© 2006-2010 Perdisco Coffee and Café Supplier Accounting Practice Set, US GAAP Edition 3

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© 2006 Perdisco. Coffee and Café Supplier Accounting Practice Set US GAAP Edition 1 published in 2006.

© 2008 Perdisco. Coffee and Café Supplier Accounting Practice Set US GAAP Edition 2 published in 2008.

© 2010 Perdisco. Coffee and Café Supplier Accounting Practice Set US GAAP Edition 3 published in 2010.

About the authors

Raechel Wight (B.Bus., B.V.A) is an educator and author who has taught undergraduate accounting at a number
of universities. She has many years experience writing educational resources for accounting students and, in her
prior professional career, worked as an auditor for Deloitte.

Julyana Cahyadi (B.Com., M.Bus.) teaches financial accounting and financial statement analysis to
undergraduate students. She previously worked as a researcher for the National Centre for Banking and Capital
Markets and has since then undertaken various consulting roles in Australia and overseas.
Contents
Study time guidelines ................................................................................................................................ 2
Overview .................................................................................................................................................... 3
Background information .......................................................................................................................................... 3
Accounting policies................................................................................................................................................... 3
Accounting procedures ............................................................................................................................................ 4
Instructions................................................................................................................................................ 6
Transactions ............................................................................................................................................................... 6
End of month posting.............................................................................................................................................. 6
Bank reconciliation ................................................................................................................................................... 6
Unadjusted trial balance ........................................................................................................................................... 6
Worksheet................................................................................................................................................................... 6
Adjusting entries........................................................................................................................................................ 7
Schedules of accounts............................................................................................................................................... 7
Financial statements.................................................................................................................................................. 7
Closing entries ........................................................................................................................................................... 7
Post-closing trial balance.......................................................................................................................................... 7
Reversing entries ....................................................................................................................................................... 7
Further information ................................................................................................................................... 8
Chart of accounts ...................................................................................................................................................... 8
Schedule of accounts receivable ~ May................................................................................................................. 9
Schedule of accounts payable ~ May..................................................................................................................... 9
Post-closing trial balance ~ May........................................................................................................................... 10
Bank reconciliation statement ~ May .................................................................................................................. 11
Bank statement ~ June........................................................................................................................................... 12
Transactions ............................................................................................................................................ 13
General journal ........................................................................................................................................ 16
Special Journals ....................................................................................................................................... 21
Sales journal.............................................................................................................................................................. 21
Purchases journal..................................................................................................................................................... 21
Cash receipts journal............................................................................................................................................... 22
Cash payments journal ........................................................................................................................................... 23
Ledgers .................................................................................................................................................... 25
Accounts receivable subsidiary ledger.................................................................................................................. 26
Accounts payable subsidiary ledger ...................................................................................................................... 28
General ledger.......................................................................................................................................................... 30
Final statements ...................................................................................................................................... 45
Bank reconciliation statement ............................................................................................................................... 46
Worksheet................................................................................................................................................................. 48
Schedule of accounts receivable............................................................................................................................ 50
Schedule of accounts payable................................................................................................................................ 50
Income statement.................................................................................................................................................... 51
Statement of stockholders' equity......................................................................................................................... 52
Balance sheet............................................................................................................................................................ 53
Post-closing trial balance........................................................................................................................................ 54
 Study time guidelines
Your accounting practice set is a large activity that will take approximately 18 hours or more of study. As such, you
will not complete the whole practice set in one sitting. The timeframes that we are suggesting on this page measure
study time spent directly working with this practice set.

Depending on the submission guidelines set by your instructor, your study time may be spread over many days or
weeks. The study times below are provided only to give you a general guide as to how to allocate your time when
completing the sections in your practice set. Breaking your study time into blocks will help maintain your
concentration while performing the tasks required.

Some students will take less time to complete their accounting practice set, other students will take longer. That is OK.
Subject to the deadlines set by your instructor, please take as much or as little time as you need.

Accounting Approximate
cycle step study time
Reading time Up to 0.5 hour
Transactions - week 1 Up to 2 hours
Transactions - week 2 Up to 1 hour
Transactions - week 3 Up to 1 hour
Transactions - week 4 Up to 1 hour
Transactions - week 5 Up to 1 hour
End of month posting Up to 1.5 hours
Bank reconciliation Up to 1.5 hours
Unadjusted trial balance Up to 1 hour
Worksheet Up to 2 hours
Adjusting entries Up to 1 hour
Schedules of accounts Up to 0.25 hour
Financial statements Up to 1.5 hours
Closing entries Up to 1.5 hours
Post-closing trial balance Up to 0.25 hour
Reversing entries Up to 1 hour
TOTAL all steps (approximate) Up to 18 hours

2 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Overview
Background information

Assume it is currently June 30, 20XX.

You are working for the temporary accounting employment agency known as Tempters.
Today you have been asked to work at Moondollars, a small coffee supplies store that
operates in the city and is owned by Adrian Bartos. Your task here is to complete the
accounting cycle for Moondollars for the month of June 20XX. To assist you in this task,
Adrian tells you to read the company's accounting policies and procedures. Note that you
will be required to follow these policies and procedures when completing the accounts
for Moondollars.

Accounting policies
a. Business operations: Moondollars is set up as a private non-listed corporation based in the city with
Adrian Bartos as the sole stockholder. The business derives its main source of revenue from retail sales of coffee
supplies.

To assist in managing the business, Moondollars rents a small office space. Note that the business is required to
pay for the rent for this premises in advance.

The electricity and water expenses incurred during the month relate to the running of the office. Additional
expenses include an insurance policy to protect the equipment in the office in the event of theft or fire.

All costs associated with the office are classified as general and administrative expenses.

Adrian is the only full-time employee and his role is to handle all administrative tasks. Adrian's salary is paid once
at the end of each month. All other employees are sales staff who are employed on a part-time basis. The sales
staff receive their wages every two weeks.

b. Accounting cycle: The business adopts a monthly accounting cycle.

c. Purchases: Purchases are recorded when the business receives the goods. All items purchased are received on the
same day as recorded in the transaction list, except for purchase orders which are received at a later date. Note that
the business uses the gross method of recording purchases and receives trade discounts and early payment
discounts from some suppliers.

d. Purchase returns: To allow Adrian to separately track and analyze the value of goods returned to suppliers, all
purchase returns are recorded in the Purchase Returns and Allowances account rather than directly in the
Purchases account.

e. Revenue recognition: The business recognizes revenues when goods sold are delivered to customers. All items
sold are delivered on the same day as recorded in the transaction list except for sales orders, which are delivered at
a later date as agreed with the customer. Note that the business uses the gross method of recording sales and
sometimes grants trade discounts to customers. Past experience has shown that offering early payment discounts
did not increase the likelihood of accounts receivable being paid promptly. Therefore, discounts for early payment
of accounts are not normally offered to credit customers except in exceptional circumstances.

f. Sales returns: So that the business can easily track the level of sales returns in relation to overall sales, all sales
returns are recorded using a contra revenue account (Sales Returns and Allowances) rather than being recorded
directly in the Sales Revenue account.

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 3

 g. Sales tax: Adrian has advised you to ignore the effect of sales tax. [ASIDE: This is an assumption to make the
practice set easier for you to complete. In the real world, sales tax cannot be ignored.]

h. Cash: The business accepts cash and checks and uses checks to pay for the majority of its expenses. On the day
checks are received, Adrian deposits them at the bank. It may take a number of days for the checks to be cleared
by the bank. The business holds its checking account with BitiBank.

i. Short-term investments: The business holds a six-month term deposit account with BitiBank. Interest is
calculated on a monthly basis and received at the end of the deposit term. Note that when the deposit matures,
Adrian usually rolls over the principal and interest received at the end of the term. The term deposit account was
rolled over on June 1, 20XX.

j. Inventories: The business uses the periodic inventory system and and records all purchases of inventory in the
Purchases account, rather than recording them directly in the Merchandise Inventory account. At the end of the
reporting period, the Purchases account and the opening balance of the Merchandise Inventory account are closed
to the Income Summary account and Merchandise Inventory is restated to its ending balance. Note that the
company does not use a Cost of Goods Sold account.

k. Prepayments: The business has a policy of recording prepayments, including office supplies, as assets. At the end
of the month, adjustments are made to the relevant accounts to recognize the expense incurred during the
accounting period.

l. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful
life using the straight line method to calculate the depreciation charge.

m. Long-term liabilities: The business obtained an interest only loan from MRMC Bank on June 1, 20XX. The first
interest payment is due at the end of August 20XX and the principal on the loan is due at the beginning of June
four years later.

Accounting procedures
Moondollars adopts a manual accounting system and uses the general journal and special journals for the recording of
individual transactions. Adrian Bartos 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, he advises
you that the general principles of how to use special journals are followed in his business.

The table below shows the journals used by the business and the types of transactions that can be recorded in each of
these journals:

Journal Code Transaction type

General journal GJ All transactions that are not able to be recorded in the
special journals below.

Sales journal SJ Credit sales of inventory

Purchases journal PJ Credit purchases of inventory

Cash receipts journal CRJ Cash inflows to the business

Cash payments journal CPJ Cash outflows from the business

To summarize the effects of transactions recorded in those journals, Adrian maintains the general ledger and the
following subsidiary ledgers:

▪ accounts receivable subsidiary ledger, and

▪ accounts payable subsidiary ledger.

4 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Adrian then indicates that he 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 his business may
be different to what you have seen before, he asks that you specifically follow his company's accounting policies and
procedures.

The information below explains when transactions are required to be posted from the journals to the appropriate
ledger accounts:

Posting of entries recorded in the general journal

All transactions that are entered in the general journal are posted on a daily basis. Note that if a transaction recorded in
the general journal involves both a control account and a subsidiary ledger account, that journal entry will need to be
posted to both ledgers.

Posting of entries recorded in the special journals

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:

▪ If a transaction affects a subsidiary ledger account, then the entry that involves a subsidiary ledger account
is to be posted to that subsidiary ledger on a daily basis. However, the same amount posted to the
subsidiary ledger account is not posted to the related control ledger account immediately. This procedure
allows the business to keep track of supplier and customer balances on a daily basis.
▪ In the cash receipts journal or the cash payments journal, if a transaction is recorded in the Other Accounts
column, then the amount recorded in the Other Accounts column is to be posted to the appropriate
general ledger account daily.
b. Monthly:

▪ 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.

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 5

 Instructions
Now that you have reviewed information about Moondollars, you are ready to complete the accounting cycle for
Moondollars for the month of June. To start with, Adrian gives you the transaction list for the month of June and all
the journals, ledgers and final statements you will need to complete this task. He also mentions that you will be
required to record reversing entries at the beginning of July.
Adrian provides the following list of tasks you are required to perform for June and the beginning of July:

1. Transactions
a. Record all 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.
b. Post entries recorded in the journals to the appropriate ledger accounts according to the company's accounting
policies and procedures.
Remember to enter all answers to the nearest whole dollar. When calculating a discount, if a discount is not a whole
number, round the discount to the nearest whole dollar. Then, to calculate the Cash amount, subtract the discount
from the original amount.

2. End of month posting

a. Total the columns in the special journals.
b. Post the totals of the columns in the special journals to their corresponding ledger accounts. To confirm that the
posting has been performed, a posting reference is recorded in the last row of the special journals. If the total of a
column is not required to be posted (because the entries in that column have already been posted on a daily basis)
you need to record an X in the post reference field for that column.

3. Bank reconciliation
a. Prepare the bank reconciliation statement as at June 30.
b. Identify and record the relevant reconciling items in the general journal, and post them to the relevant accounts.

4. Unadjusted trial balance

Complete the unadjusted trial balance as at June 30 on the worksheet provided.

5. Worksheet
a. Use the following information to record adjustments in the Adjustments column of the worksheet:
▪ furniture: Depreciation on the furniture owned by the business for the month of June is $156.
▪ equipment: Depreciation on the equipment owned by the business for the month of June is $366.
▪ Electricity expense for the month of June is estimated to be $874.
▪ The water usage for the month of June is estimated to be $235.
▪ The amount of wages incurred during the month of June but not yet paid to sales staff is $1,320.
▪ Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is
$275.
▪ Interest earned from short-term investments in BitiBank for the month of June is $100.
▪ The value of office supplies used during the month of June is $4,037.
▪ $3,000 worth of prepaid rent expired during the month of June.
▪ $3,000 worth of prepaid advertising was used up in June.
▪ $590 worth of prepaid insurance expired during the month of June.
b. Complete the remaining columns of the worksheet. After taking a physical count of inventory, the balance of
inventory on hand as at June 30 is $60,857. You will need to use this information to complete both the Income
Statement and the Balance Sheet columns of the worksheet. Note that Merchandise Inventory is recorded in the
Income Statement columns. Hint: This information will assist you in calculating cost of goods sold under the
periodic inventory system.

6 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

6. Adjusting entries
Use the worksheet to help journalize adjustments for June.
a. Record adjusting entries in the general journal.
b. Post the adjusting entries from the general journal to the relevant ledgers.

7. Schedules of accounts
a. Create a schedule of accounts receivable balances as at the end of June.
b. Create a schedule of accounts payable balances as at the end of June.

8. Financial statements
a. Prepare an income statement for the month of June.
b. Prepare a statement of stockholders' equity for the month of June.
c. Prepare a balance sheet as at the end of June.

9. Closing entries
a. Journalise closing entries in the general journal.
b. Post the closing entries from the general journal to the relevant ledger accounts.

10. Post-closing trial balance

Prepare a post-closing trial balance as at the end of June.

11. Reversing entries

a. On the first day of July, record in the general journal any entries that are required to reverse the following
adjusting entries from the month of June:
▪ Water expense incurred but not paid
▪ Electricity expense incurred but not paid
▪ Wages owed to the employees but have not yet been paid in cash
▪ Interest expense incurred but not paid to the lender
▪ Interest earned but not received in cash
b. Post the reversing entries from the general journal to the relevant general ledger accounts.

After completing the tasks for Moondollars, you should double check your work and ensure that you have completed
all of the accounting records before submitting them for review.

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 7

 Further information
Chart of accounts
Account No. Name
100 Cash
102 Short-term Investments
110 ARC - Accounts Receivable Control
112 Interest Receivable
120 Merchandise Inventory
130 Office Supplies
140 Prepaid Rent
141 Prepaid Advertising
142 Prepaid Insurance
150 Office Furniture
151 Accum Depn: Office Furniture
160 Office Equipment
161 Accum Depn: Office Equipment
210 APC - Accounts Payable Control
220 Wages Payable
221 Electricity Payable
222 Water Payable
225 Interest Payable
250 Bank Loan Payable
300 Common Stock
301 Retained Earnings
310 Income Summary
400 Sales Revenue
401 Sales Returns and Allowances
402 Sales Discounts
403 Interest Revenue
500 Purchases
501 Purchase Returns and Allowances
502 Purchase Discounts
511 Advertising Expense
516 Wages Expense
540 Rent Expense
541 Electricity Expense
542 Water Expense
543 Insurance Expense
544 Office Supplies Expense
545 Salary Expense
560 Depn Expense: Office Furniture
561 Depn Expense: Office Equipment
571 Interest Expense
572 Admin. Expense - Bank Charges

8 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Schedule of accounts receivable ~ May
Moondollars
Schedule of Accounts Receivable
May 31, 20XX

Debit Credit
Account No. Name
($) ($)

110-1 ARC - Central Coffee 2,844

110-2 ARC - Con's Coffee 3,881
110-3 ARC - SloZone 2,144
110-4 ARC - Quick Bolt Coffee 3,701
110-5 ARC - Revamp Coffee Carts
110-6 ARC - Jandesh's Hot Spot

Total 12,570

Please note: Moondollars does not generally give a discount for early payment except in exceptional circumstances.
All debtors are on net 30 credit terms.

Schedule of accounts payable ~ May

Moondollars
Schedule of Accounts Payable
May 31, 20XX

Debit Credit
Account No. Name Terms
($) ($)

210-1 APC - Brazil Imports Group 3,432 2/10, n/30

210-2 APC - East Tangiers Co-op. 3,781 1/15, n/30
210-3 APC - Abejundio Coffee 4,668 net 30
210-4 APC - Buena Vista Coffee 1,413 2/10, n/30
210-5 APC - Klam Wholesalers 3,144 net 30
210-6 APC - Jordo Gourmet Coffee net 30

Total 16,438

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 9

 Post-closing trial balance ~ May
Moondollars - Post-closing trial balance, As at May 31, 20XX

Debit Credit
Account No. Name
($) ($)
100 Cash 29,477
102 Short-term Investments 20,000
110 ARC - Accounts Receivable Control 12,570
112 Interest Receivable
120 Merchandise Inventory 73,322
130 Office Supplies 7,083
140 Prepaid Rent 6,000
141 Prepaid Advertising 9,000
142 Prepaid Insurance 2,950
150 Office Furniture 9,000
151 Accum Depn: Office Furniture 2,031
160 Office Equipment 43,000
161 Accum Depn: Office Equipment 13,532
210 APC - Accounts Payable Control 16,438
220 Wages Payable
221 Electricity Payable
222 Water Payable
225 Interest Payable
250 Bank Loan Payable
300 Common Stock 80,000
301 Retained Earnings 100,401
Total 212,402 212,402

10 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Bank reconciliation statement ~ May

Moondollars
Bank Reconciliation Statement
As at May 31, 20XX
Balance per bank: $32,182
Add:
deposit in transit from Quick Bolt Coffee $3,685
deposit in transit from Central Coffee 1,210 4,895
37,077
Deduct:
outstanding check No. 901 $6,900
outstanding check No. 902 700 7,600
Adjusted balance per bank $29,477

Balance per book: $29,348

Add:
interest earned 134
29,482
Deduct:
bank service charge 5
Adjusted balance per book $29,477

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 11

 Bank statement ~ June

Seattle branch

Account No.
Adrian Bartos
69932616
102 Martin Road
Page No.
Seattle, WA 98101
1

Moondollars

Date Particulars Debit Credit Balance

JUN 1 BALANCE BROUGHT FORWARD $32,182 CR
JUN 1 901 $6,900 $25,282 CR
JUN 2 902 $700 $24,582 CR
JUN 4 LOAN $55,000 $79,582 CR
JUN 4 DEPOSIT - Quick Bolt Coffee $3,685 $83,267 CR
JUN 5 903 $3,743 $79,524 CR
JUN 5 DEPOSIT - Central Coffee $1,210 $80,734 CR
JUN 6 904 $1,385 $79,349 CR
JUN 6 DEPOSIT - Cash sales $5,961 $85,310 CR
JUN 9 905 $220 $85,090 CR
JUN 10 DEPOSIT - Central Coffee $2,560 $87,650 CR
JUN 14 906 $3,144 $84,506 CR
JUN 16 DEPOSIT - Cash sales $10,081 $94,587 CR
JUN 20 DEPOSIT - Cash sales $9,658 $104,245 CR
JUN 20 907 $5,103 $99,142 CR
JUN 23 DEPOSIT - Jandesh's Hot Spot $300 $99,442 CR
JUN 26 NSF CHECK - Jandesh's Hot Spot $300 $99,142 CR
JUN 26 DEPOSIT - Cash sales $9,592 $108,734 CR
JUN 29 909 $3,425 $105,309 CR
JUN 30 DEPOSIT - Quick Bolt Coffee $3,701 $109,010 CR
JUN 30 910 $5,582 $103,428 CR
JUN 30 INTEREST $234 $103,662 CR
JUN 30 SERVICE CHARGE $5 $103,657 CR
Last statement to This statement to Total debits Total credits Final balance
05/31/XX 06/30/XX $30,507 $101,982 $103,657 CR
Proceeds of checks will not be available until cleared.
All entries for the last business day are subject to verification and authorization. Any items not paid, or withdrawn, will be adjusted by reversal entry on a later
statement.
NSF means Not-Sufficient-Funds

12 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Transactions for June
You will use the following five weeks of transactions as you complete the books for June. Note that the transactions
are divided into five separate weeks to help you break your study time into blocks.

Week 1
Date Transaction description
1 Purchased Coffee Cup Lids from Abejundio Coffee for $160, terms net 30.
1 Purchased Gourmet Cubed Sugar from Brazil Imports Group for $200, terms 2/10, n/30.
1 Obtained a loan of $55,000 from MRMC Bank at a simple interest rate of 6% per year. The first interest
payment is due at the end of August 20XX and the principal of the loan is to be repaid at the beginning
of June four years later.
2 Paid the full amount owing to East Tangiers Co-op., Check No. 903. Payment fell within discount period.
2 Paid the full amount owing to Buena Vista Coffee, Check No. 904. Payment fell within discount period.
3 Purchased Gourmet Cream with cash for $220, Check No. 905.
4 Made cash sales of $5,961 during the first 4 days of the month.
7 Sold 5 bags of Medium Roast Arabica Coffee Beans to SloZone for $287 each, Invoice No. 201.

Week 2
Date Transaction description
9 Central Coffee paid the full amount owing on their account. Since Central Coffee has been a loyal
customer from the day the business commenced, a 10% discount was given for this early repayment.
11 Made cash sales of $10,081 during the week.
11 SloZone returned $1,198 worth of product. Issued a Credit Memorandum for $1,198.
12 Sold Chocolate Sprinkles to Jandesh's Hot Spot for $484, Invoice No. 202.
13 Paid the full amount owing to Klam Wholesalers, Check No. 906.

Week 3
Date Transaction description
15 Paid sales staff wages of $5,103 for the two weeks up to and including yesterday, Check No. 907.
17 Sold 10 boxes of Plastic Condiment Containers to Revamp Coffee Carts for $206 each, Invoice No. 203.
18 Made cash sales of $9,658 during the week.
18 Returned $1,403 worth of faulty product to Abejundio Coffee. Received a Credit Memorandum for
$1,403.
19 Jandesh's Hot Spot paid $300 in partial payment of their account.
21 SloZone paid the full amount owing on their account.
21 Received a purchase order from Jandesh's Hot Spot. Created a corresponding sales order to deliver
Gourmet Cream to this customer for $470, Invoice No. 204.

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 13

 Week 4
Date Transaction description
24 Delivered Gourmet Cream to Jandesh's Hot Spot for $470, Invoice No. 204, which was ordered on the
21st.
25 Made cash sales of $9,592 during the week.
26 Paid the full amount owing to Brazil Imports Group, Check No. 908.
27 Paid the full amount owing to Abejundio Coffee, Check No. 909.
28 Ordered Organic Chocolate Cream Liqueur from Buena Vista Coffee for $155, agreed terms with Buena
Vista Coffee are 2/10, n/30.

Week 5
Date Transaction description
29 Paid sales staff wages of $5,582 for the two weeks up to and including yesterday, Check No. 910.
30 Received Organic Chocolate Cream Liqueur for $155, which was ordered on the 28th, agreed terms with
Buena Vista Coffee are 2/10, n/30.
30 Quick Bolt Coffee paid the full amount owing on their account.
30 Made cash sales of $6,629 during the last 5 days of the month.
30 Paid monthly salary of $5,200 to Adrian Bartos, Check No. 911.

14 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

 General journal
Post
Date Account and Explanation Debit Credit
Ref.
Record transaction entries below
Record bank reconciliation entries on the next page

16 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General journal
Post
Date Account and Explanation Debit Credit
Ref.
Record bank reconciliation entries below
Record adjusting entries on the next page

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 17

 General journal
Post
Date Account and Explanation Debit Credit
Ref.
Record adjusting entries below
Record closing entries on the next page

18 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General journal
Post
Date Account and Explanation Debit Credit
Ref.
Record closing entries below
Record reversing entries on the next page

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 19

 General journal
Post
Date Account and Explanation Debit Credit
Ref.
Record reversing entries below

20 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Sales journal
Invoice Post
Date Account Amount
No. Ref.

Total
Post Reference

Purchases journal
Post
Date Account Terms Amount
Ref.

Total
Post Reference

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 21

 Cash receipts journal
Debit Credit
Post
Date Account Sales Accounts Other
Ref. Cash Sales Revenue
Discounts Receivable Accounts

Total

22 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Cash payments journal
Debit Credit
Check Post
Date Account Accounts Other Purchase
No. Ref. Purchases Cash
Payable Accounts Discounts

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 23

Blank page for your notes
 Accounts receivable subsidiary ledger
Account: ARC - Central Coffee
Account No. 110-1

Date Description Ref. Debit Credit Balance

May 31 Balance 2,844 DR

Account: ARC - Con's Coffee

Account No. 110-2

Date Description Ref. Debit Credit Balance

May 31 Balance 3,881 DR

Account: ARC - SloZone

Account No. 110-3

Date Description Ref. Debit Credit Balance

May 31 Balance 2,144 DR

26 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Accounts receivable subsidiary ledger
Account: ARC - Quick Bolt Coffee
Account No. 110-4

Date Description Ref. Debit Credit Balance

May 31 Balance 3,701 DR

Account: ARC - Revamp Coffee Carts

Account No. 110-5

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: ARC - Jandesh's Hot Spot

Account No. 110-6

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 27

 Accounts payable subsidiary ledger
Account: APC - Brazil Imports Group
Account No. 210-1

Date Description Ref. Debit Credit Balance

May 31 Balance 3,432 CR

Account: APC - East Tangiers Co-op.dio Coffee

Account No. 210-2

Date Description Ref. Debit Credit Balance

May 31 Balance 3,781 CR

Account: APC - Abejundio Coffee

Account No. 210-3

Date Description Ref. Debit Credit Balance

May 31 Balance 4,668 CR

28 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Accounts payable subsidiary ledger
Account: APC - Buena Vista Coffee
Account No. 210-4

Date Description Ref. Debit Credit Balance

May 31 Balance 1,413 CR

Account: APC - Klam Wholesalers

Account No. 210-5

Date Description Ref. Debit Credit Balance

May 31 Balance 3,144 CR

Account: APC - Jordo Gourmet Coffee

Account No. 210-6

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 29

 General ledger
Account: Cash
Account No. 100

Date Description Ref. Debit Credit Balance

May 31 Balance 29,477 DR

Account: Short-term Investments

Account No. 102

Date Description Ref. Debit Credit Balance

May 31 Balance 20,000 DR

Account: ARC - Accounts Receivable Control

Account No. 110

Date Description Ref. Debit Credit Balance

May 31 Balance 12,570 DR

30 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Interest Receivable
Account No. 112

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Merchandise Inventory

Account No. 120

Date Description Ref. Debit Credit Balance

May 31 Balance 73,322 DR

Account: Office Supplies

Account No. 130

Date Description Ref. Debit Credit Balance

May 31 Balance 7,083 DR

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 31

 General ledger
Account: Prepaid Rent
Account No. 140

Date Description Ref. Debit Credit Balance

May 31 Balance 6,000 DR

Account: Prepaid Advertising

Account No. 141

Date Description Ref. Debit Credit Balance

May 31 Balance 9,000 DR

Account: Prepaid Insurance

Account No. 142

Date Description Ref. Debit Credit Balance

May 31 Balance 2,950 DR

32 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Office Furniture
Account No. 150

Date Description Ref. Debit Credit Balance

May 31 Balance 9,000 DR

Account: Accum Depn: Office Furniture

Account No. 151

Date Description Ref. Debit Credit Balance

May 31 Balance 2,031 CR

Account: Office Equipment

Account No. 160

Date Description Ref. Debit Credit Balance

May 31 Balance 43,000 DR

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 33

 General ledger
Account: Accum Depn: Office Equipment
Account No. 161

Date Description Ref. Debit Credit Balance

May 31 Balance 13,532 CR

Account: APC - Accounts Payable Control

Account No. 210

Date Description Ref. Debit Credit Balance

May 31 Balance 16,438 CR

Account: Wages Payable

Account No. 220

Date Description Ref. Debit Credit Balance

May 31 Balance 0

34 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Electricity Payable
Account No. 221

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Water Payable

Account No. 222

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Interest Payable

Account No. 225

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 35

 General ledger
Account: Bank Loan Payable
Account No. 250

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Common Stock

Account No. 300

Date Description Ref. Debit Credit Balance

May 31 Balance 80,000 CR

Account: Retained Earnings

Account No. 301

Date Description Ref. Debit Credit Balance

May 31 Balance 100,401 CR

36 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Income Summary
Account No. 310

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Sales Revenue

Account No. 400

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Sales Returns and Allowances

Account No. 401

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 37

 General ledger
Account: Sales Discounts
Account No. 402

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Interest Revenue

Account No. 403

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Purchases
Account No. 500

Date Description Ref. Debit Credit Balance

May 31 Balance 0

38 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Purchase Returns and Allowances
Account No. 501

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Purchase Discounts

Account No. 502

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Advertising Expense

Account No. 511

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 39

 General ledger
Account: Wages Expense
Account No. 516

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Rent Expense

Account No. 540

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Electricity Expense

Account No. 541

Date Description Ref. Debit Credit Balance

May 31 Balance 0

40 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Water Expense
Account No. 542

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Insurance Expense

Account No. 543

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Office Supplies Expense

Account No. 544

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 41

 General ledger
Account: Salary Expense
Account No. 545

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Depn Expense: Office Furniture

Account No. 560

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Depn Expense: Office Equipment

Account No. 561

Date Description Ref. Debit Credit Balance

May 31 Balance 0

42 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

General ledger
Account: Interest Expense
Account No. 571

Date Description Ref. Debit Credit Balance

May 31 Balance 0

Account: Admin. Expense - Bank Charges

Account No. 572

Date Description Ref. Debit Credit Balance

May 31 Balance 0

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 43

Blank page for your notes
 Bank reconciliation statement ~ June
Moondollars
Bank Reconciliation Statement
As at June 30, 20XX

46 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Blank page for your notes
 Moondollars - Worksheet
For the month ended June 30, 20XX

Unadjusted Trial Adjusted Trial

Acct. Adjustments Income Statement Balance Sheet
Account Name Balance Balance
No.
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
100 Cash
102 Short-term Investments
110 ARC - Accounts Receivable Control
112 Interest Receivable
120 Merchandise Inventory
130 Office Supplies
140 Prepaid Rent
141 Prepaid Advertising
142 Prepaid Insurance
150 Office Furniture
151 Accum Depn: Office Furniture
160 Office Equipment
161 Accum Depn: Office Equipment
210 APC - Accounts Payable Control
220 Wages Payable
221 Electricity Payable
222 Water Payable
225 Interest Payable
250 Bank Loan Payable
300 Common Stock
301 Retained Earnings

48 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

 Unadjusted Trial Adjusted Trial
Acct. Adjustments Income Statement Balance Sheet
Account Name Balance Balance
No.
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
400 Sales Revenue
401 Sales Returns and Allowances
402 Sales Discounts
403 Interest Revenue
500 Purchases
501 Purchase Returns and Allowances
502 Purchase Discounts
511 Advertising Expense
516 Wages Expense
540 Rent Expense
541 Electricity Expense
542 Water Expense
543 Insurance Expense
544 Office Supplies Expense
545 Salary Expense
560 Depn Expense: Office Furniture
561 Depn Expense: Office Equipment
571 Interest Expense
572 Admin. Expense - Bank Charges
Totals

Net income or loss

Totals

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 49

 Schedule of accounts receivable
Moondollars
Schedule of Accounts Receivable
June 30, 20XX

Account Debit Credit

Name
No. ($) ($)

Total

Schedule of accounts payable

Moondollars
Schedule of Accounts Payable
June 30, 20XX

Account Debit Credit

Name Terms
No. ($) ($)

Total

50 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

 Moondollars
Income Statement
For the month ended June 30, 20XX
INCOME
Revenue

Net sales revenue

COST OF GOODS SOLD
GROSS PROFIT
OPERATING EXPENSES
Selling expenses

Total selling expenses

General and administrative expenses

Total general and administrative expenses

TOTAL OPERATING EXPENSES
INCOME/(LOSS) FROM OPERATIONS
Other revenue

Other expenses

NET INCOME/(LOSS)

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 51

 Moondollars
Statement of Stockholders' Equity
For the month ended June 30, 20XX

COMMON STOCK
Opening balance May 31, 20XX
Issue of common stock
Closing balance June 30, 20XX

RETAINED EARNINGS
Opening balance May 31, 20XX
Net income/(loss)
Dividend paid
Closing balance June 30, 20XX

52 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

 Moondollars
Balance Sheet
June 30, 20XX
ASSETS
Current Assets

Total Current Assets

Property, Plant and Equipment

Total Property, Plant and Equipment

TOTAL ASSETS
LIABILITIES
Current Liabilities

Total Current Liabilities

Long-term Liabilities

TOTAL LIABILITIES
STOCKHOLDERS' EQUITY

TOTAL EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

COFFEE & CAFÉ SUPPLIER - US GAAP EDITION 3 (PCU3e) 53

 Moondollars Post-closing Trial Balance
June 30, 20XX

Debit Credit
Account No. Name
($) ($)

Total

54 PERDISCO ACCOUNTING PRACTICE SET (PCU3e)

Blank page for your notes
Blank page for your notes
Blank page for your notes