Part 1

Shelly Ryce was employed at Fimi Telecommunications Company for ten (10) years. In recent times however, Shelly Ryce was made redundant and as a part of her redundancy payment package she received $2,000,000. Shelly Ryce has always loved wearing different hair extensions, and realizing how lucrative the hair extension business is, she decided that she wants to start a hair supplies store, called Shellyz Hair & Thingz. Shelly Ryce started operations on March 1, 2021 and she has been advised that even though it is a small business, it is very important for her to keep proper accounting records. Miss Ryce has therefore reached out to your project team to manage her accounts for her. The following transactions were for the first month of operations: Customers Name Item Quantity Cost per Item Sharon Nelson Lace Front Wig (Human Hair) 1 $10,000 Kim Samuels Revlon Hair Relax 20 $750 Nadine Patterson Kankelon Braiding Hair 15 $350 Sonia Jarrett Kera Care Kit 5 $4,500 March 9 Miss Ryces cashier sold merchandise to eight (8) customers, for cash totalling $32,000. March 10 Miss Ryce bought stationery with the stores logo affixed to it, for cash $5,000. March 13 After unpacking all the merchandise bought from Mr. Xinghu Chung, Miss Ryce found unsatisfactory merchandise totalling $32,000 and decided to return them. March 15 Miss Ryce bought merchandise on credit from Cherrys Wholesale Hair Supplies for $155,000. March 16 Miss Ryce sold two hair dryers to Klassy Kays Salon for $20,000 each, receiving a cheque. March 17 Kim Samuels settled her account with cash, receiving a 5% discount. March 18 Miss Ryce paid her cashier a cheque of $15,000 for her fortnightly salary. March 19 One of the Kera Care Kit was return by Miss Sonia Jarrett. March 20 Miss Sonia Jarrett paid the balance outstanding on her account by cheque, receiving a discount of 5%. March 22 Miss Ryce paid cash for the following utility bills for the month: Utility Company Amount Jamaica Light Company $13,000 National Water Company $2,350 Fimi Telecommunications Company $5,300 March 22 Miss Ryce also paid cheque for security fees for the month totalling $23,000. March 25 During the period March 17 March 25, 2021, Miss Ryce sold merchandise for cash totalling $380,000. March 25 Miss Ryce made a cash lodgement of $300,000 to the bank. March 27 Miss Ryce paid cheques to Mr. Xinghu Chung for $250,000, receiving a 2% discount, and to Cherrys Wholesale Hair Supplies for $100,000, receiving a 2% discount. March 29 After almost a month in business, Miss Ryce felt like she wanted to treat herself to a weekend at the Secrets Wild Hotel in Montego. She withdrew $30,000 cash from the business to supplement her personal expenses. March 31 All other customers who had taken goods on account on March 8, 2021, cleared their outstanding balances, by paying with a cheque. Required: a) Journalize the transactions for the month. (Narrations are not required.) (15 marks) b) Post the above transactions in the geeneral ledger. (25 marks)