ACC10008 Financial Information Systems

Mid Semester Test - Semester 1, 2020

Student name:

Student id.:

 This test comprises two questions and totals 44 marks.

 The test counts 10% towards your final assessment.
 Time allowed: 70 minutes. You must download the test and upload it within 70 minutes.
Note: do not close the test internet page.
 Answer each question in the space allocated.

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Test 3
Question 1

Jonathan Price opened a sports shop ‘Blade Runner’ on 1 April 2020 selling skateboards.
The business buys skateboards from the manufacturer for $170 each (GST exclusive) and
sells them for $320 each (GST exclusive). Blade Runner uses the perpetual inventory
system to record inventory transactions. There were 24 skateboards on hand at 1 April
2020.

The business used the accruals basis of accounting and is registered for GST.
All transactions are shown as GST exclusive unless otherwise stated.

The transactions of the business for April 2020 were as follows:

April
1 Jonathan invested $25,000 cash into the business.
1 Paid rent for April, May and June of $6,600.
2 Purchased a computer system costing $4,500 paying $1,000 in cash and
borrowing the remainder on a 2-year loan.
4 Purchased 35 skateboards from M.D. Manufacturers on credit, terms 2/10,n30
6 Returned 6 skateboards to M. D. Manufacturers and received a credit note.
9 Credit purchase of stationery supplies for $2,100 from First Class Office Supplies.
10 Sold 30 skateboards to Shop 911 on credit; terms 2/10, n/30.
12 Shop 911 returned 3 surfboards and received a credit note. The skateboards
were not defective and returned to inventory.
14 Paid $190 for advertising in a sporting magazine.
19 Received payment from Shop 911 for the balance owing on their account.
20 Paid M. D. Manufacturers the balance owing on the account.
26 Paid salary to sales assistant, $2,560
27 Jonathan withdrew $3,000 cash.
29 Received a deposit of $600 (ignore GST) for a custom made skateboard from K.
Williams to be delivered to him on 3 May 2020.

Additional information:
 An inventory revealed there were 23 surf boards on hand at 30 April 2020.
 Computer system is depreciated at 15% per year.
 Stationery supplies on hand at 30 April 2020 was $480.
 Shop cleaning expenses for April of $840 are unpaid and unrecorded. A tax invoice has
been received by Blade Runner.
 Interest owing on the loan at 30 April is 2020 is $32.

Required:
a. Record the general journal entries to record the above transactions for April 2020.
(Narrations and posting references are not required)
b. Record adjusting entries in the general journal for the month ending 30 April 2020.
(Narrations and posting references are not required)
(31 marks)

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Test 3
 General Journal

Date Accounts Debit ($) Credit ($)

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Test 3
 General Journal

Date Accounts Debit ($) Credit ($)

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Test 3
 General Journal

Date Accounts Debit ($) Credit ($)

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Test 3
Question 2

The adjusted Trial Balance for Silverlight for at 30 April 2020 is shown below:

Account Debit ($) Credit ($)

Cash at bank 10,760
Accounts Receivable 25,100
Fittings & Fixtures 134,000
Accumulated depreciation 14,900
Accounts Payable 18,560
Salary Payable 4,300
GST Collected/Payable 9,700
GST Paid/Receivable 10,800
Loan Payable 46,000
Joseph Moon, capital 62,500
Drawings 12,000
Service revenue 123,200
Salary expense 42,400
Rent expense 32,000
Depreciation expense 9,400
Electricity & gas expense 2,700
Total 279,160 279,160

Required:

a. Record the closing entries at 30 April 2020 in the general journal.

b. Prepare a Trial Balance after recording closing balances.
(13 marks)

(Total: 31 + 13 = 44 marks)

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Test 3
 2a General Journal

Date Accounts Debit ($) Credit ($)

(7 marks)

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Test 3
2b

END OF TEST

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Test 3