Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

looking for an answer to the following for an accounting ledger Kate commenced business as a sole trader under the name Mug Lover on 1

looking for an answer to the following for an accounting ledger

image text in transcribed
Kate commenced business as a sole trader under the name "Mug Lover\" on 1 December, 2018. Mug Lover is based in Burwood, VIC, and has become one of the largest mug wholesalers in the area. The following transactions occurred during the month ofJanuary 2019. Mug Lover is registered for GST. Note: GST needs to be accounted for. n The business borrowed $15,000 from the Westpac at 5% annual interest rate. 9 The business purchased $3,652 of inventory on credit (including GST), net 15. 16 Provided $9,900 of credit sales (including GST), net 15. The cost price of the goods sold was 53,070. m The business paid the outstanding balance for its inventory purchase made on 9 January. A debtor returned unwanted goods totalling S440 (GST Inclusive). The goods returned cost Mug Lover 5132. H Kate paid salaries to her sales staff for the month (Gross salary of $4,320; PAYG of $1,430). Required: Post relevant transactions to the 'Inventory' ledger and calculate the closing balance. (30 marks) Opening balance for the 'Inventory' at 1/1/2019 is $35,450 (DR) Inventory

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

Fundamental Financial Accounting Concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Mark Edmonds, Christopher Edmonds

10th Edition

126015940X, 978-1260159400

More Books

Students also viewed these Accounting questions

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago