Question

Now that you have reviewed information about Bradbury, you are ready to begin the first step in the accounting cycle, recording transactions. On this page of the practice set, you are asked to record transactions that occurred during the first week of June into the company's journals and post the appropriate entries to the ledger accounts. The following transactions occurred throughout the first week of June:

Week 1
Date	Transaction description
1	Issued Check No. 638 for $9,000 to pay Blue Blazer Realty for two month's worth of rent in advance.
1	Obtained a loan of $42,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2020 and the principal of the loan is to be repaid on June 1, 2024.
3	Candy Rush paid the full amount owing on their account.
4	Paid sales staff wages of $1,977 for the week up to and including yesterday, Check No. 639. Note that $1,104 of this payment relates to the wages expense incurred during the last week of May.
5	Paid the full amount owing to Spud's Confectionery, Check No. 640.
5	Issued Check No. 641 to Office Supplies Warehouse for the purchase of $542 worth of office supplies.
6	Made payment of $728 to PowerGen for 3 months of electricity up to and including May 31, Check No. 642.

Instructions for week 1

1)Record all week 1 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.

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

Note that the relevant totals of the special journals will be posted to the general ledger accounts at the end of the month. You will enter this before you prepare the Bank Reconciliation Statement.

Answer 1

Jun-01 Dr $9000 1. Journal Postings General Ledger Rent Account To Advance Rent Account (Rent paid thru check no 638) $9000 Cash Book Dr $9000 Advance Rent A/C To Bank A/C $9000 Jun-01 Cash Book Dr $42000 Bank A/C To Loan from MRMC Bank A/C (Loan Received from Bank) $42000 Jun-03 General Ledger No entry Jun-04 Cash Book Dr $1977 $1977 Wages A/C To Bank A/C (Wages paid thru cheque no 639 for May - $1104 and for June $ 873) Jun-05 General Ledger No Entry Jun-05 Cash Book Dr $ 542 Stationery A/C To Bank A/C (Stationery paid thru Check No 641) $ 542 Jun-06 Cash Book Dr $728 Electricity A/C To Bank A/C ( Electricity paid thru Check No 642) $728

Cash Book Date Particulars Amount Date Particulars Amount Jun-01 Loan From MRMC Bank 42000 Jun-01 Rent A/c 9000 Jun-04 Wages A/C 1977 Jun-05 Stationery A/C 542 Jun-06 Electricity A/C 728 Jun-30 To Balance in Bank 29753 42000 42000 Date Particulars Jun-01 To Rent Rent A/C Amount Date Particulars 9000 Jun-01 Bank A/C 90001 Amount 9000 9000 Wages A/C Amount Date Date Particulars Particulars Amount Jun-04 Wages A/C Jun-04 Bank A/C 1977) 1977 1977 1977 Date Particulars Jun-05 Stationery A/C Stationery A/C Amount Date Particulars 542 Jun-05 Bank A/C 542 Amount 542 542 Amount Date Particulars Jun-06 Electricity A/C Electricity A/C Amount Date Particulars 728 Jun-06 Bank A/C 728 728 728