QUESTION 1: General Journal, General Ledger, Trial Balance (35 marks)
Paul is the sole proprietor of Auldana Custom Concrete Foundations (ACCF), a specialist construction company. The following is a list of transactions that took place during the month of May 2016.
May 1 The business purchased additional equipment costing $22,400 by increasing the loan with the bank.
May 5 The construction of a housefoundation was completed and the client was invoiced. The client paid $8,500 in cash and agreed to pay the remaining $33,500 over the following ten months.
May 10 Paul withdrew $1,200 cash for personal use.
May 15 An Advertising Bill for $1,680 was paid for in cash.
May 17 Paul hurt his wrist at work and visited his local Doctor. The consultation cost $65, which he paid for using his own credit card.
May 23 The business paid $750 off the loan owed for the purchase of equipment on May 1.
May 29 The business received $3,350 from the debtor relating to the transaction on May 5.
REQUIRED:
- Prepare the General Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry. (14 marks)
- Post thejournals from (a) above to the General Ledgers provided, ensuring a balance for each ledger is included. (14 marks)
- Complete the attached Adjusted Trial Balance provided for the account balances calculated in the General Ledger from (b) above. (7 marks)
- Prepare theGeneral Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry.
| Date | Details | Debit ($) | Credit ($) |
- Post the journals from (a) above to the General Ledger provided. All ledgers below must be footed.
Cash at Bank
| May 1 | Balance | 5817 | |||
Accounts Receivable
| May 1 | Balance | 16896 | |||
Equipment
| May 1 | Balance | 46800 | |||
Drawings – ACCF
| May 1 | Balance | 28 080 | |||
Loan
| May 1 | Balance | 98 625 | |||
Sales
| May 1 | Balance | 664800 | |||
Advertising Expense
| May 1 | Balance | 26910 | |||
- Complete the attached Adjusted Trial Balance provided. Please total both the debit and credit column on completion.
| ACCF
ADJUSTED TRIAL BALANCE AS AT 31 MAY 2016 |
||
| Debit ($) | Credit ($) | |
| Cash at Bank | ||
| Accounts Receivable | ||
| Inventory | 140400 | |
| Prepaid Insurance | 4914 | |
| Office Supplies on hand | 3276 | |
| Furniture & Fittings | 21 030 | |
| Accumulated Depreciation – Furniture &Fittings | 11 934 | |
| Equipment | ||
| Accumulated Depreciation – Equipment | 18720 | |
| Accounts Payable | 27 027 | |
| Loan Payable | ||
| Paul’s ACCF – Capital | 54 972 | |
| Paul’s ACCF – Drawings | ||
| Sales Revenue | ||
| Sales Returns and Allowances | 9924 | |
| Cost of Sales | 412308 | |
| Discount received | 12957 | |
| Freight inwards | 9360 | |
| Sales Salary Expense | 68328 | |
| Delivery Expense | 18252 | |
| Advertising Expense | ||
| Rent Expense | 28 548 | |
| Office Salaries Expense | 33750 | |
| Electricity Expense | 7 656 | |
| Discount Allowed | 6786 | |
| Totals | ||
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at info@myassignmentguru.com with your version of question.