The business able track the balance inventory hand the end the month

All costs associated with the showroom are classified as selling and distribution expenses.

All part-time employees in the business are sales staff who receive their wages on a weekly basis. Maria is the only full-time employee and her role is to handle all administrative tasks. Maria's salary is paid once at the end of each month.

f.Goods and services tax (GST): Maria has advised you to ignore the effect of the Goods and Services Tax (GST). [ASIDE: This is an assumption to make the practice set easier for you to complete. In the real world, GST cannot be ignored.]

g.Cash: The business accepts cash and cheques and uses cheques to pay for the majority of its expenses. On the day cheques are received, Maria deposits them at the bank. It may take a number of days for the cheques to be cleared by the bank. The business holds its cheque account with ZNZ Bank.

Accounting procedures

Bradbury adopts a manual accounting system and uses the general journal and special journals for the recording of individual transactions. Maria Brockhouse has tailored the design of those journals to meet the specific needs of the business so the format of those journals may be slightly different to those you have seen before. However, she advises you that the general principles of how to use special journals are followed in her business.

inventory cards.

Maria then indicates that she is aware other businesses using a manual accounting system may post transactions from journals to ledgers at different times (i.e. daily or monthly). Although the posting procedures used in her business may be different to what you have seen before, she asks that you specifically follow her company's accounting procedures.

When a transaction is recorded in a special journal, part of the journal entry may need to be posted daily and part of that entry is to be posted monthly.

a.Daily:

At the end of the month, the totals of each column in the special journals are manually calculated. Those totals, with the exception of the totals of the Other Accounts columns in the cash journals, are posted to the appropriate general ledger accounts at the end of the month.

Transactions for June

Date	Description

Week 1
1	Issued Cheque No. 839 for $8,700 to pay Blue Blazer Realty for two month's worth of rent in advance.
1	Issued Cheque No. 840 to Office Supplies Warehouse for the purchase of $586 worth of office supplies.
3	Made payment of $826 to Integer Energy for 3 months of electricity up to and including 31 May, Cheque No. 841.
4	Paid the full amount owing to Restlay, Cheque No. 842.
4	Paid sales staff wages of $1,993 for the week up to and including yesterday, Cheque No. 843. Note that $1,143 of this payment relates to the wages expense incurred during the last week of May.
6	Candy Man paid the full amount owing on their account.

Week 2
8	Purchased 11 boxes of Chocolate Coated Coffee Beans from Restlay for $352 each, terms net 30.
9	Central Candy paid the full amount owing on their account. Since Central Candy has been a loyal customer from the day the business commenced, a 10% discount was given for this early repayment.
10	Paid the full amount owing to Hershel's, Cheque No. 844. Payment fell within discount period.
11	Sold 17 boxes of Pecan Fudge to Sweet Tooth for $312 each, Invoice No. 401.
11	Paid sales staff wages of $2,066 for the week up to and including yesterday, Cheque No. 845.
13	Paid the full amount owing to East Tangiers Cooperative, Cheque No. 846.
13	Paid the full amount owing to Brennan Imports Group, Cheque No. 847.
13	Made cash sale of 9 boxes of Drinking Chocolate for $760 each.

Week 3
15	Sold 2 boxes of Macadamia Toffee to Candy Man for $552 each, Invoice No. 402.
15	Candy Rush paid $1,100 in partial payment of their account.
16	Purchased 10 boxes of Chocolate Coated Coffee Beans from Brennan Imports Group for $424 each, terms 2/10, n/30.
16	Purchased 16 boxes of Drinking Chocolate from East Tangiers Cooperative for $440 each, terms net 30.
18	Paid sales staff wages of $1,760 for the week up to and including yesterday, Cheque No. 848.
20	Made cash sale of 28 boxes of Scorched Almonds for a list price of $448 each. A trade discount of 25% applies.
20	Received a purchase order from Candy Rush. Created a corresponding sales order to deliver 17 boxes of Macadamia Toffee to this customer for $552 each, Invoice No. 404.
21	Sweet Tooth returned 6 boxes of Pecan Fudge that were originally sold for $312 each on 11 June. These items cost $176 each and were not faulty or damaged. Issued a Credit Note for $1,872.

Week 4
22	Sweet Tooth paid the full amount owing on their account.
24	Paid the full amount owing to Brennan Imports Group, Cheque No. 849. This payment relates to the credit purchase that was made in the previous week.
24	Sold 70 boxes of Chocolate Coated Coffee Beans to Candy Man for $616 each, Invoice No. 403.
25	Paid sales staff wages of $1,963 for the week up to and including yesterday, Cheque No. 850.
26	Delivered 17 boxes of Macadamia Toffee to Candy Rush for $552 each, Invoice No. 404. These items were ordered on the 20^th.
26	Ordered 15 boxes of Chocolate Coated Coffee Beans from Spud's Confectionery for $424 each. Agreed terms with Spud's Confectionery are 2/10, n/30.
27	Made cash sale of 21 boxes of Pecan Fudge for $312 each.
28	Returned 8 faulty boxes of Drinking Chocolate, originally purchased for $440 each, to East Tangiers Cooperative. Received a Credit Note for $3,520.

Week 5
29	Made cash sale of 37 boxes of Drinking Chocolate for $760 each.
29	Purchased 17 boxes of Scorched Almonds with cash for a list price of $256 each. A trade discount of 25% applies, Cheque No. 851.
30	Received 15 boxes of Chocolate Coated Coffee Beans for $424 each, which were ordered on the 26^th. Agreed terms with Spud's Confectionery are 2/10, n/30.
30	Mercury Square paid the full amount owing on their account.
30	Paid monthly salary of $4,900 to Maria Brockhouse, Cheque No. 852.

Store Fixtures owned by the business: original purchase price was $49,000, estimated useful life was 9 years, and estimated residual value was $3,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
The water usage for the month of June is estimated to be $126.
One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two month's worth of rent in advance.
3 months of advertising remained pre-paid at the start of June.