Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Big Tree Retailer operates in DownTown Kingston. The store was opened on 1st June 2020. The following information relates to the transactions for the first

Big Tree Retailer operates in DownTown Kingston. The store was opened on 1st June 2020. The following information relates to the transactions for the first month of doing business.

June

1 Started business with $50,000 cash and a motor vehicle valuing $80,000.

2 Received a cheque representing a loan from City Bank for $125,000.

3 Bought equipment by cheque $25,000.

3 Paid a cheque for $75,000 to cover the costs of goods bought for resale.

5 Received cash of $57,500 for goods bought from us.

5 Purchased an office desk on credit from S&L Office Supplies $82,500.

6 Sold merchandise on credit to Pearly Dress Shop $62,500.

8 Bought goods on credit from Maxwell Designers $46,000.

9 Sold goods on credit to Maxines Dress Shop for $37,500.

11 Paid cash of $7,500 for office stationery.

12 Returned defective goods to Maxwell Designers which cost $3,000.

14 Bought goods on credit from Star Creations $16,250.

14 Sold goods to Dreams Department Store receiving a cheque for $62,500.

16 Pearlys Dress Shop settled their account with cash receiving a discount of 5%.

17 Deposited cash of $36,000 in the business bank account.

18 Maxines Dress shop returned merchandise bought on June 9; valuing $2,700.

19 Paid Maxwell Designers $40,000 in full settlement of the balance outstanding by cheque; having received a discount of $3,000.

20 Paid S&L Office Supplies $42,500 from personal funds.

22 The owner of Big Tree Retail Store took merchandise for his personal use valuing $12,000.

25 Interest income of $7,500 was received in cash.

25 Paid wages by cash $52,000.

27 Paid rent $22,000 by cheque.

27 Paid water rates $15,000 by cash.

27 Paid electricity $30,000 by cheque.

Required

C. Balance off all accounts in the ledgers and extract a trial balance.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Risk Alert Employee Benefit Plans Industry Developments 2019

Authors: AICPA

1st Edition

1948306867, 978-1948306867

More Books

Students also viewed these Accounting questions