Joy Spark is the sole owner of ‘Keep Me Tidy’ a business specialising in home storage. Joy’s business was recently show-cased on a tv home show and as a result the demand for her unique home storage

Joy Spark is the sole owner of ‘Keep Me Tidy’ a business specialising in home storage.   Joy’s business was recently show-cased on a tv home show and as a result the demand for her unique home storage system has increased dramatically.

Joy is so busy with the growth of the business that she is unable to attend to the bookkeeping, so she has recently hired Michell & Jones Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Michell & Jones Accounting Specialists Pty Ltd and are now responsible for preparing the monthly journals for ‘Keep Me Tidy’. The following is a list of transactions that took place during the month of September 2020 that she would like you to record journals for.  

September 2      A new range of stackable storage baskets was purchased from ‘Fabulous Basket Weaves Ltd’ for $24,000. A part payment of $18,000 was paid in cash whilst the remaining amount was on credit. 

September 3      ‘Keep Me Tidy’ borrowed $12,300 from ABC Bank.  

September 10    Spic ‘n’ Span Cleaning Co cleaned the shop and warehouse and left an invoice for $250 on the counter.

September 12    Joy sold 55 transparent shoe boxes to the local Ice Arena for storing the hire skates.  Each transparent shoe box was sold to the Ice Arena for $15.  The Ice Arena has not made any cash payment and have put the entire amount on their account with ‘Keep Me Tidy’.  The terms of the sale require full payment to be made within 30 days.

September 18    Joy paid $25 from her personal bank account for lunch at the ‘The Corner Store’ a local café. 

September 27    The Ice Arena paid for 25 of the transparent shoe boxes purchased on the 12th September.                                                                    

September 30    The remaining amount owing to the ‘Fabulous Basket Weaves Ltd’ was paid in cash.