80.2K

Verified Solution

Link Copied!

Additional Information (If Needed):

Date 1 & 2 for payment of check 603 & 604 respectively. Amount is shown in Bank Statement: 603 = $2172 & 604 = $1972

Now that you have reviewed information about Renegade Sports, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions that occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transactions occurred throughout the first week of June Week 1 Date Transaction description Paid the full amount owing to Hike, Check No. 603. Payment fell within discount period 1 Obtained a loan of $42,000 from ZNZ Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2017 and the principal of the loan is to be repaid on June 1, 2021 2 Purchased 16 Slam Dunk Basket Balls from J. J. Spud for $43 each, terms 2/10, n/30 Paid the full amount owing to Good Sports, Check No. 604. Payment fell within discount period 4 Sold 19 Footballs to Mick's Sporting Goods for $89 each, Invoice No. 201 4 Purchased 24 Footballs with cash for $35 each, Check No. 605. 5 Purchased 18 boxes of Ping Pong Balls from Sports 'R Us for $15 each, terms net 30 5 Made cash sales of $7,581 during the first 5 days of the month After completing this practice set page, you should know how to record basic transactions in the journals provided below and understand the posting process in the manual accounting system. Note that you will record the remaining June transactions in the following sections of this practice set Remember, one purpose of using special journals is to make the posting process more efficient by posting the total of most columns in the special journals after all of the transactions for the period have been recorded However, some parts of a journal entry are still required to be posted on a daily basis. View the company's accounting policies and proceduresE for details of what is to be posted daily or monthly

Answer & Explanation Solved by verified expert

See Answer