Answered step by step
Verified Expert Solution
Question
1 Approved Answer
John Henry operates Liverpool Traders which has an opening balance at 1 June 2020 for accounts Cash at Bank $20,000, Inventory $16,000 and Capital $36,000.
John Henry operates Liverpool Traders which has an opening balance at 1 June 2020 for accounts Cash at Bank $20,000, Inventory $16,000 and Capital $36,000. During the month ended 30 June 2020 the following transactions occurred: June 2 Sold goods for $2,400 (cost price $1,700), collecting cash of $1,000 with the remainder on credit. June 4 Purchased inventory costing $4,000 from Global Football Supplies paying cash. June 10 Goods costing $400 and sold on credit for $600 were returned by DEN the customer for a credit refund. These goods can be resold. June 12 Goods which cost Liverpool Traders $800, purchased from Global Football Supplies were defective and returned to the supplier for a refund. June 15 Paid wages for the month of June $1,000. June 24 Received a $500 deposit for a July sale. June 30 Physical stock take showed $17,000 of inventory on hand. Required: a.) Record the above transactions for the month of June 2020 in the general journal using the periodic inventory method. Narrations are not required. Ignore GST. (8 marks) b.) Record the above information for the month of June 2020 in the Adjusted Trial Balance using the perpetual inventory method. (7 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started