Week 1 Date Transaction description 1 Obtained a loan of 500

Week 1

Date Transaction description

1 Obtained a loan of $50,000 from BitiBank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2016 and the principal of the loan is to be repaid on 1 June 2020.

5 Paid the full amount owing to Buena Vista Coffee, Cheque No. 903. Payment fell within discount period.

5 Paid the full amount owing to East Tangiers Co-op., Cheque No. 904. Payment fell within discount period.

5 Made cash sales of $8,022 during the first 5 days of the month.

6 Purchased 7 bags of Light Roast Arabica Coffee Beans from Abejundio Coffee for $281 each, terms 2/10, n/30.

6 Sold 4 bags of Light Roast Arabica Coffee Beans to Con\'s Coffee for $394 each, Invoice No. 501.

6 Purchased General Cafe Supplies with cash for $520, Cheque No. 905. 7 Purchased 4 boxes of Plastic Plates from Jordo Gourmet Coffee for $120 each, terms net 30.

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.

Solution

1)
Cash (dB) 50,000
debt (cr) 50,000

5) No info given regarding this transaction

5)No info given regarding this transaction

5)cash (db) 8022
revenue (cr) 8022

6)inventory (db) 281*7=1967
acc payable (cr) 1967

6) cash (db) 394*4 =$1576
revenue (cr) 1576

inventory (cr) 4*281=1124
cost of goods sold (db) 1124

6)cash (cr) 520
supplies (db) 520

7)cash (cr) 4*120=$480
inventory (db) 480