Jessie Blake has loved sweets all her life and grew up wanting to have her very own shop where she could buy and sell all kinds of sweets. She achieved her goal May 2019. She opened her own sweet shop "Jessie's Delights" that sold a wide selection of candies, cookies, chips, chocolate, cakes and more. The following information relates to the transactions of Jessie's Delights for the first month of operation May 2019.

May 1 started business with, cash, $50,000, building, $250,000 and a motor vehicle $140,000

May 2received a long-term loan from the Sagicor Bank, $360,000 by cheque

May 3 paid for store furniture by cheque$100,000.

May 3 bought merchandise for resale from Candibury Sweet Limited, by cheque $130,000.

May 4 purchased additional store furniture, on credit from Courts Ltd. for $150,000.

May 4 sold merchandise to Tutti Fruita, for cash $110,000.

May 5sold merchandise on credit to Fritos Lay Ltd $105,000 and Sugar and Spicy Ltd $95,000.

May 7 bought merchandise on credit from Prestigious Bakery $75,000.

May 8 sold merchandise on credit to Janational Bakery Ltd $80,000.

May 10 bought stationery with the entity's logo for cash $12,000.

May 13 returned unsatisfactory merchandise to Prestigious Bakery for $5,000 receiving a credit note for these goods.

May 15 bought merchandise on credit from Kristoff's Frozen Confections$35,200.

May 16 sold merchandise to Cookie Monster receiving a cheque for $135,000

May 17 Fritos Lay Ltd. settled their account with cash receiving a 4% discount.

May 18 lodged cash of $75,000 to the business bank account.

May 19 merchandise valued at $4,500, sold on credit to Sugar and Spicy Ltd on May 5, was returned to Jessie A credit note was given to Sugar and Spicy Ltd

May 20 paid Prestigious Bakery $65,000 in full settlement of the balance outstanding by chequehaving received a discount of$5,000.

May 22 paid electricity for the month of May by cheque $60,000 and paid National Water Distribution by cash, water rates $30,000.

May 25 paid staff salaries by cheque $135,000.

May 28 Jessie, took for her personal use, merchandise costing $8,500

May 30 received commission by cheque of $45,000

REQUIRED:

a)Journalize each of the above transactions for the month.

b)Post the above transactions in the General ledger and balance off the accounts.

c)Extract an unadjusted trial balance as at May31 2019.

d)Journalize the following adjusting entries using the following information:

The total monthly water rate is $35,000.

One employee's salary was overpaid by $1,500. Investigations proved that a miscalculation occurred and the employee was indeed over paid for the month.

The insurance for the shop was due and payable by May1^st. The annual premium is $48,000 and the expense is incurred on a monthly basis.

It was found that of Janational Bakery Ltd balance, $4,000 has to be written off as bad debts.

Five thousand dollars ($5,000) of the Commission received was for the month of June 2019

For the first month of operation, depreciation annually is calculated at:

oBuilding - 9% Straight Line

oMotor Vehicle - 15% Straight Line

oFurniture - 12% Straight line

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

f)Do the adjusted trial balance with the inclusion of the above balances

g)Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review.For use in the financial statements, closing stock amounts to $25,000 at the end of the month.