a Jessie Samuels, a sole trader, owns a retail shop in Brownie Town that sells a designer shoe items. She named it "Jess Come Buy". The following information relates to the transactions of Jess Come Buy for the first month of operation May 2021. May 1 started business with, cash, $50,000, motor vehicle $120,000 and building, $250,000 May 2 received a long term loan from the First Union Bank, $260,000 by cheque May 3 paid for store furniture by cheque $50,000. May 3 bought merchandise for resale by cheque $130,000. May 4 sold merchandise to Dillard's Department Store, for cash $110,000. May 5 sold merchandise on credit to New York & Co $105,000 and Nordstrom $95,000. May 6 rented Tory Burch a booth for the month of May to display their new summer arrivals, $15,000. The contract states that they will pay this amount by cash on June 5, 2021. May 7 bought merchandise on credit from Jimmy Choo $80,000. May 8 sold merchandise on credit to Neiman Marcus $65,000. May 10 bought fancy stationery with the entity's logo for cash $21,000. May 11 Being a new kid on the block, aggressive marketing and advertising was needed. Jess hired Willz Marketing Associates to advertise the business is various magazines. She paid them $60,000 cash. May 13 returned merchandise to Jimmy Choo for $6,000 receiving a credit note for these goods. May 14 purchased a Display Cabinet, (place in furniture account) on credit from Courts Ltd for $150,000. May 15 bought merchandise on credit from Manolo Blahnik $35,200. May 16 sold merchandise receiving a cheque for $135,000 May 17 New York & Co settled their account with cash receiving a 5% discount. May 18 lodged cash of $45,000 to the business bank account. May 19 merchandise valued at $5,500, sold on credit to Nordstrom on May 5, was returned a credit note was given to Nordstrom May 20 paid Jimmy Choo $65,000 in full settlement of the balance outstanding by cheque. The outstanding amount after payment was received as a discount. (Tip: rough check the balance re the debits and credit for Jimmy) May 22 paid electricity by cheque $60,000, water rates by cash, $25,000 and security fees of $25,000 by cheque May 25 paid staff salaries by cheque $85,000. May 28 Jessica, took some merchandise, a pair of crystal studded sandals to wear to her husband's birthday party $15,000 May 30 received commission by cheque for selling a Limited-Edition Jimmy Choo, patent leather pumps of $20,000 e) Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. (Please refer to notes re the journals) (5 marks) f) Prepare an adjusted trial balance with the inclusion of the above balances (5 marks) g) Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. For use in the financial statements, closing stock amounts to $25,000 at the end of the month. (20 m 3/5 B D E 1 Cr. 2 $ 3 4 5 6 420,000 7 8 260,000 9 10 50,000 11 12 13 130,000 14 15 110,000 16 17 18 200,000 19 20 15,000 21 22 23 24 80,000 25 26 27 65,000 28 29 21,000 30 31 60,000 32 Date Particulars Dr. $ 1-May Cash 50,000 Motor Vehicle 120,000 Building 250,000 Capital 2-May Bank 260,000 Loan - First Union Bank 3-May Furniture 50,000 Bank 3-May Purchases Inventory 130,000 Bank 4-May Cash 110,000 Sales 5-May Debtors New York & Co 105,000 Nordstorm 95,000 6-May Expenses 15,000 Outstanding Rent 7-May Purchases Merchandise 80,000 Creditor Jimmy Choo 8-May Debtors Neiman Marcus 65,000 Sales 10-May Staionery 21,000 Cash 11-May advertising Expenses 60,000 Cash 13-May Jimmy Choo 6,000 Return Outward 14-May Furniture 150,000 Courts Ltd 15-May Purchases Inventory 35,200 Manolo Blahnik 16-May Bank 135,000 Sales 17-May Cash 99,750 Discount Allowed 5,250 New York & Co 18-May Bank 45,000 Cash 19-May Return inward 5,500 Nordstorm 20-May Jimmy Choo 74,000 Cash Bank 22-May Electricity 60,000 Bank 22-May water Rates 25,000 Cash 22-May Security Fees 25,000 Bank 25-May Staff Salaries 85,000 Bank 28-May Drawings 15,000 Inventory 30-May Bank 20,000 Commssion Received 2,196,700 33 6,000 34 35 150,000 36 37 38 35,200 39 40 135,000 41 42 43 105,000 44 45 45,000 46 47 5,500 48 49 65,000 9,000 50 51 52 60,000 53 54 25,000 55 56 25,000 57 58 85,000 59 60 15,000 61 62 20,000 2,196,700 63 E F G General Ledger As at May 2020 Dr. Date 1-May 4-May 17-May Cash A/C Particulars Amount Date Captal a/c 50,000 10-May Sales a/c 110,000 11-May New York & Co (Debtors) a/c 99,750 18-May 20-May 22-May Cr. Particulars Amount Stationery a/c 21,000 Advertising Expenses a/c 60,000 Bank a/c 45,000 Jimmy Choo (Creditors) 65,000 Water Rates a/c 25,000 31-May Balance C/d 43,750 259,750 31-May Balance b/d 259,750 Dr. Date 2-May 16-May 18-May 30-May Bank A/C Particulars Amount Date 3-May Long term loan- First Unior 260,000 3-May Sales a/c 135,000 20-May Cash a/c 45,000 22-May Commission Received a/c 20,000 22-May 25-May Cr. Particulars Amount Furniture 50,000 Inventory (Purchases) a/ 130,000 Jimmy Choo (Creditors) a 9,000 Electricity Charges 60,000 Security Fees 25,000 Salaries a/c 85,000 31-May Balance c/d 101,000 31-May Balance b/d 460,000 460,000 Dr. Date 1-May Particulars Capital Motor Vehicle A/C Amount Date 120,000 31-May Particulars Balance b/d Cr. Amount 120,000 Balance b/d 120,000 Dr. Date 1-May Particulars Cr. Amount Particulars Capital a/c Building A/C Amount Date 250,000 31-May 250.000 Blance b/d 250,000 31-May Balance b/d Dr. Date 2-May 14-May Particulars Bank a/c Courts ltd (Creditors) Furniture A/C Amount Date 50,000 31-May 150,000 200,000 Particulars Balance b/d Cr. Amount 200,000 31-May Balance b/d 200,000 Dr. Date 3-May 7-May 15-May Cr. Amount 15,000 Inventory (Purchases)A/C Particulars Amount Date Particulars Bank a/c 130,000 28-May Drawings a/c Jimmy Choo (creditors) a/c 80,000 Manolo Blahnik (creditors) 35,200 31-May Balance c/d 230.200 31-May Balance b/d 245,200 245.200 Dr. Date Particulars Sales a/c v York & Co (Debtors) Amount Date 105,000 17-May 17-May 5-May Cr. Amount 99,750 5,250 Particulars Cash a/c Discount Allowed 31-May Balance c/d 105,000 31-May Balance b/d 105,000 Dr. Date Particulars Sales a/c Nordstorm (Debtors) A/C Amount Date 95,000 19-May Particulars Return Inwards Cr. Amount 5,500 5-May 31-May Balance c/d 89,500 95,000 31-May Balance b/d 95,000 Dr. Date 6-May Particulars Cr Amount Particulars Outstanding Expenses A/C Amount Date 15,000 31-May 15,000 Balance b/d 15,000 31-May Balance b/d Dr. Date Cr. Amount Particulars 17-May Discount Allowed A/C Particulars Amount Date New York & Co (Debtors) a/c 5,250 31-May Balance b/d 5,250 Balance b/d 5,250 31-May Dr. Date 8-May Cr. Amount Particulars Sales a/c Neiman Marcus (Debtors) A/C Amount Date Particulars 65,000 31-May Balance b/d 65,000 65.000 31-May Balance b/d Dr. Date 10-May Cr. Amount Particulars Particulars Cash a/c Staioneries A/C Amount Date 21,000 31-May 21,000 balance b/d 21,000 31-May Balance b/d Dr. Date 11-May Cr. Amount Particulars Particulars Cash a/c Advertising A/C Amount Date 60,000 31-May 60,000 Balance b/d 60,000 31-May balance b/d Dr. Date 19-May Particulars Cr. Amount Particulars Nordstorm (Debtors) a/c Return Inwards A/C Amount Date 5,500 31-May 5,500 Balance c/d 5,500 31-May Balance cld Dr. Date Cr. Amount Particulars Particulars Bank a/c 22-May Electricity Charges A/ Amount Date 60,000 31-May 60.000 Balance b/d 60,000 3-May Balance b/d Dr. Date 22-May Cr. Amount Particulars Particulars Cash a/c Water Rates A/C Amount Date 25,000 31-May 25,000 Balance b/d 25,000 31-May Balance b/d Dr. Date 1-May Cr. Amount Particulars Particulars Bank Security FeesA/C Amount Date 25,000 31-May 25,000 Balance b/d 25,000 31-May Balance b/d Dr. Date 25-May Cr. Amount Particulars Particulars Bank a/c Staff Salaries A/C Amount Date 85,000 31-May 85,000 Balance b/d 85,000 31-May Balance b/d Dr. Date 28-May Cr. Amount Particulars Particulars Inventory (Purchases) a/c Drawings A/C Amount Date 15.000 31-May 15,000 Balance b/d 15,000 31-May Balance b/d Dr. Date 31-May Particulars Balance cd Capital A/C Amount Date $120,000.00 1-May 1-May 1-May Particulars Cash a/c Motor Vehicle Building a/c Cr. Amount 50,000 120,000 250,000 31-May Balance b/d 420,000 Dr. Date 31-May Particulars Balance cd Long term loan - First Union Bank A/C Amount Date Particulars 260,000 2-May Bank Cr. Amount 260,000 31-May Balance b/d 260,000 Dr. Date 25-May Cr. Amount Particulars Particulars Bank a/c Staff Salaries A/C Amount Date 85,000 31-May 85,000 Balance b/d 85,000 31-May Balance b/d Dr. Date 28-May Cr. Amount Particulars Particulars Inventory (Purchases) a/c Drawings A/C Amount Date 15,000 31-May 15.000 Balance b/d 15,000 31-May Balance b/d Dr. Date 31-May Particulars Balance cd Capital A/C Amount Date $420,000.00 1-May 1-May 1-May Particulars Cash a/c Motor Vehicle Building a/c Cr. Amount 50,000 120,000 250,000 31-May Balance b/d 420,000 Dr. Date 31-May Particulars Balance cd Long term loan - First Union Bank A/C Amount Date Particulars 260,000 2-May Bank Cr. Amount 260,000 31-May Balance b/d 260,000 Dr. Date 31-May Particulars Balance Cd Sales A/C Amount Date 510,000 4-May 5-May 5-May 8-May 16-May Particulars Cash a/c new York & Co Norstrom Neiman Marcus Bank Cr. Amount 110,000 105,000 95,000 65,000 135,000 31-May Balance b/d 510,000 Dr. Date 31-May Particulars Calance Cld Outstanding RentA/C Amount Date 15,000 6-May Particulars Expenses Cr. Amount 15,000 31-May Balance b/d 15,000 Dr. Date 13-May 20-May 20-May Jimmy Choo (Creditors)A/C Amount Date Particulars 6,000 7-May Inventories a/c 65,000 9,000 31-May Balance b/d Cr. Amount 80,000 Particulars Return Outward a/c Cash a/c Bank 80,000 31-May Balance Cd 80,000 Dr. Date Return Outward A/C Amount Date Particulars Cr. Amount 6,000 Particulars Jimmy Choo 13-May 31-May Balance Cd 6,000 31-May Balance b/d 6,000 Dr. Date Particulars Courts Ltd A/C Amount Date 14-May 150,000 31-May Particulars furniture Cr. Amount 150,000 31-May Balnce C/d Balance b/d 150,000 Dr. Date Particulars Manolo Blahnik A/C Amount Date 15-May Particulars Inventories a/c Cr. Amount 35,200 31-May Balance b/d 35,200 31-May Balance C/d 35,200 Dr. Date Particulars mmission Receievd A Amount 14-May Date Particulars Bank a/c Cr. Amount 20,000 31-May Balance b/d 20,000 Balance Cd 20.000 P Q R Jess Come Buy Trial Balance As At May 2021 Amount Particulars Dr. Cr. Cash 43,750 Bank 101,000 Motor Vehicle 120,000 Building 250,000 Furniture 200,000 Inventory (purchase) 230,000 Nordstrom (Debtors) 89,500 Expenses 15000 Discount Allowed 5,250 Neiman Marcus (Debtors) 65,000 Stationeries 21,000 Advertsing Expenses 60,000 Return Inward 5,500 Electricity 60,000 water Rates 25,000 Security Fees 25,000 Staff Salaries 85,000 Drawings 15,000 Capital 420,000 Loan 260,000 Sales 510,000 Outstanding rent 15,000 Return Outwards 6,000 Courts Lts (Creditors) 150,000 Manolo Blahnik (Creditor) 35,200 Commission Received 20,000 1,416,000 1,416,200 Jess Come Buy Adjusted Journal Entry May-20 Date Particulars Cr. $ 5,000 5,000 4,500 4,500 4.000 4.000 4,000 5-May Water Charges a/c Outstanding water charges a/c Salary Suspense a/c to Salary a/c Insurance Premium a/c to cash Bad Debts alc to Neiman Marcus Commissoion Received a/c to Commission Received in advance Depreciatiation ac to Building to Motor Vehicle to Furniture 4.000 3.000 3.000 4.625 9 5 5 7 B 9 1875 1500 1.250 25.125 25.125