Discussion Problems

FAA 2015.
1 Discussion problems_ week 4

Exercise 3.10
Dec.
Recording transactions in general journal and

general ledger
Michael Macchiato invested $2 650 000 into the business of Macchiatos
Coffee Roasters by purchasing a fully equipped coffee roasting business. The
business acquired consisted of the following assets and liabilities:
Land
$1 200 000
Building 1 000 000
Coffee roasting equipment
Office equipment
Accounts payable
5
6
12
14
18
23
30
420 000
60 000
30 000
Purchased some new roasting equipment on credit for $160 000.

Collected cash from customers for the month, $220 000.
Paid the accounts payable owing on 2 December when Michael purchased the
business.
Purchased an insurance policy for the year for $6000 cash.
Purchased television advertising for the Christmas New Year period for
$8000 to be paid for in 30 days.
Collected fees in cash from customers for the Christmas New Year period,
amounting to $46 000.
Michael withdrew $8000 cash in order to pay for private Christmas presents
and parties.
Required
A. Prepare general journal entries for each of the above transactions and events.
B. Post the entries to ledger T accounts and balance the accounts as at 31 December 2016.
A.
2
MACCHIATOS COFFEE ROASTERS (ignore GST)

Land
1 200 000
Building
1 000 000
Coffee Roasting Equipment
420 000
Office Equipment
60 000
Accounts Payable
Michael Macchiato, Capital
Assets and liabilities contributed by the owner
Accounts Payable
Purchase of roasting equipment on credit
160 000
Cash at Bank
Coffee Sales
Cash received for coffee sales for December.
220 000
12 Accounts Payable
Cash at Bank
Cash paid for creditor for roasting equipment.
30 000
30 000
2 650 000
160 000
220 000
30 000
FAA 2015.1 Discussion problems_ week 4

14 Prepaid Insurance
Cash at Bank
Cash paid in advance for insurance policy.
6 000
6 000
18 Advertising Expense*
Accounts Payable
Advertising costs over the holiday period
8 000
8 000
23 Cash at Bank
Coffee Sales
Coffee sales received for the holiday period.
46 000
46 000
Michael
30
Macchiato, Drawings
8 000
Cash at Bank
8 000
Cash withdrawn by owner
* Alternatively, debit Prepaid Advertising (asset), as not all of the expense applies to the month of
December.
B.
Cash at Bank
Dec
6 Coffee Sales
220 000
23 Coffee Sales
46 000
Dec
12
Accounts Payable
30 000
14
Prepaid Insurance
6 000
30
Michael
Macchiato,
Drawings
8 000
Balance c/d
222 000
31
266 000
31 Balance c/d
266 000
222 000
Land
Dec
2 Macchiato, Capital
1 200 000
Building
Dec
1 000 00
0

Dec
420 000
5 Accounts Payable
160 000
580 000
31 Balance b/d
580 000
Dec
31 Balance c/d
580 000
580 000
Office Equipment
Dec
1 Michael Macchiato,
Capital
60 000
Prepaid Insurance
Dec 14 Cash at Bank
6 000
Accounts Payable
Dec 12 Cash at Bank
31 Balance c/d
30 000
Dec
168 000
Macchiato,
Capital
Coffee Roasting
Equipment
18
Advertising
Expense
198 000
30 000
160 000
8 000
198 000
Dec 31
Balance b/d
168 000
Michael Macchiato, Capital

Dec
Various Assets and

Accs payable
2 650 000
Michael Macchiato, Drawings

Dec 30 Cash at Bank
8 000
Coffee Sales
Dec
Dec 31 Balance c/d
266 000
Cash at Bank
220 000
23
Cash at Bank
46 000
266 000
266 000
31
Advertising Expense
Dec 18 Cash at Bank
Exercise 3.12
8 000
Identifying and explaining errors
Balance b/d
266 000

When processing the accounts for Ellises Electrical Contractors, the following errors were made:
(a) Electrical equipment purchased for $7800 cash was debited to Equipment and credited to
Accounts Payable for an incorrect amount of $8700.
(b) Collection of an account receivable for $4500 was recorded by a debit to Cash at Bank and a
debit to the equity account of the owner.
(c) A cheque for $6000 issued to pay for an account payable was recorded as a debit to Accounts
Payable and a credit to Accounts Receivable for $6000.
(d) A $2100 payment for assorted electrical tools was recorded as a debit to Equipment and a credit
to Cash at Bank for $210.
(e) Cash of $2000 withdrawn by the owner from the business was debited to Salaries Expense and
credited to Cash at Bank.
Required
A. Identify which of the above errors would cause unequal totals in a trial balance prepared at
the end of the period.
B. Write a brief explanation for each error to indicate how it could be fixed in the accounting
records.
A.
(a)
(b)
(c)
(d)
(e)
B.
(a)
The trial balance will still balance in spite of this error as there is an equal debit and credit for
$8700, even though the credit to the Accounts Payable account was incorrect. The correct
entry should have been to debit Office Equipment and credit Cash at Bank for the amount of
$8700.
There should have been a credit to Accounts Receivable instead of a debit to the Capital
account. This will cause an unequal total in the trial balance because two debit entries were
recorded in error, and no credit.
$6000, even though the wrong account was credited.
The trial balance will still balance in spite of this error, as the debit and credit were both equal
to $210.
$2000, even though the wrong account was debited.
To fix this error, the following journal entry is needed:
Accounts Payable
Electrical Equipment
Cash at Bank
Correcting errors made in certain asset and liability
accounts
8 700
900
7 800
This entry will bring the balance in the Office Equipment account to its correct amount of
$7800, as $900 is deducted from the amount already recorded. $8700 is reversed out of the
Accounts Payable account and the correct amount of $7800 is then credited to Cash at Bank.
(b)
(c)
In order to fix this error, the error in the Capital account will need to be eliminated by
crossing out the amount of $4500 from the account; and the debit in the Accounts Receivable
account for $4500 will need to be crossed out and then the amount will need to be credited to
the account.
To fix this error, the entity needs to record another journal entry to debit Accounts Receivable
and to credit Cash at Bank for $6000.

(d)
(e)
To fix this error, there will need to be an additional journal entry to debit the Equipment
account and credit the Cash at Bank account for $1890.
To fix this error, the entity needs to record another journal entry to debit the Drawings account
and to credit Salaries Expense for $2000.
Problem 3.2
Journal entries, posting to ledger and trial balance
On 1 July 2015 Nicole Andreou opened a beauty parlour. The following transactions occurred during
the first month of operations (ignore GST):
July
2
2
3
4
6
16
20
23
28
31
31
Andreou invested $120 000 in the business by depositing cash into a

business cheque account with the Eastpac Bank.
Paid $1800 for the first months rent.
Purchased equipment by an online bank transfer for $32 000 and signing
a commercial loan agreement for $38 000.
Purchased supplies for $8400.
Paid advertising expense of $890.
Recorded beauty services revenue for the first half of the month of $3250
in cash and $620 on credit.
Paid insurance expense for July of $480 using an online bank transfer.
Received a $140 payment from customers who paid on credit in the first
half of the month.
Andreou withdrew $560 cash for personal living expenses.
Recorded revenue for the second half of the month of $3680 in cash and
$580 on credit.
Paid telephone account of $330 by electronic transfer.
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101;
Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole
Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501;
Insurance Expense, 502; Telephone Expense, 503.
Required
A.
Prepare the general journal entries to record the transactions.
B.
Post the entries from the general journal to the general ledger accounts (running balance
format) and enter the posting references in the general journal.
C.
Prepare a trial balance as at 31 July 2015.
A.
General Journal
July
Cash at Bank
Nicole Andreou, Capital
Cash invested by owner.
100
300
120 000
Rent Expense
Cash at Bank
Rent paid.
500
100
1 800
Equipment
103
70 000
120 000
1 800
16
20
23
28
31
31
Cash at Bank
Loan Payable
Equipment purchased for cash and loan
payable.
100
200
32 000
38 000
Supplies
Cash at Bank
Supplies purchased.
102
100
8 400
Advertising Expense
Cash at Bank
Cash paid for advertising.
501
100
890
Cash at Bank
Accounts Receivable
Revenue
Revenue for first half of month
100
101
400
3 250
620
Insurance Expense
Cash at Bank
Cash paid for insurance
502
100
480
Cash at Bank
Accounts Receivable
Receipt of payment from customers
100
101
140
Nicole Andreou, Drawings

Cash at Bank
Drawings by owner
301
100
560
Cash at Bank
Accounts Receivable
Revenue
Revenue for second part of month
100
101
400
3 680
580
Telephone Expense
Cash at Bank
Telephone expenses paid
503
100
330
8 400
890
3 870
480
140
560
4 260
330

B.
ACCOUNT: Cash at Bank
Date Explanation
2015
2
7
2
7
3
7
4
7
6
7
1
7
6
2
7
0
2
7
3
2
7
8
3
7
1
3
7
1
Post
Ref
Nicole Andreou, Capital

Rent Expense
Equipment
Supplies
Advertising Expense
Revenue
Account No. 100

Credit Balance
Debit
120 000
Accounts Receivable
3 680
Telephone Expense
Post
Ref
Debit
620
140
580
2015
4
7 Cash at Bank
Debit
8 400
Post
Ref
2015
3
7 Cash and Loan Payable
Debit
70 000
Post
Debit
82 610
Account No. 101

Credit Balance
620
Post
Ref
79 260
82 940
330
2015
1
7 Revenue
6
2
7 Cash at Bank
3
3
7 Revenue
1
ACCOUNT: Loan Payable

Date Explanation
79 820
560
Revenue
ACCOUNT: Equipment
Date Explanation
79 680
140
Nicole Andreou, Drawings
ACCOUNT: Supplies
Date Explanation
480
3 250
Insurance Expense
ACCOUNT: Accounts Receivable

Date Explanation
1 800
32 000
8 400
890
120 000
118 200
86 200
77 800
76 910
80 160
480
1 060
Account No. 102

Credit Balance
8 400
Account No. 103
Credit Balance
70 000
Account No. 200
Credit Balance

Ref
2015
3
7 Equipment
38 000
ACCOUNT: Nicole Andreou, Capital

Date Explanation
Post
Ref
2015
2
7 Cash at Bank
ACCOUNT: Nicole Andreou, Drawings

Date Explanation
Post
Ref
2015
2
7 Cash at Bank
8
ACCOUNT: Revenue
Date Explanation
Pos
t
Ref
Account No. 300

Credit Balance
Debit
120 00
0
Post
Ref
2015
2
7 Cash at Bank
ACCOUNT: Advertising Expense
Date Explanation
Debit
560
Debit
Debit
ACCOUNT: Insurance Expense

Date Explanation
2015
2
7 Cash at Bank
0
ACCOUNT: Telephone Expense
890
Post
Ref
Account No. 400

Credit Balance
3 870
3 870
4 260
8 130
1 800
Account No. 501
Credit Balance
Debit
2015
6
7 Cash at Bank
560
Account No. 500

Credit Balance
1 800
Post
Ref
120 000
Account No. 301

Credit Balance
2015
1
7 Cash and Accounts Receivable
6
3
7 Cash and Accounts Receivable
1
ACCOUNT: Rent Expense

Date Explanation
38 000
890
Account No. 502
Credit Balance
Debit
480
480
Account No. 503

Date
Explanation
2015
3
7 Cash at Bank
1
Post
Ref
Debit
Credit
330
Balance
330

Problem 3.5
Journal entries, entering beginning account balances,

posting to T accounts, and trial balance
The 31 May 2017 trial balance of Amy Wait, Physiotherapist, is shown below. Ignore GST.
AMY WAIT, PHYSIOTHERAPIST
Trial Balance
as at 31 May 2017
Account
Cash at bank
Accounts receivable
Supplies
Prepaid insurance
Furniture and equipment
Accounts payable
Electricity account payable
Unearned revenue
A. Wait, Capital
A. Wait, Drawings
Services revenue
Salary expense
Electricity expense
Rent expense
Debit
105 000
48 000
12 300
8 200
260 600
Credit
9 700
9 500
2 900
314 960
161 200
462 000
170 300
9 460
24 000
799 060
799 060
The following transactions were completed during June:

Jun
1
Purchased supplies on credit for $5800.
e
3
Received $24 400 from patients as payment on account.
6
Paid the electricity expense of $9500, previously recorded.
1
Performed services for $2000 that was recorded previously as unearned
0
revenue.
1
Recorded revenue of $178 600 in cash and $13 650 on credit.
4
Paid salaries of $65 880.
2
Purchased furniture for $15 400 and paid by electronic transfer.
0
Withdrew $60 000 from the business for personal use.
2
Paid creditors $7000.
3
Purchased insurance policy for $24 000 to cover business assets.
2
Received $12 000 from patients as payment on account.
4
Recorded revenue of $124 600 in cash and $25 000 on credit.
2
Paid rent of $24 000.
6
2
7
2
9
3
0
Required
A.
Prepare journal entries to record each transaction.
B.
1.
Open T accounts for the accounts shown in the trial balance.
2.
Enter the 31 May balance in each account.
3.
Post the journal entries to the T accounts.
C.
Prepare a trial balance as at 30 June 2017.
A.
General Journal
(GST ignored)
June
10
14
20
23
24
26
27
29
30
Supplies
Accounts Payable
Purchase of supplies on credit.
Cash at Bank
Accounts Receivable
Cash received from patients.
5 800
5 800
24 400
24 400
Electricity Account Payable

Cash at Bank
Payment of electricity account.
9 500
Unearned Revenue
Services Revenue
Revenue previously received.
2 000
Cash at Bank
Accounts Receivable
Services Revenue
Revenue received and receivable.
9 500
2 000
178 600
13 650
192 250
Salary Expense
Cash at Bank
Salaries paid.
65 880
Furniture and Equipment

Cash at Bank
Furniture purchased for cash.
15 400
A. Wait, Drawings
Cash at Bank
Drawings by owner.
60 000
Accounts Payable
Cash at Bank
Payment to creditors.
7 000
65 880
15 400
60 000
7 000
Prepaid Insurance
Cash at Bank
Purchase of insurance policy.
24 000
Cash at Bank
Accounts Receivable
Payment received from debtors.
12 000
Cash at Bank
Accounts Receivable
Services Revenue
24 000
12 000
124 600
25 000
149 600

Revenue received and on account.
30
Rent Expense
Cash at Bank
Payment of rent.
24 000
24 000
B.
Cash at Bank
31/5
Balance b/d
105 000
6/6
Electricity Account
Payable
3/6
Accounts
Receivable
24 400
20/6
Salary Expense
65 880
14/6
Services Revenue
178 600
23/6
Furniture & Equipment
15 400
29/6
Accounts
Receivable
12 000
24/6
A. Wait, Drawings
60 000
30/6
Services Revenue
124 600
26/6
Accounts Payable
7 000
27/6
Prepaid Insurance
24 000
30/6
Rent Expense
24 000
30/6
Balance c/d
$444 600
30/6
Balance b/d
9 500
238 820
$444 600
238 820
Accounts Receivable
31/5
Balance b/d
$48 000
3/6
Cash at Bank
24 400
14/6
Services Revenue
13 650
29/6
Cash at Bank
12 000
30/6
Services Revenue
25 000
30/6
Balance c/d
50 250
$86 650
30/6
Balance b/d
$86 650
50 250
Supplies
31/5
Balance b/d
1/6
Accounts Payable
12 300
5 800
Balance c/d
18 100
30/6
Balance b/d
18 100
18 100
18 100
Prepaid Insurance
31/5
Balance b/d
$8 200
26/6
Cash at Bank
24 000
32 200
30/6
Balance b/d
32 200
30/6
Balance c/d
32 200
32 200

31/5
Balance b/d
23/6
Cash at Bank
$260 600
15 400
30/6
Balance c/d
276 000
30/6
Balance b/d
276 000
276 000
276 000
Accounts Payable
26/6
Cash at Bank
7 000
30/6
Balance c/d
8 500
31/5
Balance b/d
9 700
1/6
Supplies
5 800
15 500
15 500
30/6
Balance b/d
8 500
Electricity Account Payable

6/6
Cash at Bank
9 500
31/5
Balance b/d
9 500
Balance b/d
2 900
Unearned Revenue
10/6
Services Revenue
30/6
Balance c/d
2 000
31/5
900
2 900
2 900
30/6
Balance b/d
900
Balance b/d
314 960
A. Wait, Capital
31/5
A. Wait, Drawings
31/5
Balance b/d
161 200
24/6
Cash at Bank
60 000
30/6
Balance c/d
221 200
30/6
Balance b/d
221 200
221 200
221 200
Services Revenue
30/6
Balance c/d
805 850
31/5
Balance b/d
10/6
Unearned Revenue
14/6
Cash at Bank/AR
192 250
30/6
Cash at Bank/AR
149 600
805 850
462 000
2 000
805 850
30/6
Balance b/d
805 850

Salary Expense
31/5
Balance b/d
170 300
20/6
Cash at Bank
65 880
30/6
Balance c/d
236 180
236 180
30/6
Balance b/d
236 180
236 180
Electricity Expense
31/5
Balance b/d
9 460
Rent Expense
31/5
Balance b/d
24 000
30/6
Cash at Bank
24 000
30/6
Balance c/d
48 000
48 000
30/6
Balance b/d
48 000
48 000
C.
AMY WAIT, PHYSIOTHERAPIST
Trial Balance
as at 30 June 2017
Debit
Cash at Bank
$238 820
Accounts Receivable
50 250
Supplies
18 100
Prepaid Insurance
32 200
276 000
Accounts Payable
$8 500
Unearned Revenue
900
A. Wait, Capital
A. Wait, Drawings
314 960
221 200
Services Revenue
Salary Expense
Electricity Expense
Rent Expense
Credit
805 850
236 180
9 460
48 000
$1 130 210
$1 130 210

Problem 3.7
Preparation of running balance ledger accounts and trial

balance
On 1 March 2014, James Taylor decided to open Taylors Tailormade that makes suits, trousers and
jackets and repairs and alters clothes. He contributed for this purpose sewing equipment $46 000 and
a commercial van $48 000, and deposited $10 000 cash in a business bank account. Transactions
during March were as follows (ignore GST):
March
4
4
6
7
8
11
12
13
14
15
16
17
18
21
23
24
25
28
31
Took a 3-year lease on a shop and paid first months rent $1200.
Purchased haberdashery supplies for $4200, and paid with an
electronic transfer of $1200 and paid for the rest with credit.
Cash received for minor clothing repairs, $120.
Revenue earned for tailor making a two piece suit for Andrea Fraser
on credit, $840.
Purchased a sewing machine, $3800, paying $800 cash and taking
out a loan for the balance.
Cash revenue earned, $1260.
Engaged a sewer at an agreed wage of $1100 per week.
Paid petrol $120, postage $20, and electricity bill $760.
Cash of $200 received for over-the-counter repairs.
Revenue of $1500 earned from a customer on credit.
Paid for haberdashery supplies purchased on credit on 4 March.
Withdrew $600 for own use.
Cash revenue received, $380.
Haberdashery supplies purchased for $500 on credit.
Paid wages to employee.
Revenue earned for making clothes: cash $240; on account $1200.
Andrea Fraser paid the bill for services rendered on 6 March.
Petrol expenses paid $80.
Paid weekly wages to employee.
Revenue earned for clothes $2420, receiving $200 in cash and the
remainder on credit.
Haberdashery supplies used, $620.
Required
A.
Prepare three-column running balance ledger accounts. Give each account a suitable
account number.
B.
Prepare a trial balance as at 31 March 2016.
A.
ACCOUNT: Cash at Bank
Date
Explanation
2016
1
3
4
3
4
3
6
3
7
3
8
3
1
3
2
James Taylor, Capital

Rent Expense
Haberdashery Supplies
Tailoring Revenue
Sewing Equipment
Tailoring Revenue
Petrol,
postage
electricity
Post
Ref
Account No. 100

Credit Balance
Debit
10 000
1 200
1 200
120
800
1 260
&
900
10 000
8 800
7 600
7 720
6 920
8 180
7 280

1
3
1
4
1
5
1
6
1
8
2
1
2
3
2
4
2
5
2
8
Tailoring Revenue
200
Accounts Payable
James Taylor, Drawings
Tailoring Revenue
Wages Expense
Tailoring Revenue
240
3 400
Accounts Receivable
840
4 240
Fuel Expense
Wages Expense
Tailoring Revenue
3 000
600
380
3
3
Cash & Accounts Payable

Accounts Payable
Haberdashery
Expense
ACCOUNT: Accounts Receivable

Date
Explanation
2016
6
13
21
23
28
3
3
3
3
3
Tailoring Revenue
Tailoring Revenue
Tailoring Revenue
Cash at Bank
Tailoring Revenue
ACCOUNT: Sewing Equipment

Date
Explanation
2016
1
1 100
3 060
3 James Taylor, Capital
3 260
Account No. 101

Credit Balance
4 200
4 700
620
Post
Ref
Debit
840
Post
Ref
Debit
46 000
4 080
Account No. 110

Credit Balance
840
1 500
1 200
2 220
3 160
4 160
4 200
500
Supplies
3880
80
200
Debit
4 480
4 260
1 100
ACCOUNT: Haberdashery Supplies

Date
Explanation
Post
Ref
4
1
7
3
1
7 480
840
2 340
3 540
2 700
4 920
Account No. 112

Credit Balance
46 000

7
3 Cash & Loan Payable
ACCOUNT: Commercial Vehicles

Date
Explanation
201
6
1
3 James Taylor, Capital
3 800
Post
Ref
Debit
48 000
49 800
Account No. 113
Credit Balance
48 000

ACCOUNT: Accounts Payable
Date
Explanation
201
6
4
14
17
3 Haberdashery Supplies
3 Cash at Bank
ACCOUNT: Loan Payable

Date
Explanation
201
6
7
3 000
3 000
500
Post
Ref
Post
Ref
13
16
21
28
Debit
104 000
3 Cash at Bank
3 Accounts Receivable
3 Cash at Bank
Cash at Bank
3
3
3
3
Cash & Accounts Rec.

Cash at Bank
Cash & Accounts Rec.
Cash & Bills Rec.
104 000
Account No. 301

Credit Balance
Debit
600
Post
Ref
3 000
Account No. 300

Credit Balance
3 Cash, Van and Equipment
ACCOUNT: Tailoring Revenue

Date
Explanation
201
6
6
6
8
Debit
3 Cash at Bank
3 000
0
500
Account No. 202

Credit Balance
3 000
ACCOUNT: James Taylor, Drawings

Date
Explanation
Post
Ref
201
6
15
Debit
3 Sewing Equipment
ACCOUNT: James Taylor, Capital

Date
Explanation
201
6
1
Post
Ref
Account No. 201

Credit Balance
600
Account No. 340

Credit Balance
Debit
120
840
1 260
120
960
2 220
2420
1500
380
1 440
2 420
3 920
4 300
5 740
8160
200

ACCOUNT: Rent Expense
Date
Explanation
201
6
4
3 Cash at Bank
ACCOUNT: Fuel Expense

Date
Explanation
201
6
12
24
1 200
Account No. 352

Credit Balance
Debit
120
80
Post
Ref
120
200
Account No. 353
Credit Balance
Debit
760
Post
Ref
760
Account No. 354

Credit Balance
Debit
20
Post
Ref
3 Cash at Bank
3 Cash at Bank
ACCOUNT:
Haberdashery
Expense
Date
Explanation
201
6
31
Post
Ref
3 Cash at Bank
ACCOUNT: Wages Expense

Date
Explanation
201
6
18
25
1 200
3 Cash at Bank
ACCOUNT: Postage Expense

Date
Explanation
201
6
12
Debit
3 Cash at Bank
3 Cash at Bank
ACCOUNT: Electricity Expense

Date
Explanation
201
6
12
Post
Ref
Account No. 351

Credit Balance
20
Account No. 355

Credit Balance
Debit
1 100
1 100
Supplies
Post
Ref
1 100
2 200
Account No. 356

Debit
Credit
620
Balance
620

B.
TAYLORS TAILORMADE
Trial Balance
as at 31 March 2016
Account
Account
No.
Debit
Credit
Cash at bank
100
$3 260
Haberdashery supplies
101
4 080
Accounts receivable
110
4 920
Sewing equipment
112
49 800
Commercial vehicles
113
48 000
Accounts payable
201
500
Loan payable
202
3 000
James Taylor, Capital
300
104 000
James Taylor, Drawings
301
Tailoring revenue
340
Rent expense
351
1 200
Fuel expense
352
200
Electricity expense
353
760
Postage expense
354
20
Wages expense
355
2 200
Haberdashery supplies expense
356
620
600
8160
$115 660
$115660

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FAA 2015.

1 Discussion problems_ week 4

Recording transactions in general journal and

Purchased some new roasting equipment on credit for $160 000.

MACCHIATOS COFFEE ROASTERS (ignore GST)

FAA 2015.1 Discussion problems_ week 4

Coffee Roasting Equipment

FAA 2015.1 Discussion problems_ week 4

Michael Macchiato, Capital

Various Assets and

Michael Macchiato, Drawings

Identifying and explaining errors

FAA 2015.1 Discussion problems_ week 4

FAA 2015.1 Discussion problems_ week 4

Journal entries, posting to ledger and trial balance

Andreou invested $120 000 in the business by depositing cash into a

FAA 2015.1 Discussion problems_ week 4

Nicole Andreou, Drawings

FAA 2015.1 Discussion problems_ week 4

Nicole Andreou, Capital

Account No. 100

Account No. 101

ACCOUNT: Loan Payable

Nicole Andreou, Drawings

ACCOUNT: Accounts Receivable

Account No. 102

FAA 2015.1 Discussion problems_ week 4

ACCOUNT: Nicole Andreou, Capital

ACCOUNT: Nicole Andreou, Drawings

Account No. 300

ACCOUNT: Insurance Expense

Account No. 400

Account No. 500

Account No. 301

ACCOUNT: Rent Expense

Account No. 503

FAA 2015.1 Discussion problems_ week 4

FAA 2015.1 Discussion problems_ week 4

Journal entries, entering beginning account balances,

The following transactions were completed during June:

FAA 2015.1 Discussion problems_ week 4

FAA 2015.1 Discussion problems_ week 4

Electricity Account Payable

Furniture and Equipment

FAA 2015.1 Discussion problems_ week 4

Furniture & Equipment

FAA 2015.1 Discussion problems_ week 4

Electricity Account Payable

FAA 2015.1 Discussion problems_ week 4

Furniture and Equipment

FAA 2015.1 Discussion problems_ week 4

Preparation of running balance ledger accounts and trial

James Taylor, Capital

Account No. 100

FAA 2015.1 Discussion problems_ week 4

James Taylor, Drawings

Cash & Accounts Payable

ACCOUNT: Accounts Receivable

ACCOUNT: Sewing Equipment

3 James Taylor, Capital

Account No. 101

Account No. 110

ACCOUNT: Haberdashery Supplies

Account No. 112