Question
Journalise transactions and follow through accounting cycle to preparation of nancial statements. LO4, 5, 6, 7, 8 On 1 July 2019, the following were the
Journalise transactions and follow through accounting cycle to preparation of financial statements. LO4, 5, 6, 7, 8 On 1 July 2019, the following were the account balances of Bulwara Ltd:
Debits Cash $ 5000
Accounts receivable 5600
Supplies 2000
Store equipment 20000
$32600
Credits Accumulated depreciation $ 1000
Accounts payable 4200
Service revenue received in advance 800
Salaries payable 1000
Share capital 20000
Retained earnings 5600 $32600
During July the following summary transactions were completed:
July 8 Paid $3000 for salaries due to employees, of which $2000 is for July and $1000 is for June.
10 Received $2000 cash from customers in payment of their accounts.
12 Received $800 cash for services performed in July 2019.
15 Purchased store equipment on account $8000. 17 Purchased supplies on account $3400.
24 Paid accounts payable $2000. 24 Paid July/August rent $800.
25 Paid salaries $3000.
27 Performed services on account and invoiced customers for services provided $2300.
27 Received $1300 from customers for future service.
Other data:
1. Supplies on hand are valued at $3200.
2. Accrued salaries payable are $1000.
3. Depreciation for the month is $240.
4. Services have been performed in relation to $600 recorded in service revenue received in advance.
Required
Prepare a chart of accounts. (Hint: Refer to Wong Pty Ltd in chapter 2 of this text.)
Enter the 1 July balances in the ledger accounts (use T accounts).
Journalise the July transactions.
Post to the ledger accounts you prepared for part (c) above. Use service revenue, depreciation expense, supplies expense, salaries expense and rent expense.
Prepare a trial balance at 31 July before adjusting entries. (f) Journalise and post adjusting entries.
Prepare an adjusted trial balance.
Prepare a statement of profit or loss and a calculation of retained earnings for July and prepare a statement of financial position as at 31 July 2019.
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Date la lb d General Journal Jul08 Salaries expense salaries payable cash Jul10 Cash accounts receivable Jul12 Cash service revenue Jul15 Store equipm...Get Instant Access to Expert-Tailored Solutions
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