Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote
wave
Question:
Here are Techworks’ financial statements as of April 30, 2017. Techworks provides ICT services and sells ICT related products to the customers. Note that Techworks uses LIFO inventory costing method and Techworks is registered for GST.
 
The following events occur during May:

May 1. Techworks starts and completes twelve more Web sites and bills clients for $9,000.
May 2. Techworks purchases supplies worth $140 on account.
May 3. Techworks purchased a furniture for cash costing $1,200 for using up in the business. In relation this purchase, there is a $150 transportation cost.
May 4. Received a $4 000 invoice from the Australia Daily for advertising, due to be paid in within a month.
May 5. On account, Techworks purchases eighty-three keyboards for $122 each and ninety flash drives for $26 each from ICT Mart.
May 6. Techworks sells 98 keyboards for $14,700 and 100 of the flash drives for $3,000 cash.
May 8 Techworks collects $9,000 in accounts receivable.
May 10 Techworks pays its $500 rent.
May 12 Techworks pays off 2,000 of its accounts payable.
May 14 Techworks sells all of its investment in securities for $14 per security.
May 17 Techworks pays salaries to Chris $750 (net of $150 PAYGW) for his work.
May 19 Techworks pays off its salaries payable from April.
May 20 Techworks pays Leon and Nancy a salary of $2,800 (net of $590 PAYGW) each.
May 22 Techworks decides to use some of their excess cash and pay off the Bank Loan and
interest payable. No interest accrued on Bank Loan during May.
May 25 Paid invoice from the Australia Daily in full.
May 28 Paid ICT Mart in full and received $230 as discount for early payment.
 
Required:

1.Prepare journal entries for the above transactions and include a short explanation for each entry.
2.Post the journal entries to T-accounts.
3.Prepare an unadjusted trial balance for Techworks for May.
 
Answer:
Journal Entries: 

In the Books of TechWorks

Journal Entries

Date

Particulars

Amount ($)

Amount ($)

01-May

Accounts Receivables A/c…………………Dr

9000

 

 

To Sales A/c

 

9000

 

(Being goods bills issued to supplier)

 

 

 

 

 

 

02-May

Purchase A/c ……………….Dr

140

 

 

To Accounts Payable A/c

 

140

 

(Being purchase of supplies on account)

 

 

 

 

 

 

03-May

Furniture A/c……………………………Dr

1200

 

 

Carriage A/c………………………..……Dr

150

 

 

To Cash……………A/c

 

1350

 

(Being furniture purchase on cash and paid for transportation)

 

 

 

 

 

 

04-May

Advertising A/C………………….Dr

4000

 

 

To Accounts Payable ……………..A/c

 

4000

 

(Being invoice received from Australia Daily)

 

 

 

 

 

 

05-May

Purchase A/c ……………………..Dr

12466

 

 

To Accounts Payable …………………A/c

 

12466

 

(Being keyboards and flash drive purchased from ICT on account)

 

 

 

 

 

 

06-May

Cash A/c …………………………Dr

17700

 

 

To Sales ……………….A/c

 

17700

 

(Being keyboards and flash drive sold in cash)

 

 

 

 

 

 

08-May

Cash A/c……………………………………………Dr

9000

 

 

To Accounts Receivables ……..A/c

 

9000

 

(Being cash received)

 

 

 

 

 

 

10-May

Rent A/C …………………………..Dr

500

 

 

To Cash ……………………..A/c

 

500

 

(Being rent paid)

 

 

 

 

 

 

12-May

Accounts Payable A/C…………………….Dr

2000

 

 

To Cash ………………………A/c

 

2000

 

(Being accounts payable paid off)

 

 

 

 

 

 

14-May

Cash A/C ……………………………..Dr

3500

 

 

To Investment Securities………………..A/c

 

3500

 

(Being investment security sold @14 per security)

 

 

 

 

 

 

17-May

Salaries A/C……………………….Dr

750

 

 

To Cash …………….. A/C

 

750

 

(Being salary paid to Chris)

 

 

 

 

 

 

19-May

Salaries Expense A/c……………..Dr

100

 

 

To Salaries Payable ……..A/c

 

100

 

(Being salaries payable paid off)

 

 

 

 

 

 

20-May

Salaries A/C……………………….Dr

4000

 

 

To Cash …………….. A/C

 

4000

 

(Being salary paid to Leon and Nancy)

 

 

 

 

 

 

22-May

Bank Loan A/c………………..Dr

3000

 

 

To Cash …………………A/c

 

3000

 

(Being bank loans paid)

 

 

 

 

 

 

22-May

Interest Payable A/C……………….Dr

45

 

 

To Cash …………………..A/c

 

45

 

(Being interest paid)

 

 

 

 

 

 

25-May

Accounts Payable A/C………………..Dr

4000

 

 

To Cash ……………………A/c

 

4000

 

 

 

 

 

 

 

 

28-May

Accounts payable A/c…………Dr

12466

 

 

To Discount Received ………..A/c

 

230

 

To Cash……………………….A/c

 

12236

 

(Being full payment made to ICT and received discount)

 

 

T-Accounts:

Accounts receivable Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

01-May

To Sales A/c

9000

08-May

By Cash A/c

9000

 

 

9000

 

 

9000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

 

To Balance C/d

26700

01-May

By Accounts Receivable A/c

9000

 

 

 

06-May

By Cash A/c

17700

 

 

 

 

 

 

 

 

26700

 

 

26700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

02-May

To Accounts Payable A/c

140

 

By Balance C/d

12606

05-May

To Accounts Payable A/c

12466

 

 

 

 

 

12606

 

 

12606

 

 

12606

 

 

 

 

 

 

 

 

 

Accounts Payable Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

12-May

To Cash A/c

2000

02-May

By Purchase A/c

140

25-May

To Cash A/c

4000

04-May

By Addvertising A/c

4000

28-May

To Cash A/c

12236

05-May

By Purchase A/c

12466

 

 

 

 

By Balance C/d

1630

 

 

18236

 

 

18236

 

 

1630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Furniture Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

03-May

To Cash A/c

1200

 

By Balance C/d

1200

 

 

1200

 

 

1200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carriage Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

03-May

To Cash A/c

150

 

By Balance C/d

150

 

 

150

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

06-May

To Sales A/c

17700

03-May

By Furniture A/C

1200

08-May

To Accounts Receivable A/c

9000

03-May

By Carriage A/c

150

 

 

 

10-May

By Rent A/c

500

 

 

 

12-May

By Accounts Payable A/c

2000

 

 

 

14-May

By Investment A/c

3500

 

 

 

17-May

By Salaries A/C

750

 

 

 

20-May

By Salaries A/c

4000

 

 

 

22-May

By Bank Loans A/c

3000

 

 

 

22-May

By Interest Payable A/c

45

 

 

 

25-May

By Accounts Payable A/c

4000

 

 

 

 

By Balance C/d

7555

 

 

26700

 

 

26700

 

 

 

 

 

 

 

 

 

 

 

 

Advertising Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

04-May

To Accounts Payable A/c

4000

 

By Balance C/d

4000

 

 

4000

 

 

4000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

10-May

To Cash A/c

500

 

By Balance C/d

500

 

 

500

 

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments Securities Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

14-May

To Cash A/C

3500

 

By Balance C/d

3500

 

 

3500

 

 

3500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

17-May

To Cash A/C

750

 

By Balance C/d

4750

20-May

To Cash A/C

4000

 

 

 

 

 

4750

 

 

4750

 

 

 

 

 

 

 

 

 

 

 

 

Salaries Expense Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

19-May

To Salaries Payable A/c

100

 

By Balance C/d

100

 

 

100

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Loan Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

22-May

To Cash A/c

3000

 

By Balance C/d

3000

 

 

3000

 

 

3000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries Payable Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

 

To Balance C/d

100

19-May

By salaries Expense A/c

100

 

 

100

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Payable Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

22-May

To Cash

45

 

By Balance C/d

45

 

 

45

 

 

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount Received Accounts

Dr

 

 

 

 

Cr

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

 

To Balance C/d

230

28-May

By Accounts Payable A/c

230

 

 

230

 

 

230

 

 

 

 

 

 

 

 

 

 

 

 

Trail Balance:

In The Books Of Tech works

Trial Balance as on…

 

Dr

Cr

Ledger Balances

Amount ($)

Amount ($)

Sales A/c

 

26700

Purchase A/c

12606

 

Accounts Payable A/c

 

1630

Furniture A/c

1200

 

Carriage A/c

150

 

Cash A/c

7555

 

Advertisement

4000

 

Rent A/c

500

 

Investment Securities

 

3500

Salaries A/c

4750

 

Salaries Expenses A/c

 

100

Bank Loans A/c

 

3000

Salaries Payable A/c

 

100

Interest Payable A/c

 

45

Discount Received A/c

 

230

Retained Earnings

4544

 

 

35305

35305

 

 
Bibliography:

Craig, D. and Michaela, R., 2014. Financial Accounting Theory.

Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia.

Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU.

Scott, W.R., 2015. Financial accounting theory (Vol. 2, No. 0, p. 0). Prentice Hall.

Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.

Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). Techworks Financial Statements And Transactions - May 2017. Retrieved from https://myassignmenthelp.com/free-samples/acc506-preparing-an-unadjusted-trial-balance-for-techworks.

"Techworks Financial Statements And Transactions - May 2017." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/acc506-preparing-an-unadjusted-trial-balance-for-techworks.

My Assignment Help (2020) Techworks Financial Statements And Transactions - May 2017 [Online]. Available from: https://myassignmenthelp.com/free-samples/acc506-preparing-an-unadjusted-trial-balance-for-techworks
[Accessed 25 May 2024].

My Assignment Help. 'Techworks Financial Statements And Transactions - May 2017' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/acc506-preparing-an-unadjusted-trial-balance-for-techworks> accessed 25 May 2024.

My Assignment Help. Techworks Financial Statements And Transactions - May 2017 [Internet]. My Assignment Help. 2020 [cited 25 May 2024]. Available from: https://myassignmenthelp.com/free-samples/acc506-preparing-an-unadjusted-trial-balance-for-techworks.

Get instant help from 5000+ experts for
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing: Proofread your work by experts and improve grade at Lowest cost

loader
250 words
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Plagiarism checker
Verify originality of an essay
essay
Generate unique essays in a jiffy
Plagiarism checker
Cite sources with ease
support
Whatsapp
callback
sales
sales chat
Whatsapp
callback
sales chat
close