$

Paid salaries for period to $15$ June totaling $$2,650,$ cheque no$.105.$

$17$ M$.$ Biller paid the balance of his May invoice.

$20$ Purchased inventory on credit terms, from Lynwood Ltd$,$ $$5,390$; invoice date $20$ June, terms $1/10,$ n$/30.$

Sent cheque, no$.106$ to Dyson Ltd in full settlement of the account.

$22$ Received account for $$143$ from M$.$ Parson for items chargeable to office expenses, terms n$/30.$

$23$ Received inventory returned by O$.$Mowen and issued a credit note for $$2,200.$

Received a cheque from M$.$ Biller for invoice no$.210.$

$26$ Received a cheque from O$.$ Mowen for balance due on invoice no$.211$

Purchased inventory from Dyson Ltd for $$35,750,$ terms, $1/20,$ n$/30.$

$29$ Sold inventory worth $$15,400$ on credit to J$.$ Rowls; invoice no$.212,$ terms $1/10,$ n$/30.$

Paid $$220$ for electricity expenses, cheque no$.107.$

Paid Lynwood Ltd for the invoice dated $20$ June, cheque no$.108.$

$30$ Purchased inventory on account from Amcor Ltd $$26,400,$ terms $2/10,$ n$/30.$

Cash sales from $16$ June to $30$ June were $$2,145.$

Paid salaries for period $16-30$ June totaling $$2,850,$ cheque no$.109.$

Purchased office supplies for $$330,$ cheque no$.110.$

Received account from C$.$ Bond for $$110$ for delivery expenses for the month.

Sold inventory