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INTRODUCTION Table of Contents The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. UNADJUSTED TRIAL BALANCEAND CHART OF ACCOUNTS Ac at 31 Mav 0023 Schedule of Accounts Receivable As at 31 May 2023 Note: Cape Cod Boats \& Yachts Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Schedule of Accounts Payable As at 31 May 2023 TRANSACTIONS For June 2022 INSTRUCTIONS 1) Enter the transactions for Weeks 1 -5 into the appropriate Journal for the month of June 2023. Next, post all the Journal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction. 2) Total all Special Journal columns and post to the appropriate ledger account at the end of themonth. 3) Prepare the unadjusted Trial Balance as at 30 June 2023 on the Worksheet provided. 4) Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevant ledger accounts. Now enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance 5) A Stocktake on 30 June 2023 indicates that the balance of Closing Inventory is $5,665,968. Use this information to complete the remaining columns of the worksheet. 6) Use the worksheet to prepare the Income Statement and Balance Sheet. 7) Complete the Schedule of Accounts Receivable and Schedule of Accounts Payable. Ensure the balances agree with the totals in the control accounts. 8) Prepare closing entries and post to the relevant general ledger accounts. 9) Complete the post-closing Trial Balance as at June 2023. ADJUSTINGENTRIES a) The ShowroomFittings were installed on 1 July, 2022. They have a useful life of 9 years and no salvage value. The Straight-Line method is used to depreciate the Showroom Fittings. b) The Machinery wasinstalled on 1 July, 2017. They have a useful life of 10 years and estimated salvage value of $12,600. The Straight-Line method is used to depreciate the Machinery. c) Twelve months of Showroom Warehouse Rent was prepaid on 1 March, 2023. Of the original prepaid amount, $986,160 worth of Rent has now expired. d) A count of Office Supplies indicates that $341,460 still remain on hand at year end. e) A one-year Insurance policy was purchased on 1 November 2022 for $45,360. f) Interest on the WestpacBank Mortgage Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense should be rounded up to thenearest dollar). The Westpac Bank Mortgage Loan was originally taken out on the 1 August, 2022. g) The company has been informed that Drysdale Decks \& Masts has been declared bankrupt and CapeCod Boats \& Yachts Pty Ltd has agreed to write off the amount owing as a Bad Debt. The company uses the direct write-off method to account for any Bad Debts in the books. h) A Telephone bill for $25,704 for June wasreceived on 5July, 2023. The amount has not yet been recorded. The company records them as a Utilities Expense. i) Office Staff are paid once per month, \$293,832. The Office Staff were last paid on the 15 June, 2023. Exactly half of one month Office Staff wages are still owing. j) Sales Staff are paid fortnightly and work 7 days per week. The salesstaff were last paid on the 29 June, 2023. One day of the wages bill amounting to $17,816 is still owed to the Sales Staff. k) The Accountant of the company hasestimated that Tax Payable following the inclusion of certain tax adjustments, for theyear ended 30 June, 2023 willonly be $345,604. This amount is to be paid on 31 October, 2023. CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL maram= SUBSIDIARY LEDGERS Accounts Receivable Subsidiary Ledgers Anglesea Anchors \& Rudders 101-1 Barwon Bows \& Hulls 101-2 Colac Cabins \& Keels 101-3 Drysdale Decks \& Masts 1014 General Ledger Cash at Bank 100 Accounts Payable Subsidiary Ledgers Portarlington Boating Equipment 200-1 Torquay Yachting Accessories 200-2 Office Supplies 102 Inventory Prepaid Rent 1 in Accumulated Depreciation - Monhinare Prepaid Accumulated Depreciation - Shnwrnom Fittinos 151 Wages Payable 203 Share Canital Dividend Mortgage Sales Discounts 401 Freioht-Outwards 600 603 604 Tov Frnanca Rent Expense 605 Rent Expense 605 WORKSHEET - 30 June 2023 INTRODUCTION Table of Contents The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. UNADJUSTED TRIAL BALANCEAND CHART OF ACCOUNTS Ac at 31 Mav 0023 Schedule of Accounts Receivable As at 31 May 2023 Note: Cape Cod Boats \& Yachts Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Schedule of Accounts Payable As at 31 May 2023 TRANSACTIONS For June 2022 INSTRUCTIONS 1) Enter the transactions for Weeks 1 -5 into the appropriate Journal for the month of June 2023. Next, post all the Journal transactions to the ledger accounts as specified in the "Account System Information" section of the introduction. 2) Total all Special Journal columns and post to the appropriate ledger account at the end of themonth. 3) Prepare the unadjusted Trial Balance as at 30 June 2023 on the Worksheet provided. 4) Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevant ledger accounts. Now enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance 5) A Stocktake on 30 June 2023 indicates that the balance of Closing Inventory is $5,665,968. Use this information to complete the remaining columns of the worksheet. 6) Use the worksheet to prepare the Income Statement and Balance Sheet. 7) Complete the Schedule of Accounts Receivable and Schedule of Accounts Payable. Ensure the balances agree with the totals in the control accounts. 8) Prepare closing entries and post to the relevant general ledger accounts. 9) Complete the post-closing Trial Balance as at June 2023. ADJUSTINGENTRIES a) The ShowroomFittings were installed on 1 July, 2022. They have a useful life of 9 years and no salvage value. The Straight-Line method is used to depreciate the Showroom Fittings. b) The Machinery wasinstalled on 1 July, 2017. They have a useful life of 10 years and estimated salvage value of $12,600. The Straight-Line method is used to depreciate the Machinery. c) Twelve months of Showroom Warehouse Rent was prepaid on 1 March, 2023. Of the original prepaid amount, $986,160 worth of Rent has now expired. d) A count of Office Supplies indicates that $341,460 still remain on hand at year end. e) A one-year Insurance policy was purchased on 1 November 2022 for $45,360. f) Interest on the WestpacBank Mortgage Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense should be rounded up to thenearest dollar). The Westpac Bank Mortgage Loan was originally taken out on the 1 August, 2022. g) The company has been informed that Drysdale Decks \& Masts has been declared bankrupt and CapeCod Boats \& Yachts Pty Ltd has agreed to write off the amount owing as a Bad Debt. The company uses the direct write-off method to account for any Bad Debts in the books. h) A Telephone bill for $25,704 for June wasreceived on 5July, 2023. The amount has not yet been recorded. The company records them as a Utilities Expense. i) Office Staff are paid once per month, \$293,832. The Office Staff were last paid on the 15 June, 2023. Exactly half of one month Office Staff wages are still owing. j) Sales Staff are paid fortnightly and work 7 days per week. The salesstaff were last paid on the 29 June, 2023. One day of the wages bill amounting to $17,816 is still owed to the Sales Staff. k) The Accountant of the company hasestimated that Tax Payable following the inclusion of certain tax adjustments, for theyear ended 30 June, 2023 willonly be $345,604. This amount is to be paid on 31 October, 2023. CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL maram= SUBSIDIARY LEDGERS Accounts Receivable Subsidiary Ledgers Anglesea Anchors \& Rudders 101-1 Barwon Bows \& Hulls 101-2 Colac Cabins \& Keels 101-3 Drysdale Decks \& Masts 1014 General Ledger Cash at Bank 100 Accounts Payable Subsidiary Ledgers Portarlington Boating Equipment 200-1 Torquay Yachting Accessories 200-2 Office Supplies 102 Inventory Prepaid Rent 1 in Accumulated Depreciation - Monhinare Prepaid Accumulated Depreciation - Shnwrnom Fittinos 151 Wages Payable 203 Share Canital Dividend Mortgage Sales Discounts 401 Freioht-Outwards 600 603 604 Tov Frnanca Rent Expense 605 Rent Expense 605 WORKSHEET - 30 June 2023

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