The following trial balance provides the closing balances of all accounts as at 31 December 2012 which are the opening balances of those accounts as of 1 January 2013.
Hi -Fi Way
Trial Balance
As of 31 December 2012
|
Account #
|
Account
|
YTD Debit ($)
|
YTD Credit ($)
|
|
1-1110
|
Cheque Account
|
84,406
|
|
|
1-1180
|
Undeposited Funds
|
0
|
|
|
1-1190
|
Electronic Clearing Account
|
0
|
|
|
1-1200
|
Accounts Receivable
|
38,445
|
|
|
1-1210
|
Less Provision for Doubtful Debts
|
|
769
|
|
1-1300
|
Inventory
|
136,120
|
|
|
1-1400
|
Office Supplies
|
441
|
|
|
1-1500
|
Prepaid Rent
|
0
|
|
|
1-3110
|
Property & Equipment at Cost
|
54,000
|
|
|
1-3120
|
Property & Equipment Accum Dep
|
|
22,094
|
|
2-1200
|
Accounts Payable
|
|
33,726
|
|
2-1310
|
GST Collected
|
|
5,116
|
|
2-1330
|
GST Paid
|
6,806
|
|
|
2-1410
|
Salaries Payable
|
|
0
|
|
2-1420
|
PAYG Withholding Payable
|
|
1,860
|
|
2-1700
|
Interest Payable
|
|
0
|
|
2-1800
|
Short Term Loans
|
|
0
|
|
2-2100
|
Bank Loans
|
|
48,000
|
|
3-1100
|
Share Capital
|
|
40,000
|
|
3-8000
|
Retained Earnings
|
|
190,257
|
|
3-9000
|
Current Year Earnings
|
|
0
|
|
3-9999
|
Historical Balancing
|
|
0
|
|
4-1100
|
Sales Revenue
|
|
102,314
|
|
5-1100
|
Cost of Sales/Cost of Goods Sold
|
71,620
|
|
|
6-1100
|
Depreciation Expense
|
22,094
|
|
|
6-1800
|
Office Supplies Expense
|
2,861
|
|
|
6-1930
|
Salaries Expense
|
17,812
|
|
|
6-2100
|
Rent Expense
|
0
|
|
|
6-2200
|
Telephone Expense
|
3,924
|
|
|
6-2420
|
Electricity Expense
|
3,990
|
|
|
6-2500
|
Bank Charges
|
33
|
|
|
6-2600
|
Bad Debts Expense
|
1,104
|
|
|
8-1000
|
Interest Income
|
|
0
|
|
9-1000
|
Interest Expense
|
480
|
|
|
|
TOTAL
|
444,136
|
444,136
|
Goods and services tax (GST): The company is a registered entity for GST purposes and accounts for GST on an accrual basis. As a small business, Hi-Fi Way pays GST in quarterly instalments and no GST is due to be remitted in the month of January. The prices of goods and services that are subject to GST are quoted inclusive of 10% GST.
First transaction: On 2 January 2013, Hermione issued Cheque no. 4007 to Office Supplies Warehouse for the purchase of $2,200 (includes 10% GST) worth of equipment.
Early January 2013
Date Transaction description
2 Issued Cheque No. 4008 for $1,540 (includes 10% GST) to Discount Office Supplies for the cash purchase of office supplies.
2 Obtained a loan of $15,000 from Uncle Claudio (a family relative of Hermione Fowler) at a simple interest rate of 6% per year, Cheque No. 121, ID #CR000001. The principal and interest on the loan are payable in six months time.
3 Issued Cheque No. 4009 for $6,468 to Big Telco in payment of Purchase #341 (Supplier Inv#263).
3 Received Cheque No. 221 from Jerry Technology for $10,648, which is the full amount outstanding on their account, ID #CR000002.
3 Purchased 9 units Swish Phones from Mega Tech at $1,177 each (includes 10% GST), Purchase #344, Supplier Inv#922. Issued Cheque No. 4010 for $5,600 to this supplier for this particular invoice at the time of the purchase.
5 Realised that the entry above for the purchase of 9 Swish Phones was incorrect. The correct entry should have been: Purchased the following items from JCN Electrical, Purchase #344, Supplier Inv#922:9 units Swish Phones at $1,177 each (includes 10% GST), and 8 units Mieca camera lenses at $1,760 each (includes 10% GST). Issued Cheque No. 4010 for $5,600 to this supplier for this particular invoice at the time of the purchase. You will need to reverse the incorrect entry made on 3 January and then make the correct entry.
5 Sold the following items on credit to Hypertronics, Invoice #3532:
2 units MX620 notebook computers for $2,420 each (includes 10% GST) (standard cost $1,470 [no GST])
3 units ZII game consoles for $2,750 each (includes 10% GST) (standard cost $1,670 [no GST]).
$4,400 was received immediately, Cheque No. 642, with the rest due to be received during the last week of the month. Note that MYOB automatically assigns ID #CR000003 to this cash receipt.
7 Record an entry to transfer the amount recorded in the Undeposited Funds account (that is, all cheques received from 1 January to 6 January inclusive) into the Cheque Account, ID #CR000004.
Mid January 2013
Date Transaction description
8 Purchased 9 units MX620 notebook computers from Big Telco at $1,617 each (includes 10% GST), Purchase #345, Supplier Inv#746.
8 Made a cash sale to Hypertronics, Invoice #3533 for the following items:
5 units MX620 notebook computers for $2,420 each (includes 10% GST) (standard cost $1,470 [no GST])
4 units Mieca camera lenses for $2,640 each (includes 10% GST) (standard cost $1,600 [no GST]).
Received Cheque No. 647 for $22,660 from this customer. Note that MYOB automatically assigns ID #CR000005 to this cash receipt.
14 Received a purchase order from Pikea, Customer PO#3949, Invoice #3534. The following items are required to be shipped by 24 January 2013:
5 units MX620 notebook computers at $2,420 each (includes 10% GST) (standard cost $1,470 [no GST])
5 units Swish Phones at $1,760 each, (includes 10% GST) (standard cost $1,070 [no GST]) .
15 Purchased 10 units ZII game consoles from Big Telco for a list price of $1,837 each (includes 10% GST), Purchase #346, Supplier Inv#668. Issued Cheque No. 4011 for the full payment of this purchase.
15 Issued Cheque No. 4012 for $5,500 (includes 10% GST) to pay Advanced Property Management for three month's worth of rent in advance.
17 Sold merchandise on credit to Jerry Technology, Invoice #3535. The items sold were:
3 units Mieca camera lenses for $2,640 each (includes 10% GST) (standard cost $1,600 [pre GST])
3 units ZII game consoles for $2,750 each (includes 10% GST) (standard cost $1,670 [no GST]).
17 Ordered 9 units Swish Phones for $1,177 each (includes 10% GST), from Mega Tech, Purchase #347, Supplier Inv#SO747.
20 Received 9 units Swish Phones, Purchase #347. These items were ordered from Mega Tech for $1,177 each (includes 10% GST), Supplier Inv#SO747.
21 Record an entry to transfer the amount recorded in the Undeposited Funds (that is, all cheques received from 7 January to 20 January inclusive) account into the Cheque Account, ID #CR000006.
REQUIRED:
- Open Ledger accounts (T-format or Running-balance format) for the above accounts and enter the balances as per the Trial Balance.
- Record the transactions listed below in the General Journal, using the accounts listed in the Trial Balance.
- Post the transactions from the General Journal to the Ledger accounts.
- Prepare a Trial Balance as at 21 January 2013