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1) The below is the trial balance of Hospitality Inc as at 9/30: Hospitality Events Trial Balance 30-Sep Description Debit Credit Revenue 14,000.00 Purchases 18,000.00
1) The below is the trial balance of Hospitality Inc as at 9/30: Hospitality Events Trial Balance 30-Sep Description Debit Credit Revenue 14,000.00 Purchases 18,000.00 Purchases Retums 2,000.00 Rent Expense 8,000.00 Office Expense 250.00 Petty Cash 250.00 Cash 12,000.00 Bank Overdraft 3,000.00 Accounts Receivable, Alan 2,500.00 Motor Vehicles 4,000.00 Accounts Payable, Michael 5,000.00 Accounts Payable, Jennifer 1,000.00 Capital 20,000.00 Total 45,000.00 45,000.00 Below are entries which occurred during the month of October. 1) The owner deposited an additional $5,000 into the bank to clear the bank overdraft 2) Sales of $4,000 was deposited into the bank. 3) The owner withdrew 1,000 for personal use 4) Sold goods on credit to F. Robins for $$2,000 5) Paid the outstanding balance due to Jennifer 6) F. Robbins returned goods worth $1,000 due to the goods being defective 7) Purchased office equipment of $5,000 with cash 8) Purchased inventory on credit from Michael of $2,000 The value of ending inventory as at October 30 was $2,000 Required: a) Post the entries in the book of original entry for the month of October b) Record the entries in the ledger account c) Balance the accounts and prepare a trial balance as at October d) Prepare the income statement and statement of financial position for October
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