ALEXANDRA’S TIME

Open the QuickBooks data file for ALEXANDRA’S TIME

The following trial balance is for ALEXANDRA’S TIME at 1 November 2007.

Debit / Credit
Accrued Wages / 4900
Community Bank / 4500
Prepaid Rent / 4000
Capital / 22450
Motor Expenses / 630
Electricity / 960
Motor Vehicles – original cost / 42000
Motor Vehicles – Accumulated Depreciation / 18000
Loan – Endeavour Bank / 25000
Accounts Receivable / 14400
Accounts Payable / 13790
Stock / 26650
$88640 / $88640

ALEXANDRA’S TIME had 3 debtors at 1 November 2007:

R Adams / 4000
I Collins / 2600
S Rawther / 7800
$14400

There were 3 creditors at 1 November 2007:

Geneoa / 6700
HK Imports / 5200
Westclock / 1890
$13790

The business has 3 stock lines at 1 November 2007:

Item / Cost Price
(before GST) / Selling Price (before GST) / No on Hand / Stock Value
Grandfather clock / 1000 / 2000 / 10 / 10000
Grandmother clock / 750 / 1500 / 15 / 11250
Mantle clock / 300 / 600 / 18 / 5400
$26650

Transactions

Process the following transactions:

Nov 1 Buy 5 Grandfather clocks and 4 Grandmother clocks

from Geneoa on credit $8000 + GSTInv 2435

Nov 3Sell 4 Grandfather clocks, 4 Grandmother clocks and

9 mantle clocks to Hotel Acacia on credit $19400 + GSTInv 1195

Check the profit and loss statement and balance sheet after processing the two transactions.

Required

1Process chq no 440 to pay the accrued wages at 1 November $4900

2On Nov 10 it was noticed that electricity expense $209 had been posted to motor expenses by mistake. Prepare a general journal entry to correct this.

3The owner, Alexandra Adams contributed an office desk valued at $2000 to the business on 15 Nov. Prepare an entry to record this contribution.

4Alexandra took home a mantle clock for personal use on November 20. Record the withdrawal of stock. Click on Suppliers > Inventory Activities > Adjust Quantity/Value on Hand. The Adjustment account should be Drawings. Enter the number of mantle clocks on hand after the withdrawal. Press Tab. The value of the adjustment will be shown at the bottom of the screen.

5Notification was received on November 24 that I Collins has been declared bankrupt. There will be no distribution to creditors. Process the adjustment to the accounts receivable.

6At 30 November, the following adjustments need to be processed:
Unpaid wages for November $5200
The prepaid rent in the opening balances is for November and December
Depreciation on motor vehicles is to be charged at 15% per annum straight line for 1 month.

7The stock take at 30 November showed the following items on hand:
Grandfather clocks11
Grandmother clocks14
Mantle clocks 8

Click on Reports>Accountant>Journal Adjust the dates to 1/11/07 to 30/11/07

Click on Refresh to view the adjusting entries

Check the profit and loss statement for the month of November

Check the graphs for expenses. What proportion of total expenses is cost of goods sold?

Check the accounts receivable aged listing. What is the purpose of this report?

Check the accounts payable aged listing. What is the purpose of this report?

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Task created by Suzanne Collings, Education Consultant