Prepare with the information above: Within the column table provided General Journal

Date

Account

Post Ref.

Debit

Credit

Cash Receipt Journal

Date

Account

Post. Ref.

Cash at Bank (100) DR

Sales Discounts (401) DR

Sales (400) CR

Accounts Receivable (101) CR

Other CR

Cash Payment Journal

Date

Account

Chq. No.

Post Ref.

Other DR

Accounts Payable (200) DR

Purchases (500) DR

Cash at Bank (100) CR

Purchase Discounts (501) CR

Sales Journal

Date

Invoice No.

Account

Post Ref.

Amount

Purchase Journal

Date

Invoice Date

Account

Terms

Post Ref.

Amount

INTRODUCTION The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. Company Background Cologne Wines Pty Ltd has been in business in Portarlington, Victoria since July, 2017. The company was started by James Ponsford and operates a large showroom which sells wines from all over Australia on a wholesale basis to other liquor stores on both credit and cash terms. The company's Share Capital consists of 486,000 Ordinary Shares, originally issued at $1 each and which are owned by various members of the Ponsford family. The company has employed a combination of sales and administration staff to run the business since July, 2017. The company has generally been profitable since it was originally formed and has reasonable liquidity. Accounting System Information & Procedures The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accounting records: 1. Sales Journal (SJ): to record all sales of Inventory on credit Purchases Journal (PJ): to record all Purchases of Inventory on credit 2 3. Cash Receipts Journal (CRI): to record all Cash Receipts Cash Payments Journal (CPJ): to record all Cash Payments General Journal(GJ): to record all transactions other than the above. Business transactions are recorded for Cologne Wines Pty Ltd on a daily basis in one of these five journals in the accounts. Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers are used to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted immediately to the relevant ledger account if they are entered into the general journal, the "other" column of the Cash Receipts Journal or Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts Payable subsidiary ledger accounts. Apart from these transactions, totals of the special joumals are taken at the end of the month and then posted to the appropriate accounts. The company uses a periodic inventory system. In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its sales and purchases. However, for the purposes of this exercise, GST has been excluded. Please Note: All amounts in this practice set should be rounded off to the nearest dollar. SUBSIDIARY LEDGERS UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS As at 31 May 2023 Schedule of Accounts Receivable Accout Credit (5) As at 31 May 2023 Acc. 100 101 TRANSACTIONS For June 2023 Note: Cologne Wines Pty Ltd offers all customers Credit Terms 2/10, 1/30, unless otherwise stated 102 103 Debit (S) 263,412 102,060 64,719 334,800 316,980 4,860 218,700 Acc. No. Account Amount (5) Date Involce date Transaction 104 105 150 Week 40.824 101-1 101-2 101-3 101-4 Anglesca Wine Cellars Ballarine Wine Cellars Colac Wine Cellars Drysdale Wine Cellars June 1 151 160 161 200 201 30 May 20 May 28 April 14 May 20,628 27,918 12,690 Anglesea Wine Cellars paid the balance of its account and were given a discount of S272 Delivered goods to Ballerine Wine Cellars for $29,268 and issued invoice #181. Issued cheque #940 to pay $3,240 for delivery costs of inventory to their premises 74,250 36,450 65,826 June 4 Paid the amount owing to Ocean Grove Wineries and Cheque #941 was sent to the Creditor 202 June 7 102,060 Total Cash Sales for the week were 58,262 203 204 205 206 250 Week June 9 Colac Wine Cellars paid $11.718 toward the amount it owes us 300 301 260,118 486.000 412,938 Schedule of Accounts Payable June 10 As at 31 May 2023 Made a purchase from Point Lonsdale Wineries for $25,110 for inventory: Terms are 1/10,n/45 and date of invoice was 10 June 302 303 400 Cash at Bank Accounts Receivable Control Stationery Supplies Inventory Prepaid Rent (paid I March 2023) Prepaid Insurance (paid 1 Nov. 2022) Showroom Fittings Accumulated Depreciation - Showroom Fittings Equipment Accumulated Depreciation - Equipment Accounts Payable Control Interest Payable Utilities Payable Wages Payable Salaries Payable Tax Payable Dividend Payable Mortgage Loan (due 31 July 2038) Share Capital Retained Profits (1 July 2022) Dividends Declared Profit and Loss Summary Sales Revenue Sales Discounts (Discount Allowed) Sales Returns and Allowances Purchases Purchase Discounts (Discount Received) Purchase Returns and Allowances Freight-Out Wages Expense - Sales Staff Depreciation Expense - Showroom Fittings Depreciation Expense - Equipment Stationery Expense Rent Expense Insurance Expense Advertising Expense Interest Expense Utilities expense Tax Expense Sundry Expenses Salaries Expense - Omice Staff Bad Debts Expense The firm issued cheque #942 for the purchase of Stationery Supplies amounting to $2,376. 1,733,886 401 June 11 Anglesea Wine Cellars purchased inventory of S29,484. Invoice #182 was issued. 402 13,311 3,753 825,795 Account Credit terms Ace. No. Invoice date Amount (5) 500 June 12 Some of the wine bottles purchased on 10 June from Point Lonsdale Wineries were the incorrect vintage. Returned inventory in exchange for a Credit Note of 58,100. 501 10,368 4,347 200-1 200-2 Ocean Grove Wineries Point Lonsdale Wineries 30 May 27 May 2/10, n/60 1/10, 1/45 18,630 47,196 502 600 601 June 14 Total Cash Sales for the week were $11,286. 1,242 414,909 Week 602 603 604 $65,826 June 15 Paid office staff salaries of $31,482. Cheque #943 was issued for payment. Cheque 1944 was issued to pay sales staff wages, S26,730 605 606 607 18.792 June 16 Purchased inventory from Ocean Grove Winaries for $41,310. The invoice was dated 16 June. Credit terms are 2/10,n/30 608 25.056 609 610 June 17 Sold inventory to Colac Wine Cellars for $53,298 on invoice #183. Issued cheque #945 to pay for delivery costs of $4,050. 611 612 613 1,296 325,998 June 19 The company issued cheque #946 to pay the amount still owing to Point Lonsdale Wineries 3,009.933 3,009,933 June 21 Total Cash Sales for the week were $10,719. INTRODUCTION The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. Company Background Cologne Wines Pty Ltd has been in business in Portarlington, Victoria since July, 2017. The company was started by James Ponsford and operates a large showroom which sells wines from all over Australia on a wholesale basis to other liquor stores on both credit and cash terms. The company's Share Capital consists of 486,000 Ordinary Shares, originally issued at $1 each and which are owned by various members of the Ponsford family. The company has employed a combination of sales and administration staff to run the business since July, 2017. The company has generally been profitable since it was originally formed and has reasonable liquidity. Accounting System Information & Procedures The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accounting records: 1. Sales Journal (SJ): to record all sales of Inventory on credit Purchases Journal (PJ): to record all Purchases of Inventory on credit 2 3. Cash Receipts Journal (CRI): to record all Cash Receipts Cash Payments Journal (CPJ): to record all Cash Payments General Journal(GJ): to record all transactions other than the above. Business transactions are recorded for Cologne Wines Pty Ltd on a daily basis in one of these five journals in the accounts. Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers are used to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted immediately to the relevant ledger account if they are entered into the general journal, the "other" column of the Cash Receipts Journal or Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts Payable subsidiary ledger accounts. Apart from these transactions, totals of the special joumals are taken at the end of the month and then posted to the appropriate accounts. The company uses a periodic inventory system. In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its sales and purchases. However, for the purposes of this exercise, GST has been excluded. Please Note: All amounts in this practice set should be rounded off to the nearest dollar. SUBSIDIARY LEDGERS UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS As at 31 May 2023 Schedule of Accounts Receivable Accout Credit (5) As at 31 May 2023 Acc. 100 101 TRANSACTIONS For June 2023 Note: Cologne Wines Pty Ltd offers all customers Credit Terms 2/10, 1/30, unless otherwise stated 102 103 Debit (S) 263,412 102,060 64,719 334,800 316,980 4,860 218,700 Acc. No. Account Amount (5) Date Involce date Transaction 104 105 150 Week 40.824 101-1 101-2 101-3 101-4 Anglesca Wine Cellars Ballarine Wine Cellars Colac Wine Cellars Drysdale Wine Cellars June 1 151 160 161 200 201 30 May 20 May 28 April 14 May 20,628 27,918 12,690 Anglesea Wine Cellars paid the balance of its account and were given a discount of S272 Delivered goods to Ballerine Wine Cellars for $29,268 and issued invoice #181. Issued cheque #940 to pay $3,240 for delivery costs of inventory to their premises 74,250 36,450 65,826 June 4 Paid the amount owing to Ocean Grove Wineries and Cheque #941 was sent to the Creditor 202 June 7 102,060 Total Cash Sales for the week were 58,262 203 204 205 206 250 Week June 9 Colac Wine Cellars paid $11.718 toward the amount it owes us 300 301 260,118 486.000 412,938 Schedule of Accounts Payable June 10 As at 31 May 2023 Made a purchase from Point Lonsdale Wineries for $25,110 for inventory: Terms are 1/10,n/45 and date of invoice was 10 June 302 303 400 Cash at Bank Accounts Receivable Control Stationery Supplies Inventory Prepaid Rent (paid I March 2023) Prepaid Insurance (paid 1 Nov. 2022) Showroom Fittings Accumulated Depreciation - Showroom Fittings Equipment Accumulated Depreciation - Equipment Accounts Payable Control Interest Payable Utilities Payable Wages Payable Salaries Payable Tax Payable Dividend Payable Mortgage Loan (due 31 July 2038) Share Capital Retained Profits (1 July 2022) Dividends Declared Profit and Loss Summary Sales Revenue Sales Discounts (Discount Allowed) Sales Returns and Allowances Purchases Purchase Discounts (Discount Received) Purchase Returns and Allowances Freight-Out Wages Expense - Sales Staff Depreciation Expense - Showroom Fittings Depreciation Expense - Equipment Stationery Expense Rent Expense Insurance Expense Advertising Expense Interest Expense Utilities expense Tax Expense Sundry Expenses Salaries Expense - Omice Staff Bad Debts Expense The firm issued cheque #942 for the purchase of Stationery Supplies amounting to $2,376. 1,733,886 401 June 11 Anglesea Wine Cellars purchased inventory of S29,484. Invoice #182 was issued. 402 13,311 3,753 825,795 Account Credit terms Ace. No. Invoice date Amount (5) 500 June 12 Some of the wine bottles purchased on 10 June from Point Lonsdale Wineries were the incorrect vintage. Returned inventory in exchange for a Credit Note of 58,100. 501 10,368 4,347 200-1 200-2 Ocean Grove Wineries Point Lonsdale Wineries 30 May 27 May 2/10, n/60 1/10, 1/45 18,630 47,196 502 600 601 June 14 Total Cash Sales for the week were $11,286. 1,242 414,909 Week 602 603 604 $65,826 June 15 Paid office staff salaries of $31,482. Cheque #943 was issued for payment. Cheque 1944 was issued to pay sales staff wages, S26,730 605 606 607 18.792 June 16 Purchased inventory from Ocean Grove Winaries for $41,310. The invoice was dated 16 June. Credit terms are 2/10,n/30 608 25.056 609 610 June 17 Sold inventory to Colac Wine Cellars for $53,298 on invoice #183. Issued cheque #945 to pay for delivery costs of $4,050. 611 612 613 1,296 325,998 June 19 The company issued cheque #946 to pay the amount still owing to Point Lonsdale Wineries 3,009.933 3,009,933 June 21 Total Cash Sales for the week were $10,719