Prepare the Petty cash journal for March 2020. You are not required to total the journal at the end of the month. Round to two decimal places
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OBJ stores, a dairy shop, entered into the following Petty Cash transactions during March 2020. The business is a registered VAT vendor and trades only with other registered vendors. They use a perpetual inventory system, and all goods are marked up at 40% above cost, before taking into account any trade discounts. A VAT rate of 15% is applicable.
Required:
Prepare the Petty cash journal for March 2020. You are not required to total the journal at the end of the month. Round to two decimal places
| DATE | TRANSACTION DETAILS |
| 4 | Purchased 20 cheese wheels @R10 each(excl VAT) from J Creamery a local entreprenuer and pay from petty cash the goods will be used as inventory .PCV01 was used |
| 7 | Purchased tea and coffee from local cafe for R80 and paid using petty cash . PCV02 was used. |
| 9 | Paid R800 for petrol for the delivery vehicle from petty cash .PCV03 |
| 13 | Paid bi-weekly wages of R300 from petty cash .PCV04 was used |
| 20 | The owner Mrs Daisy took R200 from petty cash for her own use.PCV05 was used was used. |
| 26 | Purchased printing papers for R30 and cooldrinks for the staff of R60, from pick n pay and paid using petty cash PCV06 was used. |
| 29 | Paid bi-weekly wages of R300 from petty cash.PCV07 was used |
| 30 |
To celebrate Mrs Daisy Birthday a cake was bought for the staff for R250 PCV08 was used |
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- On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for 3 per bar. In addition, AwakcAllNight pays Campus Grocers a 900placement fee to ensure that its candy bars are always stocked prominently by the cash register. The 900 is paid at the end of each month based on the results of random inspections of Campus Grocers by AwakcAllNight to ensure that the terms of the contract are being followed. Required: 1. Determine the transaction price for Awake AllNights revenue contract. 2. Prepare AwakeAllNights journal entries to recognize sales revenue and pay Campus Grocers the placement fee.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a general journal, page 1. Assume the periodic inventory method is used. If using QuickBooks, record transactions using either the journal entry method or the forms-based approach as directed by your instructor. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. If using QuickBooks or general ledger, ignore Steps 2, 3, and 4. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable (A/R Aging Detail report in QuickBooks) and a schedule of accounts payable (A/P Summary Detail report in QuickBooks). Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals on scratch paper. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
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- Country Store, Inc. provides credit to their favorite customers. On December 31, 2018, the controller of Country Store prepared the following “aging of receivables”: Days Outstanding Amount Uncollectible % Not Yet Due $ 50,000 3.0 % 0 – 60 Days Past Due 20,000 5.0 % > 60 Days Past Due 10,000 20.0 % On January 1, 2018, the balance in “Allowance for Doubtful Accounts” was $ 3,000. During the year, Country Store “wrote-off” accounts in the amount of $ 4,000. Country Store made no collections on accounts that had previously been “written-off”, and no “provisions for bad debts” were made during the year. (1) What is the desired balance in the “Allowance for Doubtful Accounts”…Arrow Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Arrow's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $400,000. During 2021, Arrow sold merchandise on account for $12,000,000. Also during the year, customers returned $520,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. The amount to adjust the refund liability to its appropriate balance at year-end would be:A. 180,000B. 220,000C. 200,000D. 240,000Blunt Company makes credit sales of $21,000 during the month of February 2019. During 2019, collections are received on February sales of $20,400, accounts represent-ing $600 of these sales are written off as uncollectible, and a $100 account previously written off is collected. Required: 1. Prepare the journal entries necessary to record the preceding information if (a) bad debts are estimated as 3% of credit sales at the time of sale and (b) the bad debts are recorded as they actually occur.
