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 the following transactions during January 2022: 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 $15,000 and 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 S15,000 and bought merchandise for resale by cheque S20,000 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. (Tip: do a rough check of the balance owed by Patrick Poser) 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.E. Mills Ltd S33,000. Jan 8 Bought merchandise on credit from Natalie Lowe $12,000. Jan 11 Received a long-term loan from VTBC Bank for $ 45,000 by cheque and bought stationery for cash $12,000. Jan 15 Bought merchandise on credit from Nikkita Morgan $17.500 Jan 18 Lodged cash of S13,500 to the business bank account Jan 20 Jack took pastries for his daughter's 5th birthday party amounting to $7,000 Jan 20 Paid Natalie Lowe S10,800 in full settlement of Jan 3 Bought office furniture from Kurtz JA. Ltd, paying by cheque S15,000 and bought merchandise for resale by cheque $20,000. Jan 3 Sold merchandise to Candy Lou, for cash $10,000. Sold merchandise on credit to Patrick Poser Jan 4 S40,000 Jan 5 $4.500. Sold merchandise on credit to Janice Russell Jan 6 Patrick Poser settled his account with cash receiving a 5% cash discount. (Tip: do a rough check of the balance owed by Patrick Poser) 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.E. Mills Lid S33.000 Bought merchandise on credit from Natalie Lowe $12,000. Jan 11 Received a long-term loan from VTBC Bank for 45,000 by cheque and bought stationery for cash $12,000 Jan 15 Bought merchandise on credit from Nikkita Morgan $17.500 Jan 18 Lodged cash of S13,500 to the business bank Jan 8 account Jan 20 Jack took pastries for his daughter's 5" birthday party amounting to $7.000 Jan 20 Paid Natalie Lowe $10,800 in full settlement of the balance outstanding by cheque having received a discount of S1.200 (Tip: do a rough check of the balance owed to Natalie Lowe) Jan 25 Commission was received by cash, $5,000 and 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 REQUIRED: - Journalize the transactions for the month. (Narrations are not necessary) (15 marks) Post the above transactions in the General ledger. (25 marks) s Extract a trial balance as at January 31, 2022. (10 marks)
