ACC1102 Financial Accounting 2011 Assignment - Transactions PDF

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Transactions required for the ACC1102 Financial Accounting 2011 Assignment, Transactions required for the ACC1102 Financial Accounting 2011 Assignment...

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JANUARY 2011 TRANSACTIONS ALL PRICES INCLUDE GST UNLESS OTHER INFORMATION IS PROVIDED. Thursday 6 January 2011 Michael wrote cheque 0007 for $3,460 to Mooncorp Insurance Ltd for an insurance policy covering buildings, contents and public liability. The payment consisted of a policy premium of $3,327.50 (incl. GST) and stamp duty of $132.50 (stamp duty is a government levy and is therefore GST free). The insurance policy is for twelve months and will lapse on the 5th of January 2012. Post to Prepaid Insurance. Friday 7 January 2011 An invoice was received from Frodo and Baggins Solicitors, for legal advice on the council lease, the establishment of the company, registration of the business name and for GST and an ABN. Bilbo Baggins is the solicitor Barry and Michael deal with on their legal matters. The solicitors offer their clients 14 day account terms, with no discount for early settlement and a billing limit of $2,000 before the client is required to make a payment. You are required to create a card for this supplier and record the invoice number 5,678 for $1,870.00 (incl. GST – ABN 99 234 769 453). The solicitor’s details are as follows: - PO BOX 2040 - North Sydney, NSW 2150 - Phone 02 5670 1818 - Mobile 0421 334 543 - Fax 02 5670 1819 Monday 10 January 2011 Barry cashed cheque 0008 for $400.00 to provide a cash float to use in the cash drawer of the Pro Shop. Michael placed an order for 50 boxes (1 Doz per box) of each type of golf ball (200 boxes in total) with Long Flite Golf Balls Pty Ltd. Each box has a cost of $27.50 and the order totals $5,500.00. The sales rep promised the goods would be delivered no later than next Monday. Tuesday 11 January 2011 Barry transferred $95,000 from the investment account to the general cheque account. The East Coast Bank requires that a minimum balance of $5,000 be maintained in the investment account for the account to remain open. The shafts on backorder from Aussie Golf Imports Pty Ltd arrived, together with the supplier’s invoice number 53,268 for $462.00. The builders completed construction of the Pro-Shop and storeroom and following the final inspection the handover was conducted today. Cheque number 0009 for $64,108 was paid to Swan Constructions Ltd. Capitalise this expenditure to Buildings at Cost.

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Wednesday 12 January 2011 Handyman Jim mowed the grassed area in front of the sheltered hitting area to provide Barry and Michael with an area where lessons could be held (the first lessons for Dee Why TAFE are set to be held on Sunday 16/01/2011 – the sales invoice to Dee Why TAFE was recorded in Chapter 7). Jim gave Barry an invoice (number 109) for $75.00. Barry wrote cheque 0010 for $295.00 to Telstra for the phone and fax connection to the Pro-Shop. Record this expense 30% to the Telstra – Fax expense account and 70% to Telstra – Office Phone expense account. The range golf balls ordered from Long-Flite Balls Pty Ltd on 17/12/10 arrived, together with the supplier’s invoice number LFB529,106 for $8,250.00. Karen purchased milk, biscuits and coffee and tea costing $21.40 from petty cash. Record this expenditure to General Office expenses as GST Free.

Thursday 13 January 2011 Check the To Do List – Recurring Transactions and record the periodic payment for the computer rental. The first loan advance of $90,000 from East Coast Bank was deposited to the main cheque account (this transaction has already been recorded in Chapter 7). Cheque 0011 was drawn for $63,129 to Glebe Earthworks Pty Ltd for the concrete slab for the sheltered hitting area, pathways and other improvements to the land. Capitalise to Land Improvements. Michael purchased a kettle and sandwich maker for the lunchroom from Al’s Appliances for $52.90 using the MasterCard. Expense this amount to General Office expenses. Michael purchased a fireproof safe for $750 from Manly Office Supplies Pty Ltd (invoice #1924). Capitalise this expenditure.

Friday 14 January 2011 Barry and Michael entered into a rental agreement for a new 3D HD Swing Sequence System, which consists of multiple 3D HD digital cameras and outdoor TV screen, which will allow Barry and Michael to record golfers from behind and from two side-on angles as part of the golf lesson. This is the latest technology available from the United States and is being used extensively by instructors with elite golfers. The split screen technology allows golfers to see their swing on TV from all three angles simultaneously or one at a time. The rental agreement requires fortnightly payments made by periodical payment from the business cheque account starting from the first day of the lease so that the lease is paid fortnightly in advance. Create this payment as a recurring payment and record the first payment. The details of the periodical payment are as follows: 3D HD SSS lease: $154.00 / fortnight (incl. GST) US Hi-Tech Golf Pty Ltd PO Box 389 Parramatta NSW 2076 Bank Ref 888-PPM

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Barry and Michael decided to offer both individual lessons and group lessons using the 3D HD SSS equipment. The charge for an individual lesson using the equipment is $99.00 per hour. Group lessons are charged at the rate of $55.00 per person per hour; maximum group size is 3 people. Any lesson (group or individual) must be booked for a minimum of one hour to allow sufficient time to use the equipment to its full potential. Create new service items for these types of golf lessons using what you think is an appropriate item name and item number. Sunday 16 January 2011 The first week of group lessons for the Dee Why TAFE were held in the morning (this sales invoice was recorded in chapter 7). 14 of the students hired golf clubs for the lesson and all paid by cash (the sales invoice for the hire of golf clubs has already been recorded in chapter 7). No other bookings were received for lessons – the golf range is still not open for business officially and no other transactions or events occurred. Monday 17 January 2011 The golf balls ordered from Long-Flite Balls Pty Ltd on 10/01/2011 were partially delivered, together with the supplier’s invoice number LFB530,019 for $4,125.00. Long Flite only delivered 30 boxes of the Hard Super Spin golf balls and only 20 boxes of the Soft Max Long golf balls; the other types of balls ordered were delivered in full. The contractors completed the sheltered hitting area. Cheque 0012 was drawn for $38,417.50 to Swan Constructions Ltd for the building of the posts, metal seating, bag racks and roof structure of the golfer’s shelter. Capitalise to Buildings. Michael conducted a one hour lesson with Brian Mapperly and sold him an Easy Carry Bag (this sales invoice has already been recorded in Chapter 7). Michael deposited $312 (the cash from club hire and the cheque from Brian Mapperly) to the main cheque account using the overnight deposit box (this deposit has already been recorded in Chapter 7).

Tuesday 18 January 2011 The goods arrived from Spike’s Golf Shoes Pty Ltd, with invoice number 92613 for $9,900.00. Sonja Trager from the Heritage Golf Club had a one hour 3D HD SSS lesson with Michael. She also purchased a pair of brown leather shoes. She paid by cheque. Three young men from the North Beach Golf Club had a one hour group lesson with Barry. One of the men needed to hire clubs for the lesson and they each paid in cash. Karen Ritchie cleared the excess cash and cheque from the safe and deposited $368.00 to the bank. Make sure you use the correct format in the ID# field.

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Wednesday 19 January 2011 Barry wrote cheque 0013 for $75.00 to Handyman Jim Pty Ltd to settle the amount due on his card. Barry faxed a purchase order to Aussie Golf Imports Pty Ltd to purchase two sets of yardage markers, which indicate the distances from the sheltered hitting area ($275.00 per set). He also ordered twelve practice green hole-markers for the putting green ($33.00 each). Record a service layout purchase order and use the Range Operating Costs expense account for this order. Michael used the 3D HD SSS equipment to fit Brian Mapperly up with a set of custom-made Hurricane Woods and Fire Irons (the transfer of grips and shafts to ES coded items and the sales invoice for the custom-made clubs have already been recorded in Chapter 7). Barry wrote cheque 0014 for $8,085.00 to Long-Flite Balls Pty Ltd to pay the bill for the range golf balls delivered last Wednesday.

Thursday 20 January 2011 The first week of golf lessons for the Beacon Hill Grammar school were held – no entries are necessary as you dealt with this in Chapter 7. You should recall you recorded a sales invoice (the school paid for 11 weeks of lessons in advance), you de-recognised all of the revenue from the sales invoice to Unearned Income (via a General journal entry) and you created and recorded a recurring General journal entry for the revenue earned today. Handyman Jim does the maintenance of the grounds each Monday morning before opening time and cleans the Pro Shop every Wednesday night. He leaves a bill for $165.00 in Barry’s in-tray each Wednesday night after the cleaning has been completed. The cleaning fee is $66.00 and the balance is for range maintenance. Record a bill (number 2,956) in the Purchases Command Centre for this week’s work and save it as a recurring bill, as this bill will be recorded each week. Barry wrote cheque 0015 $1,870.00 to Frodo and Baggins Solicitors to settle the account for their legal fees. Barry used the internet banking facility to B-Pay the amount due to Manly Office Supplies from the cheque account. The B-Pay reference number was B875453

Friday 21 January 2011 Barry wrote cheque 0016 for $1001.66 to settle the December MasterCard account. A cheque for $784.08 was received from Dee Why TAFE to settle sales invoice 00000001 (the receipt of this cheque and the early settlement discount has already been recorded in Chapter 7). The cheques from Brian Mapperly, Beacon Hill Grammar and the Dee Why TAFE, totalling $8,479.68, were deposited by Michael to the overnight deposit box (this deposit has already been recorded in Chapter 7). Rename account number 1-1600 Prepaid Expenses. Refer to prepaid insurance transaction recorded on Thursday 6 JAN 2011. Change the posting of this entry to the Prepaid Expenses account. Delete the Prepaid Insurance account from the Account List. Michael wrote cheque number 0017 for $2,475 out to Manly Marketing Pty Ltd for an advertising campaign in the local newspaper. An advertisement will appear in the Manly Chronicle newspaper every Saturday, commencing 22 January, for the next six weeks. Record this payment to the Prepaid Expenses account.

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Saturday 22 January 2011 Nigel was available on the range this morning for lessons. The first lesson was an individual lesson from 9:00am to 10:00am. The second lesson was also an individual lesson and went from 10:00am to 10.30am. The last lesson from 10:30am to 12:30pm was a group lesson for three members from the Regal Golf Club who used the 3D HD SSS equipment. All customers paid by cash. Nigel Scott, Kathy Brambles and Barry ran group lessons for students from Mona Vale SHS from 1pm to 3pm. Mona Vale has arranged with Barry for thirty students to have lessons each Saturday afternoon plus a bucket of 80 balls each and use of hire clubs. The lessons start at 1pm, with three groups of five hitting their practice balls during the first hour, while the other three groups of five having their lesson and then swapping over at 2pm. Set up a recurring invoice for these lessons, balls and club hire and then record the invoice.

Sunday 23 January 2011 Kathy Brambles and Nigel Scott took the second week of lessons for the Dee Why TAFE from 9am – 12 noon. Record the recurring sales invoice for Dee Why TAFE. Two members from the Heritage Golf Club booked lessons at the Driving Range with Kathy Brambles. In the first lesson, from 12.30pm to 1.30pm, Kathy used the 3D HD SSS equipment, while the second lesson was an individual lesson from 1.30pm to 2.30pm. Both members paid in cash. Barry called in to the driving range on Sunday night, cleared the safe, depositing the cash to the night deposit box at the East Coast Bank. Monday 24 January 2011 The second instalment ($60,000) of the business loan was transferred to the cheque account by the bank. Record the receipt of this money, directly to the cheque account, using LN 24/01 as the source document reference. Michael wrote and mailed cheque 0018 for $4,042.50 to Long-Flite Balls Pty Ltd to pay the bill for the golf balls delivered on the 17th January. The rubber and grass mats arrived from Aussie Golf Imports Pty Ltd together with invoice 65,340 for $6,600. The broken shafts (the purchase return of half a carton of broken shafts was recorded in Chapter 6) were collected by the driver and returned to the supplier. Barry wrote paycheques to five employees for the pay period ended Friday 21 January 2011 and transferred $3,063 to the payroll cheque account to cover these cheques (these cheques and the transfer have already been recorded in Chapter 9). Tuesday 25 January 2011 Handyman Jim installed the artificial grass and rubber mats. He left invoice 3,004 for $415.80. Record this invoice on his supplier card. Capitalise this expenditure to Buildings. Barry gave Handyman Jim cheque 0019 for $165.00 to pay the outstanding cleaning and maintenance invoice from last week.

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The twelve hole-markers for the practice putting green ordered from Aussie Golf Imports Pty Ltd arrived today, but the yardage markers were on backorder. The supplier’s bill, number 92,345 for $396, was received by e-mail. The golf balls on backorder from Long Flite Golf Balls arrived today, together with invoice number LFB530,654 for $1,237.50. The Long Flite sales-rep apologised for the delay and the bill indicated a 10% discount had been provided on the purchase price. Wednesday 26 January 2011 Facility closed – Australia Day public holiday

Thursday 27 January 2011 Use the recurring bill to record invoice number 3,006 for $165.00 from Handyman Jim. The second week of the pre-paid lessons for the Beacon Hill Grammar School, were held today. Use the recurring general journal to record the revenue from these lessons. Scott Green brought in his three metal woods for a re-groove and to have new Sure grips fitted. He paid by cash to have his three clubs repaired. The lighting system was completed and cheque 0020 was paid to the contractor, Bright Lights Pty Ltd for $39,720.00. Capitalise this expenditure to Land Improvements. Michelle Fryer purchased a Budget Golf Package and paid by cheque. As the opening day is only a few days away, Barry gave Michelle a 10% discount on her purchase. Jim Anderson, a member from the Heritage Golf Club who had the 3D HD SSS lesson with Kathy Brambles last Sunday afternoon, returned for another lesson with Michael using the 3D HD SSS equipment. They reviewed the SSS images and Michael fitted him with a new set of 3 Jaguar Sure Strike Woods, using Cord Grips and Firebolt Graphite Reg Shafts. Michael offered Jim 10% discount for the sale and did not charge him for the lesson. Jim paid for the clubs by cheque. Karen Ritchie cleared the excess cash and cheques from the safe and deposited it to the bank. Friday 28 January 2011 A cheque for $784.08 was received from Dee Why TAFE. The yardage markers on backorder from Aussie Golf Imports Pty Ltd arrived with the supplier’s bill number was 93,456 for $550. Received the first payment from Mona Vale SHS for $1,425.60 for the student’s weekly lessons Check the To Do List – Recurring Transactions and record the periodic payment for the 3D HD SSS equipment. Debra Bradford cleared the excess cash and cheques from the safe and deposited it to the bank night deposit box.

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Saturday 29 January 2011 Nigel, Kathy and Barry took the second week of lessons for the Mona Vale SHS from 1pm – 3pm. Record the sales invoice to Mona Vale SHS. Don’t forget to use the recurring invoice to record this transaction. The range officially opened to the public today and Barry and Michael offered 10% discount off everything on opening day to attract customers to the new facility. As expected, the range was very busy from 1pm until closing. To assist with the recording of cash sales made during the day, a simple manual dissection sheet was used to track how many and what types of buckets of balls were sold, together with any other sales. Cash sales for the day were as follows: Qty

Unit Price

Cash Received

(incl. GST)

(After Discount)

40 Ball Buckets

6

$6.00

32.40

80 Ball Buckets

20

$10.00

180.00

120 Ball Buckets

30

$12.00

324.00

Club Hire

15

$5.00

67.50

Jaguar One Putt Putter

2

$264.00

475.20

Spike’s Brown Leather Shoes

1

$165.00

148.50

Long Flite Super Spin – Hard (Doz)

3

$82.50

222.75

Long Flite Super Spin – Soft (Doz)

6

$82.50

445.50

Long Flite Max Long – Hard (Doz)

2

$82.50

148.50

Long Flite Max Long – Soft (Doz)

1

$82.50

74.25

Lessons – Michael 1 hour individual

3

$66.00

178.20

Lessons – Michael 1 hour 3D HD SSS individual

2

$88.00

158.40

Repairs – Fit Firebolt Metal Flex Shafts

8

$11.00

79.20

Repairs – Fit Rubber Grips

8

$4.40

31.68 $2,566.08

Day’s Cash Takings

A display of the Budget Golf Package was accidentally knocked over by a visitor to the opening day. As a result three shafts were broken. Barry had to replace the three shafts (RP MR Firebolt Shaft Metal Regular); record this stock loss. Debra Bradford cleared the excess cash, cheques and credit card slips from the safe and deposited it to the bank night deposit box.

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Sunday 30 January 2011 Kathy Brambles and Nigel Scott took the third week of lessons for the Dee Why TAFE from 9am – 12 noon. Record the recurring sales invoice for Dee Why TAFE. Joan Compton from Heritage Golf Club booked five individual lessons to be given by Kathy Brambles every Monday morning from 8:30am – 9:30am. The lessons commence on Monday 31st January. Joan was given a 10% discount and paid for all five lessons today by cheque. It was very quiet at the driving range today. Cash sales for the day were as follows: Qty

Price

Extn

(incl. GST) 40 Ball Buckets

8

$6.00

$48.00

80 Ball Buckets

6

$10.00

$60.00

120 Ball Buckets

12

$12.00

$144.00

Hire Clubs

3

$5.00

$15.00

Long Flite Super Spin – Soft (Doz)

2

$82.50

165.00 $432.00

Day’s Cash Takings

Karen Ritchie cleared the excess cash from the safe and deposited it to the bank night deposit box.

Monday 31 January 2011 Cheque 0021 for $4,400 was paid to the North Sydney Council for two months rent (December and January) for the land at the Driving Range. The council invoices the DWGR every two months in arrears. Record this expenditure to the Rent – Council Land expense account. Barry prepared and mailed cheque 0022 for Aussie Golf Imports Pty Ltd to settle the two bills that were due for payment today. Barry wrote out the paycheques for the pay period ended Friday 28/1/2011. Kathy was paid for 12 hours of work, while Nigel was paid for 9 hours. The following is a summary of the cheques ...