ACCT5001 S1 2010 Week 7 Self-Study Solutions

7/30/2019 ACCT5001 S1 2010 Week 7 Self-Study Solutions

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ACCT5001 S1 2010 Self-Study Solutions Week 7

ACCT5001 S1 2010 Week 7 Self-Study Solutions.doc 21/04/2010 1

Ch.12: BE12.5, BE12.6Ch. 6: Q3, Q5, E6.5, E6.11, PSA6.4, PSA6.8

BRIEF EXERCISE 12.5

General Journal Computer Retailer Ltd

Account Titles and Explanation

$

Debit

$

Credit

1 Inventory 14 000

GST Paid 1 400

Accounts Payable 15 400

(To record purchase of 10 computers @$1540

each from Parts Inc. GST incl.)

2 Accounts Receivable 28 600

GST Collected 2 600

Sales 26 000

(To record sales of 10 computers @$2860 each

GST incl.)

COGS 14 000

Inventory (10 x $1,400) 14 000

(To record the cost of computers sold)



BRIEF EXERCISE 12.6

The GST paid on each ice cream purchased is $0.15 ($1.65 11). The shopkeeper sold 16

and so can claim a credit from the taxation authority for $2.40 (16 x $0.15).

General Journal

Account Titles and Explanation

$

Debit

$

Credit

Inventory 30.00

GST Paid 3.00

Accounts Payable/cash 33.00

(To record the purchase of 20 ice creams @

$1.65 each GST incl.)

Cash 35.20

GST Collected 3.20

Sales 32.00(To record sale of 16 ice creams @$2.20 each

GST incl.)

COGS 24.00

Inventory 24.00

(To record the cost of 16 ice-creams sold)

Drawings* 6.60

GST Paid (credit 15cents x 4) 0.60

Inventory 6.00

(To record owner taking 4 ice creams from

stock)

*this is a good example of the final consumer bearing the cost of the GST- here the owners

drawings include the GST paid.


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PROBLEM SET A 6.4

Bouncing Balls Ltd

(a), (b) & (c)

Sales Journal

S17

Date Account Debited

Invoice

No.

Post

Ref

Accounts Receivable

Dr

Sales Cr

Cost of Goods Sold

Dr

Inventory Cr

Jan. 4 Toys 4 U 371 10,875 6,525

9 Mays Ltd 372 8,700 5,220

17 Kid Time Ltd 373 1,800 1,080

31 Toys 4 U 374 13,995 8,397

35,370 21,222

(112)/(401) (505)/(120)

Purchases Journal

P13

Date Account Credited Ref

Inventory Dr

Accounts Payable Cr

Jan. 3 Ball Supplies Ltd 15,000

8 Balls Ltd 6,750

11 Hoble 5,550

23 Ball Supplies Ltd 11,700

24 Levine 7,035

46,035

(120)/(201)



General Journal

G14

Date Account Titles and Explanation Ref. Debit Credit

Jan. 5 Accounts Payable Ball supplies. 201/ 450

Inventory 120 450

(Returned damaged goods purchased

previously on credit)

19 Equipment 157 8,250

Sundry Accounts Payable Johnson Ltd 202/ 8,250

(Purchased equipment on account)

Cash Receipts Journal

CR15

Date AccountCredited

Ref CashDr

DiscountAllowed

Dr

AccountsReceivable

Cr

Sales Cr

OtherAccounts

Cr

Cost ofGoods Sold

DrInventory Cr

Jan. 6 4,725 4,725 2,835

13 8,010 8,010 4,806

14 Mays Ltd 8,613 87 8,700

17 Toys 4 U 10,875 10,875

20 4,800 4,800 2,880

27 5,595 5,595 3,357

30 Kids

Time Ltd

1,800 1,800

44,418 87 21,375 23,130 0 13,878

(101) (716) (112) (401) (x) (505)/(120)

Cross-footing Totals $58,383

Dr Total = $58,383 ($44,418 + $87 + $13,878)

Cr Total = $58,383 ($21,375 + $23,130 + $13,878)


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Cash Payments Journal

CP15

Date Account Debited RefOther

Accounts

Dr

AccountsPayable

Dr

Inventory

Dr

DiscountReceived

Cr

Cash Cr

Jan. 4 Supplies 126 120 120

13 Ball Supplies Ltd 14,550 291 *14,259

15 Salaries Expense 726 21,450 21,450

20 Balls Ltd 6,750 135 6,615

31 Salaries Expense 726 19,800 19,800

41,370 21,300 0 426 62,244

(x) (201) (x) (416) (101)

Cross-footing Totals = $62,670

Dr Total = $62,670 ($41,370 + $21,300)

Cr Total = $62,670 ($426 + $62,244)

*Helpful Hint: Purchased $15,000 from Ball supplies on 3 Jan. 5 Jan returned $450

damaged goods. Balance paid is $14,550 less 2% discount.

(d) Cross-footing the special journals prior to posting the totals to the ledger accounts

ensures that the total dollar debits equals the total dollar credits.



PROBLEM SET A 6.8

Flower Power

(b)

Purchases Journal

P1

Date Account Credited Terms Ref

Inventory Dr

Accounts Payable Cr

Feb. 6 Aussie Seed Supplies Ltd 1/7, n/30 4,800

9 Gardenia Grove Pty Ltd 1/10, n/30 36,000

16 Roses Garden 2/7, n/30 2880

21 J Able 1/7, n/30 7800

51480

(120)/(201)

Cash Payments Journal

CP1

Date Account Debited Ref.

Other

Accounts

Dr

Accounts

Payable Dr

Inventory

Dr

Discount

Received

Cr Cash Cr.

Feb.

9 Supplies 126 1,200 1,200

12 Aussie Seed

Supplies Ltd

4800 48 4,752

15 Equipment 157 9,600 9,600

17 Gardenia Grove

Pty Ltd

36,000 360 35,640

20 P Sims, Drawings 306 1,320 1,320

28 Roses Garden 2,880 2,880

12120 43680 0 408 55392

(x) (201) (405) (101)

Dr 55800 = Cr 55800


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(a), (d) & (g)

General Ledger

Cash No. 101

Date Explanation Ref Debit Credit Balance

Feb. 28 CR1 58314 58314

28 CP1 55392 2922

Accounts Receivable No. 112


Feb 28 S1 31200 31200

28 CR1 14400 16800

Inventory No. 120


Feb. 28 P1 51480 51480

18 CR1 180 51300

28 S1 20592 3070828 CR1 5148 25560

Supplies No. 126


Feb. 9 CP1 1,200 1,200

28 Adjusting entry G1 840 360

Equipment No. 157


Feb. 15 CP1 9,600 9,600



Accumulated Depreciation Equipment No. 158


Feb. 28 Adjusting entry G1 240 240

Accounts Payable No. 201


Feb. 28 P1 51480 51480

28 CP1 43680 7800

P Sims Capital No. 301


Feb. 1 CR1 36,000 36,000

P. Sims, Drawings No. 306


Feb. 20 CP1 1,320 1,320

Sales No. 401


Feb. 28 S1 31200 31200

28 CR1 7800 39000

Discount Received No. 405


Feb. 28 CP1 408 408


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Cost of Goods Sold No. 505


Feb. 28 S1 20592 20592

28 CR1 5148 25740

Discount Allowed No. 614


Feb. 28 CR1 66 66

Supplies Expense No. 631



Depreciation Expense No.711





Accounts Receivable Subsidiary Ledger

Flower Factory Ltd


Feb. 3 S1 6,600 6,600

13 CR1 6,600 0

P Babcock

Date Explanation Ref Debit Credit BalanceFeb. 9 S1 7800 7800

26 CR1 7800 0

D Chambers


Feb. 12 S1 9600 9600

K Dawson


Feb. 26 S1 7200 7200


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Accounts Payable Subsidiary Ledger

J Able


Feb. 21 P1 7800 7800

Aussie Seed Supplies Ltd


Feb. 6 P1 4,800 4,80012 CP1 4,800 0

Gardenia Grove Pty Ltd


Feb. 9 P1 36,000 36,000

17 CP1 36,000 0

Roses Garden


Feb. 16 P1 2,880 2,880

28 CP1 2,880 0



(e)

Flower Power

Trial Balance

as at 28 February 2011

Debit Credit

101 Cash $2,922

112 Accounts Receivable 16,800

120 Inventory 25,560

126 Supplies 1,200

157 Equipment 9,600

201 Accounts Payable $7,800

301 P. Sims, Capital 36,000

306 P. Sims, Drawings 1,320

401 Sales 39,000

405 Discount Received 408

505 Cost of Goods Sold 25,740614 Discount Allowed 66

$83,208 $83,208


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(f)

Accounts Receivable Control Account $16,800

Accounts Receivable Subsidiary Accounts:

D Chambers $9,600

K Dawson 7,200 $16,800

Accounts Payable Control Account $7,800

Accounts Payable Subsidiary Account:

J Able $7,800

(g)

General Journal

G1

Date Account Titles and Explanation Ref Debit Credit

Feb. 28 Supplies Expense 631 840

Supplies 126 840(Record supplies used)

28 Depreciation Expense 711 240

Accumulated Depreciation Equipment 158 240

(Record depreciation expense)



(h)

Flower Power

Adjusted Trial Balance


Debit Credit

101 Cash $2,922

112 Accounts Receivable 16,800

120 Inventory 25,560

126 Supplies 360

157 Equipment 9,600

158 Accumulated Depreciation Equipment $240

201 Accounts Payable 7,800

301 P. Sims, Capital 36,000

306 P. Sims, Drawings 1,320

401 Sales 39,000

405 Discount Received 408

505 Cost of Goods Sold 25,740

614 Discount Allowed 66

631 Supplies Expense 840

711 Depreciation Expense 240

$83,448 $83,448


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(i)

Flower Power

Income Statement

for the month ending 28 February 2011

INCOME

Sales 39,000

Less Cost of Goods Sold 25,740

Gross Profit 13,260

OTHER INCOME

Discount Received 408

13,668

OPERATING EXPENSES

Administrative expenses:

Supplies Expense 840

Depreciation Expense 240 1,080

Financial expenses:

Discount Allowed 66

PROFIT 12,522



Flower Power

Statement of Financial Position


ASSETS

Current assets:

Cash $2,922

Accounts receivable 16,800

Inventory 25,560

Supplies 360 45,642

Non-current assets:

Equipment 9,600

Less: Accumulated depreciation ($240) 9,360

Total non-current assets

TOTAL ASSETS $55,002

LIABILITIES

Current liabilities:

Accounts payable 7,800

Total liabilities 7,800

OWNERS EQUITY

P. SIMS, Capital (36,000 + 12,522 1,320) 47,202

TOTAL LIABILITIES AND OWNERS EQUITY $55,002

Documents

ACCT5001 S1 2010 Week 7 Self-Study Solutions