Now that you have reviewed information about Choco Holly, you are ready to begin
ID: 2451657 • Letter: N
Question
Now that you have reviewed information about Choco Holly, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions thatoccurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transactions occurred throughout the first week of June:
Week 1 Date Transaction description 1 Purchased 7 boxes of Liquorice Chocolate from Brennan Imports Group for $90 each, terms 2/10, n/30. 1 Paid the full amount owing to Restlay, Check No. 603. Payment fell within discount period. 1 Obtained a loan of $40,000 from Earth Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2015 and the principal of the loan is to be repaid on June 1, 2019. 2 Purchased 9 boxes of Macadamia Toffee with cash for $90 each, Check No. 604. 4 Made cash sales of $6,577 during the first 4 days of the month. 5 Purchased 6 boxes of Chocolate Coated Coffee Beans from Spud's Confectionery for $60 each, terms net 30. 5 Paid the full amount owing to East Tangiers Cooperative, Check No. 605. Payment fell within discount period. 6 Sold 8 boxes of Macadamia Toffee to Sugar-hi for $180 each, Invoice No. 501.
Be sure to fill out all special journals, general journal, subsidiary ledger and general ledger.
I have filled out what i think is the correct special journals and general journals..ect. But I would like an expert answer to compare mine to. Now that you have reviewed information about Choco Holly, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions that
occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transactions occurred throughout the first week of June:
Week 1 Date Transaction description 1 Purchased 7 boxes of Liquorice Chocolate from Brennan Imports Group for $90 each, terms 2/10, n/30. 1 Paid the full amount owing to Restlay, Check No. 603. Payment fell within discount period. 1 Obtained a loan of $40,000 from Earth Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2015 and the principal of the loan is to be repaid on June 1, 2019. 2 Purchased 9 boxes of Macadamia Toffee with cash for $90 each, Check No. 604. 4 Made cash sales of $6,577 during the first 4 days of the month. 5 Purchased 6 boxes of Chocolate Coated Coffee Beans from Spud's Confectionery for $60 each, terms net 30. 5 Paid the full amount owing to East Tangiers Cooperative, Check No. 605. Payment fell within discount period. 6 Sold 8 boxes of Macadamia Toffee to Sugar-hi for $180 each, Invoice No. 501.
Be sure to fill out all special journals, general journal, subsidiary ledger and general ledger.
I have filled out what i think is the correct special journals and general journals..ect. But I would like an expert answer to compare mine to.
Explanation / Answer
Purchase Book
Date
Particulars
LF
Details
Amount
June -1
Brenan Imports Group
630
June -5
Spud's Confectionary
360
Purchase A/c Dr.
990
Sales Book
Date
Particulars
LF
Details
Amount
June -6
Sugar-hi
1440
Sales A/c Dr.
1440
Cash Book
Date
Particulars
JF
Discount
Cash
Bank
Date
Particulars
JF
Discount
Cash
Bank
Allowed
Received
June-1
To Balance B/f
$
$
June-1
By Restlay - Check No 603
$
$
June-1
To Earth Bank
$40,000
June-1
By Purchases - Check No 604
$810
June-4
To Sales
$6,577
June-5
By East Tangiers Cooperative
$
$
(Check No 605)
June-6
To Balance C/f
$
$
$
$
$
$
$
$
$
Purchase A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
To Balance B/f
$
June-2
To Bank A/c Check No 604
810
June-2
To Sundries as per
June-6
By Balance C/f
$
Purchase Book
990
$
$
RestLay A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
To Bank A/c - Check No 603
$
June-1
By Balance B/f
$
June-1
To Discount Recd.
$
June-6
To Balance C/f
$
$
$
Earth Bank A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-6
To Balance C/f
$40,000
June-1
By Bank A/c - Loan Recd
$40,000
$40,000
$40,000
Discount Received A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
By Balance b/f
$
June-1
By Restlay
$
June-6
To Balance C/f
$
June-5
East Tangiers Cooperative A/c
$
$
$
Sales A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
By Balance b/f
$
June-6
To Balance C/f
$
June-4
By Cash A/c
$6,577
$
$
Brennan Imports Group A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-6
To Balance C/f
$
June-1
By Balance b/f
$
June-1
By Purchases A/c
$630
$
$
Spud's Confectionery A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-6
To Balance C/f
$
June-1
By Balance b/f
$
June-4
By Purchases A/c
$360
$
$
East Tangiers Cooperative A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-5
To Bank A/c - Check No 605
$
June-1
By Balance b/f
$
June-5
To Discount Recd.
$
June-6
To Balance C/f
$
$
$
Sales A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
By Balance b/f
$
June-6
To Balance C/f
$
June-6
By Sundries as per
Sales Book
1440
$
$
Sugar Hi A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
June-1
To Balance b/f
$
June-6
To Sales A/c
1440
June-6
By Balance C/f
$
$
$
Purchase Book
Date
Particulars
LF
Details
Amount
June -1
Brenan Imports Group
630
June -5
Spud's Confectionary
360
Purchase A/c Dr.
990
Sales Book
Date
Particulars
LF
Details
Amount
June -6
Sugar-hi
1440
Sales A/c Dr.
1440
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