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ACCT 1008 Accounting for Business
Questions:
Aaron Cheney is the sole proprietor of “Bite To Eat”. He has been successfully operating “Bite To Ear for the last seven years and provides high quality catering services for a range of events, including weddings, corporate functions and private dinners. Aaron has been so busy running and managing the business that he has been unable to attend to the bookkeeping, and so has recently hired Prider & Copeland Accounting Solutions Pty Ltd to take over the business’s accounting function. You are the graduate accountant working at Prider & Copeland Accounting Solutions Pty Ltd, and are now responsible for preparing the monthly journals for Bite To Eat.
Required Below is a list of transactions that took place during the month of October 2019. Record each of the following transactions (where required) using the blank General Journal provided on the following pages. Journals must be correctly formatted and include a narration (explanation) for each entry.
October 1 Bite To Eat purchased a second hand 15 metre catering van with a walk-in cool room, gas hot water system, dishwasher, double gas fryer, gas burners and two ovens. The purchase price was $42,000 and was paid in cash using the business account. Aaron expects he will use the van for several years. October 3 Spick and Span Cleaning Services Ltd cleaned and detailed the catering van and left an invoice for $456, with payment terms of 30 days.
October 10 Bite To Eat catered a senior managers corporate retreat for a large, multinational mining business. The retreat was attended by 100 senior managers at a price of $120 per head. The mining business paid 30% in cash up front, with the remaining balance due to be paid within 30 days.
October 15 Bite To Eat purchased a new laptop computer for $1,995 on credit, with payment due in full by the end of the month. Aaron expects the laptop will last for several years. October 17 Bite To Eat paid waiting staff wages of $2,100.
“Winning Smile” is a dental practice owned and operated by Or. Ginger Vitus. The journal entries listed below for the month of November 2019 have already been completed. Rewired Post the General Journals recorded below to the General ledgers provided on the following pages. Remember to foot (balance) each ledger to determine the closing balance (refer to hints below).
Hints to assist in completing the ledgers:
• Opening balances hove been provided in some of the ledgers DO NOT delete these.
• The ledgers ore formatted using tables therefore it is best to navigate through the ledgers using the ‘tab’ function.
• When using tables, it is often easier to click on the 17″ function in the menu so you con easily see the formatting.
• It is acceptable to shorten the account names in descriptions i.e. Cash at Bank r CAB
ACCT 1008 Accounting for Business
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