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Transactions - week 1 Now that you have reviewed information about Hi-Fi Way, 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 1 Purchased 15 Swish Phones from JCN Electrical for $500 each, terms net 30. 1 Purchased 22 BlueBerry Phones with cash for $320 each, Check No. 702. 1 Obtained a loan of $48,000 from EastPac Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal of the loan is to be repaid on June 1, 2025. 3 Paid the full amount owing to Pony, Check No. 703. Payment fell outside discount period. 4 Sold 18 Swish Phones to Radio Hut for $820 each, plus 5% sales tax, Invoice No. 234. 4 Made cash sale of 14 BlueBerry Phones for $640 each plus 5% sales tax. 6 Paid the full amount owing to Pear Technology, Check No. 704. Payment fell outside discount period. 6 Paid sales staff wages of $13,133 for the week up to and including yesterday, Check No. 705. Note that $6,500 of this payment relates to the wages expense incurred during the last week of May. 7 Purchased 16 DK800 Desktop Computers from Big Telco for $960 each, terms 2/10, n/30 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 procedures for details of what is to be posted daily or monthly. SALES JOURNAL Date Invoice No. Post Account Accounts Receivable Sales Tax Sales Revenue Cost of Goods Sold Ref. Jun (select) Jun (select) Jun (select) Jun iselect) (Q=302.purchasesJournalWeekl) PURCHASES JOURNAL Date Account Terms Post Ref. Accounts Payable Jun (select) Jun (select) Jun (select) Jun select) (Q=303.cashReceiptsJournalWeek) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account credited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Date Account Post Ref. Credit Sales Accounts Tax Receivable Accounts Cost of Goods Sold Cash Sales Revenue Other Jun 3 | ARC - Hypertronics (select) Jun 000 select) Jun (select) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account debited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Credit Date Account Check No. Post Ref. Accounts Merchandise Payable Inventory Wages Other Expense Accounts Cash Jun (select Jun (select) Jun (select) Jun (select) Jun (select) Jun (select) Transactions - week 1 Now that you have reviewed information about Hi-Fi Way, 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 1 Purchased 15 Swish Phones from JCN Electrical for $500 each, terms net 30. 1 Purchased 22 BlueBerry Phones with cash for $320 each, Check No. 702. 1 Obtained a loan of $48,000 from EastPac Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2021 and the principal of the loan is to be repaid on June 1, 2025. 3 Paid the full amount owing to Pony, Check No. 703. Payment fell outside discount period. 4 Sold 18 Swish Phones to Radio Hut for $820 each, plus 5% sales tax, Invoice No. 234. 4 Made cash sale of 14 BlueBerry Phones for $640 each plus 5% sales tax. 6 Paid the full amount owing to Pear Technology, Check No. 704. Payment fell outside discount period. 6 Paid sales staff wages of $13,133 for the week up to and including yesterday, Check No. 705. Note that $6,500 of this payment relates to the wages expense incurred during the last week of May. 7 Purchased 16 DK800 Desktop Computers from Big Telco for $960 each, terms 2/10, n/30 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 procedures for details of what is to be posted daily or monthly. SALES JOURNAL Date Invoice No. Post Account Accounts Receivable Sales Tax Sales Revenue Cost of Goods Sold Ref. Jun (select) Jun (select) Jun (select) Jun iselect) (Q=302.purchasesJournalWeekl) PURCHASES JOURNAL Date Account Terms Post Ref. Accounts Payable Jun (select) Jun (select) Jun (select) Jun select) (Q=303.cashReceiptsJournalWeek) CASH RECEIPTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account credited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Date Account Post Ref. Credit Sales Accounts Tax Receivable Accounts Cost of Goods Sold Cash Sales Revenue Other Jun 3 | ARC - Hypertronics (select) Jun 000 select) Jun (select) CASH PAYMENTS JOURNAL Note: In order to receive full points, for each transaction you must select an account under the column labeled 'Account', as indicated under the additional instructions above. Since all transactions in this journal affect the Cash account, you are asked to enter the name of the appropriate account debited in these transactions into the Account column so that the type of transaction can be determined by the name of the account entered into this column. Debit Credit Date Account Check No. Post Ref. Accounts Merchandise Payable Inventory Wages Other Expense Accounts Cash Jun (select Jun (select) Jun (select) Jun (select) Jun (select) Jun (select)

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