Part A$.$

Knowles is a new business that started trading on $1$st January $2019.$ As a trainee financial manager, you have been presented with a summary of transactions that occurred during the first year of trading.

Transaction Details

$1$ The owners introduced $50,000$ of equity, which was paid into a bank account opened in the name of the business

$2$ Premises were rented from $1/1/2019$ at an annual rental of $20,000.$ During the year, rent of $25,000$ was paid to the owner of the premises.

$3$ Rates $($a tax on business premises$)$ were paid during the year as follows: for period $1/1/2019$ to $31/3/2019-500$; for the period $1/4/2019$ to $31/3/2020-1,200$

$4$ A delivery van was bought on $1/1/2019$ for $12,000.$ This is expected to be used in the business for four years and then to be sold for $2,000$

$5$ Wages totaling $33,500$ were incurred $($wage expense$)$ during the year. At the end of the year, the business owed $630$ for the last week of the year

$6$ The electricity bill for the final quarter was not received before the accounts were prepared. The business estimated the electricity expense would be $300$ for the final quarter, resulting in a total estimated electricity expense for the year of $1,650,$ which was paid in cash. Just before the accounts were finalised, the electricity bill for the final quarter was received for an amount of $425.$ The supplier will allow Knowles to pay the balance when the next quarterly payment is due.

$7$ Inventories totaling $143,000$ were bought on credit

$8$ Inventories totaling $12,000$ were bought for cash

$9$ Sales revenue on credit totaled $152,000($cost of sales $74,000)$

$10$ Cash sales revenue totaled $35,000($cost of sales $16,000)$

$11$ Receipts from trade receivables totaled $132,000.$

$12$ Payments of trade payables totaled $121,000.$

$13$ Van running expenses paid totaled $9,400$

The business uses the straight$-$line method for depreciating non$-$current assets.

Required:

i$.$ Record the transactions using double$-$entry bookkeeping$*$ and prepare a trial balance.

Note $(*$double entry $($t$-$accounts$)$ workings do not need to be submitted with your assignment.$)$