Question

The following transactions occurred in June 2018 for Borderline Ltd JuneReceved a cheque for S1 200 from Roar Ltd in full settlement of its account and deposited it in the bank account Sold inventory for $905(before any discounts have been applied) to Jones Ltd on credit (the company was given a trade discount of $80, then the normal credit terms) COGS was $420 Paid rent for June S1 500, chq no. 561 (Assume the rent is GST free) Purchased inventory on credit from Pink $1 397, terms 2/10, n/15 Paid Yard $4 500 being full settlement of amount owing, chq no. 562 Received and deposited payment in full from Wide Ltd (no discount allowed). Paid Pink in full by cheque, chq no. 563 Paid telephone account by cheque of $320, chq no. 564 Received a cheque for $700 from Jones Ltd in part payment of their account and deposited it in the bank account (no discount allowed) Banked cash sales for the first two weeks of the month totalling $20 900 COGS was S9 800). Withdrew cash from the bank account to pay wages totalling $5 200, gross wages were $7 400 (wages before tax) Paid $220 for cash register rolls and other stationery, chq no.565 3 4 5 6 8 12 13 14 14 17 18 Sold inventory on credit to Zane Ltd $2 750 (COGS was $1 200) 21 Sold inventory on credit to Wide $715 (COGS was $320) 23 Paid Purple Ltd S3 200 (no discount allowed), chq no. 566 27 Paid sundry expenses of S435 (GST free items), chq no. 567 28 Wrote off the full amount owed by Mane Ltd as a bad debt 29 Deposited Cash Sales of $27 500 (COGS was $12 000) 0 Withdrew cash from the bank to pay wages of S5 600, gross wages were $7 600 30 Zane Ltd returned inventory which we had sold to them for $154 (COGS was $70). The returned inventory was in good condition and returned to the shelves and a credit note was issued to them. 30 Purchased inventory on credit from Purple Ltd of $4510 after being allowing a trade discount of $90 and on terms of 1/10, n/30 COGS was $2 100) 30 Banked Cash Sales for the remainder of the month totalling S6 200 0Paid the balance of the account for Zale Ltd (no discount was allowed) chq no. 568 The trial balance of the company at 31 May 2018 was as follows Borderline Ltd Post Closing Trial Balance at 31 May 2018 DR 25 200 CR 1000 Cash at bank Debtors control 1100 9 000 1200 Provision for doubtful debts 300 1300 Inventory Shop Fittings and Equipment Acc depreciation -Shop fittings and Equip Motor Vehicles 85 000 1400 60 000 10 465 1410 1500 35 000 1510 Accumulated depreciation-M/Vehicles 2000 Creditors control 11 500 14 000 000 Share capital 3100 Retained profits 60 000 81 735 5000 GST Paid 4 300 5010 GST Collected 5020 Loan 8 500 32 000 S218 500 $218 500 Schedule of Debtors Schedule of Creditors as at 31 May 2018 as at 31 May 2018 2 750 1 300 1700 1 100 Shade Ltd Roar Ltd Zane Ltd Jones Ltd Wide Ltd Mane Ltd 250 3 200 Purple Ltd Pink Ltd 0 4 550 6 000 S14 000 1 900 Yard Ltd Mane 250 Zale Ltd $9 000 Required: Complete the following tasks for the month of June 2018 for Borderline Ltd. Read the attached information carefully. Enter the transactions into the appropriate journals -you are expected to use General and Special Journals. .Post the transactions to the General Ledger accounts and balance the Accounts. (I recommend you also prepare a trial balance at this stage to check your work). Enter Subsidiary Ledgers as appropriate. Prepare a bank reconciliation, along with any general jourmal entries required Complete any required adjusting and closing journal entries and prepare a post closing trial balance. Prepare a Statement of Financial Performance for June and a Statement of ancial Position as at 30 June 2018. ou mus submit the following information: journals and the full set of T accounts. st Closing Trial Balance at 30 June tement of Financial Performance for June P Satement of Financial Position as at 30 June ank Reconciliation at 30 June

Answer 1

Credit Date Debit Description $1,200.00 01/06/18 Cash at Bank Discount 100.00 $1,300.00 To Roar Ltd (Record full& Final Payment) 03/06/18 Jones Ltd 825.00 Discount 80.00 To Sales 905.00 (Record Sales) 04/06/18 Rent $1,500.00 To Cash at Bank 1,500.00 (Record Rent Paid) $1,397.00 05/06/18 Purchsed Goods To Pink 1,397.00 (Record Tem 2/10) 06/06/18 Yard 4,550.00 4,500.00 To Cash at Bank To Discount 50.00 (Record full & Final Payment) 08/06/18 $1,900.00 Cash at Bank $1,900.00 To Wide Ltd (Record full & Final Payment) 11/06/18 Pink's Balance is Zero 12/06/18 Telephone 320.00 To Cash at Bank 320.00 (Record Telephone Paid) 13/06/18 Cash at Bank 700.00 700.00 To Jones Ltd (Record Payment Recd) $ 20,900.00 14/06/18 Cash at Bank To Sales $ 20,900.00 (Record Sales) 14/06/18 Wages $7,400.00 $5,200.00 $ 2,200.00 To Cash at Bank To Wages tax Payable

(Record Wages) 17/06/18 Stationery 220.00 To Cash at Bank 220.00 (Record Stat Paid) 18/06/18 Zane Ltd 750.00 To Sales 750.00 (Record Sales) 21/06/18 Wide Ltd 715.00 715.00 To Sales (Record Sales) 23/06/18 Purple Ltd $3,200.00 3,200.00 To Cash at Bank (Record Full Paid) 27/06/18 Sundry Exp 435.00 435.00 To Cash at Bank (Record Sundry Paid) 28/06/18 Bad Debts 250.00 To Mane 250.00 (Record Write Off) 29/06/18 $ 27,500.00 Cash at Bank $27,500.00 To Sales (Record Sales) $7,600.00 30/06/18 Wage:s To Cash at Bank 5,600.00 To Wages Payable 2,000.00 (Record Wages) 30/06/18 Sales Return 154.00 To Zane Ltd 154.00 (Record Sales Return) 30/06/18 Purchased $4,510.00 To Purple Ltd 4,510.00 (Record Purchase) $6,200.00 30/06/18 Cash at Bank

$6,200.00 To Sales (Record Sales) 30/06/18 Zae Ltod 6,000.00 6,000.00 To Cash at Bank (Record Full Paid)

T accounts Cash at Bank Telephone $25,200.00,500.00 4) 12) $ 1) 1,200.004,500.00 6) 8) 1,90.00320.00 12) Bal 700.00 5,200.00 14) 14) $20,900.00$ 220.00 17) 29) $27,500.003,200.00 23) 320.00 320.00 13) Stationer 17) S$ 220.00 30) 6,200.00 435.00 27 $ 220.00 S 5,600.00 30) S6,000.00 30) Sales Bal $56,625.00 905.00 2) $ 20,900.00 14) 750.00 18) Discount 100.00 $ 6,200.00 30) 50.00 6) 715.00 21) $ 27,500.00 29) 80.00 Bal 130.00 556,970.00 Balance Jones Ltd $1,100.00$ 700.00 Pink S1,397.00 5) 825.00 Bal $1,225.00 Rent 2) 1,500.00 1,397.00 Balance 6) Bal $1,500.00 Roar Ltd Purchsed Goods $4,550.004,550.00 5) $1,397.00 30) 4,510.00 Ba 5,907.00 Balance 0 Wages Roar Ltd 14 30) 7,400.00 $ 7,600.00 $ 1,300.00$ 1,300.00 Balance Bal 15,000.00 To Wide Ltd 8) 90.001,900.00 Wages Tax 2,200.00 14) Balance $2,200.00 Bal Zane Ltd

$1,700.00$154.00 18) S 750.00 23) Purple Ltd S3,200.003,200.00 4,510.00 Bal2,296.00 Bal Mane 4,510.00 250.00 $ 250.00 28;) Sundry Exp 435.00 $ Bal s Bad Debts 28)$ 250.00 435.00 Bal 250.00 Wages Payable $2,000.00 30) Zale Ltd 30) 6,000.00$6,000.00 $ 2,000.00 Bal Bal |$ 30) Sales Returrn Shade Ltd 154.00 $2,750.00 Bal 154.00 Bal $2,750.00 Mane Ltd 250.00

Boadering Ltd Trial Balance Debit Credit Cash at Bank 56,625.00 320.00 Telephone Stationery 220.00 $ 56,970.00 ales Discount 130.00 1,225.00 Jones Ltd Pink 1,397.00 Rent 1,500.00 Purchase 5,907.00 Wages 15,000.00 $2,200.00 Wages Tax 2,296.00 Zane Lto $4,510.00 Purple Ltod Bad Debts 250.00 Sundry Exp 435.00 S2,000.00 Wages Payable Sales Return 154.00 Shade Ltd 2,750.00 Mane Ltd 250.00 Shop Fitting 60,000.00 $ 10,465.00 Dep 35,000.00 Motor $11,500.00 $ 60,000.00 Dep Share Capital $81,735.00 Retained Profit Loan 32,000.00 Gst Paid 4,300.00 $ 8,500.00 Gst Collected 85,415.00 Inventory 271,527.00 $ 271,527.00 Boadering Ltd Finanicial Performance