Questions and Answers of Accounting 28th Edition

P Forrester has elected to prepare and maintain the accounts using the cash basis of accounting and not on the accrual basis of accounting.Enter the following transactions, where appropriate, in the
On 1 February 2022, the balances of J Kelaher were: bank $4000, GST receivable $100, inventory $12 000 (the perpetual inventory system is used), plant and equipment $15 000, GST payable $200, loan
There are several internal controls that should be implemented in relation to the preparation of journals. Briefly describe two such controls.
Briefly outline two reasons why clear and comprehensive policies and procedures are important in an accounting system.
Marty Joh started Marty’s Mower and Small Engine Repairs business on 1 March 2022 with bank $6000 and equipment valued at $3000; a spare shed on his property is used as the workshop. This service
A farmer and his family, known locally as the ‘Oonchies’, had for a number of years carried out a contracted service for many owners of local and surrounding farming properties. For an agreed or
From the following balances and transactions of P Sullivan for the month of September 2022, where perpetual inventory applies, you are required to:a enter the appropriate journal abbreviation next to
From the following transactions you are required to:a enter the appropriate journal abbreviation next to each transaction below and prepare all relevant journals (or prepare the general journal), and
The balance in the accounts of W Beavan at the end of April 2022 were: bank $3215, motor vehicle $13 200, machinery$2400, accounts receivable control $1101 (M Griggs $715 and G Bartlett $386),
Using the information of P Alexander for April and May 2022, as shown in figures 6.12, 6.13 and 6.14:• enter the opening balances in the appropriate ledgers• post the sales journal and the cash
Using the information of P Brushgrove for April and May shown in figures 6.15, 6.16 and 6.17:• enter the opening balances in the appropriate ledgers• post the sales journal and the cash receipts
Using the information of Stan Thorpe for June and July shown in figures 6.18, 6.19 and 6.20:• enter the opening balances in the appropriate ledgers• post the sales journal and the cash receipts
Using the information of T Aree for January and February shown in figures 6.31, 6.32 and 6.33:• enter the opening balances in the appropriate ledgers• post the purchases journal and the cash
Using the information of Emma Ville for March and April shown in figures 6.34, 6.35 and 6.36:• enter the opening balances in the appropriate ledgers• post the purchases journal and the cash
Using the information of Jack Adgery for January and February shown in figures 6.37, 6.38 and 6.39:• enter the opening balances in the appropriate ledgers• post the purchases journal and the cash
Using the information of Bell Ingen for July and August shown in figures 6.40 to 6.44:• enter the opening balances in the appropriate ledgers• post the sales and purchases journals and then the
Using the information of Dorri Go for September and October shown in figures 6.45 to 6.49:• enter the opening balances in the appropriate ledgers• post the sales and purchases journals and then
D Timbers runs a business providing gardening services. Using the information for May and June (shown in figures 6.50 to 6.54), post the journals to the general ledger in T account format, and
a Briefly explain the importance of the development of a credit policy and procedures.b Briefly outline the areas that may be covered by an organisation’s credit policy.
Briefly outline the importance of customer credit approval in the accounts receivable process.
Briefly outline the internal controls that should exist over:a the processing of sales invoices, and b remittances from customers.
Outline one internal control benefit of issuing statements of accounts to customers.
a Briefly explain the nature and content of the report that businesses prepare to determine debtors with overdue amounts.b Once overdue accounts receivable amounts have been determined, what action
Briefly comment on the following statement.‘A key component in a bad debt minimisation strategy is the early identification of doubtful debts.’
Briefly outline the internal controls that should exist over:a receipt of goods from suppliers b processing of supplier tax invoices c payments to suppliers.
Briefly explain why it is important for a business to monitor its accounts payable.
Briefly comment on the following statement.‘The issue of business credit cards to staff should be strictly controlled and subject to the organisation’s accounts payable policies and procedures.’
Briefly explain the concept of reasonableness checks in relation to accounts receivable and accounts payable.
On 30 April 2022, Norma M Spence received a payment for $1133.00 attached to a remittance advice from S Hassal for payment of March tax invoices, as shown in figure 6.67.The extract accounts
Breeze Towers received a remittance advice with attached payment for $3817.00 from E von Stephenson on 31 May 2022 (shown in figure 6.69). This remittance is for April credit sales by Breeze Towers
G Attard has received the statement shown in figure 6.78 from her supplier Darren Copland for the month of March 2022. Foleys Road North Wollongong 2500 Date 1 Mar 22 Balance 2 Mar 22 Bank Discount
W Johnson has received a statement for the month of January 2022 from his supplier, Lesley Richmond(shown in figure 6.80). However, the accounts payable ledger shows a different amount owing (see
A Martinez has received the statement from her supplier Lisa Jackson for the month of April 2022 (figure 6.82);however, the accounts payable ledger shows a different amount owing (see figures 6.83
Using the information of Ku Cumbit shown in figures 6.85 to 6.89 for August and September 2022, enter relevant account balances and post the journals to the general, accounts receivable and accounts
Using the information of Val Orara at the end of April 2022 (shown in figure 6.90) and the transactions for May:• enter the appropriate journal abbreviation next to each transaction• prepare the
Using the information of Glen Reagh at the end of March 2022 (shown in figure 6.91) and the transactions for April:• enter the appropriate journal abbreviation next to each transaction• prepare
From the transactions shown below, enter the appropriate journal abbreviation next to each transaction.Using the information (shown in figure 6.92) and transactions, prepare the journals of B
Margaret O’Reilly keeps three ledgers. Before you prepare the relevant journals, she requires you to enter the appropriate journal abbreviation next to each transaction. She then asks you to
Using the information of Gloster Udy at the end of June 2022 (shown in figure 6.93) and the transactions for July:• enter the appropriate journal abbreviation next to each transaction• prepare
Using the information of William Dumbrell at the end of January 2022 (shown in figure 6.94) and the transactions for February:• enter the appropriate journal abbreviation next to each
Enter the appropriate journal abbreviation next to each transaction listed below.Use these transactions and the following information (shown in figure 6.95) to prepare the journals of T W Bucketts
Enter the appropriate journal abbreviation next to each transaction listed below.Use these transactions and the following information to prepare the journals of Tony Lowman for October 2022. Post the
M Silveri has received a statement for the month of June 2022 from her supplier Suzan Koleda, shown in figure 6.96.However, the accounts payable ledger shows a different amount owing (see figures
On 28 February 2022 H White received funds for $2276.00 attached to a remittance advice from A Beattie, as shown in figure 6.99, for payment of January tax invoices.The extract accounts receivable
Elizabeth Webb received a remittance advice with funds for $6127.00 from Nic Matthew on 31 July 2022 (shown in figure 6.101). This remittance is for June credit sales by Elizabeth Webb to Nic
G Attard commenced business on 1 December 2022 with capital $14 000 and the following assets and liability:bank $5000, inventory $4000, motor vehicle $8000, office furniture and equipment $1000 and a
M Gonzalez commenced business on 1 November 2022 with the following assets and liabilities: bank $2000, inventory $1500, accounts receivable control of $ . . . . . . . . . . for P Chain $451 and G
On 1 February 2022, T Abella commenced business with $50 000 bank and a loan from Strate bank $20 000.On 3 February T Abella purchased the existing continuing business of T Longman for $48 000 and
On 1 January 2022, S Aravena commenced business with bank $5000, GST receivable $1000 and computer $10 000.By the end of May 2022 the business had expanded and S Aravena found it necessary to put in
On 1 July 2022, M Biel commenced business with bank $1000 and earthmoving equipment $36 000.On 1 August 2022 M Biel contributed further funds $10 000, GST receivable $5000 and a grader $50 000.On 1
On 1 May 2022, D Copland withdrew $355 from the business to pay for private expenditure. Show this in the journal.
On 14 July 2022, P Chaing used the debit card to pay the ABC Concert Department for two tickets to the Sydney Symphony Orchestra. This payment was not related to the business at all. Show the payment
Drawing of goods by D Bonita totalled $385 ($350 + $35 GST). Prepare two general journals showing the entry where perpetual inventory applies and then where periodic inventory applies.
On 25 June 2022 F Stool withdrew inventory for private use at a cost of $825 ($750 + $75 GST). On 29 June$1000 was taken by F Stool from the business bank account for private use. Prepare the
Matthews paid $3850 ($3500 + $350 GST) to R Badger for an office desk, cabinet and chair (office furniture).Prepare the journal for S Matthews.
R Pessotto sold a truck (motor vehicle) to J Aitkens for $5720 ($5200 + $520 GST) who paid with a direct deposit into the bank account. Prepare the journal for R Pessotto.
J Leeson commenced business on 15 April 2022 with $5000 in the bank, GST receivable $350 and a computer valued at $3500.20 April: Additional funds of $15 000 were injected by J Leeson into the
C Craft has been having trouble collecting monies owed from accounts receivable and has decided to apply the interest rates that are shown on the customers’ tax invoices for amounts that are
S Sing has liquidity problems and an account payable, S Arnautovic, has applied interest on the overdue portion of the account still not paid. The amount owing to S Arnautovic is $14 000 and interest
C Kevin is having financial problems. He has not been receiving funds from some accounts receivable according to the trading terms and also has not been paying some credit suppliers according to
Show the following transactions in the two journals of S Alderson. Assume first that periodic inventory applies and then that perpetual inventory applies.19 June 2022: Goods were sold to R Friscioni,
Show the following transactions in the two journals of P Kulevska. Assume that perpetual inventory applies.5 October 2022: P Kulevska deposited $792 into her bank account. This was from a cash sale
Show the following transactions in the journals of R Angara, initially assuming periodic inventory applies and then where perpetual inventory applies.2 October 2022: R Angara sold goods on tax
Show the following transactions in the journals of L Buhinjak, initially assuming periodic inventory applies and then where perpetual inventory applies.29 August 2022: Stock costing $1200 and tax
On 5 February 2022, N Wayne sold goods on credit to H Garden for $1199 ($1090 + $109 GST).On 14 February, he received a cheque from H Garden for $1199.However, on 17 February N Wayne’s bank advised
On 18 February 2022, P Jackson sold stock to R Parramatta on credit for $3300 ($3000 + $300 GST); the cost of the goods sold was $1800. R Parramatta paid by cheque, which was banked on 27 February.On
L Narrabeen mailed a $4400 ($4000 + $400 GST) tax invoice to D Why on 2 April 2022.On 8 April L Narrabeen received a cheque from D Why for the full amount owing. The deposit for that day included D
B Borko sent a tax invoice to B Andres $1727 ($1570 + $157 GST) four months ago. All attempts to obtain payment have failed and B Andres can no longer be contacted. On 30 June 2022, B Andres is
M Mandic sent a tax invoice to S Miguel $2695 ($2450 + $245 GST) in July 2022. Funds had been promised but not received. On 7 December 2022, S Miguel paid $990 and was unable to pay any more. Write
Gymea invoiced T Kingsway $1331 ($1210 + $121 GST) in March 2022. After many attempts to obtain payment for the tax invoice it was decided that on 30 June 2022 the debt from T Kingsway would be
Brook Lyn sold goods on credit to T Causeway $2541 ($2310 + $231 GST) on 17 April 2022. The accounts are kept using subsidiary ledgers.7 May: Brook Lyn received $550 from T Causeway.12 May: The bank
On 30 June 2022, $528 was received from C Hawkesbury ($480 + $48 GST), which had previously been written off as a bad debt.Prepare the cash receipts journal and general journal using control accounts
On 31 July 2022, R Hunter, who uses the general ledger with control accounts, received $1705 from V Macdonald($1550 + $155 GST), which had been written off as a bad debt two years ago. You are
D Michael sold goods to M Farrah for $25 905 ($23 550 + $2355 GST) on 15 April 2022. On 7 May a bill receivable is signed, maturing on 28 November 2022. The bill is met on the due date.Show in the
M Farrah purchased goods from D Michael for $25 905 ($23 550 + $2355 GST) on 15 April 2022. On 7 May a bill payable is signed, maturing on 28 November 2022. The bill is met on the due date.Show in
On 1 March 2022, A Levstek commenced business with bank $10 000, GST receivable $4200, land $25 000, equipment$2000 and a motor vehicle $15 000.On 1 April 2022, A Levstek contributed further funds of
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name; with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
Prepare the relevant journals for the dates in January 2022 and post to the general and subsidiary ledgers for M Bowman, who uses periodic inventory.5 Purchased inventory for $3993 ($3630 + $363 GST)
Prepare the journals for the dates in August 2022 and post to the general and subsidiary ledgers for S Ireland who operates with perpetual inventory.2 P Dipstick purchased stock from S Ireland for a
From the following information of J Patricia, prepare an accounts receivable control account for August 2022. Accounts receivable control balance 31 July 2022 Transactions for August Cash sales
From the following data of T John, prepare an accounts receivable control account for July 2022. Balance of accounts receivable listing 30 June 2022 Transactions for July Cheque received from H
Prepare for S Meredith the accounts receivable control account and accounts payable control account for February 2022. Balance as per accounts receivable control account 31 January 2022 Balance as
Prepare the accounts receivable and accounts payable control accounts for April for K Ann. Balance as per accounts receivable control account 31 March 2022 Balance as per accounts payable control
From the following data regarding A Henry, prepare an accounts receivable control account and an accounts payable control account for May 2022. Accounts receivable control balance 30 April 2022
Prepare the accounts receivable and accounts payable control accounts of J Wright for November 2022. Accounts payable control balance 31 October 2022 Accounts receivable control balance 31 October
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
For each of the business transactions listed below, you are to enter in the Workbook:a the account name, with debit account first b if the account entry is a debit or credit c the chart of account
From the transactions shown below, enter the appropriate journal abbreviation next to each transaction.Then, from the information shown in figure 7.20 and the following transactions, prepare the
From the transactions of K Knight shown below, enter the appropriate journal abbreviation next to each transaction.Enter the transactions (periodic inventory applies) for July into the appropriate
Briefly explain how the use of a cash register provides internal control over cash receipts.
Briefly explain how a business verifies that its EFTPOS and credit card sales have been correctly credited by the bank to the business bank account.

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