QUESTION 1: General Journal, General Ledger, Trial Balance
Part A
Hal Apeenyo is the sole proprietor of “Cocina De La Madre”, a restaurant specialising in quality, authentic Mexican cuisine.
Required:
Below is a list of transactions that took place during the month of June 2018.
Record each of the following transactions (where required), using the blank General Journal provided on the following pages. Journals must be correctly formatted and include a narration (explanation) for each entry.
June 1 Cocina De La Madre paid the June water bill of $475 in cash.
June 3 Cocina De La Madre purchased 20 hand-painted dinner settings at a cost of $375 each. The purchase was paid in cash.
June 4 Cocina De La Madre catered a birthday party with 120 guests at a price of $75 per head. The party organiser paid 20% in cash, with the remaining balance due to be paid within 30 days.
June 11 Cocina De La Madre purchased a new computer for $2,100 on credit, with payment due in full by the end of the month.
June 14 Top to Toe Cleaning Ltd cleaned the kitchen and left an invoice for $320, with payment terms of 30 days.
June 19 Cocina De La Madre paid waiting staff wages of $3,470.
June 27 Cocina De La Madre received the balance owing for the birthday party that was catered on June 4.
June 29 Hal called an emergency plumber to repair an overflowing gutter in his home. He paid $350 using the business bank account.
June 30 Cocina De La Madre paid the outstanding amount from the purchase of the laptop computer on June 11.
Part B
Required:
“The Pristine Pooch” is a dog cleaning business owned and operated by Al Sayshun. The journal entries listed below for the month of March 2018 have already been completed.
Post the General Journals recorded below to the General Ledgers provided on the following pages. Remember to foot (balance) each ledger to determine the closing balance (refer to hints below).
| Date | Details | Debit ($) | Credit ($) |
| 1 March | Cash at Bank | 21 500 | |
| Office Equipment | 3 500 | ||
| Capital — A. Sayshun | 25 000 | ||
| (The owner contributed office equipment costing $3,500 and cosh of $21,500) | |||
| 4 March | Cleaning Equipment | 67 000 | |
| Cash at Bank | 7 600 | ||
| Loan | 59 400 | ||
| (The business purchased a “Scrubba-Mutt” dog cleaner for $67,000 and paid $7,600 in cash and the balance with a loan) | |||
| 11 March | Drawings — A. Sayshun | 1 000 | |
| Cash at Bank | 1 000 | ||
| (The owner paid his physiotherapist for treatment of his daughter’s netball injury using the business bank account) | |||
| 15 March | Loan | 2 850 | |
| Cash at Bank | 2 850 | ||
| (The business repaid $2,850 off the loan taken out on 4 March) | |||
| 25 March | Cash at Bank | 6 500 | |
| Accounts Receivable | 6 500 | ||
| (The business received payment of $6,500 for credit sales made in February) | |||
| 31 March | Cash at Bank | 10 100 | |
| Accounts Receivable | 8 650 | ||
| Sales | 18 750 | ||
| (Dog grooming services for the month – $10,100 in cash and the remoining balance to be collected from customers) | |||
Hints to assist in completing the ledgers:
- Do not delete the opening balances given.
- The ledgers are formatted using tables therefore it is best to navigate through the ledgers using the ‘tab’ function.
- When using tables, it is often easier to click on the “rfunction so you are able to see the formatting.
- It is acceptable to shorten the account names in descriptions i.e. Cosh at Bank = CAB
Part C
Required:
Post the updated General Ledger balances calculated in Part B to the Trial Balance below.
Total both the debit and credit columns on completion.
The Pristine Pooch
Trial Balance
31 March 2018
| Debit ($) | Credit ($) | |
| Cash at Bank | ||
| Accounts Receivable | ||
| Inventory | 97 884 | |
| Cleaning Equipment | ||
| Accum Depreciation – Cleaning Equipment | 21 734 | |
| Cash Register and Scanning Equipment | 33 813 | |
| Accum Depreciation – Cash Register and Scanning Equipment | 22 563 | |
| Office Equipment | ||
| Accounts Payable | 13 125 | |
| Repairs and Maintenance Payable | 7 369 | |
| Loan | ||
| Capital – A. Sayshun | ||
| Drawings – A. Sayshun | ||
| Sales | ||
| Sales Returns & Allowances | 788 | |
| Electricity Expense | 14 982 | |
| Telephone Expense | 1 025 | |
| Advertising Expense | 6 726 | |
| Office Supplies Expense | 1 280 | |
| Office Gas Expense | 564 | |
| Water Expense | 2 937 | |
| Discount Allowed | 1 432 | |
| Rent Expense | 81 448 | |
| Repairs and Maintenance Expense | 6 329 | |
| Interest Expense | 6 159 | |
| Totals |
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