Now that you have reviewed information about The Adrenaline Hut,
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 |
Issued Cheque No. 646 for $8,800 to pay Blue Blazer Realty for
two month's worth of rent in advance. |
| 3 |
Jump Around paid the full amount owing on their account. |
| 4 |
Paid sales staff wages of $2,435 for the week up to and
including yesterday, Cheque No. 647. Note that $1,143 of this
payment relates to the wages expense incurred during the last week
of May. |
| 5 |
Paid the full amount owing to Addax Sports, Cheque No.
648. |
| 6 |
Made payment of $768 to Integer Energy for 3 months of
electricity up to and including 31 May, Cheque No. 649. |
| 6 |
Issued Cheque No. 650 to Office Supplies Warehouse for the
purchase of $548 worth of office supplies. |
After completing this practice set page, you should know how to
record basic transactions in the journals provided below and
understand the posting process in the manual accounting system.
Note that you will record the remaining June transactions in the
following sections of this practice set.
Remember, one purpose of using special journals is to make the
posting process more efficient by posting the total of most columns
in the special journals after all of the transactions for the
period have been recorded. However, some parts of a journal entry
are still required to be posted on a daily basis. View the
company's accounting policies and procedures for details of what is
to be posted daily or monthly.
Instructions for week 1
1)Record all week 1 transactions in the relevant journals.
Note that special journals must be used where applicable. Any
transaction that cannot be recorded in a special journal should be
recorded in the general journal.
2)Post entries recorded in the journals to the appropriate
ledger accounts according to the company's accounting policies and
procedures.
Note that the relevant totals of the special journals will be
posted to the general ledger accounts at the end of the month. You
will enter this after you prepare the Bank Reconciliation
Statement.
Remember to enter all answers to the nearest whole dollar. When
calculating a discount, if a discount is not a whole number, round
the discount to the nearest whole dollar. Then, to calculate the
cash at bank amount, subtract the discount from the original
amount.
Additional instructions
Displaying selected accounting records:
- To save space, not all accounting records (e.g. journals and
ledgers) will be displayed on every page. However, on each page you
can access all accounting records necessary to answer the questions
on that page.
- There are several tabs representing different views of the
accounting records. The active tab by default is Show All, but you
may also select to view just one particular accounting record by
selecting the appropriate tab.
- If you fill in any accounting records and change the view on
the page by selecting a different tab, the information that you
have entered will remain in that accounting record and be displayed
whenever you can see that accounting record.
- Before submitting your answers, we recommend that you click the
Show All tab and check that all relevant accounting records have
been completed. You are required to complete all relevant
accounting records before pressing the Submit answers button. Once
submitted, you will not be able to return to the page to re-enter
or alter your answers.
Journals:
- Each transaction recorded in a special journal must be entered
in one line. In order to receive full points, you must not split up
the relevant transaction into more than one line in the special
journal.
- For certain transactions in special journals, some accounting
textbooks do not always require an account to be chosen under the
column labeled Account. In this practice set you are required to
select an account for each transaction in the special journals.
Specifically, in all special journals, under the column labeled
Account, you must select the correct account name for each
transaction in order to receive full points. Note that for some
transactions, this will mean that the account name selected will
correspond to the heading of one of the columns in that special
journal.
- For each journal, in the Post Ref. column you will need to
correctly type the account number of the account you are posting
to. In particular, in special journals, some accounting textbooks
do not always require a reference to be recorded in the Post Ref.
column. In this practice set, in order to receive full points,
every transaction entered in a special journal requires an entry in
the Post Ref. column. Note that in the special journals, if the
account name selected for a transaction corresponds to the heading
of one of the columns in that special journal, the post ref is to
be recorded as an X. This is because these transactions are not
posted on a daily basis. In order to receive full points, you must
record only the letter X in the Post Ref. column for these
transactions.
- Note that in special journals, the Other Accounts column should
not be used to record movements of inventory.
- If a cheque number is not required, you need to fill the
appropriate input box with an X.
- There may be entries in the general journal that require
posting to both a control account and a subsidiary ledger. In these
cases, after you have posted to both ledgers, you should enter the
reference for both the general ledger account and the subsidiary
ledger account in the Post Ref. column to indicate that you have
posted to both accounts. For example, if the reference number for
the control account is 110 and the reference number for the
subsidiary ledger account is 110-1, you should type '110/110-1'
into the Post Ref. column.
- General journal entries do NOT require a description of the
journal entries.
Ledgers:
- When posting a transaction to a ledger account, under the
Description column, please type the description of the transaction
directly into the field. The exact wording does not matter for
grading purposes. For example, it does not matter in an electricity
transaction if you type 'Paid for electricity' or 'Paid electricity
bill'.
- For each ledger, under the Ref. column, you need to select the
correct journal from a list in the drop-down box provided in order
to receive full points.
- If the balance of a ledger account is zero you do not need to
select a debit or credit from the drop-down box.
- Each transaction posted to the subsidiary ledgers must be
entered in one line. In order to receive full points, you must not
split up the relevant transaction into more than one line in the
subsidiary ledger.
Both journals and ledgers:
- Most journals and ledgers will have blank rows left at the end
of the page.
- Some journals and ledgers may not require any entries.
- When purchases and sales are recorded in special journals, the
corresponding changes in inventory must not be posted to the
Inventory account in the general ledger on a daily basis.