Mavtech: October $2023$ Transactions

The transactions below pertain to Mavtech$$s second month $($October$)$ of operations.

$1.$ Paid $$11,000$ to the supplier to complete payment on the furniture and fixtures

bought on September $1,2023($refer to transaction $4$ of September$).$

$2.$ Delivered the $3$ computers to the customer for which advance payment of $$5,400$

was received in September. The full invoice value of the sale was received in

advance.

$3.$ Paid $$40,000$ to the supplier to complete payment of the $40$ computers that were

bought on September $22,2023($refer to transaction $11$ of September$).$

$4.$ The customer who owed $$31,000($refer to September transactions$)$ paid the amount

to Mavtech.

$5.$ Purchased and received office supplies for $$1,200$ by paying cash in October.

$6.$ Purchased $60$ computers in October for $$1,000$ each, and paid $$25,000$ cash to the

supplier, with the remaining amount to be paid in November.

$7.$ Sold $50$ computers in October for $$1,400$ each, received $$20,000$ cash, with the

remaining amount to be collected in November.

$8.$ Paid $$2,400$ to the employee on October $21$st towards wages for the period

September $21$ to October $20$th$.$

$9.$ Rachel took $$600$ as dividends in cash from Mavtech.

$10.$ On October $31$st$,$ Rachel realized that most of her business was commercial. She did not need as many cash registers. So$,$ she sold three of the four cash registers for $$4,000$ cash. $($Be sure to take into account the book value at the time of the sale and recognize a gain or loss on the sale.$)$

Required:

$1.$ Enter beginning balances in Ledger t$-$accounts $($from September closing trial balance$)$

$2.$ Prepare journal entries for all transactions listed above.

$3.$ Post those entries to t$-$accounts and prepare an unadjusted trial balance.

$4.$ Prepare journal entries for any adjusting entries required. When doing so$,$ consider the following additional information:

a$.$ At the end of the day on October $31$st$,$ Rachel counted the office supplies inventory and found that $$500$ worth of inventory was on hand.

b$.$ Rachel figured that the income tax on the profits Mavtech Inc made during October would be $$500.$ The tax will be paid to the IRS only in December $2019$

$5.$ Prepare an adjusted trial balance

$6.$ Prepare $($in good form$)$ the financial statements for the month.

$7.$ Prepare closing journal entries and a post$-$closing trial balance.