Module 1 - Tutorial Solutions PDF

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TOPIC 1 - TUTORIAL S OLUTIONS

Question 1 General Journal

2016 Mar. 2

Inventory

78 400

Accounts Payable

78 400

Purchased 280 phones from Sutherland Electronics for $280 each.

Mar. 5

211 250

Accounts Receivable Sales

211 250

Sold 325 phones to Phone Phanatics for $650 each.

Cost of Sales

104 000

Inventory

104 000

Cost of inventory sold ($320*325)

Mar. 8

Accounts Payable

1 680

Inventory

1 680

Credit from Sutherland Electronics for damaged goods returned to it

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Mar. 11

Accounts Payable

76 720

Discount Received

1 534.40 75 185.60

Cash at Bank Payment to Sutherland Electronics, less discount of 2%.

Mar. 11

Cash at Bank

211 250

Accounts Receivable

211 250

Cash received from Phone Phanatics.

Mar. 18

Accounts Receivable

37 200

Sales

37 200

Sale of 60 phones to Kingsford Phones

Cost of Sales

19 200

Inventory

19 200

Cost of phones sold (60*$320)

Mar. 20

Inventory

22 400

Accounts Payable Purchase of 80 phones from Oakhurst International ($280*80)

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22 400

Mar. 24

Cash at Bank

36 456

Discount Allowed

744

Accounts Receivable

37 200

Cash received from Kingsford P hones.

Mar. 26

Accounts Payable

22 400

Discount Received

448

Cash at Bank

21 952

Cash paid to Oakhurst International.

Mar. 29

Accounts Receivable

63 700

Sales

63 700

Sales to Hinchinbrook Phone Shop (98 *$650)

Cost of Sales

31 240

Inventory

31 240

Cost of goods sold to Hinchinbrook Phone Shop (95*$320 + 3*$280)

Mar. 31

Sales Returns & Allowances

4 550

Accounts Receivable

4 550

7 phones returned by Hinchinbrook Phone Shop

Inventory

1 960

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Cost of Sales

1 960

Phones returned to inventory

Question 2 – Recording Transaction, Perpetual Inventory, GST, and Adjusting Entries 2016 June 1 Cash at Bank

185 000

Store Equipment

48 720

Cliff Clarendon, Capital

233 720

Assets invested by owner into the business. 2. Inventory

55 200

GST Receivable

5 520

Accounts Payable

60 720

Wine purchased from Blacktown Winery. 3 Rent Expense

1636.36

GST Receivable

163.64

Cash at Bank

1 800

Rent paid for the month of June. 4 Inventory

38 000

GST Receivable

3 800

Accounts Payable

41 800

Wine purchased from Hall Wines. 5 Accounts Receivable

15 400

GST Payable

1 400

Sales

14 000

Wine sold to C. Tamarara. Cost of Sales

9 200

Inventory

9 200

Cost of merchandise sold. 2016 June 6 Promotional Supplies GST Receivable

10 400 1 040

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Cash at bank

11 440

Promotional supplies purchased from G. Epping. 8 Inventory

27 600

GST Receivable

2 760

Cash at bank

30 360

White wine purchased from Voss Vineyard. 10 Accounts Receivable

30 800

GST Payable

2 800

Sales

28 000

Merchandise sold to Oatville Hotel. Cost of Sales

21 100

Inventory

21 100

Cost of merchandise sold. 12 Inventory

23 000

GST Receivable

2 300

Accounts Payable

25 300

Wine purchased from Gladwood Estate. 14 Accounts Payable

60 720

Discount Received

1 104.00

GST Receivable

110.40

Cash at Bank

59 505.60

Paid Blacktown Winery, less discount. 15 Cash at Bank

15 092

Discount Allowed

280

GST Payable

28

Accounts Receivable Cash received from C. Tamarara, and discount taken.

2016

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15 400

June 18 Accounts Receivable

24 200

GST Payable

2 200

Sales

22 000

Merchandise sold to J. Haberfield. Cost of Sales

13 800

Inventory

13 800

Cost of merchandise sold. 18 Cash at Bank

30 184

Discount Allowed

560

GST Payable

56

Accounts Receivable

30 800

Cash received from Oatville Hotel, less discount. 21 Accounts Receivable

20 240

GST Payable

1 840

Sales

18 400

Merchandise sold to Slater Ltd. Cost of Sales

11 500

Inventory

11 500

Cost of merchandise sold. 21 Accounts Payable

25 300

Discount Received

460

GST Receivable

46

Cash at Bank

24 794

Paid Gladwood Estate, less discount. 22 Inventory

28 000

GST Receivable

2 800

Accounts Payable

30 800

Goods pur chased from Blacktown Winery. 23 Cash at Bank

16 390

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GST Payable

1 490

Sales

14 900

Merchandise sold for cash. 2016 June 23 Cost of Sales

8 600

Inventory

8 600

Cost of merchandise sold. 25 Accounts Payable

6 600

GST Receivable

600

Inventory

6 000

Defective wine returned to Blackwood winery. 28 Accounts Receivable

45 100

GST Payable

4 100

Sales

41 000

Merchandise sold to Berrillee Partners. 28 Cost of Sales

28 000

Inventory

28 000

Cost of merchandise sold.

29 Inventory

9 200

GST Receivable

920

Accounts Payable

10 120

Goods pur chased from K. Leona y. 30 Sales Salaries Expense

2 900

Cash at Bank

2 900

Physical Count of inventory was $79 800 Promotional supplies on hand were $8 600 (O/B is $11 440/11*10 = 10 400) Adjusting entries 30 Inventory Shortage Expense

3 000

Inventory (55200+38000-9200+27600-21100+23000-13800-11500+28000-8600-280006000+9200-79800)

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3 000

Promotional Supplies Used

1 800

Promotional Supplies

1 800

Supplies used for the month (10 400 – 8 600) 2016 June 30 Depreciation Expense

580

Accum. Dep’n – Store Equipment

580

Depreciation for the month. [48 720/ (7*12)] Electricity Expense

500

Electricity Expense Payable

500

Estimated costs of electricity used. Telephone Expense

320

Telephone Expense Payable

320

Estimated costs of telephone usage.

Tutorial solutions are based on and adapted from Loftus, Janice, Ken Leo, Sorin Daniliuc, Noel Boys, Belinda Luke, Hong Ang, Karyn Byrnes. Financial reporting, 2nd Edition. John Wiley & Sons Australia, 7/2017. VitalBook file. Copied with permission of the publisher.

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