Prepare a balance sheet for the business as at 30 June 2014. C. Explain why you have used a particular valuation for the buildings in the balance sheet. Chapter 3 – Recording Transactions Problem 3. 2 – Journal Entries, Posting to Ledger, and Trial Balance Gerry Munro opened a hairdressing salon on 1 July 2012. The following transactions occurred during the first month of operations (ignore GST): July2Munro invested $30 000 in the business by depositing cash into a business cheque account with the NZA Bank. 2Paid $1200 for the first month’s rent. Purchased equipment by issuing a cheque for $12 000 and signing a commercial loan agreement for $16 000. 4Purchased supplies for $1040. 6Paid advertising expense of $300. 16Recorded hairdressing revenue for the first half of the month of $1680 in cash and $250 on credit. 20Paid insurance expense for July of $560. 23Received a $150 payment from customers on credit. 28 Munro withdrew $440 cash for personal living expenses. 31Recorded revenue for the second half of the month of $1760 in cash and $120 on credit. 31 Paid telephone account of $270 by electronic transfer.
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101; Supplies, 102; Equipment, 103; Loan Payable, 200; Gerry Munro, Capital, 300; Gerry Munro, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503. Required: A. Prepare the general journal entries to record the transactions. B. Post the entries from the general journal to the general ledger accounts (running balance format) and enter the posting references in the general journal. C. Prepare a trial balance as at 31 July 2012. Chapter 7 – Accounting Systems and Processes
The Essay on Statement of Cash Flow
The importance of cash the cash flow statement help businesses and creditors understand how liquid a company is. Team A discussed some important factors about the statement of cash flow. The purpose of the statement of cash flow and how it is used in accounting is explained. The direct and indirect method of preparing a statement is used. Steps in preparation and classification are explained. The ...
Exercise 7. 10 – Relating Purchases, Cash Payments and The General Journal to the Subsidiary Ledger and Control Account At 1 June, the following information was extracted from the records of Edith Yu (assume no GST): Schedule of Accounts Payable| as at 31 May 2013| A. Green| $500| Jones Ltd| 5 000| Close Ltd| 12 340| | $ 17 840| Extracts from the purchases, cash payments and general journals for June are presented below: Purchases Journal| | Cash Payment Journal| Date| Account| Amount| | Date| Account| Chq. No. | Accounts Payable| 3-Jun| A. Green| 1 000| | 5-Jun| Jones Ltd| 003| 5 000| 10-Jun| Jones Ltd| 4 050| | 18-Jun| A.
Green| 004| 1 500| 12-Jun| Peter Ltd| 2 550| | 30-Jun| Close Ltd| 005| 5 880| 21-Jun| G. Galway| 2 340| | | | | | | | | | | | | | | | General Journal| Date| Particulars| Debit| Credit| 17-Jun| Accounts Payable Control, Close Ltd| | | 400| | | Purchases Returns and Allowances| | | | 400| | (Returned goods, adjustment credit note received)| | | | Required: A. Establish running balance ledger accounts for each supplier in the subsidiary ledger and an Accounts Payable Control account in the general ledger. Post the amounts from the journals to the subsidiary and control accounts. B.
Prepare a schedule of accounts payable as at 30 June and compare the total with the balance in the control account. Problem 7. 1 – Accounting with Sales Journal and Purchases Journal Apex Construction Ltd uses sales and purchases journals in its accounting system. The following transaction occurred during June 2012. June 5Purchased merchandise on account from Jason Ltd, invoice 207, $2400, terms 2/10, n/30. 8Purchased merchandise on account from Ross Ltd, invoice 878, $1680, terms 2/10, n/30. 10Sold merchandise on account to E. Mears, invoice 226, $4560. 16Sold merchandise on account to Benz Ltd, invoice 227, $3960. 9Purchased merchandise on account from J Harley, invoice 828, $1160, terms 2/10, n/30. 26Sold merchandise on account to A. Alberts, invoice 228, $3120. 29Sold merchandise on account to Benz Ltd, invoice 229, $2400. Required: A. Complete the requirements below, assuming that the business is not registered for the GST. 1. Establish all necessary general ledger accounts, accounts receivable subsidiary ledger accounts, and accounts payable subsidiary ledger accounts. Use the following account numbers: Accounts Receivable, 1200; Accounts Payable, 2200; Sales, 4100; Purchases 5100. . Journalise the transactions for June in the appropriate journals. 3. Post the data from the journals to the correct general ledger and subsidiary accounts. 4. Prepare a schedule of the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger as at 30 June to prove that their totals are equal to the balances of the control accounts. B. Complete the requirements 1-4 in part A, assuming that the business is registered for the GST. Add the accounts 1300 GST Outlays and 1300 GST Collections to the accounts list.
The Essay on Subsidiary Ledgers and Special Journals
A subsidiary ledger is a ledger that includes all of the details of a general ledger, and it holds accounts with similar attributes. The purpose is that is can contain things such as accounts receivable and accounts payable and it can show the sum total. The advantages of using subsidiary ledgers is that the sum of all the accounts is kept in the General Ledger and all of the details of the ...
