Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help answering the required a,b,c,d,e,f and g. EXERCISE 2.2 2.2 W. Falconetti commenced business on 1 January 2015 trading as Tri-Corp Drapers. In

i need help answering the required a,b,c,d,e,f and g.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
EXERCISE 2.2 2.2 W. Falconetti commenced business on 1 January 2015 trading as Tri-Corp Drapers. In accounting for its inventory transactions, the firm uses the PERIODIC RECORDING METHOD. The business transactions for January were: January 2 Deposited R18 000 in a current banking account in the name of the business. 3 Purchased and paid R2 400 for shop fixtures and fittings. 4 Paid rent R600. 5 Bought goods for resale on credit for R3 960 and paid R40 transportation costs on the items purchased. 9 Paid insurance premiums R240. 11 Paid R150 for advertising space in Albany Weekly Mail. 12 Purchased office supplies on credit R90. 15 Banked receipts from cash sales R2 800. 17 Paid R1 800 to creditors and was granted settlement discounts of R50. 22 Falconetti withdrew R100 from the bank for personal use and took merchandise costing R250 for his private consumption. 24 Paid postmaster R60 for telephone service. 25 Recorded credit sales for the month R1 100. 31 Received and banked R600 from debtors and allowed settlement discounts of R30. 31 Fixtures and fittings must be depreciated by R40. 31 Unused offices supplies at 31 January amounted to R50. A physical inventory count at 31 January showed that the cost of unsold merchandise on hand was R1 250. REQUIRED: (a) Record all the transactions for January in journal form (ignore narrations). (b) Post the journal entries to the attached ledger accounts. (c) Take out a trial balance at 31 January. (d) Prepare financial statements for January 2015. (e) Prepare closing journal entries and post to the ledger accounts. (f) Balance the real accounts. (9) Prepare the post-closing trial balance. REAL ACCOUNTS CAPITAL DRAWINGS ACCOUNTS PAYABLE FIXTURES AND FITTINGS INVENTORY - MERCHANDISE OFFICE SUPPLIES ACCOUNTS RECEIVABLE CASH AT BANK 2.2 Page 2 of 4 10 11 20 30 40 41 42 43 NOMINAL ACCOUNTS H SALES PURCHASES RAILAGE ON PURCHASES RENT EXPENSE INSURANCE EXPENSE ADVERTISING EXPENSE OFFICE SUPPLIES EXPENSE TELEPHONE EXPENSE DEPRECIATION EXPENSE 2.2 H # # # Page 3 of 4 51 52 70 71 72 73 74 75 NOMINAL ACCOUNTS TRADING SUMMARY PROFIT AND LOSS SUMMARY Page 4 of 4 80 81

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

Internal Auditing Theory A Systems View

Authors: Hugh Marsh, G A Swanson

1st Edition

089930608X, 978-0899306087

More Books

Students also viewed these Accounting questions