Lola Lewis has loved fashion all her life and grew up wanting to have her very own shop where she could buy and sell different kinds of haute couture clothing. She achieved her goal March $2023.$ She opened her own clothing shop $$Lola$$s Fabulous Boutique$$ that sold a wide selection of fashionable clothes. The following information relates to the transactions of Lola$$s Fabulous Boutique for the first month of operation March $2023.$

March $1$ started business with, cash, $$50,000$ and a motor vehicle $$140,000$

March $2$ received a long$-$term loan from the Victoria National Bank, $$260,000$ by cheque March $3$ paid for store furniture by cheque $$60,000.$

March $3$ bought merchandise for resale from Forever $32,$ by cheque $$130,000.$

March $4$ purchased a Display Cabinet, on credit from Appliance Trading Ltd$.$ for $$150,000.$ March $4$ sold merchandise to Macy$$s Fashion Shop, for cash $$110,000.$

March $5$ sold merchandise on credit to Designer Collections $$105,000$ and Dee$$s Fifth Avenue $$95,000.$

March $7$ bought merchandise on credit from Louis Button $$80,000.$

March $8$ sold merchandise on credit to Tom Ford $$80,000.$

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

March $13$ returned unsatisfactory merchandise to Louis Button for $$5,000$ receiving a credit

note for these goods.

March $15$ bought merchandise on credit from Coco Chantal $$35,200.$

March $16$ sold merchandise to Donna Karen receiving a cheque for $$135,000$

March $17$ Designer Collections settled their account with cash receiving a $4\%$ discount. March $18$ lodged cash of $$50,000$ to the business bank account.

March $19$ merchandise valued at $$4,500,$ sold on credit to Dee$$s Fifth Avenue on March $5,$

was returned to Lola. A credit note was given to Dee$$s Fifth Avenue

March $20$ paid Louis Button $$69,000$ in full settlement of the balance outstanding by cheque

having received a discount of $$6,000.$

March $22$ paid electricity by cheque $$60,000,$ National Water Distribution by cash, water

rates $$30,000$ and Top Shot Security, security fees of $$25,000$ by cheque March $25$ paid staff salaries by cheque $$85,000.$

March $28$ Lola, took for her personal use a Louis Button ball gown, $$18,500$ March $30$ received commission by cheque of $$15,000$

$2$

REQUIRED:

A$.$ Journalize each of the above transactions. Narrations are not required.

B$.$ Post the above transactions in the General ledger $($please use only the general ledger$)$

C$.$ Extract an unadjusted trial balance as at March $31,2023.$

D$.$ Journalize the following adjusting entries using the following information:

I. A miscalculation of overtime hours had the employees being owed two thousand five hundred dollars $($$$6,500)$ for the month of March as it relates to staff salaries.

II$.$ Three thousand six hundred dollars $($$$3,600)$ of the commission received related to the month of April $2023$

III. The security fees were amended, and it was seen where approximately two thousand five hundred dollars $($$$2,500)$ was prepaid.

IV$.$ For the first month of business, depreciation is calculated at $9\%$ per annum on the straight$-$line basis on the motor vehicle and display cabinet; and $10\%$ per annum on the store furniture; depreciation is charged to the accounts on a monthly basis.

V$.$ It appears that $10\%$ of the balance owed by Tom Ford must be written off as bad debts.

Note: when doing the adjusted T accounts only the accounts that have been affected need to be done

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

F$.$ Prepare 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 $$7,500$ at the end of the month.