Question

Marios Pizza Palace Practice Set Part 4

The adjusted trial balance for Mario’s Pizza Palace at 30 June is presented below:

Mario's Pizza Palace Adjusted trial balance as at 30 June 20XX
Account number		Account		Debit		Credit
100		Cash		42,350
110		Cash float		450
120		Accounts receivable		679
130		Inventory - food		1,366
140		Inventory - packaging		995
150		Prepaid advertising		293
160		Prepaid insurance		1,418
170		Motor vehicles (cost)		19,290
171		Accumulated depreciation – motor vehicles				15,995
180		Store equipment (cost)		32,750
181		Accumulated depreciation – store equipment				14,635
200		Accounts payable				14,767
210		PAYG withholding payable				1,356
220		Superannuation payable				243
230		Wages payable				1,238
280		Bank loan				17,822
300		Owner’s capital				60,275
310		Owner’s drawings		41,127
400		Sales income				183,203
410		Sales returns and allowances		48
420		Discounts received				522
430		Delivery income				31
500		Food purchases		55,560
510		Purchase returns and allowances				379
520		Packaging costs		14,926
530		Discount given		288
540		Freight inwards		77
600		Accountancy fees		1,138
605		Advertising expense		4,023
610		Bank charges		871
615		Depreciation		7,133
620		Electricity and gas expense		2,970
625		Insurance expense		2,536
630		Interest expense		1,019
635		Motor vehicles expense		4,927
640		Printing, postage and stationery expense		495
645		Rent expense		26,480
650		Repairs and maintenance expense		690
655		Sundry expenses		304
660		Superannuation expense		3,657
665		Telephone expense		3,773
670		Wages expense		38,833
				310,466		310,466

ADDITIONAL INFORMATION:

The end of June stocktake has determined that the closing inventory value of food is $1,775 and packaging is $3,825.

complete the general journal entries to close off the accounts for the end of the reporting period,

(Close income accounts to profit or loss summary) (Close purchase returns and record closing inventory to profit or loss summary) (Close opening inventory accounts and expenses to profit or loss summary) (Transfer profit or loss summary to owner's capital) (Close owner's drawings to owner's capital)

Answer 1

General Journal Entries:
Accounts Titles	Debit $	Credit $
Sales income	183203
Profit & Loss Summary		183203
Profit & Loss Summary	48
Sales returns and allow		48
Discounts received	522
Delivery income	31
Profit & Loss Summary		553
(Close income accounts to profit or loss summary)
Profit & Loss Summary	55151
Food Inventory - Closing	1775
Food purchases		55560
Food Inventory - Opening		1366
Profit & Loss Summary	12096
Packaging Inventory - Closing	3825
Packaging costs		14926
Packaging Inventory - Opening		995
Purchase returns and all	379
Profit & Loss Summary		379
(Close purchase returns and record closing inventory to profit or loss summary)
Profit & Loss Summary	99214
Discount given		288
Freight inwards		77
Acc fees expense		1138
Advert exp		4023
Bank charges exp		871
Depreci exp		7133
Electricity and gas exp		2970
insurance exp		2536
interest exp		1019
Motor Vehi expense		4927
Printing & Stationery exp		495
Rent exp		26480
Repairs and Mainte exp		690
Sundry exp		304
Superannuation exp		3657
Telephone exp		3773
Wages exp		38833
(Close opening inventory accounts and expenses to profit or loss summary)
Profit & Loss Summary	17626
Owner's Capital		17626
(Transfer profit or loss summary to owner's capital)
Owner's Capital	41127
Owner's drawings		41127