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 $3,350 from the debtor relating to the transaction on May 5.
- Prepare the General Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry. (14 marks)
- Post thejournals from (a) above to the General Ledgers provided, ensuring a balance for each ledger is included. (14 marks)
- Complete the attached Adjusted Trial Balance provided for the account balances calculated in the General Ledger from (b) above. (7 marks)
- Prepare theGeneral Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry.
|Date||Details||Debit ($)||Credit ($)|
- Post the journals from (a) above to the General Ledger provided. All ledgers below must be footed.
Cash at Bank
Drawings – ACCF
|May 1||Balance||28 080|
|May 1||Balance||98 625|
- Complete the attached Adjusted Trial Balance provided. Please total both the debit and credit column on completion.
ADJUSTED TRIAL BALANCE
AS AT 31 MAY 2016
|Debit ($)||Credit ($)|
|Cash at Bank|
|Office Supplies on hand||3276|
|Furniture & Fittings||21 030|
|Accumulated Depreciation – Furniture &Fittings||11 934|
|Accumulated Depreciation – Equipment||18720|
|Accounts Payable||27 027|
|Paul’s ACCF – Capital||54 972|
|Paul’s ACCF – Drawings|
|Sales Returns and Allowances||9924|
|Cost of Sales||412308|
|Sales Salary Expense||68328|
|Rent Expense||28 548|
|Office Salaries Expense||33750|
|Electricity Expense||7 656|
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