Case study 1 (20 marks):

On 1 June 2017, Aaron Draper began trading as a landscape material supplier. The transactions for the month of June 2017 were as follows (Ignore GST):

June 1 Draper transferred $120 000 from his personal savings to his business bank account.

1 Purchased shop fittings for cash: paid by cheque no.231, $ 80000. Paid March rent by cheque no.232, $3000.

June 2 Purchased goods for resale on credit from Ailmore Ltd, $10000

3 Banked cash sales totalling $3440

4 Sold goods on credit to G.Horwood: invoice no. 543,$1520.

5 Purchased goods for resale from Gtoundcover Ltd: paid by interbank transfer, $3400

6 Banked cash sales totalling $1640

8 Purchased goods for resale on credit from Bachleda Ltd, $4800

9 Sold goods on credit to M.Kruger: invoice no.544, 41960

10 Purchased office stationery from Biggs Ltd: paid by bank transfer, $480

11 Banked cheque for return of detective goods that had been purchased for cash. $380

12 Banked cash sales totalling $3600

14 Issued cheque no. 233 for miscellaneous expense, $720

16 Refunded a customer for a cash sale returned: paid refund by cheque no.234 for $680

17 Purchased goods for resale on credit from Cirocco Ltd, $12000

18 Paid freight on goods purchased to Trucks Ltd, paid by bank transfer, $260

19 Sold goods on credit to C.Charles: invoice no. 545, $2120

21 Banked cash sales totalling $3180

22 Internet bank transfer to Ailmore Ltd in full settlement of its account, less a cash discount of 3%

23 Banked cheque received from G. Horwood in dull settlement of his account, less a 2% cash discount.

24 Internet bank transfer to Aaron Drapers personal account for drawings, $2400. Banked cash sales totalling $4800

26 Paid June salaries by interbank transfers to of B. Thwaites, $2240; T.Vuong, $2600

30 Paid June electricity: cheque no.235 $300. Paid June Telephone to Copus Ltd internet transfer, $224. Banked cash sales totalling $5600

The following additional information is available.

1. A physical inventory count held at the close of business on 30 June 2017 revealed that the cost price of inventory on hand amounted to $12000
2. The June salary of a part-time sales representative amounting to $800 was not paid until 2 July 2017
3. Depreciation on shop fittings for the month of June amounted to $152

Required:

1. Record the above transactions in the appropriate journals for the business of Aaron Draper.
2. Post the entries in the journals to the general ledger as well as to the debtors and creditors subsidiary ledgers
3. Prepare the trial balance of Aaron Draper at 30 June 2017.
4. Prepare schedules of debtors and creditors at 30 June 2017, and reconcile the totals with the balances of the related control accounts in the trial balance.
5. Prepare the income statement of Aaron Draper for the month ended 30 June 2017.
6. Prepare the balance sheet of Aaron Draper at 30 June 2017.