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ACC1102 Financial accounting Module 1 – Retailing operations Solutions to tutorial exercises

Source: Horngren et al. 2010, Solutions to accompany Financial accounting, 6th edn, Pearson Education, Frenchs Forest NSW; reproduced with permission from Pearson Australia.

Activity 1

E5-1 (10-15 min.) – Reqs. 1, 2, and 3 Journal DATE May 15 ACCOUNTS AND EXPLANATIONS Inventory GST Clearing Accounts Payable Accounts Payable Inventory GST Clearing Accounts Payable ($1,187.25 − $163.42) Inventory ($1023.83 × 0.03) x 10/11 GST Clearing ($1023.83 × 0.03) x 1/11 Cash at bank ($1023.83 x 0.97) POST. REF. DEBIT 1,079.32 107.93 CREDIT

1,187.25 163.42 148.56 14.86 1023.83 27.92 2.79 993.12

19

22

E5-2 (10-15 min.) Journal DATE April 30 ACCOUNTS AND EXPLANATIONS Inventory Accounts Payable Inventory Cash at bank Accounts Payable Inventory Accounts Payable ($6,000 − $1,000) Inventory ($5,000 × 0.03) Cash at Bank ($5,000 x 0.97) POST. REF. DEBIT 6,000 CREDIT 6,000 300 300 1,000 1,000 5,000 150 4,850

30

May

4

14

Page 1 of 8

ACC1102 Financial accounting E5-3 (10-15 min.) Journal DATE April 30

Module 1

Solutions to tutorial exercises

ACCOUNTS AND EXPLANATIONS Accounts Receivable Sales Revenue Cost of Sales Inventory ($6,000 × 0.60)

POST. REF.

DEBIT 6,000

CREDIT 6,000

30

3,600 3,600 1,000 1,000 600

May

4

Sales Returns and Allowances Accounts Receivable Inventory Cost of sales

4

($1,000 × 0.60) 4,850 150

600

14

Cash at Bank ($5,000 x 0.97) Sales Discounts ($5,000 × 0.03) Accounts Receivable ($6,000 − $1,000)

5,000

E5-4 (15-20 min.) Journal DATE Feb. 3 ACCOUNTS AND EXPLANATIONS Inventory GST Clearing Accounts Payable Accounts Payable Inventory GST clearing Inventory GST Clearing Cash at Bank Accounts Receivable Sales Revenue GST Clearing Cost of sales Inventory * POST. REF. DEBIT 2,000 200 CREDIT

2,200 330 300 30 50 5 55 3,410 3,100 310 1,700 1,700

7

9

10

10

* The facts in this question...