Accounting cycle and chart of accounts Carlson Ltd is a business selling freezers to the public. This is its first year of operations. The chart of accounts is as follows.

Chart of accounts 1–9 Shareholders’ equity 30–39 Assets 1 Share capital 30 Bank of NZ 2 Retained profits 31 Sundry debtors 9 P & L summary 32 Inventories 35 Delivery truck 10–19 Liabilities 40–49 Expenses 10 Sundry creditors 40 COGS 15 Loan from Finance Co. 42 Salary – shop assistants 20–29 Revenue 45 Delivery truck expenses 20 Sales 47 Office expenses 49 Interest expense Transactions for April 2022 were as follows:

2022 Apr. 1 Owners introduced $150 000 in share capital, deposited in Bank of New Zealand.

2 Delivery truck bought from finance company for $80 000 to become long-term loan.

4 Goods purchased on credit for resale for $200 000.

7 Paid delivery truck expenses, $4800.

10 Sales made for cash, totalling $50 000 invoice value – original cost $30 000.

15 Sales made to credit customers, $120 000 invoice value – original cost $70 000.

25 Shop assistants’ salary for month paid, totalling $8000.

27 Paid office expenses, $26 000.

29 Received $90 000 from credit customers.

29 Paid sundry creditors, $100 000.

29 Paid interest on loan, $800.

1 Enter the transactions in a general journal.

2 Post to the ledger.

3 Extract a trial balance.

4 Prepare, and post, closing entries.

5 Prepare an income statement for April 2022.

6 Extract a post-closing trial balance and prepare a balance sheet at 30 April 2022.