ONLY PART E TO F NEEDED

Jessie Samuels, a sole trader, owns a retail shop in Brownie Town that sells a designer shoe items. She named it Jess Come Buy". The following information relates to the transactions of Jess Come Buy" for the first month of operation May 2021. May 1 started business with, cash, $50,000, motor vehicle $120,000 and building, $250,000 May 2 received a long term loan from the First Union Bank, $260,000 by cheque May 3 paid for store furniture by cheque $50,000. May 3 bought merchandise for resale by cheque $130,000. May 4 sold merchandise to Dillard's Department Store, for cash $110,000. May 5 sold merchandise on credit to New York & Co $105,000 and Nordstrom $95,000. May 6 rented Tory Burch a booth for the month of May to display their new summer arrivals, $15,000. The contract states that they will pay this amount by cash on June 5, 2021. May 7 bought merchandise on credit from Jimmy Choo $80,000. May 8 sold merchandise on credit to Neiman Marcus $65,000. May 10 bought fancy stationery with the entity's logo for cash $21,000. May 11 Being a new kid on the block, aggressive marketing and advertising was needed. Jess hired Willz Marketing Associates to advertise the business is various magazines. She paid them $60,000 cash. May 13 returned merchandise to Jimmy Choo for $6,000 receiving a credit note for these goods. May 14 purchased a Display Cabinet, (place in furniture account) on credit from Courts Ltd for $150,000. May 15 bought merchandise on credit from Manolo Blahnik $35,200. May 16 sold merchandise receiving a cheque for $135,000 May 17 New York & Co settled their account with cash receiving a 5% discount. May 18 lodged cash of $45,000 to the business bank account. May 19 merchandise valued at $5,500, sold on credit to Nordstrom on May 5, was returned a credit note was given to Nordstrom May 20 paid Jimmy Choo $65,000 in full settlement of the balance outstanding by cheque. The outstanding amount after payment was received as a discount. (Tip: rough check the balance re the debits and credit for Jimmy) May 22 paid electricity by cheque $60,000, water rates by cash, $25,000 and security fees of $25,000 by cheque May 25 paid staff salaries by cheque $85,000. May 28 Jessica, took some merchandise, a pair of crystal studded sandals to wear to her husband's birthday party $15,000 May 30 received commission by cheque for selling a Limited Edition Jimmy Choo, patent leather pumps of $20,000 e) Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. (Please refer to notes re the journals) (5 marks) f) Prepare an adjusted trial balance with the inclusion of the above balances (5 marks) 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 $25,000 at the end of the month. (20 3/5 A B D E 1 Cr. $ 2 3 4 5 6 420,000 7 8 260,000 9 10 50,000 11 12 13 130,000 14 15 110,000 16 17 18 200,000 19 20 15,000 21 22 23 24 80,000 25 26 27 65,000 28 29 21,000 30 31 60,000 32 Date Particulars Dr. $ 1-May Cash 50,000 Motor Vehicle 120,000 Building 250,000 Capital 2-May Bank 260,000 Loan - First Union Bank 3-May Furniture 50,000 Bank 3-May Purchases Inventory 130,000 Bank 4-May Cash 110,000 Sales 5-May Debtors New York & Co 105,000 Nordstorm 95,000 6-May Expenses 15,000 Outstanding Rent 7-May Purchases Merchandise 80,000 Creditor Jimmy Choo 8-May Debtors Neiman Marcus 65,000 Sales 10-May Staionery 21,000 Cash 11-May advertising Expenses 60,000 Cash 13-May Jimmy Choo 6,000 Return Outward 14-May Furniture 150,000 Courts Ltd 15-May Purchases Inventory 35,200 Manolo Blahnik 16-May Bank 135,000 Sales 17-May Cash 99,750 Discount Allowed 5,250 New York & Co 18-May Bank 45,000 Cash 19-May Return inward 5,500 Nordstorm 20-May Jimmy Choo 74,000 Cash Bank 22-May Electricity 60,000 Bank 22-May water Rates 25,000 Cash 22-May Security Fees 25,000 Bank 25-May Staff Salaries 85,000 Bank 28-May Drawings 15,000 Inventory 30-May Bank 20,000 Commssion Received 2,196,700 33 6,000 34 35 150,000 36 37 38 35,200 39 40 135,000 41 42 43 105,000 44 45 45,000 46 47 5,500 48 49 65,000 9,000 50 51 52 60,000 53 54 25,000 55 56 25,000 57 58 85,000 59 60 15,000 61 62 20,000 2,196,700 63 Q R Jess Come Buy Trial Balance As At May 2021 Amount Particulars Dr. Cr. Cash 43,750 Bank 101,000 Motor Vehicle 120,000 Building 250,000 Furniture 200,000 Inventory (purchase) 230,000 Nordstrom (Debtors) 89,500 Expenses 15000 Discount Allowed 5,250 Neiman Marcus (Debtors) 65,000 Stationeries 21,000 Advertsing Expenses 60,000 Return Inward 5,500 Electricity 60,000 water Rates 25,000 Security Fees 25,000 Staff Salaries 85,000 Drawings 15,000 Capital Loan Sales Outstanding rent Return Outwards Courts Lts (Creditors) Manolo Blahnik (Creditor) Commission Received 1,416,000 420,000 260,000 510,000 15,000 6,000 150,000 35,200 20,000 1,416,200 Cr. $ 5,000 4,500 Jess Come Buy Adjusted Journal Entry May-20 Date Particulars Dr. $ 5-May Water Charges a/c 5,000 Outstanding water charges a/c Salary Suspense a/c 4,500 to Salary a/c Insurance Premium a/c 4,000 to cash Bad Debts alc 4.000 to Neiman Marcus Commissoion Received a/c 3.000 1 to Commission Received in advance 5 Depreciatiation a/c 4.625 5 to Building 7 to Motor Vehicle B to Furniture 9 25.125 4,000 4,000 3.000 1875 1500 1.250 25.125