Read the below case study and answer the required questions. The “Wise Dimension” owned by Mr. Cousins. Wise Dimension imports office supplies from all over the world, and supplies them via online and offline channels. Wise Dimension uses the Periodic Inventory method. The trial balance as at 31 May 2017 is as follows: Trial Balance as at 31 May 2017 Acct No. Account name Acct No. Debit Credit 101 Cash at bank 101 $90,000 105 Account receivable 105 $76,800 110 Merchandise Inventory 110 $150,000 115 Supplies 115 $8,000 120 Prepaid Insurance 120 $17,000 135 Office furniture 135 $35,000 137 Acc. Depreciation. - Furniture 137 $15,000 140 Office Furniture 140 $20,000 141 Acc. Depreciation – Office Equipment 141 $9,000 201 Accounts payable 201 $44,960 202 Interest Payable 202 $4,000 210 Loan Payable 210 $30,000 301 Cousins, Capital 301 $20,000 305 Cousins, Drawings 305 $18,900 401 Sales Revenue 401 $705,000 402 Sales Returns 402 $55,000 403 Sales Discount 403 $15,000 501 Purchases 501 $166,000 502 Purchase Returns 502 $20,000 503 Purchase Discount 503 $33,000 504 Freight - in 504 $25,000 601 Advertising Expense 601 $50,000 605 Automobile Expense 605 $15,000 615 Depreciation Expense - Furniture 615 $0 620 Depreciation Expense – Office Equipment 620 $0 650 Insurance 650 $0 665 Maintenance Expense 665 $28,500 670 Miscellaneous Expense 670 $15,500 675 Rent Expense 675 $77,200 680 Supplies Expense 680 $0 685 Utilities Expense 685 $35,500 690 Interest Expense 690 $3,300 700 Income Summary 700 $930,000 $930,000 Required: Ignore Income Tax A) Journalise the transactions for the month of June. B) Prepare the unadjusted Trial Balance on the Worksheet for the year ended 30 June 2017, using the provided trial balance as at 31 May 2017 and the General Leger Accounts. C) Journalise the adjustment transactions for the month of June. D) Transfer the adjusting journal entries into the worksheet, and complete the Worksheet. E) Prepare the schedule of COGS, Net purchase, and Net sale for the year ended 30 June 2017. Transactions during the month of June 2017 are listed below: Date Item Description 07/06/2017 Source Document: For the following: Amount: Terms: Sales invoice Made sales to SAN Entertainment (Customer) $30,000 Net 30 08/06/2017 Source Document: For the following: Amount: Terms: Receipts Received payment on account from Felicia Ltd (Customer) $22,600 Cash Tendered 09/06/2017 Source Document: For the following: Amount: Terms: Sales Return Slip SAN Entertainment (Customer) returned goods $6,000 Credit on account (Adjustment note) 10/06/2017 Source Document: For the following: Amount: Terms: Purchase Invoice Purchased Inventory for resale from Dorothy Factory (Supplier) $88,000 Credit on account 15/06/2017 Source Document: For the following: Amount: Terms: Memo Cousins (Owner) took a selling product from th store for personal use $1,100 N/A 15/06/2017 Source Document: For the following: Amount: Terms: Purchase Invoice Domestic delivery costs of merchandise shipped to us at our expense $3,300 Cash tendered 15/06/2017 Source Document: For the following: Amount: Terms: Cheque Copy Payment on account to NWALA (Supplier) $8,000 Cash 30/06/2017 Source Document: For the following: Amount: Terms: Purchase Return Returned goods to Dorothy Factory (Supplier) $12,100 Credit on account (Adjustment note) Adjustment Transactions as at 30 June 2017 are: Date Item Description 30/06/2017 Source Document: For the following: Rate: Terms: Bank Memo Interest unrecorded and unpaid for the period. 1% interest per month on all outstanding loan at month end Interest should be accrued. 30/06/2017 Asset: For the following: Instructions: Ending Supplies inv 115 (Supplies) Adjustment for the period. Make any adjustments as necessary. $2,500 30/06/2017 Asset: For the following: Instructions: Ending Value: 120 (Prepaid insurance) Adjustment for the period. Make any adjustments as necessary. $5,100 30/06/2017 Depreciable Asset: For the following: Instructions: Rate: 135 (Furniture) Depreciation adjustment for the year Make any adjustments as necessary. 20% of the carrying amount 30/06/2017 Depreciable Asset: For the following: Instructions: Rate: 140 (Office Equipment) Depreciation adjustment for the year Make any adjustments as necessary. 30% of the carrying amount Additional Information: 30/06/2017 Asset: For the following: Instructions: Opening inventory Ending inventory 110 (Merchandise inventory) Financial Statement preparation Make any adjustments as necessary. $150,000 $200,000
Read the below case study and answer the required questions.
The “Wise Dimension” owned by Mr. Cousins. Wise Dimension imports office supplies from all over the world, and supplies them via online and offline channels. Wise Dimension uses the Periodic Inventory method. The
|
Trial Balance as at 31 May 2017
|
||||
|
Acct No.
|
Account name |
Acct No. |
Debit |
Credit |
|
101 |
Cash at bank |
101 |
$90,000 |
|
|
105 |
|
105 |
$76,800 |
|
|
110 |
Merchandise Inventory |
110 |
$150,000 |
|
|
115 |
Supplies |
115 |
$8,000 |
|
|
120 |
Prepaid Insurance |
120 |
$17,000 |
|
|
135 |
Office furniture |
135 |
$35,000 |
|
|
137 |
Acc. |
137 |
|
$15,000 |
|
140 |
Office Furniture |
140 |
$20,000 |
|
|
141 |
Acc. Depreciation – Office Equipment |
141 |
|
$9,000 |
|
201 |
Accounts payable |
201 |
|
$44,960 |
|
202 |
Interest Payable |
202 |
|
$4,000 |
|
210 |
Loan Payable |
210 |
|
$30,000 |
|
301 |
Cousins, Capital |
301 |
|
$20,000 |
|
305 |
Cousins, Drawings |
305 |
$18,900 |
|
|
401 |
Sales Revenue |
401 |
|
$705,000 |
|
402 |
Sales Returns |
402 |
$55,000 |
|
|
403 |
Sales Discount |
403 |
$15,000 |
|
|
501 |
Purchases |
501 |
$166,000 |
|
|
502 |
Purchase Returns |
502 |
|
$20,000 |
|
503 |
Purchase Discount |
503 |
|
$33,000 |
|
504 |
Freight - in |
504 |
$25,000 |
|
|
601 |
Advertising Expense |
601 |
$50,000 |
|
|
605 |
Automobile Expense |
605 |
$15,000 |
|
|
615 |
Depreciation Expense - Furniture |
615 |
$0 |
|
|
620 |
Depreciation Expense – Office Equipment |
620 |
$0 |
|
|
650 |
Insurance |
650 |
$0 |
|
|
665 |
Maintenance Expense |
665 |
$28,500 |
|
|
670 |
Miscellaneous Expense |
670 |
$15,500 |
|
|
675 |
Rent Expense |
675 |
$77,200 |
|
|
680 |
Supplies Expense |
680 |
$0 |
|
|
685 |
Utilities Expense |
685 |
$35,500 |
|
|
690 |
Interest Expense |
690 |
$3,300 |
|
|
700 |
Income Summary |
700 |
|
|
|
|
|
|
$930,000 |
$930,000 |
Required: Ignore Income Tax
- A) Journalise the transactions for the month of June.
- B) Prepare the unadjusted Trial Balance on the Worksheet for the year ended 30 June 2017, using the provided trial balance as at 31 May 2017 and the General Leger Accounts.
- C) Journalise the adjustment transactions for the month of June.
- D) Transfer the
adjusting journal entries into the worksheet, and complete the Worksheet. - E) Prepare the schedule of COGS, Net purchase, and Net sale for the year ended 30 June 2017.
Transactions during the month of June 2017 are listed below:
|
Date |
Item |
Description |
|
07/06/2017 |
Source Document: For the following: Amount: Terms: |
Sales invoice Made sales to SAN Entertainment (Customer) $30,000 Net 30 |
|
08/06/2017 |
Source Document: For the following: Amount: Terms: |
Receipts Received payment on account from Felicia Ltd (Customer) $22,600 Cash Tendered |
|
09/06/2017 |
Source Document: For the following: Amount: Terms: |
Sales Return Slip SAN Entertainment (Customer) returned goods $6,000 Credit on account (Adjustment note) |
|
10/06/2017 |
Source Document: For the following: Amount: Terms: |
Purchase Invoice Purchased Inventory for resale from Dorothy Factory (Supplier) $88,000 Credit on account |
|
15/06/2017 |
Source Document: For the following: Amount: Terms: |
Memo Cousins (Owner) took a selling product from th store for personal use $1,100 N/A |
|
15/06/2017 |
Source Document: For the following: Amount: Terms: |
Purchase Invoice Domestic delivery costs of merchandise shipped to us at our expense $3,300 Cash tendered |
|
15/06/2017 |
Source Document: For the following: Amount: Terms: |
Cheque Copy Payment on account to NWALA (Supplier) $8,000 Cash |
|
30/06/2017 |
Source Document: For the following: Amount: Terms: |
Purchase Return Returned goods to Dorothy Factory (Supplier) $12,100 Credit on account (Adjustment note) |
Adjustment Transactions as at 30 June 2017 are:
|
Date |
Item |
Description |
|
30/06/2017 |
Source Document: For the following: Rate: Terms: |
Bank Memo Interest unrecorded and unpaid for the period. 1% interest per month on all outstanding loan at month end Interest should be accrued. |
|
30/06/2017 |
Asset: For the following: Instructions: Ending Supplies inv |
115 (Supplies) Adjustment for the period. Make any adjustments as necessary. $2,500 |
|
30/06/2017 |
Asset: For the following: Instructions: Ending Value: |
120 (Prepaid insurance) Adjustment for the period. Make any adjustments as necessary. $5,100 |
|
30/06/2017 |
Depreciable Asset: For the following: Instructions: Rate: |
135 (Furniture) Depreciation adjustment for the year Make any adjustments as necessary. 20% of the carrying amount |
|
30/06/2017 |
Depreciable Asset: For the following: Instructions: Rate: |
140 (Office Equipment) Depreciation adjustment for the year Make any adjustments as necessary. 30% of the carrying amount |
Additional Information:
|
30/06/2017 |
Asset: For the following: Instructions: Opening inventory Ending inventory |
110 (Merchandise inventory) Financial Statement preparation Make any adjustments as necessary. $150,000 $200,000 |
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