Question 1
Traditionally, the role of an accountant is to capture and record financial information. Has this role changed? Why or why not?
Question 2
Presented below are the sales and cash receipts journals for Garden Growers for its first month of operations.
In addition, the following transactions have not been journalised for February 2012. Feb 6 Purchased inventory on account from Aussie Seed Supplies Ltd for $4800, term 1/7, n/30.
9 Purchased inventory on account from Gardenia Grove Pty Ltd for $40000, terms 1/10, n/30.
9 Paid cash of $1200 for purchase of supplies.
12 Paid $4752 to Aussie Seed Supplies Ltd in payment for $4800 invoice, less 1% discount.
15 Purchased equipment for $9600 cash.
16 Purchased inventory on account from Rose's Garden $2880, terms 2/7, n/30.
17 Paid $35640 to Gardenia Grove Pty Ltd in payment of $36000 invoice, less 1% discount.
20 Withdrew cash of $1700 from business to pay for personal electricity bill.
21 Purchased inventory on account from J. Able for $8800, terms 1/7, n/30.
28 Paid $2880 to Rose's Garden in payment of $2880 invoice.
Required
a. Open the following accounts in the general ledger. (Note steps a & d can be combined, you do not have to show ledgers twice.)
101 Cash
112 Accounts Receivable
120 Inventory
126 Supplies
157 Equipment
158 Accumulated Depreciation - Equipment
201 Accounts Payable
301 P. Sims, Capital
306 P. Sims, Drawings
401 Sales
405 Discount Received
505 Cost of Goods Sold
614 Discount Allowed
631 Supplies Expense
711 Depreciation Expense
b. Journalise each transaction that has not been journalised into either a one-column purchases journal, or a cash payments journal.
c. Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.
d. Post the individual entries and totals to the general ledger.
e. Prepare a trial balance as at 28 February 2013.
f. Determine that the subsidiary ledgers agree with the control accounts in the general ledger.
g. The following adjustments at the end of February are necessary.
1. A count of supplies indicates that $280 is still on hand.
2. Depreciation on equipment for February is $250.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.
h. Prepare an adjusted trial balance as at 28 February 2013.
All journals should be prepared using Microsoft Excel, or similar spreadsheet software.