{"id":10539,"date":"2021-10-22T14:23:39","date_gmt":"2021-10-22T14:23:39","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/acct1101-edwards-electrical-goods-has-been-in-business-in-sydney\/"},"modified":"2021-10-22T14:23:39","modified_gmt":"2021-10-22T14:23:39","slug":"acct1101-edwards-electrical-goods-has-been-in-business-in-sydney","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/acct1101-edwards-electrical-goods-has-been-in-business-in-sydney\/","title":{"rendered":"Acct1101 edward’s electrical goods has been in business in sydney"},"content":{"rendered":"
\n

EDWARD’S ELECTRICAL GOODS PTY LTD<\/p>\n

\u2013 ACCOUNTING PRACTICE SET<\/p>\n

\u00a0<\/p>\n

INTRODUCTION<\/p>\n

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.<\/p>\n

Company Background<\/p>\n

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 \u00a0\u00a0business.<\/p>\n

Accounting System Information & Procedures<\/p>\n

The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. \u00a0\u00a0To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accounting records:<\/p>\n

1.\tSales Journal (SJ): to record all sales of inventory oncredit<\/p>\n

2.\tPurchasesJournal(PJ):torecordallpurchasesofinventoryoncredit<\/p>\n

3.\tCash Receipts Journal (CRJ): to record all cashreceipts<\/p>\n

4.\tCash Payments Journal (CPJ): to record all cashpayments<\/p>\n

5.\tGeneralJournal(GJ):torecordalltransactionsotherthantheabove.<\/p>\n

Business transactions are recorded for Edward’s Electrical Goods on a daily basis in one of these five journals in the accounts.<\/p>\n

Additionally, the company maintains a general ledger to record postings from the journals. \u00a0Subsidiary Ledgers are used to record the separate details of Accounts Receivable and Accounts Payable. \u00a0Transactions are posted immediately to the relevant ledger account if they are entered \u00a0into the general journal, the \u201cother\u201d 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. \u00a0Apart 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.<\/p>\n

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.<\/p>\n

Please Note: All amounts in this practice set should be rounded to the nearest dollar.<\/p>\n

\u00a0<\/p>\n

UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS<\/p>\n

As at 31 May 2017<\/p>\n

Acc. No.\tAccount\tDebit ($)\tCredit ($)<\/p>\n

100\tCash at Bank\t68,292\t<\/p>\n

101\tAccounts Receivable Control\t26,460\t<\/p>\n

102\tStore Supplies\t16,779\t<\/p>\n

103\tInventory\t86,800\t<\/p>\n

104\tPrepaid Store Rent (paid 1 March 2017)\t82,180\t<\/p>\n

105\tPrepaid Insurance (paid 1 Nov. 2016)\t1,260\t<\/p>\n

150\tStore Shelving & Fittings\t56,700\t<\/p>\n

151\tAccum. Depreciation \u2013 Shelving & Fittings\t\t<\/p>\n

160\tEquipment\t19,250\t<\/p>\n

161\tAccumulated Depreciation – Equipment\t\t9,450<\/p>\n

200\tAccounts Payable Control\t\t17,066<\/p>\n

201\tInterest Payable\t\t<\/p>\n

202\tUtilities Payable\t\t<\/p>\n

203\tWages Payable\t\t<\/p>\n

204\tSalaries Payable\t\t<\/p>\n

205\tTax Payable\t\t<\/p>\n

206\tDividend Payable\t\t<\/p>\n

250\tBank Loan (due 1 June 2022)\t\t67,438<\/p>\n

300\tShare Capital\t\t126,000<\/p>\n

301\tRetained Profits (1 July 2016)\t\t107,058<\/p>\n

302\tDividends Declared\t\t<\/p>\n

303\tProfit and Loss Summary\t\t<\/p>\n

400\tSales Revenue\t\t449,526<\/p>\n

401\tSales Discounts (Discount Allowed)\t3,451\t<\/p>\n

402\tSales Returns and Allowances\t973\t<\/p>\n

500\tPurchases\t214,095\t<\/p>\n

501\tPurchase Discounts (Discount Received)\t\t2,688<\/p>\n

502\tPurchase Returns and Allowances\t\t1,127<\/p>\n

600\tFreight-Out\t322\t<\/p>\n

601\tWages Expense – Sales Staff\t107,569\t<\/p>\n

602\tDepreciation Expense- Shelving & Fittings\t\t<\/p>\n

603\tDepreciation Expense – Equipment\t\t<\/p>\n

604\tSupplies Expense\t\t<\/p>\n

605\tRent Expense\t\t<\/p>\n

606\tInsurance Expense\t\t<\/p>\n

607\tAdvertising Expense\t4,872\t<\/p>\n

608\tInterest Expense\t\t<\/p>\n

609\tUtilities expense\t6,496\t<\/p>\n

610\tTax Expense\t\t<\/p>\n

611\tSundry Expense\t336\t<\/p>\n

612\tSalaries\t Expense\u2013 Office Staff\t84,518\t<\/p>\n

613\tBad Debts Expense\t\t<\/p>\n

\t\t780,353\t780,353<\/p>\n

\u00a0<\/p>\n

INSTRUCTIONS<\/p>\n

1)\tEnter 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 \u201cAccount System \u00a0Information\u201d section of \u00a0theintroduction.<\/p>\n

2)\tTotalallSpecialJournalcolumnsandposttotheappropriateledgeraccountattheendof themonth.<\/p>\n

3)\tPreparetheunadjustedTrialBalanceasat30Juneontheworksheetprovided.<\/p>\n

4)\tPrepare the adjusting entries shown on page 10 in the General Journal and post to the relevantledgeraccounts.Theentertheadjustmentsintherelevantworksheetcolumnsand prepare an adjusted TrialBalance.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

EDWARD’S ELECTRICAL GOODS PTY LTD \u2013 ACCOUNTING PRACTICE SET \u00a0 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10539","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=10539"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10539\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=10539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=10539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=10539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}