Accounting
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- 13 Pages
- Report
Accounting
Introduction to Accounting
Part A)
Introduction
Being the professional accountant for The KOI Store owned by Dr. Doug Hinchliffe, task of preparing the financial statements for The KOI Store has been given. The KOI Store sells composters and environmentally friendly products. The KOI Store uses the Periodic Inventory method. Furthermore, this business has a fiscal year ended June 30, 2011 and taxes are applicable for the given information. GST is 10%.
Step 1) Journalizing the transactions for the month of June 2011. Journal descriptions are not required.
The KOI Store
General Journal
Page: 53
Date
Particulars
P.R.
Debit
Credit
2011
Journal Entries for October
1
June
7
Accounts Receivable - Jacob Handy Stores
105
1,484.00
1
2
GST Payable
205
84.00
2
3
Sales Revenue
401
1,400.00
3
4
4
5
8
Bank
101
685.00
5
6
Accounts Receivable - Betty Loo
105
685.00
6
7
7
8
9
GST Payable
205
8.40
8
9
Sales Returns and Allowances
402
140.00
9
10
Accounts Receivable - Jacob Handy
105
148.40
10
11
11
12
10
Purchases
501
460.00
12
13
GST Recoverable
206
27.60
13
14
Accounts Payable - Enviro-friendly Inc.
201
487.60
14
15
15
16
11
Sales Returns and Allowances
402
1,010.00
16
17
GST Payable
205
60.60
17
18
PST Payable
207
80.80
18
19
Bank Account
1,151.40
19
20
20
21
15
S. Redmond, Drawings
305
114.00
21
22
GST Payable
205
6.00
22
23
PST Payable
207
8.00
23
24
Sales Revenue
401
100.00
24
25
25
26
15
Freight-in
504
78.50
26
27
GST Recoverable
206
4.71
27
28
Bank
101
83.21
28
29
29
30
15
Accounts Payable - Ken. Joseph
201
142.50
30
31
Bank
101
142.50
31
32
32
33
31
Interest Expense
650
22.50
33
34
Bank
101
22.50
34
35
35
36
31
Supplies
115
39.69
36
37
GST Recoverable
206
2.21
37
38
Bank
101
41.90
38
39
39
40
4,360.51
4,360.51
40
General Journal
Page: 54
Date
Particulars
P.R.
Debit
Credit
2011
Adjusting Entries
7
31
Supplies Expense
680
659.69
7
8
Supplies
115
659.69
8
9
9
10
31
Insurance Expense
650
104.00
10
11
Prepaid Insurance
120
104.00
11
12
12
13
31
Amortization Expense - Furniture
615
2,366.00
13
14
Acc Amort - Furniture
137
2,366.00
14
15
15
16
31
Amortization Expense - Equipment
620
1,176.00
16
17
Acc. Amort. - Equipment
141
1,176.00
17
18
18
19
31
Amortization Expense - Store Equip.
625
2,150.00
19
20
Acc. Amort. - Store Equipment
146
2,150.00
20
21
21
22
31
Amortization Expense - Automobile
640
6,804.00
22
23
Acc. Amort. - Automobile
171
6,804.00
23
24
24
25
Closing Entries
25
26
June
31
Income Summary
700
218,656.19
26
27
Merchandise Inventory
110
62,400.00
27
28
Sales Returns
402
1,730.00
28
29
Sales Discounts
403
1,840.00
29
30
Purchases
501
114,685.00
30
31
Freight-In
504
723.50
31
32
Advertizing Expense
601
420.00
32
33
Automobile Expense
605
5,775.00
33
34
Amortization - Office Furniture
615
2,366.00
34
35
Amortization - Office Equipment
620
1,176.00
35
36
Amortization - Store Equipment
625
2,150.00
36
37
Amortization - Automobile
640
6,804.00
37
38
Insurance Expense
650
1,232.00
38
39
Maintenance Expense
665
325.00
39
40
Miscellaneous Expense
670
110.00
40
41
Rent Expense
675
8,800.00
41
42
Supplies Expense
680
659.69
42
43
Utilities Expense
685
1,925.00
43
44
Interest Expense
690
5,535.00
44
General Journal
Page: 55
Date
Particulars
P.R.
Debit
Credit
2011
Closing Entries continued
1
June
31
Merchandise Inventory
110
58,900.00
1
2
Sales Revenue
401
191,955.00
2
3
Purchase Returns
502
620.00
3
4
Purchase Discounts
503
1,460.00
4
5
Income Summary
700
252,935.00
5
6
6
7
31
S. Redmond, Capital
301
34,751.31
7
8
S. Redmond, Drawings
305
34,751.31
8
9
9
10
31
Income Summary
700
34,278.81
10
11
S. Redmond, Capital
301
34,278.81
11
Step 2) Post the journal entries to the General Ledger Accounts
The KOI Store
General Ledger
Account:
101
Bank Account
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
54,400.00
1
2
June
8
J53
685.00
DR
55,085.00
2
3
June
11
J53
1,151.40
DR
53,933.60
3
4
June
15
J53
83.21
DR
53,850.39
4
5
June
15
J53
142.50
DR
53,707.89
5
6
June
30
J53
22.50
DR
53,685.39
6
7
June
30
J53
41.90
DR
53,643.49
7
Account:
105
Accounts Receivable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
18,400.00
1
2
June
7
J53
1,484.00
DR
19,884.00
2
3
June
8
J53
685.00
DR
19,199.00
3
4
June
9
J53
148.40
DR
19,050.60
4
5
5
Account:
110
Merchandise Inventory
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
62,400.00
1
2
2
3
3
4
4
5
5
Account:
115
Supplies
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
5,420.00
1
2
June
30
J53
39.69
DR
5,459.69
2
3
June
30
J54
659.69
DR
4,800.00
3
4
4
5
5
Account:
120
Prepaid Insurance
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
520.00
1
2
June
30
J54
104.00
DR
416.00
2
3
3
4
4
5
5
Account:
135
Office Furniture
8
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
9
2011
10
1
May
31
DR
16,900.00
1
2
2
3
3
4
4
5
5
Account:
137
Acc. Amort - Office Furniture
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
5,070.00
1
2
June
30
J54
2,366.00
CR
7,436.00
2
3
3
4
4
5
5
Account:
140
Office Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
9,800.00
1
2
2
3
3
4
4
5
5
Account:
141
Acc. Amort. - Office Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
3,920.00
1
2
June
30
J54
1,176.00
CR
5,096.00
2
3
3
4
4
5
5
Account:
145
Store Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
21,500.00
1
2
2
3
3
4
4
5
5
Account:
146
Acc. Amort. - Store Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
10,750.00
1
2
June
30
J54
2,150.00
CR
12,900.00
2
3
3
4
4
5
5
Account:
170
Automobile
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
32,400.00
1
2
2
3
3
4
4
5
5
Account:
171
Acc. Amort. - Automobile
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
9,720.00
1
2
June
30
J54
6,804.00
CR
16,524.00
2
3
3
4
4
5
5
Account:
201
Accounts Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
18,600.00
1
2
June
10
J53
487.60
CR
19,087.60
2
3
June
15
J53
142.50
CR
18,945.10
3
4
4
5
5
Account:
202
Interest Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
0.00
1
2
June
30
J54
450.00
CR
450.00
2
3
June
30
J54
22.50
CR
472.50
3
Account:
205
GST Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
6,920.00
1
2
June
7
J53
84.00
CR
7,004.00
2
3
June
9
J53
8.40
CR
6,995.60
3
4
June
11
J53
60.60
CR
6,935.00
4
5
June
15
J53
6.00
CR
6,941.00
5
Account:
206
GST Recoverable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
4,810.00
1
2
June
10
J53
27.60
DR
4,837.60
2
3
June
15
J53
4.71
DR
4,842.31
3
4
June
30
J53
2.21
DR
4,844.52
4
5
5
Account:
207
PST Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
5,890.00
1
2
June
11
J53
80.80
CR
5,809.20
2
3
June
15
J53
8.00
CR
5,817.20
3
4
4
5
5
Account:
210
Loan Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
4,500.00
1
2
2
3
3
4
4
5
5
Account:
215
Mortgage Payable
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
40,500.00
1
2
2
3
3
4
4
5
5
Account:
301
S. Redmond, Capital
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
92,958.00
1
2
2
3
3
4
4
5
5
Account:
305
S. Redmond, Drawings
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
24,000.00
1
2
June
15
J53
114.00
DR
24,114.00
2
3
3
4
4
5
5
Account:
401
Sales Revenue
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
190,455.00
1
2
June
7
J53
1,400.00
CR
191,855.00
2
3
June
15
J53
100.00
191,955.00
3
4
4
5
5
Account:
402
Sales Returns
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
580.00
1
2
June
9
J53
140.00
DR
720.00
2
3
June
11
J53
1,010.00
DR
1,730.00
3
4
4
5
5
Account:
403
Sales Discounts
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
1,840.00
1
2
2
3
3
4
4
5
5
Account:
501
Purchases
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
114,225.00
1
2
June
10
J53
460.00
DR
114,685.00
2
3
3
4
4
5
5
Account:
502
Purchase Returns
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
620.00
1
2
2
3
3
4
4
5
5
Account:
503
Purchase Discounts
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
CR
1,460.00
1
2
2
3
3
4
4
5
5
Account:
504
Freight-In
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
645.00
1
2
June
15
J53
78.50
DR
723.50
2
3
3
4
4
5
5
Account:
601
Advertizing Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
420.00
1
2
2
3
3
4
4
5
5
Account:
605
Auto Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
5,775.00
1
2
2
3
3
4
4
5
5
Account:
615
Amort. Expense - Furniture
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
0.00
1
2
June
30
J54
2,366.00
DR
2,366.00
2
3
3
4
4
5
5
Account:
620
Amort. Expense - Office Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
0.00
1
2
June
30
J54
1,176.00
DR
1,176.00
2
3
3
4
4
5
5
Account:
625
Amort. Expense - Store Equipment
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
10
1
May
31
DR
0.00
1
2
June
30
J54
2,150.00
DR
2,150.00
2
3
3
4
4
5
5
Account:
640
Amort. Expense - Automobile
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
0.00
1
2
June
30
J54
6,804.00
DR
6,804.00
2
3
3
4
4
5
5
Account:
650
Insurance Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
1,128.00
1
2
June
30
J54
104.00
DR
1,232.00
2
3
3
4
4
5
5
Account:
665
Maintenance Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
325.00
1
2
2
3
3
4
4
5
5
Account:
670
Miscellaneous Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
110.00
1
2
2
3
3
4
4
5
5
Account:
675
Rent Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
8,800.00
1
2
2
3
3
4
4
5
5
Account:
680
Supplies Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
0.00
1
2
June
30
J54
659.69
DR
659.69
2
3
3
4
4
5
5
Account:
685
Utilities Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
1,925.00
1
2
2
3
3
4
4
5
5
Account:
690
Interest Expense
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
DR
5,040.00
1
2
June
30
J53
22.50
DR
5,062.50
2
3
June
30
J54
450.00
DR
5,512.50
3
4
June
30
J54
22.50
DR
5,535.00
4
5
5
Account:
700
Income Summary
Date
Particulars
P.R.
Debit
Credit
DR CR
Balance
2011
1
May
31
0.00
1
2
2
3
3
4
4
5
5
Step 3) Produce a Trial Balance on the Worksheet for the year ended June 30, 2011
The Green Store
Worksheet
For the Year Ended June 30, 2011
Accounts
Acc. No.
Trial Balance Adjustments Income Statement Balance Sheet DR CR DR CR DR CR DR CR
1
Bank
101
53,643.49
53,643.49
2
Accounts Receivable
105
19,050.60
19,050.60
3
Merchandise Inventory
110
62,400.00
62,400.00
58,900.00
58,900.00
4
Supplies
115
5,459.69
659.69
4,800.00
5
Prepaid Insurance
120
520.00
104.00
416.00
6
Office Furniture
135
16,900.00
16,900.00
7
Accumulated Amortization
137
5,070.00
2,366.00
7,436.00
8
Office Equipment
140
9,800.00
9,800.00
9
Accumulated Amortization
141
3,920.00
1,176.00
5,096.00
10
Store Equipment
145
21,500.00
21,500.00
11
Accumulated Amortization
146
10,750.00
2,150.00
12,900.00
12
Automobile
170
32,400.00
32,400.00
13
Accumulated Amortization
171
9,720.00
6,804.00
16,524.00
14
Accounts Payable
201
18,945.10
18,945.10
15
Interest Payable
202
0.00
16
GST Payable
205
6,941.00
6,941.00
17
GST Recoverable
206
4,844.52
4,844.52
18
PST Payable
207
5,817.20
5,817.20
19
Loan Payable
210
4,500.00
4,500.00
20
Mortgage Payable
215
40,500.00
40,500.00
21
S. Redmond, Capital
301
92,958.00
92,958.00
22
S. Redmond, Drawings
305
24,114.00
24,114.00
23
Sales Revenue
401
191,955.00
191,955.00
24
Sales Returns
402
1,730.00
1,730.00
25
Sales Discounts
403
1,840.00
1,840.00
26
Purchases
501
114,685.00
114,685.00
27
Purchase Returns
502
620.00
620.00
28
Purchase Discounts
503
1,460.00
1,460.00
29
Freight-In
504
723.50
723.50
30
Advertizing Expense
601
420.00
420.00
31
Automobile Expense
605
5,775.00
5,775.00
32
Amort. Expense - Furniture
615
0.00
2,366.00
2,366.00
33
Amort. Expense - Off. Equip
620
0.00
1,176.00
1,176.00
34
Amort. Expense - Store Equipment
625
0.00
2,150.00
2,150.00
35
Amort. Expense - Automobile
640
0.00
6,804.00
6,804.00
36
Insurance Expense
650
1,128.00
104.00
1,232.00
37
Maintenance Expense
665
325.00
325.00
38
Miscellaneous Expense
670
110.00
110.00
39
Rent Expense
675
8,800.00
8,800.00
40
Supplies Expense
680
0.00
659.69
659.69
41
Utilities Expense
685
1,925.00
1,925.00
42
Interest Expense
690
5,062.50
5,062.50
43
393,156.30
393,156.30
44
45
46
13,259.69
13,259.69
218,183.69
252,935.00
246,368.61
211,617.30
47
34,751.31
0.00
0.00
34,751.31
48
252,935.00
252,935.00
246,368.61
246,368.61
Step 4) Income Statement for the Year Ended June 30, 2011
The KOI Store
Income Statement
For the Year Ended June 30, 2011
Revenue
Sales Revenue
$ 191,955.00
Sales Returns
$ (1,730.00)
Sales Discounts
(1,840.00)
(3,570.00)
Net Sales
$ 188,385.00
Cost of Goods Sold
Beginning Inventory
$ 62,400.00
Add: Purchases
114,685.00
Less: Purchase Returns and Allowances
$ (620.00)
Less: Purchase Discounts
(1,460.00)
(2,080.00)
Net Purchases
112,605.00
Add: Freight-in
723.50
Goods Available for Sale
175,728.50
Less: Ending Inventory
(58,900.00)
Cost of Goods Sold
$ 116,828.50
Gross Profit
$ 71,556.50
Operating Expenses
Advertsing Expense
$ 420.00
Automobile ...
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