Acct1101 edward’s electrical goods has been in business in sydney

EDWARD’S ELECTRICAL GOODS PTY LTD

– ACCOUNTING PRACTICE SET

 

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

Edward’s Electrical Goods has been in business in Sydney since July, 2011. The company was started by Edward Wright and operates a shop which sells electrical equipment on a retail basis to other businesses on credit and the public on cash terms. The company’s share capital consists of 126,000 ordinary shares, issued at $1 each, that are owned by various members of the Wright family. The company employs a combination of sales and administration staff to operate the   business.

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 oncredit

2. PurchasesJournal(PJ):torecordallpurchasesofinventoryoncredit

3. Cash Receipts Journal (CRJ): to record all cashreceipts

4. Cash Payments Journal (CPJ): to record all cashpayments

5. GeneralJournal(GJ):torecordalltransactionsotherthantheabove.

Business transactions are recorded for Edward’s Electrical Goods 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 inventorysystem.

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 to the nearest dollar.

 

UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS

As at 31 May 2017

Acc. No. Account Debit ($) Credit ($)

100 Cash at Bank 68,292

101 Accounts Receivable Control 26,460

102 Store Supplies 16,779

103 Inventory 86,800

104 Prepaid Store Rent (paid 1 March 2017) 82,180

105 Prepaid Insurance (paid 1 Nov. 2016) 1,260

150 Store Shelving & Fittings 56,700

151 Accum. Depreciation – Shelving & Fittings

160 Equipment 19,250

161 Accumulated Depreciation – Equipment 9,450

200 Accounts Payable Control 17,066

201 Interest Payable

202 Utilities Payable

203 Wages Payable

204 Salaries Payable

205 Tax Payable

206 Dividend Payable

250 Bank Loan (due 1 June 2022) 67,438

300 Share Capital 126,000

301 Retained Profits (1 July 2016) 107,058

302 Dividends Declared

303 Profit and Loss Summary

400 Sales Revenue 449,526

401 Sales Discounts (Discount Allowed) 3,451

402 Sales Returns and Allowances 973

500 Purchases 214,095

501 Purchase Discounts (Discount Received) 2,688

502 Purchase Returns and Allowances 1,127

600 Freight-Out 322

601 Wages Expense – Sales Staff 107,569

602 Depreciation Expense- Shelving & Fittings

603 Depreciation Expense – Equipment

604 Supplies Expense

605 Rent Expense

606 Insurance Expense

607 Advertising Expense 4,872

608 Interest Expense

609 Utilities expense 6,496

610 Tax Expense

611 Sundry Expense 336

612 Salaries Expense– Office Staff 84,518

613 Bad Debts Expense

780,353 780,353

 

INSTRUCTIONS

1) Enter the transactions on pages 8-9 into the appropriate Journal for the month of June 2017, Remember to post Journal transactions to the ledger accounts as specified in the “Account System  Information” section of  theintroduction.

2) TotalallSpecialJournalcolumnsandposttotheappropriateledgeraccountattheendof themonth.

3) PreparetheunadjustedTrialBalanceasat30Juneontheworksheetprovided.

4) Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevantledgeraccounts.Theentertheadjustmentsintherelevantworksheetcolumnsand prepare an adjusted TrialBalance.

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.