General Journal, General Ledger, Trial Balance

201760 ASSESSMENT ITEM 2

MANUAL ACCOUNTING ASSIGNMENT

(General Journal, General Ledger, Trial Balance)

Mr Beni Wang is the major shareholder and chief executive officer of Sandgate Electronics Pty Ltd, a small business which is based in Bendigo and retails small electrical products.

Due to the relatively small size of the business Beni is unable to justify a computerised accounting system thus all accounting is completed manually by ABC Accounting.

Sandgate Electronics Pty Ltd uses a perpetual inventory system, noting the cost of all inventory sold is 60% of the sales (GST exclusive) price.

It is now the end of April 2017 and Beni requests ABC Accounting to complete all necessary accounting to enable the preparation of a trial balance as at 30 April 2017. As the ABC Accounting accountant assigned to Sandgate Electronics Pty Ltd you are requested to complete the following tasks using Excel:

(a)Prepare general journal entries to record the April transactions as identified below. Notations/descriptions are required.

(b)Open general ledger accounts (T-Bar OR Running Balance format) for each account shown on the 31 March 2017 trial balance and

- enter the opening balance (for 1 April 2017) for each account using the balance as shown in the 31 March 2017 Trial Balance.

-Post the entries from the general journal to the general ledger accounts and enter the posting references in the general journal.

(c)Balance off each general ledger account and prepare a trial balance as at 30 April 2017.

PLEASE NOTE

i)When a discount is received, or allowed, you are required to adjust the associated GST Paid or Collected.

ii)Should any GST or discount calculations not result in whole $ values, you can round the result to the nearest whole $.

iii)When using Excel, you are expected to use the appropriate excel functions including, but not restricted to:

‘sum’
Bordering
Cell merging
Wrap text
Correct alignment of numbers and text
Correct identification of values as $ amounts
Correct ruling off of totals

iv)Prior to commencing this assignment please ensure you have read the following from the subject's Interact Resources site:

Assessment Item 2 folder - a voice over powerpoint, a further guidance document, and an Excel template.
Other Topic Resources – Topic 1 Journal Posting Illustrations.

Beni Wang has provided the following list of the transactions which occurred during the month of April:

April 1Obtained a loan of $16,500 from Uncle Lee Fusen (a family member of Beni Wang). The loan proceeds were immediately transferred into the business’s bank account.

2Purchased inventory on credit from Mega Systems $6,160 (includes 10% GST).

3 Purchased office equipment $2,090 (includes 10% GST) from Discount Business Supplies. Paid with Cheque No. 0211.

4Paid $5,236 (Cheque No. 0212) to Handy Electronics, after receiving a discount of $132, as payment for inventory purchased in March.

5Received $10,850 owing from WFI Ltd for the full amount outstanding on their account. Issued receipt No. 087.

6Purchased inventory on credit from Mars Electrics $6,380 (includes 10% GST). Terms 2/7, n/30.

8Cash purchase of office supplies from Office Supplies Warehouse $1,078 (includes 10% GST). Paid with cheque No. 0213.

8Sold inventory on credit to Telco Ltd $8,250 (includes 10% GST). Terms 2/7, n/30. Invoice No. 2110.

9Returned faulty inventory purchased from Mars Electrics $605 (includes 10% GST).

10Cash sale of inventory $5,115 (includes 10% GST). Receipt No. 088.

11Paid $5,659 (Cheque No. 0214) owing to Mars Electrics.

12.Received $8,085 owing from Telco Ltd. Receipt No. 089.

15Purchased $9,020 (includes 10% GST) of inventory from Wi Tronics. Paid $4,500 by cheque (No. 0215) as part payment. The remainder of the purchase was on credit.

20Sold inventory on credit to Sigma Solutions $32,120 (includes 10% GST). Terms 3/7, n/30. Invoice No. 2111.

21 Sold $15,345 (includes 10% GST) inventory on credit to WFI Ltd. Invoice No. 2112.

24Sigma Solutions returned unsuitable inventory $4,400 (includes 10% GST), resulting in a credit to their account.

27Received $26,888 owing from Sigma Solutions. Receipt No. 090.

29Paid $1,309 (includes 10% GST) to GreenEnergy for the current month electricity bill. (Cheque No. 0216).

29 Issued Cheque No. 0217 for $1,122 (includes 10% GST) to TGPTel for the current month’s telephone bill.

30Issued Cheque No. 0218 for $2,680 to pay the current month’s salary of the sales consultant.

30 Issued Cheque No. 0219 for $345 to BAN Bank for current month’s interest on the bank loan.

Note: No end of month adjusting entries are required

Prior to commencing your task you obtain the following trial balance as at 31 March 2017 for Sandgate Electronics Pty Ltd: