Question
Andrew Joel is a market trader, he opened a business named Joel Co. Thecompany's Trial balance as at 1 December 20X8, appears below: $ Inventory
Andrew Joel is a market trader, he opened a business named Joel Co. Thecompany's Trial balance as at 1 December 20X8, appears below:
$
Inventory 5,000
Equipment3,700
Payables 500
Receivables300
Cash at Bank1,200
Capital ?
During December, Andrew Joel:
1.Transferred $300 of his savings into a business bank account
2.Received loan from D.Watson, $100 cheque, repayable in 5 years
3.Bought goods for resale on time, $320 from S.Holmes
4.Bought a motor van by cheque, $500
5.Goods returned to S.Holmes, $20
6.Sold goods to AB Ltd valued $1,000, customer paid by cheque $400
7.A Joel took goods from inventory for his own use, cost $220
8.Sold motor van no longer required for $500 on credit to K.Lamb
9.Purchased goods from C.Swiff $500, less 10% trade discount, pays by cheque
10.Paid $120 to hire a van for December, using debit card
11.Paid staff wages for December, $210 cheque
Requires:
a.Calculating the balance of Capital account as at 1 December, 20X8.
b.Record all the transactions using double entries and ledger accounts (T-accounts).
c.Prepare Trial Balance as at 31 December 20X8.
d.Assuming that Inventory on 31 December 20X8 is $5,130. Prepare IncomeStatement for the period.
e.Prepare Balance Sheet as at 31 December 20X8.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started