To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain ?its accounting records:

Sales Journal (SJ): to record all sales of Inventory on credit

Purchases Journal (PJ): to record all Purchases of Inventory on credit

Cash Receipts Journal (CRJ): 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 Premier Ovens 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 journals are taken at the end of the month and then posted to the appropriate accounts.

The company uses a periodic inventory system.

GST has been excluded.

Please Note: All amounts in this practice set should be rounded off to the nearest dollar.

Please refer to the attached images for information on data, figures and material to answer the questions.

a). Enter the transactions for Weeks 1 - 5 into the appropriate Journal for the month of June 2022. Next, create specific ledger accounts as specified above in the requirements and post all the Journal transactions to them.

b). Total all Special Journal columns and post to the appropriate ledger account at the end of the month.

Transcribed Image Text:

TRANSACTIONS For June 2022 Date June 1 June 4 June 7 June 9 June 10 June 11 June 12 June 14 June 15 June 16 June 17 Transaction Week 1 Avoca Gas Ovens paid the balance of its account and were given a discount of $7344. Delivered goods to Bowral Gas Ovens for $263,412 and issued invoice #151. Issued cheque # 910 to pay $29,160 for delivery costs of inventory to their premises. Paid the amount owing to Penrose Oven Manufacturers Cheque # 911 was sent. Total Cash Sales for the week were $74,358. Week 2 Gerrigong Electric Ovens paid $105,462 toward the amount it owes us. Made a purchase from Southernland Oven Manufacturers for $225,990 for inventory: Terms are 1/10, n/ 45 and date of invoice was 10 June. The firm issued cheque # 912 for the purchase of Stationery Supplies amounting to $21,384. Avoca Gas Ovens purchased inventory of $265,356. Invoice #152 was issued. Some of the inventory purchased on 10 June from Southernland Oven Manufacturers was the incorrect size and design. Returned inventory in exchange for a Credit Note of $72,900. Total Cash Sales for the week were $101,574. Week 3 Paid office staff salaries of $283,338. Cheque #913 was issued for payment. Cheque #914 was issued to pay sales staff wages, $240,570. Purchased inventory from Penrose Oven Manufacturers for $371,790. The invoice was dated 16 June. Credit terms are 2/10, n/30. Sold inventory to Gerrigong Electric Ovens for $479,682 on invoice # 153. Issued cheque # 915 to pay for delivery costs of $36,450. June 19 June 21 June 23 June 24 June 25 June 26 June 28 June 29 June 29 June 29 June 30 The company issued cheque # 916 to pay the amount still owing to Southernland Oven Manufacturers Total Cash Sales for the week were $96,471. Week 4 Gerrigong Electric Ovens returned $90,882 of inventory purchased on 17 June. Issued a Credit Note for the transaction. Issued Cheque # 917 for $48,600 to pay for the annual gift the company donates the UNESCO World Charity Fund. The gift is to be recorded as a sundry expense in the accounts. Purchased inventory from Southernland Oven Manufacturers, worth $362,070. The terms were 1/10, n/45. Date of the invoice was 25 June. Received the total amount owing from Gerrigong Electric Ovens. Total Cash Sales for the week were $151,632. Week 5 Bowral Gas Ovens paid the entire balance of its still outstanding account. Reduced $291,600 of the amount owing to Southernland Oven Manufacturers and Cheque # 918 was issued. A dividend of $683,100 was declared to the company shareholders. However, the dividend will not be paid until 10 October, 2022. Paid sales staff wages, $240,570 and Cheque #919 was issued to meet the payment. Issued additional shares to the owners of the Company for cash, and $486,000 was received and banked. Total Cash Sales for the week were $90,396. SUBSIDIARY LEDGERS Schedule of Accounts Receivable As at 31 May 2022 Note: Premier Ovens Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Acc. No. 101-1 101-2 101-3 101-4 Schedule of Accounts Payable As at 31 May 2022 200-1 200-2 Acc. No. Account Account Avoca Gas Ovens Bowral Gas Ovens Gerrigong Electric Ovens Mittagong Electric Ovens Penrose Oven Manufacturers Southernland Oven Manufacturers. Invoice date Invoice date 29 May 19 May 26 April 13 May 31 May 25 May Amount (S) 367,416 185.652 251,262 114,210 $918,540 Credit terms 2/10, n/60 1/10, n/45 Amount ($) 167,670 424,764 $592,434 TRANSACTIONS For June 2022 Date June 1 June 4 June 7 June 9 June 10 June 11 June 12 June 14 June 15 June 16 June 17 Transaction Week 1 Avoca Gas Ovens paid the balance of its account and were given a discount of $7344. Delivered goods to Bowral Gas Ovens for $263,412 and issued invoice #151. Issued cheque # 910 to pay $29,160 for delivery costs of inventory to their premises. Paid the amount owing to Penrose Oven Manufacturers Cheque # 911 was sent. Total Cash Sales for the week were $74,358. Week 2 Gerrigong Electric Ovens paid $105,462 toward the amount it owes us. Made a purchase from Southernland Oven Manufacturers for $225,990 for inventory: Terms are 1/10, n/ 45 and date of invoice was 10 June. The firm issued cheque # 912 for the purchase of Stationery Supplies amounting to $21,384. Avoca Gas Ovens purchased inventory of $265,356. Invoice #152 was issued. Some of the inventory purchased on 10 June from Southernland Oven Manufacturers was the incorrect size and design. Returned inventory in exchange for a Credit Note of $72,900. Total Cash Sales for the week were $101,574. Week 3 Paid office staff salaries of $283,338. Cheque #913 was issued for payment. Cheque #914 was issued to pay sales staff wages, $240,570. Purchased inventory from Penrose Oven Manufacturers for $371,790. The invoice was dated 16 June. Credit terms are 2/10, n/30. Sold inventory to Gerrigong Electric Ovens for $479,682 on invoice # 153. Issued cheque # 915 to pay for delivery costs of $36,450. June 19 June 21 June 23 June 24 June 25 June 26 June 28 June 29 June 29 June 29 June 30 The company issued cheque # 916 to pay the amount still owing to Southernland Oven Manufacturers Total Cash Sales for the week were $96,471. Week 4 Gerrigong Electric Ovens returned $90,882 of inventory purchased on 17 June. Issued a Credit Note for the transaction. Issued Cheque # 917 for $48,600 to pay for the annual gift the company donates the UNESCO World Charity Fund. The gift is to be recorded as a sundry expense in the accounts. Purchased inventory from Southernland Oven Manufacturers, worth $362,070. The terms were 1/10, n/45. Date of the invoice was 25 June. Received the total amount owing from Gerrigong Electric Ovens. Total Cash Sales for the week were $151,632. Week 5 Bowral Gas Ovens paid the entire balance of its still outstanding account. Reduced $291,600 of the amount owing to Southernland Oven Manufacturers and Cheque # 918 was issued. A dividend of $683,100 was declared to the company shareholders. However, the dividend will not be paid until 10 October, 2022. Paid sales staff wages, $240,570 and Cheque #919 was issued to meet the payment. Issued additional shares to the owners of the Company for cash, and $486,000 was received and banked. Total Cash Sales for the week were $90,396. SUBSIDIARY LEDGERS Schedule of Accounts Receivable As at 31 May 2022 Note: Premier Ovens Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Acc. No. 101-1 101-2 101-3 101-4 Schedule of Accounts Payable As at 31 May 2022 200-1 200-2 Acc. No. Account Account Avoca Gas Ovens Bowral Gas Ovens Gerrigong Electric Ovens Mittagong Electric Ovens Penrose Oven Manufacturers Southernland Oven Manufacturers. Invoice date Invoice date 29 May 19 May 26 April 13 May 31 May 25 May Amount (S) 367,416 185.652 251,262 114,210 $918,540 Credit terms 2/10, n/60 1/10, n/45 Amount ($) 167,670 424,764 $592,434

Answer rating: 100% (QA)

Cash Receipt Journal Date Particulars Post Ref Receipt Amount Discount Allowed Transfer To Bank Jun1 Oveca Gas Oveans 360072 7344 360072 Jun 7 Cash Sa... View the full answer