Question
Flowers Company started operations on January 1, 2020 by depositing $2,000,000 cash in the bank as capital. The following transactions took place during the first
Flowers Company started operations on January 1, 2020 by depositing $2,000,000 cash in the bank as capital. The following transactions took place during the first month of operations:
January 3: Purchased supplies for $15,000 in cash.
January 13: Purchased equipment for $170,000. paid $70,000 in cash and the remaining amount will be paid after 10 days.
January 15: Paid $16,000 salaries in cash.
January 16: Received a bill from Gulf News for advertising amounted to 1,100.
January 17: The owner withdrew $5,000 cash for personal use.
January 22: Provided services to customers for $130,000 in cash.
January 23: Paid $100,000 for equipment purchased on Jan 13.
January 31: Paid $4,000 utilities expense in cash.
Required:
- Prepare the trial balance of Flowers Company on January 31, 2020. (5 marks)
- Prepare the financial statements of Flowers Company on January 31st, 2020. (5 marks)
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