Zii Game Consoles Now that you have reviewed information about The Digital Village, 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 $58,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2023 and the principal of the loan is to be repaid on June 1, 2026. 3 Purchased 14 Swish Phones from Pear Technology for $580 each, terms net 30. 3 Paid the full amount owing to Pony, Check No. 807. Payment fell outside discount period. 3 Purchased 22 BG90 Plasma Televisions with cash for $1,200 each, Check No. 808. 4 Purchased 13 Zii Game Consoles from Moon Megasystems for \$1,520 each, terms 2/10, n/30 4 Sold 14 Swish Phones to Jerry Technology for $900 each, plus 5% sales tax, Invoice No. 216. 5 Made cash sale of 10 BG90 Plasma Televisions for $2,300 each plus 5% sales tax. 5 Paid sales staff wages of $12,551 for the week up to and including yesterday, Check No. 809. Note that $6,500 of this payment relates to the wages expense incurred during the last week of May. 6 Paid the full amount owing to JCN Electrical, Check No. 810. Payment fell outside 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 month. 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 2. 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. 3) 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. - 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. - Note that in special journals, the Other Accounts column should not be used to record movements of inventory. - There may be entries in 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 1101, 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. INVENTORY CARDS BG90 Plasma Televisions Swish Phones ( Q=330.Inventory3_week1) Account: Sales Revenue Account No. 400 Account: Cost of Goods Sold Account No. 500 Account: Wages Expense Account No. 516 (Q=320400. SalesRevenue_week 1) (Q=320500. CostOfSales_week1) (Q=330. Inventory2_week1) INVENTORY CARDS BG90 Plasma Televisions Zii Game Consoles Now that you have reviewed information about The Digital Village, 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 $58,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2023 and the principal of the loan is to be repaid on June 1, 2026. 3 Purchased 14 Swish Phones from Pear Technology for $580 each, terms net 30. 3 Paid the full amount owing to Pony, Check No. 807. Payment fell outside discount period. 3 Purchased 22 BG90 Plasma Televisions with cash for $1,200 each, Check No. 808. 4 Purchased 13 Zii Game Consoles from Moon Megasystems for \$1,520 each, terms 2/10, n/30 4 Sold 14 Swish Phones to Jerry Technology for $900 each, plus 5% sales tax, Invoice No. 216. 5 Made cash sale of 10 BG90 Plasma Televisions for $2,300 each plus 5% sales tax. 5 Paid sales staff wages of $12,551 for the week up to and including yesterday, Check No. 809. Note that $6,500 of this payment relates to the wages expense incurred during the last week of May. 6 Paid the full amount owing to JCN Electrical, Check No. 810. Payment fell outside 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 month. 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 2. 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. 3) 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. - 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. - Note that in special journals, the Other Accounts column should not be used to record movements of inventory. - There may be entries in 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 1101, 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. INVENTORY CARDS BG90 Plasma Televisions Swish Phones ( Q=330.Inventory3_week1) Account: Sales Revenue Account No. 400 Account: Cost of Goods Sold Account No. 500 Account: Wages Expense Account No. 516 (Q=320400. SalesRevenue_week 1) (Q=320500. CostOfSales_week1) (Q=330. Inventory2_week1) INVENTORY CARDS BG90 Plasma Televisions