Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr Powell began trading as Powell IT Supplies on 1 st November 2020 with capital of $ 30,000, with which he opened a bank account

Mr Powell began trading as Powell IT Supplies on 1stNovember 2020 with capital of $ 30,000, with which he opened a bank account of $ 25,000 and held cash totaling $ 5,000. His trade is selling IT equipment to retail outlets in northern England. During November 2020 the following transactions took place:

2nd

Paid $ 14,000 by cheque to buy a warehouse

4th

Purchased for $ 12,000, paying by cheque, a selection of IT equipment to be sold on credit to customers

5th

Sold a selection of the IT equipment he had bought to Mr Gatlin for $ 2,500 for cash.

6th

Sold IT equipment on credit to Mr Bolt for $ 4,000.

7th

Banked $ 1,500 of the business cash balance

9th

Sold some equipment to Ms Jeter on credit for $ 2,000.

10th

Purchased from Lemaitre Supplies on credit for $ 3,000, a selection of IT equipment to be sold on credit to customers.

11th

Returned $ 900 of faulty equipment to Lemaitre Supplies

12th

Mr Bolt paid off half of the amount owed to Powell IT Supplies by cheque

14th

Ms Jeter returned $ 300 of the goods she had purchased on 9thNovember and paid off the rest of the amount she owed Powell IT Supplies by cheque.

16th

Mr Powell took $ 1,800 from the business cash to pay for a holiday for him and his family.

18th

Paid an assistant, Mr Gemili, $ 1,200 cash as wages for November.

Mr Powell then took some time off to visit family in America and so he stopped trading until 2ndDecember 2020.

Required:

1) Journalize the above transactions. Explanations are not required.

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions

Question

What practical considerations are deterrents to using the SOT rule?

Answered: 1 week ago

Question

Examine data collection in research using the questions provided.

Answered: 1 week ago