Reference no: EM131839129
Mow is a small lawn mowing business which provides a service to corporate customers. It offers a 30 day account.
Complete Computing and PowerBuild Gymnasium have taken advantage of this facility.
Mow buys its fuel from The Corner Service Station. It uses compost bins supplied by Central Rubbish to dispose of the lawn clippings. Both The Corner Service Station and Central Rubbish offer 30 day accounts.
Mow banks with Wales Banking Group.
Using the invoices and statements:
1. Check the supplier invoices and statements for accuracy.
2. Check the appropriate journal entries against the bank statement.
3. Enter any direct credits into the appropriate ledgers.
4. You wrote the following cheques:
|
28 Feb 2016
|
770989
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Payment-Central Rubbish
|
102.00
|
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28 Feb 2016
|
770990
|
Payment-Corner Service Station
|
401.00
|
5. Enter the supplier invoices into the creditor and general ledger.
6. The fuel and oil will be entered into the generalexpenses account in the general ledger and the rubbish bins in the cleaning account. Payments are already entered, but you will need to include them when you calculate the closing balance.
7. Create the account payable schedule.
8. Complete the debtor ledger and general ledger journals using the bank statement and EZ Mow invoice. The empty journals are provided for you. They have an opening balance. The payments from last month are entered as well.
9. Create debtor statements for PowerBuild Gymnasium and Complete Computing.
10. Create the account receivable schedule.