ACC 100 Lecture Notes - Lecture 7: Subledger, General Ledger, Accounts Receivable
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Practical Completion Point 1
Minnie Armim runs a business Min Armim Wasteage that specialises in energy saving products and advice. She has contacted you for some assistance in setting up a new accounting system. Minnie has managed to collect enough information to create a chart of accounts for you to work from.
This completion point comprises two tasks. Setting up a new system by completing an opening entry and any other relevant journal entries then posting these appropriately; and entering a set of transactions into the general journal and then recording these in the relevant ledgers. After completing these task you will need to review your work and submit.
Task 1
You have been provided with an Excel File which contains the General Journal and Ledger Accounts. The necessary accounts as well as blank accounts to be used if needed have been included. You will need to complete this task by entering the relevant information into the excel spreadsheet provided.
Enter the information below from the chart of accounts and schedules in order to set up Richardâs new system as an Opening Entry into General Journal and post the relevant information to the General Ledger Accounts provided in the excel file.
| Min Armim Wasteage - Chart of Accounts as at 1 July 2017 | ||
| 103 | Petty Cash | 250.00 |
| 105 | Bank | 3,860.00 |
| 107 | Accounts Receivable Control | 15,038.00 |
| 109 | Allowance for Bad and Doubtful Debts | 462.00 |
| 111 | Inventory on Hand | 8,208.00 |
| 113 | Stationery on Hand | 130.00 |
| 115 | Prepaid Insurance | 1,800.00 |
| 116 | Prepaid Rent | 10,000.00 |
| 140 | Premises | 140,000.00 |
| 150 | Vehicle | 23,000.00 |
| 151 | Acc. Depreciation âVehicle | 229.00 |
| 160 | Equipment | 6,400.00 |
| 161 | Accumulated Depreciation â Equip | 1,460.00 |
| 199 | GST Receivable | 1,000.00 |
| 207 | Accounts Payable Control | 5,687.00 |
| 205 | Wages Expense Payable | 862.00 |
| 210 | Accrued Telephone Expense | 481.00 |
| 220 | Office Supplies Owing | 186.00 |
| 299 | GST Payable | 1,950.00 |
| 250 | Big 4 Bank Mortgage Loan (5-year) | 123,000.00 |
| 303 | Capital â Minnie Armim | 75,369.00 |
Additional Notes
Schedule of Accounts Receivable
as at 1 July 2017
Acc. No.
10701 Unplugged Limited 660
10703 Vin Walker 1,795
10705 The Charity Stores 480
10707 Developing Naturally 6,111
10709 Dental Services SA 2,552
10711 Hotels United 3,440
15,038
Schedule of Accounts Payable
as at 1 July 2017
20701 Get Connected Limited 4,250
20703 Reduce, Reuse, Get Rich 568
20705 Flooded Industries 869
5,687
You will need to enter this information into the appropriate subsidiary ledger accounts.
Task 2
Using the excel file you have already been working on, enter the transactions below into the General Journal and then update the Ledger accounts as required.
Transactions
July 1 Sold 40 Energy Saving light globes on credit to Unplugged Ltd for $440 (including GST).
July 2 Received a cheque for $575 from Vin Walker as part payment of their account.
July 5 Issued Cheque number 718 to Flooded Industries. The cheque amount was $782.10 and a discount of $86.9 (including GST of $7.90) was received for early payment.
July 8 Purchased 200 metres of premium low voltage cabling from Get Connected for $4 per metre, plus a total freight charge of $50 and total GST of $85.
July 12 Received $450 cash (net of GST) from Ms Elvia Marks for a full house inspection and energy usage report.
July 13 Purchased 1000 Energy Saving light globes for $3 each from Get Connected Ltd. The delivery charge was $100. All amounts are net of GST. Their invoice No: 726.
July 15 Cash Sale of 12 Energy Saving light globes to Ms Christa Heathers for $10 each (net of GST)
