Perdisco Coffee and Café Supplier Accounting Practice

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Perdisco

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Houston, TX 77043

USA

Website: www.perdisco.com

Email: [email protected]

Production team

Commissioning publisher and development editor: Jon Carter

Authors: Raechel Wight and Julyana Cahyadi

Technical editor: Liam Carey

Graphic designer: Ryan Dunn

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This practice set contains instructional content and questions selected from our comprehensive catalog. The production credits acknowledge the key contributors to this work. In addition to those people listed, Perdisco would like to thank all authors, designers and technical experts (past and present) who have made possible the delivery of our high quality, academically rigorous and technically advanced learning resources.

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About the authors

Raechel Wight (B.Bus., B.V.A) is an educator and author who has taught undergraduate accounting at a number of universities. She has many years experience writing educational resources for accounting students and, in her prior professional career, worked as an auditor for Deloitte.

Julyana Cahyadi (B.Com., M.Bus.) teaches financial accounting and financial statement analysis to undergraduate students. She previously worked as a researcher for the National Centre for Banking and Capital Markets and has since then undertaken various consulting roles in Australia and overseas.

Contents

Study time guidelines ................................................................................................................................ 2

Overview .................................................................................................................................................... 3

Background information .......................................................................................................................................... 3

Accounting policies................................................................................................................................................... 3

Accounting procedures ............................................................................................................................................ 4

Instructions................................................................................................................................................ 6

Transactions ............................................................................................................................................................... 6

End of month posting .............................................................................................................................................. 6

Bank reconciliation ................................................................................................................................................... 6

Unadjusted trial balance ........................................................................................................................................... 6

Worksheet................................................................................................................................................................... 6

Adjusting entries ........................................................................................................................................................ 7

Schedules of accounts............................................................................................................................................... 7

Financial statements.................................................................................................................................................. 7

Closing entries ........................................................................................................................................................... 7

Post-closing trial balance.......................................................................................................................................... 7

Reversing entries ....................................................................................................................................................... 7

Further information ................................................................................................................................... 8

Chart of accounts ...................................................................................................................................................... 8

Schedule of accounts receivable ~ May................................................................................................................. 9

Schedule of accounts payable ~ May ..................................................................................................................... 9

Post-closing trial balance ~ May........................................................................................................................... 10

Bank reconciliation statement ~ May .................................................................................................................. 11

Bank statement ~ June ........................................................................................................................................... 12

Transactions ............................................................................................................................................ 13

General journal ........................................................................................................................................ 16

Special Journals ....................................................................................................................................... 21

Sales journal.............................................................................................................................................................. 21

Purchases journal..................................................................................................................................................... 21

Cash receipts journal............................................................................................................................................... 22

Cash payments journal ........................................................................................................................................... 23

Ledgers .................................................................................................................................................... 25

Accounts receivable subsidiary ledger.................................................................................................................. 26

Accounts payable subsidiary ledger ...................................................................................................................... 28

General ledger .......................................................................................................................................................... 30

Final statements ...................................................................................................................................... 45

Bank reconciliation statement ............................................................................................................................... 46

Worksheet................................................................................................................................................................. 48

Schedule of accounts receivable............................................................................................................................ 50

Schedule of accounts payable ................................................................................................................................ 50

Income statement .................................................................................................................................................... 51

Statement of stockholders' equity ......................................................................................................................... 52

Balance sheet............................................................................................................................................................ 53

Post-closing trial balance........................................................................................................................................ 54

Study time guidelines

Your accounting practice set is a large activity that will take approximately 18 hours or more of study. As such, you will not complete the whole practice set in one sitting. The timeframes that we are suggesting on this page measure study time spent directly working with this practice set.

Depending on the submission guidelines set by your instructor, your study time may be spread over many days or weeks. The study times below are provided only to give you a general guide as to how to allocate your time when completing the sections in your practice set. Breaking your study time into blocks will help maintain your concentration while performing the tasks required.

Some students will take less time to complete their accounting practice set, other students will take longer. That is OK. Subject to the deadlines set by your instructor, please take as much or as little time as you need.

6 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 5

Accounting cycle step

Approximate study time

Reading time	Up to 0.5	hour
Transactions - week 1	Up to 2	hours
Transactions - week 2	Up to 1	hour
Transactions - week 3	Up to 1	hour
Transactions - week 4	Up to 1	hour
Transactions - week 5	Up to 1	hour
End of month posting	Up to 1.5	hours
Bank reconciliation	Up to 1.5	hours
Unadjusted trial balance	Up to 1	hour
Worksheet	Up to 2	hours
Adjusting entries	Up to 1	hour
Schedules of accounts	Up to 0.25	hour
Financial statements	Up to 1.5	hours
Closing entries	Up to 1.5	hours
Post-closing trial balance	Up to 0.25	hour
Reversing entries	Up to 1	hour
TOTAL all steps (approximate)	Up to 18	hours

Overview

Background information

Assume it is currently June 30, 20XX.

You are working for the temporary accounting employment agency known as Tempters. Today you have been asked to work at Moondollars, a small coffee supplies store that operates in the city and is owned by Adrian Bartos. Your task here is to complete the accounting cycle for Moondollars for the month of June 20XX. To assist you in this task, Adrian tells you to read the company's accounting policies and procedures. Note that you will be required to follow these policies and procedures when completing the accounts

for Moondollars.

Accounting policies

a. Business operations: Moondollars is set up as a private non-listed corporation based in the city with

Adrian Bartos as the sole stockholder. The business derives its main source of revenue from retail sales of coffee supplies.

To assist in managing the business, Moondollars rents a small office space. Note that the business is required to pay for the rent for this premises in advance.

The electricity and water expenses incurred during the month relate to the running of the office. Additional expenses include an insurance policy to protect the equipment in the office in the event of theft or fire.

All costs associated with the office are classified as general and administrative expenses.

Adrian is the only full-time employee and his role is to handle all administrative tasks. Adrian's salary is paid once at the end of each month. All other employees are sales staff who are employed on a part-time basis. The sales staff receive their wages every two weeks.

b. Accounting cycle: The business adopts a monthly accounting cycle.

c. Purchases: Purchases are recorded when the business receives the goods. All items purchased are received on the same day as recorded in the transaction list, except for purchase orders which are received at a later date. Note that the business uses the gross method of recording purchases and receives trade discounts and early payment discounts from some suppliers.

d. Purchase returns: To allow Adrian to separately track and analyze the value of goods returned to suppliers, all purchase returns are recorded in the Purchase Returns and Allowances account rather than directly in the Purchases account.

e. Revenue recognition: The business recognizes revenues when goods sold are delivered to customers. All items sold are delivered on the same day as recorded in the transaction list except for sales orders, which are delivered at a later date as agreed with the customer. Note that the business uses the gross method of recording sales and sometimes grants trade discounts to customers. Past experience has shown that offering early payment discounts did not increase the likelihood of accounts receivable being paid promptly. Therefore, discounts for early payment of accounts are not normally offered to credit customers except in exceptional circumstances.

f. Sales returns: So that the business can easily track the level of sales returns in relation to overall sales, all sales returns are recorded using a contra revenue account (Sales Returns and Allowances) rather than being recorded directly in the Sales Revenue account.

g. Sales tax: Adrian has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, sales tax cannot be ignored.]

h. Cash: The business accepts cash and checks and uses checks to pay for the majority of its expenses. On the day checks are received, Adrian deposits them at the bank. It may take a number of days for the checks to be cleared by the bank. The business holds its checking account with BitiBank.

i. Short-term investments: The business holds a six-month term deposit account with BitiBank. Interest is calculated on a monthly basis and received at the end of the deposit term. Note that when the deposit matures, Adrian usually rolls over the principal and interest received at the end of the term. The term deposit account was rolled over on June 1, 20XX.

j. Inventories: The business uses the periodic inventory system and and records all purchases of inventory in the Purchases account, rather than recording them directly in the Merchandise Inventory account. At the end of the reporting period, the Purchases account and the opening balance of the Merchandise Inventory account are closed to the Income Summary account and Merchandise Inventory is restated to its ending balance. Note that the company does not use a Cost of Goods Sold account.

k. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the accounting period.

l. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the depreciation charge.

m. Long-term liabilities: The business obtained an interest only loan from MRMC Bank on June 1, 20XX. The first interest payment is due at the end of August 20XX and the principal on the loan is due at the beginning of June four years later.

Accounting procedures

Moondollars adopts a manual accounting system and uses the general journal and special journals for the recording of individual transactions. Adrian Bartos has tailored the design of those journals to meet the specific needs of the business so the format of those journals may be slightly different to those you have seen before. However, he advises you that the general principles of how to use special journals are followed in his business.

The table below shows the journals used by the business and the types of transactions that can be recorded in each of these journals:

Journal	Code	Transaction type
General journal	GJ	All transactions that are not able to be recorded in the special journals below.
Sales journal	SJ	Credit sales of inventory
Purchases journal	PJ	Credit purchases of inventory
Cash receipts journal	CRJ	Cash inflows to the business
Cash payments journal	CPJ	Cash outflows from the business

To summarize the effects of transactions recorded in those journals, Adrian maintains the general ledger and the following subsidiary ledgers:

▪ accounts receivable subsidiary ledger, and

▪ accounts payable subsidiary ledger.

Adrian then indicates that he is aware other businesses using a manual accounting system may post transactions from journals to ledgers at different times (i.e. daily or monthly). Although the posting procedures used in his business may be different to what you have seen before, he asks that you specifically follow his company's accounting policies and procedures.

The information below explains when transactions are required to be posted from the journals to the appropriate ledger accounts:

Posting of entries recorded in the general journal

All transactions that are entered in the general journal are posted on a daily basis. Note that if a transaction recorded in the general journal involves both a control account and a subsidiary ledger account, that journal entry will need to be posted to both ledgers.

Posting of entries recorded in the special journals

When a transaction is recorded in a special journal, part of the journal entry may need to be posted daily and part of that entry is to be posted monthly.

a. Daily:

▪ If a transaction affects a subsidiary ledger account, then the entry that involves a subsidiary ledger account is to be posted to that subsidiary ledger on a daily basis. However, the same amount posted to the subsidiary ledger account is not posted to the related control ledger account immediately. This procedure allows the business to keep track of supplier and customer balances on a daily basis.

▪ In the cash receipts journal or the cash payments journal, if a transaction is recorded in the Other Accounts column, then the amount recorded in the Other Accounts column is to be posted to the appropriate

general ledger account daily.

b. Monthly:

▪ At the end of the month, the totals of each column in the special journals are manually calculated. Those totals, with the exception of the totals of the Other Accounts columns in the cash journals, are posted to the appropriate general ledger accounts at the end of the month.

Instructions

Now that you have reviewed information about Moondollars, you are ready to complete the accounting cycle for Moondollars for the month of June. To start with, Adrian gives you the transaction list for the month of June and all the journals, ledgers and final statements you will need to complete this task. He also mentions that you will be required to record reversing entries at the beginning of July.

Adrian provides the following list of tasks you are required to perform for June and the beginning of July:

1. Transactions

a. Record all transactions in the relevant journals. Note that special journals must be used where applicable. Any transaction that cannot be recorded in a special journal should be recorded in the general journal.

b. Post entries recorded in the journals to the appropriate ledger accounts according to the company's accounting policies and procedures.

Remember to enter all answers to the nearest whole dollar. When calculating a discount, if a discount is not a whole number, round the discount to the nearest whole dollar. Then, to calculate the Cash amount, subtract the discount from the original amount.

2. End of month posting

a. Total the columns in the special journals.

b. Post the totals of the columns in the special journals to their corresponding ledger accounts. To confirm that the posting has been performed, a posting reference is recorded in the last row of the special journals. If the total of a column is not required to be posted (because the entries in that column have already been posted on a daily basis) you need to record an X in the post reference field for that column.

3. Bank reconciliation

a. Prepare the bank reconciliation statement as at June 30.

b. Identify and record the relevant reconciling items in the general journal, and post them to the relevant accounts.

4. Unadjusted trial balance

Complete the unadjusted trial balance as at June 30 on the worksheet provided.

5. Worksheet

a. Use the following information to record adjustments in the Adjustments column of the worksheet:

▪ furniture: Depreciation on the furniture owned by the business for the month of June is $156.

▪ equipment: Depreciation on the equipment owned by the business for the month of June is $366.

▪ Electricity expense for the month of June is estimated to be $874.

▪ The water usage for the month of June is estimated to be $235.

▪ The amount of wages incurred during the month of June but not yet paid to sales staff is $1,320.

▪ Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is

$275.

▪ Interest earned from short-term investments in BitiBank for the month of June is $100.

▪ The value of office supplies used during the month of June is $4,037.

▪ $3,000 worth of prepaid rent expired during the month of June.

▪ $3,000 worth of prepaid advertising was used up in June.

▪ $590 worth of prepaid insurance expired during the month of June.

b. Complete the remaining columns of the worksheet. After taking a physical count of inventory, the balance of inventory on hand as at June 30 is $60,857. You will need to use this information to complete both the Income Statement and the Balance Sheet columns of the worksheet. Note that Merchandise Inventory is recorded in the Income Statement columns. Hint: This information will assist you in calculating cost of goods sold under the periodic inventory system.

6. Adjusting entries

Use the worksheet to help journalize adjustments for June.

a. Record adjusting entries in the general journal.

b. Post the adjusting entries from the general journal to the relevant ledgers.

7. Schedules of accounts

a. Create a schedule of accounts receivable balances as at the end of June. b. Create a schedule of accounts payable balances as at the end of June.

8. Financial statements

a. Prepare an income statement for the month of June.

b. Prepare a statement of stockholders' equity for the month of June. c. Prepare a balance sheet as at the end of June.

9. Closing entries

a. Journalise closing entries in the general journal.

b. Post the closing entries from the general journal to the relevant ledger accounts.

10. Post-closing trial balance

Prepare a post-closing trial balance as at the end of June.

11. Reversing entries

a. On the first day of July, record in the general journal any entries that are required to reverse the following adjusting entries from the month of June:

▪ Water expense incurred but not paid

▪ Electricity expense incurred but not paid

▪ Wages owed to the employees but have not yet been paid in cash

▪ Interest expense incurred but not paid to the lender

▪ Interest earned but not received in cash

b. Post the reversing entries from the general journal to the relevant general ledger accounts.

After completing the tasks for Moondollars, you should double check your work and ensure that you have completed all of the accounting records before submitting them for review.

Further information

Chart of accounts

Account No. Name

100 Cash

102 Short-term Investments

110 ARC - Accounts Receivable Control

112 Interest Receivable

120 Merchandise Inventory

130 Office Supplies

140 Prepaid Rent

141 Prepaid Advertising

142 Prepaid Insurance

150 Office Furniture

151 Accum Depn: Office Furniture

160 Office Equipment

161 Accum Depn: Office Equipment

210 APC - Accounts Payable Control

220 Wages Payable

221 Electricity Payable

222 Water Payable

225 Interest Payable

250 Bank Loan Payable

300 Common Stock

301 Retained Earnings

310 Income Summary

400 Sales Revenue

401 Sales Returns and Allowances

402 Sales Discounts

403 Interest Revenue

500 Purchases

501 Purchase Returns and Allowances

502 Purchase Discounts

511 Advertising Expense

516 Wages Expense

540 Rent Expense

541 Electricity Expense

542 Water Expense

543 Insurance Expense

544 Office Supplies Expense

545 Salary Expense

560 Depn Expense: Office Furniture

561 Depn Expense: Office Equipment

571 Interest Expense

572 Admin. Expense - Bank Charges

Schedule of accounts receivable ~ May

Moondollars

Schedule of Accounts Receivable

May 31, 20XX

Account No. Name Debit

($)

Credit

($)

110-1 ARC - Central Coffee 2,844

110-2 ARC - Con's Coffee 3,881

110-3 ARC - SloZone 2,144

110-4 ARC - Quick Bolt Coffee 3,701

110-5 ARC - Revamp Coffee Carts

110-6 ARC - Jandesh's Hot Spot

Total 12,570

Please note: Moondollars does not generally give a discount for early payment except in exceptional circumstances. All debtors are on net 30 credit terms.

Schedule of accounts payable ~ May

Moondollars Schedule of Accounts Payable May 31, 20XX

Account No. Name Debit

($)

Credit

($)

Terms

210-1 APC - Brazil Imports Group 3,432 2/10, n/30

210-2 APC - East Tangiers Co-op. 3,781 1/15, n/30

210-3 APC - Abejundio Coffee 4,668 net 30

210-4 APC - Buena Vista Coffee 1,413 2/10, n/30

210-5 APC - Klam Wholesalers 3,144 net 30

210-6 APC - Jordo Gourmet Coffee net 30

Total 16,438

Moondollars - Post-closing trial balance, As at May 31, 20XX

Post-closing trial balance ~ May

Account No. Name Debit

($)

100 Cash 29,477

102 Short-term Investments 20,000

110 ARC - Accounts Receivable Control 12,570

112 Interest Receivable

120 Merchandise Inventory 73,322

130 Office Supplies 7,083

140 Prepaid Rent 6,000

141 Prepaid Advertising 9,000

142 Prepaid Insurance 2,950

150 Office Furniture 9,000

Credit

($)

151 Accum Depn: Office Furniture 2,031

160 Office Equipment 43,000

161 Accum Depn: Office Equipment 13,532

210 APC - Accounts Payable Control 16,438

220 Wages Payable

221 Electricity Payable

222 Water Payable

225 Interest Payable

250 Bank Loan Payable

300 Common Stock 80,000

301 Retained Earnings 100,401

Total 212,402 212,402

Bank reconciliation statement ~ May

Moondollars

Bank Reconciliation Statement

As at May 31, 20XX

Balance per bank: $32,182

Add:

deposit in transit from Quick Bolt Coffee $3,685

deposit in transit from Central Coffee 1,210 4,895

37,077

Deduct:

outstanding check No. 901 $6,900 outstanding check No. 902 700 7,600

Adjusted balance per bank $29,477

Balance per book: $29,348

Add:

interest earned 134

29,482

Deduct:

bank service charge 5

Adjusted balance per book $29,477

Seattle branch

Account No. Adrian Bartos 69932616

102 Martin Road

Seattle, WA 98101 Page No.

Moondollars

Date Particulars Debit Credit Balance

JUN 1 BALANCE BROUGHT FORWARD $32,182 CR

JUN 1 901 $6,900 $25,282 CR

JUN 2 902 $700 $24,582 CR

JUN 4 LOAN $55,000 $79,582 CR

JUN 4 DEPOSIT - Quick Bolt Coffee $3,685 $83,267 CR

JUN 5 903 $3,743 $79,524 CR

JUN 5 DEPOSIT - Central Coffee $1,210 $80,734 CR

JUN 6 904 $1,385 $79,349 CR

JUN 6 DEPOSIT - Cash sales $5,961 $85,310 CR

JUN 9 905 $220 $85,090 CR

JUN 10 DEPOSIT - Central Coffee $2,560 $87,650 CR

JUN 14 906 $3,144 $84,506 CR

JUN 16 DEPOSIT - Cash sales $10,081 $94,587 CR

JUN 20 DEPOSIT - Cash sales $9,658 $104,245 CR

JUN 20 907 $5,103 $99,142 CR

JUN 23 DEPOSIT - Jandesh's Hot Spot $300 $99,442 CR

JUN 26 NSF CHECK - Jandesh's Hot Spot $300 $99,142 CR

JUN 26 DEPOSIT - Cash sales $9,592 $108,734 CR

JUN 29 909 $3,425 $105,309 CR

JUN 30 DEPOSIT - Quick Bolt Coffee $3,701 $109,010 CR

JUN 30 910 $5,582 $103,428 CR

JUN 30 INTEREST $234 $103,662 CR

JUN 30 SERVICE CHARGE $5 $103,657 CR

Last statement to This statement to Total debits Total credits Final balance

05/31/XX 06/30/XX $30,507 $101,982 $103,657 CR

Proceeds of checks will not be available until cleared.

All entries for the last business day are subject to verification and authorization. Any items not paid, or withdrawn, will be adjusted by reversal entry on a later statement.

NSF means Not-Sufficient-Funds

Bank statement ~ June

12 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 13

Transactions for June

You will use the following five weeks of transactions as you complete the books for June. Note that the transactions are divided into five separate weeks to help you break your study time into blocks.

Week 1

Date Transaction description

1 Purchased Coffee Cup Lids from Abejundio Coffee for $160, terms net 30.

1 Purchased Gourmet Cubed Sugar from Brazil Imports Group for $200, terms 2/10, n/30.

1 Obtained a loan of $55,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 20XX and the principal of the loan is to be repaid at the beginning of June four years later.

2 Paid the full amount owing to East Tangiers Co-op., Check No. 903. Payment fell within discount period.

2 Paid the full amount owing to Buena Vista Coffee, Check No. 904. Payment fell within discount period.

3 Purchased Gourmet Cream with cash for $220, Check No. 905.

4 Made cash sales of $5,961 during the first 4 days of the month.

7 Sold 5 bags of Medium Roast Arabica Coffee Beans to SloZone for $287 each, Invoice No. 201.

Week 2

Date Transaction description

9 Central Coffee paid the full amount owing on their account. Since Central Coffee has been a loyal customer from the day the business commenced, a 10% discount was given for this early repayment.

11 Made cash sales of $10,081 during the week.

11 SloZone returned $1,198 worth of product. Issued a Credit Memorandum for $1,198.

12 Sold Chocolate Sprinkles to Jandesh's Hot Spot for $484, Invoice No. 202.

13 Paid the full amount owing to Klam Wholesalers, Check No. 906.

Week 3

Date Transaction description

15 Paid sales staff wages of $5,103 for the two weeks up to and including yesterday, Check No. 907.

17 Sold 10 boxes of Plastic Condiment Containers to Revamp Coffee Carts for $206 each, Invoice No. 203.

18 Made cash sales of $9,658 during the week.

18 Returned $1,403 worth of faulty product to Abejundio Coffee. Received a Credit Memorandum for

$1,403.

19 Jandesh's Hot Spot paid $300 in partial payment of their account.

21 SloZone paid the full amount owing on their account.

21 Received a purchase order from Jandesh's Hot Spot. Created a corresponding sales order to deliver

Gourmet Cream to this customer for $470, Invoice No. 204.

Week 4

Date Transaction description

24 Delivered Gourmet Cream to Jandesh's Hot Spot for $470, Invoice No. 204, which was ordered on the

21st.

25 Made cash sales of $9,592 during the week.

26 Paid the full amount owing to Brazil Imports Group, Check No. 908.

27 Paid the full amount owing to Abejundio Coffee, Check No. 909.

28 Ordered Organic Chocolate Cream Liqueur from Buena Vista Coffee for $155, agreed terms with Buena

Vista Coffee are 2/10, n/30.

Week 5

Date Transaction description

29 Paid sales staff wages of $5,582 for the two weeks up to and including yesterday, Check No. 910.

30 Received Organic Chocolate Cream Liqueur for $155, which was ordered on the 28th, agreed terms with

Buena Vista Coffee are 2/10, n/30.

30 Quick Bolt Coffee paid the full amount owing on their account.

30 Made cash sales of $6,629 during the last 5 days of the month.

30 Paid monthly salary of $5,200 to Adrian Bartos, Check No. 911.

14 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General journal

20 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 19

Date Account and Explanation Post

Ref.

Debit Credit

Record transaction entries below

Record bank reconciliation entries on the next page

Date Account and Explanation Post

Ref.

Debit Credit

Record bank reconciliation entries below

Record adjusting entries on the next page

Date Account and Explanation Post

Ref.

Debit Credit

Record adjusting entries below

Record closing entries on the next page

Date Account and Explanation Post

Ref.

Debit Credit

Record closing entries below

Record reversing entries on the next page

Date Account and Explanation Post

Ref.

Debit Credit

Record reversing entries below

Sales journal

22 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 21

Date Account Invoice

No.

Post

Ref. Amount

Purchases journal

Date Account Terms Post

Ref.

Amount

Cash receipts journal

Ref. Cash Date Account Post

Debit Credit

Sales

Discounts Sales Revenue

Accounts

Receivable

Other

Accounts

Cash payments journal

Date Account Check

Ref. Post

Debit Credit

No.

Accounts

Payable Purchases

Other

Accounts Cash

Purchase

Discounts

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 23

Blank page for your notes

Accounts receivable subsidiary ledger

Account: ARC - Central Coffee

Account No. 110-1

Date Description Ref. Debit Credit Balance

May 31 Balance 2,844 DR

Account: ARC - Con's Coffee

Account No. 110-2

Date Description Ref. Debit Credit Balance

May 31 Balance 3,881 DR

Account: ARC - SloZone

Account No. 110-3

Date Description Ref. Debit Credit Balance

May 31 Balance 2,144 DR

26 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 27

Accounts receivable subsidiary ledger

Account: ARC - Quick Bolt Coffee

Account No. 110-4

Date Description Ref. Debit Credit Balance

May 31 Balance 3,701 DR

Account: ARC - Revamp Coffee Carts

Account No. 110-5

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: ARC - Jandesh's Hot Spot

Account No. 110-6

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Accounts payable subsidiary ledger

Account: APC - Brazil Imports Group

Account No. 210-1

Date Description Ref. Debit Credit Balance

May 31 Balance 3,432 CR

Account: APC - East Tangiers Co-op.dio Coffee

Account No. 210-2

Date Description Ref. Debit Credit Balance

May 31 Balance 3,781 CR

Account: APC - Abejundio Coffee

Account No. 210-3

Date Description Ref. Debit Credit Balance

May 31 Balance 4,668 CR

28 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 29

Accounts payable subsidiary ledger

Account: APC - Buena Vista Coffee

Account No. 210-4

Date Description Ref. Debit Credit Balance

May 31 Balance 1,413 CR

Account: APC - Klam Wholesalers

Account No. 210-5

Date Description Ref. Debit Credit Balance

May 31 Balance 3,144 CR

Account: APC - Jordo Gourmet Coffee

Account No. 210-6

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Cash

Account No. 100

Date Description Ref. Debit Credit Balance

May 31 Balance 29,477 DR

Account: Short-term Investments

Account No. 102

Date Description Ref. Debit Credit Balance

May 31 Balance 20,000 DR

Account: ARC - Accounts Receivable Control

Account No. 110

Date Description Ref. Debit Credit Balance

May 31 Balance 12,570 DR

General ledger

42 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 43

Account: Interest Receivable

Account No. 112

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Merchandise Inventory

Account No. 120

Date Description Ref. Debit Credit Balance

May 31 Balance 73,322 DR

Account: Office Supplies

Account No. 130

Date Description Ref. Debit Credit Balance

May 31 Balance 7,083 DR

Account: Prepaid Rent

Account No. 140

Date Description Ref. Debit Credit Balance

May 31 Balance 6,000 DR

Account: Prepaid Advertising

Account No. 141

Date Description Ref. Debit Credit Balance

May 31 Balance 9,000 DR

Account: Prepaid Insurance

Account No. 142

Date Description Ref. Debit Credit Balance

May 31 Balance 2,950 DR

Account: Office Furniture

Account No. 150

Date Description Ref. Debit Credit Balance

May 31 Balance 9,000 DR

Account: Accum Depn: Office Furniture

Account No. 151

Date Description Ref. Debit Credit Balance

May 31 Balance 2,031 CR

Account: Office Equipment

Account No. 160

Date Description Ref. Debit Credit Balance

May 31 Balance 43,000 DR

Account: Accum Depn: Office Equipment

Account No. 161

Date Description Ref. Debit Credit Balance

May 31 Balance 13,532 CR

Account: APC - Accounts Payable Control

Account No. 210

Date Description Ref. Debit Credit Balance

May 31 Balance 16,438 CR

Account: Wages Payable

Account No. 220

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Electricity Payable

Account No. 221

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Water Payable

Account No. 222

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Interest Payable

Account No. 225

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Bank Loan Payable

Account No. 250

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Common Stock

Account No. 300

Date Description Ref. Debit Credit Balance

May 31 Balance 80,000 CR

Account: Retained Earnings

Account No. 301

Date Description Ref. Debit Credit Balance

May 31 Balance 100,401 CR

Account: Income Summary

Account No. 310

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Sales Revenue

Account No. 400

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Sales Returns and Allowances

Account No. 401

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Sales Discounts

Account No. 402

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Interest Revenue

Account No. 403

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Purchases

Account No. 500

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Purchase Returns and Allowances

Account No. 501

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Purchase Discounts

Account No. 502

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Advertising Expense

Account No. 511

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Wages Expense

Account No. 516

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Rent Expense

Account No. 540

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Electricity Expense

Account No. 541

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Water Expense

Account No. 542

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Insurance Expense

Account No. 543

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Office Supplies Expense

Account No. 544

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Salary Expense

Account No. 545

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Depn Expense: Office Furniture

Account No. 560

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Depn Expense: Office Equipment

Account No. 561

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Interest Expense

Account No. 571

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Admin. Expense - Bank Charges

Account No. 572

Date Description Ref. Debit Credit Balance

May 31 Balance 0

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Bank reconciliation statement ~ June

Moondollars

Bank Reconciliation Statement

As at June 30, 20XX

46 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

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Moondollars - Worksheet

For the month ended June 30, 20XX

Acct. No. Account Name	Unadjusted Trial Adjusted Trial Balance Adjustments Balance Income Statement Balance Sheet
	Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
100 Cash 102 Short-term Investments 110 ARC - Accounts Receivable Control 112 Interest Receivable 120 Merchandise Inventory 130 Office Supplies 140 Prepaid Rent 141 Prepaid Advertising 142 Prepaid Insurance 150 Office Furniture 151 Accum Depn: Office Furniture 160 Office Equipment 161 Accum Depn: Office Equipment 210 APC - Accounts Payable Control 220 Wages Payable 221 Electricity Payable 222 Water Payable 225 Interest Payable 250 Bank Loan Payable 300 Common Stock 301 Retained Earnings

48 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Acct. No. Account Name	Unadjusted Trial Adjusted Trial Balance Adjustments Balance Income Statement Balance Sheet
	Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
400 Sales Revenue 401 Sales Returns and Allowances 402 Sales Discounts 403 Interest Revenue 500 Purchases 501 Purchase Returns and Allowances 502 Purchase Discounts 511 Advertising Expense 516 Wages Expense 540 Rent Expense 541 Electricity Expense 542 Water Expense 543 Insurance Expense 544 Office Supplies Expense 545 Salary Expense 560 Depn Expense: Office Furniture 561 Depn Expense: Office Equipment 571 Interest Expense 572 Admin. Expense - Bank Charges Totals

Net income or loss

Totals

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 49

Schedule of accounts receivable

Moondollars

Schedule of Accounts Receivable

June 30, 20XX

50 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 51

Account

No. Name

Debit

($)

Credit

($)

Total

Schedule of accounts payable

Moondollars Schedule of Accounts Payable June 30, 20XX

Account

No. Name

Debit

($)

Credit

($) Terms

Total

INCOME Revenue

Net sales revenue COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES

Selling expenses

Income Statement

For the month ended June 30, 20XX

Moondollars

Total selling expenses

General and administrative expenses

Total general and administrative expenses TOTAL OPERATING EXPENSES INCOME/(LOSS) FROM OPERATIONS

Other revenue

Other expenses

NET INCOME/(LOSS)

Moondollars

Statement of Stockholders' Equity

For the month ended June 30, 20XX

COMMON STOCK

Opening balance May 31, 20XX Issue of common stock

Closing balance June 30, 20XX

RETAINED EARNINGS

Opening balance May 31, 20XX Net income/(loss)

Dividend paid

Closing balance June 30, 20XX

54 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 53

ASSETS

Current Assets

Total Current Assets

Property, Plant and Equipment

Total Property, Plant and Equipment

TOTAL ASSETS LIABILITIES

Current Liabilities

Total Current Liabilities

Long-term Liabilities

TOTAL LIABILITIES STOCKHOLDERS' EQUITY

Balance Sheet

June 30, 20XX

Moondollars

TOTAL EQUITY

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

Moondollars Post-closing Trial Balance

June 30, 20XX

Account No. Name Debit

($)

Credit

($)

Total

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