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Identify the 3 issues with this General Journal

Identify the 3 issues with this General Journal

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Identify the 3 issues with this General Journal 

The General Journal Chart of accounts unt Account Name Date Accounts Dr Cr 03/07/2021 Bank Loan 8,589 101 Cash Cash 8,589 102 Accounts Receivable 04/07/2021 Cash 1,100 103 Inventory Office Supplies Accounts Receivable 330 104 Service Revenue 1,430 111 GST Paid 07/07/2021 Inventory 1,078 Prepaid Insurance 141 Cash 1,078 142 Prepaid Rent 10/07/2021 wage Expense Prepaid Interest Expense Computer equipment Accum. Depreciation - Computer Equipment 155 4,351 143 Cash 3,176 151 PAYG Withheld 1,175 152 11/07/2021 Cash 110 Office Furniture Account Receivable 990 156 Accum. Depreciation - Office Furniture Service Revenue 17/07/2021 Drawing 1,100 158 Motor Vehicle 1,177 159 Accum. Depreciation - Motor Vehicle Cash 1,177 161 Interest Receivable 20/07/2021 Cash 4,158 Accounts Payable 201 Sales Revenue 21/07/2021 Account Receivable Service Revenue 22/07/2021 Account Receivable 4,158 222 GST Collected 473 240 Interest Due 473 241 Unearned Revenue 2,376 242 Wages Payable Sales Revenue 2,376 243 Utilities Payable 24/07/2021 Inventory 2,640 Consulting Fees Payable 244 Accounts Payable 2,640 251 Bank Loan 25/07/2021 Accounts Receivable Service Revenue 749 252 PAYG Withheld 749 301 Capital 27/07/2021 Cash 2,069 302 Drawings Accounts Receivable 2,069 401 Sales Revenue 28/07/2021 Cash 1,782 402 Service Revenue Accounts Receivable 1,782 403 Interest Revenue Sales Revenue 3,564 501 Cost of Good Sold 29/07/2021 Utilities Expenses 2,926 601 Computer Expense Office Supplies Expense Interest Expense Consulting Expense Cash 2,926 602 31/07/2021 Accounts Payable 2,640 603 Cash 2,640 604 605 Insurance Expense 606 Rent Expense Sales Commission Expense Utilities Expense 607 608 609 Wage Expense 651 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Depreciation Expense - Computer Equipment 655 658
Transcribed Image Text:The General Journal Chart of accounts unt Account Name Date Accounts Dr Cr 03/07/2021 Bank Loan 8,589 101 Cash Cash 8,589 102 Accounts Receivable 04/07/2021 Cash 1,100 103 Inventory Office Supplies Accounts Receivable 330 104 Service Revenue 1,430 111 GST Paid 07/07/2021 Inventory 1,078 Prepaid Insurance 141 Cash 1,078 142 Prepaid Rent 10/07/2021 wage Expense Prepaid Interest Expense Computer equipment Accum. Depreciation - Computer Equipment 155 4,351 143 Cash 3,176 151 PAYG Withheld 1,175 152 11/07/2021 Cash 110 Office Furniture Account Receivable 990 156 Accum. Depreciation - Office Furniture Service Revenue 17/07/2021 Drawing 1,100 158 Motor Vehicle 1,177 159 Accum. Depreciation - Motor Vehicle Cash 1,177 161 Interest Receivable 20/07/2021 Cash 4,158 Accounts Payable 201 Sales Revenue 21/07/2021 Account Receivable Service Revenue 22/07/2021 Account Receivable 4,158 222 GST Collected 473 240 Interest Due 473 241 Unearned Revenue 2,376 242 Wages Payable Sales Revenue 2,376 243 Utilities Payable 24/07/2021 Inventory 2,640 Consulting Fees Payable 244 Accounts Payable 2,640 251 Bank Loan 25/07/2021 Accounts Receivable Service Revenue 749 252 PAYG Withheld 749 301 Capital 27/07/2021 Cash 2,069 302 Drawings Accounts Receivable 2,069 401 Sales Revenue 28/07/2021 Cash 1,782 402 Service Revenue Accounts Receivable 1,782 403 Interest Revenue Sales Revenue 3,564 501 Cost of Good Sold 29/07/2021 Utilities Expenses 2,926 601 Computer Expense Office Supplies Expense Interest Expense Consulting Expense Cash 2,926 602 31/07/2021 Accounts Payable 2,640 603 Cash 2,640 604 605 Insurance Expense 606 Rent Expense Sales Commission Expense Utilities Expense 607 608 609 Wage Expense 651 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Depreciation Expense - Computer Equipment 655 658
Transactions for the month ended 31/07/2021 Date |Description 3/07/2021 The business repaid $8,589 on its bank loan. 4/07/2021 Provided a chess lesson to 26 students. Of the 26 students, only 20 have paid cash, the rest have not yet paid. 7/07/2021 Purchased new computer equipment for $1,078 (GST inclusive) in cash. Paid employee salaries for the month: Gross Amount $4,351; PAYG Tax Deducted $1,175; staff were paid the net amount in cash. Invoiced 20 students for 1 lesson provided on that day. Students have paid 10% the total amount with the remainder yet to be paid. 10/07/2021 11/07/2021 17/07/2021 Magnus bought a rare chess set for personal use at home for $1,177 (GST inclusive) using the business bank account. 20/07/2021 Sold 21 chess sets as bulk order. Customer paid the full-amount in cash the same day. 'Check, mate' was invoiced $473 (GST inclusive) for a consultation service regarding business expansion. The amount is yet to be paid. Sold chess sets for $2,376 (GST inclsuive) as a bulk order. Client was a repeat customer and so was allowed to buy the entire order on credit. 21/07/2021 22/07/2021 24/07/2021 Check, mate' purchased 20 chess sets on credit from 'Blitz corner'. Magnus had to travel to a tournament. He delivered 1 online lesson and reduced the class fee by 20%. 18 students attended. Students agreed to pay in a few days. 25/07/2021 27/07/2021 The business received cash for lessons provided on the 4th, 11th, and 25th July. 28/07/2021 Sold 18 chess sets to another chess club. Received 50% of the amount in cash with the remainder yet to be paid. 29/07/2021 Business paid Utilities bill of $2,926 (GST inclusive). 31/07/2021 'Check, mate' paid off all debts outstanding to 'Blitz corner' including any payables at the beginning of the month. 3. Additional information Description Selling price per chess set (GST inclusive) Cost per chess set (GST inclusive) Service Revenue per Student per Lesson (GST inclusive) Value $198.00 $132.00 $55.00
Transcribed Image Text:Transactions for the month ended 31/07/2021 Date |Description 3/07/2021 The business repaid $8,589 on its bank loan. 4/07/2021 Provided a chess lesson to 26 students. Of the 26 students, only 20 have paid cash, the rest have not yet paid. 7/07/2021 Purchased new computer equipment for $1,078 (GST inclusive) in cash. Paid employee salaries for the month: Gross Amount $4,351; PAYG Tax Deducted $1,175; staff were paid the net amount in cash. Invoiced 20 students for 1 lesson provided on that day. Students have paid 10% the total amount with the remainder yet to be paid. 10/07/2021 11/07/2021 17/07/2021 Magnus bought a rare chess set for personal use at home for $1,177 (GST inclusive) using the business bank account. 20/07/2021 Sold 21 chess sets as bulk order. Customer paid the full-amount in cash the same day. 'Check, mate' was invoiced $473 (GST inclusive) for a consultation service regarding business expansion. The amount is yet to be paid. Sold chess sets for $2,376 (GST inclsuive) as a bulk order. Client was a repeat customer and so was allowed to buy the entire order on credit. 21/07/2021 22/07/2021 24/07/2021 Check, mate' purchased 20 chess sets on credit from 'Blitz corner'. Magnus had to travel to a tournament. He delivered 1 online lesson and reduced the class fee by 20%. 18 students attended. Students agreed to pay in a few days. 25/07/2021 27/07/2021 The business received cash for lessons provided on the 4th, 11th, and 25th July. 28/07/2021 Sold 18 chess sets to another chess club. Received 50% of the amount in cash with the remainder yet to be paid. 29/07/2021 Business paid Utilities bill of $2,926 (GST inclusive). 31/07/2021 'Check, mate' paid off all debts outstanding to 'Blitz corner' including any payables at the beginning of the month. 3. Additional information Description Selling price per chess set (GST inclusive) Cost per chess set (GST inclusive) Service Revenue per Student per Lesson (GST inclusive) Value $198.00 $132.00 $55.00
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