Question
Mr Powell began trading as Powell IT Supplies on 1st November 2020 with capital of $ 30,000, with which he opened a bank account of
Mr Powell began trading as Powell IT Supplies on 1st November 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 9th November 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 2nd December 2020.
Required:
1) Journalize the above transactions. Explanations are not required.
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