1101AFE Accounting Principles Semester 1 2016 Part A - Practice Set Assignment The Perfect Brew Background and Facts Antonio de Pandi is the owner of...

Instructions for Completion of Practice Set

Open all general ledger accounts by inserting the opening balances at 1 July as shown in the Chart of Accounts above.  For example, the balance of account 100 Cash at Bank is $15,129Dr, write opening balance in details and place $15,129 as the debit balance in the balance column.

Open all subsidiary ledger accounts for accounts receivable and accounts payable by inserting the opening balances as at 1 July as shown in the schedule of accounts receivable and accounts payable above.

Note:   For the general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledgers, all accounts have normal balances

Record the transactions for July noted above in the appropriate journals provided in the following pages (Narrations are not required)

Post daily to the accounts receivable and accounts payable subsidiary ledgers

Post daily from the general journal

Note:   For posting reference purposes, use the journal page names and numbers. For example, when posting from the sales journal the reference will be SJ1

Prepare a bank reconciliation statement as at 31 July.  Where possible clear the outstanding items from the June bank reconciliation and include any uncleared items in the July bank reconciliation. Prepare journal entries for any cashbook adjustments and post to the cash receipts and/or cash payments journal.

Total all columns of the special journals.  Post from the special journals to the general ledger. 

Prepare schedules of Accounts Receivable and Accounts Payable.  Check that the total of the Schedule of Accounts Receivable equals the Accounts Receivable Control account in the general ledger and that the Schedule of Accounts Payable equals the Accounts Payable account in the general ledger.

Using the worksheet provided to prepare an unadjusted Trial Balance as at       31 July.

Using the information in A-G below, record the necessary adjusting journal entries at 31 July in the general journal.  Post these to the general ledger.

Record these adjustments in the adjustments column of the worksheet.

Complete the worksheet.

Adjusting entry information as at 31 July

Unearned Revenue

On July 30, Antonio received payment from J. Miles for a design project to be undertaken in August. None of this is earned in July.

Insurance

            Antonio paid 6 months of insurance as noted in transaction on July 1.

Depreciation

Office equipment is depreciated using the straight-line method.

Existing office equipment has a useful life of 5 years with a residual value of $1,200.

On July 15, Antonio purchased a photocopier.  It has a useful life of 3 years and a residual value of zero.

Premises were purchased 2 years ago. They are depreciated at 5% per annum using the straight-line method.

Note: depreciation is calculated for the month of July only. Round calculations to the nearest $.

Accrued Wages

            Wages owing at July 31 totalled $891.

Superannuation

            Superannuation contributions accrued for July total $412.

Office Supplies

A stocktake of office supplies was performed on July 31.  It was noted that $590 of supplies remain.

Bad Debts

An assessment of bad and doubtful debts at July 31 showed a marked increase in the number of accounts falling into this category.  Antonio has decided to increase the Allowance for Doubtful Debts to 4% of the accounts receivable balance at July 31.

Instructions for Completion of Practice Set continued

Record all closing entries in the general journal and post them to the general ledger.

Prepare a Post-closing Trial Balance as at 31 July

Prepare the Income Statement (Classified), Statement of changes in Equity, and Classified Balance Sheet.