e$)$ Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate.

f$)$ Prepare an adjusted trial balance with the inclusion of the above balances and new accounts.

g$)$ Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. Please include the appropriate headings. For use in the financial statements, closing stock amounts to $$3,000$ at the end of the month.

Question $1$

Jack Smith, a baker, has been working at his friend's bakery a part time basis for the past $3$ years. As of January $1,2018,$ Jack decided to pursue his own dreams of buying and selling pastries. He rented a space from his friend and entered into the following transactions during January $2018$:

Jan $1$ Jack invested the following assets into the business: cash, $$12,000$; office equipment, $$30,000$ and a bank balance of $$80,000.$

Jan $2$ Paid rent for January by cheque $$14,000$

Jan $2$ Purchased motor vehicle on credit from Deals on Wheels Ltd$.$ for $$50,000.$

Jan $3$ Bought office furniture from Kurtz JA$.$ Ltd$,$ paying by cheque $$15,000$

Jan. $3$ Bought merchandise for resale by cheque $$20,000.$

Jan $3$ Sold merchandise to Candy Lou, for cash $$10,000.$

Jan $4$ Sold merchandise on credit to Patrick Poser $$40,000.$

Jan $5$ Sold merchandise on credit to Janice Russell $$4,500.$

Jan $6$ Patrick Poser settled his account with cash receiving a $5\%$ cash discount.

Jan $6$ Merchandise valued at $$1,050,$ sold to Janice Russell on January $5,$ was returned to Jack Smith. A credit note was given to Janice Russell.

Jan $7$ Sold merchandise on credit to J$.$F$.$ Mills Ltd $$33,000.$

Jan $8$ Bought merchandise on credit from Natalie Lowe $$12,000.$

Jan $11$ Received a long term loan from JNBC Bank for $ $45,000$ by cheque.

Jan $11$ Bought stationery for cash $$12,000.$

Jan $15$ Bought merchandise on credit from Nickette Morgan $$17,500.$

Jan $18$ Lodged cash of $$13,500$ to the business bank account

Jan $20$ Jack took pastries for his daughter's $5^{th}$ birthday

Jan $20$ Paid Natalie Lowe $$10,800$ in full settlement of the balance outstanding by cheque having received a discount of $$1,200.$

Jan $25$ Commission was received by cash, $$5,000.$

Jan $12$ Paid wages by cash $$15,000.$

Jan $27$ Purchased merchandise on credit from Kukupas Creations for $$8,000.$

Jan $30$ Paid electricity by cash $$5,600,$ insurance $$12,000$ by cheque.