ACC110 Accounting

1. When a discount is received, or allowed, you are requiredto adjust the associated GST Paid or Collected.
2. Should any GST or discount calculations not result in whole $ values, you can round the result to the nearest whole $.

• 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

1. 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.

Ms Bucknell has provided a list of the transactions which occurred during the month of January, as well as the business’s trial balance as at 31 December, 2016.

The transactions for January 2017 were as follows:

January   2 Purchased inventory on credit from Pony Ltd $5,280 (GST inclusive).

  2 Paid $5,723 (Cheque No. 1010) to JCN Electrical, after receiving a discount of $170, as payment for inventory purchased in December.  

  3 Purchased office equipment $1,870 (GST inclusive) from Discount Office Supplies. Paid with Cheque No. 1011.

  3 Received $10,650 owing from Pikea Ltd for the full amount outstanding on their account. Issued receipt No. 115.

  4 Obtained a loan of $15,000 from Aunt Belinda (a family member of Fiona Bucknell).  Principal and interest of 10% pa is to be paid at the end of June, 2017.  The loan proceeds were immediately transferred into the business’s bank account.

  6 Sold inventory on credit to Hypertronics $4,950 (GST inclusive). Terms 2/7, n/30. Invoice No. 94.

  8 Cash purchase of office supplies from Office Works $990 (GST inclusive). Paid with cheque No. 1012.

  9 Purchased inventory on credit from Mega Tech $10,450 (GST inclusive).

10 Cash sale of inventory $4,400 (GST inclusive). Receipt No. 116

12 Received $4,851 owing from Hypertronics. Receipt No 117.

15 Sold inventory on credit to Radio Hut $32,153 (GST inclusive). Invoice No. 95.

17 Returned faulty inventory purchased from Mega Tech $660 (GST inclusive).

19 Purchased $7,216 (GST inclusive) of inventory on credit from Moon Megasystems Ltd. Paid $3,500 by cheque No. 1013 as a part payment.  The remainder of the purchase was on credit.

22 Radio Hut return unsuitable inventory $3,300 (GST inclusive), resulting in a credit to their account.

23 Sold $13,530 (GST inclusive) inventory on credit to Pikea. Invoice No. 96

25 Paid $9,790 (Cheque No 1014) owing to Mega Tech.

27 Received $28,853 owing from Radio Hut.  Receipt No. 118.

29   Paid $1,210 (GST inclusive) to SolEnergy for current month electricity bill. (Cheque No. 1015).

30 Issued Cheque No. 1016 for $230 to BCA Bank for current month’s interest on bank loan.

30 Issued Cheque No. 1017 for $660 (GST inclusive) to Telco for current month’s telephone bill.

31 Issued Cheque No 1019 for $2,640 to pay the current month’s salary of the sales consultant.

• Prepare general journal entries to record the January transactions as identified below. Notations/descriptions are
• Open general ledger accounts (T-Bar ORRunning Balance format) for each account shown on the 31 December 2016 trial balance and
  • enter the opening balance (for 1 January 2017) for each account ie the balance as shown in the 31 December 2016 Trial Balance.
  • • Post the entries from the general journal to the general ledger accounts and enter the posting references in the general journal.
  • Balance off each general ledger account and prepare a trial balance as at 31 January 2017.