PLEASE ANSWER QUESTION 2

12 July: The company received 400 from rent. 13 July: The company took up a short term loan of 1,200. 20 July: The company purchased Vehicles 4,450, 60% of the amount was paid by cash and for the remaining 40% the company signed a lease agreement. 21 July: The company purchased Machinery 5,500 by cash. 26 July: The company sold goods 13,050 and received cash. 27 July: The company sold goods 1,000 on credit. 28 July: The company paid for rent 200. 29 July: The company paid for electricity 250 and for Sundry expenses 100. 31 July: The company prepaid the insurance for the car 120 (the contract refers to the next 12 months i.e. August 2017 - Sept 2017). Required: 1. Record the above transactions in the journal. 2. Post the entries to the ledger, using T-accounts 3. Prepare the trial balance 4. Prepare Income statement (close all necessary accounts using income and expense account) 5. Prepare the statement of financial position. McDonald's exercise McDonald's completed the following transactions during June and July 2017. McDonald's started its operations on 1st of June 2017. 1 June: The company established its capital. The capital consisted of 35,000 cash, 55,000 Land, 2,000 Vehicles and 15,000 Buildings. 4 June: The company purchased supplies for 12,000 on credit. 8 June: The company purchased supplies for 2,500, 50% on credit and 50% by cash. 13 June: The company sold goods 14,050 and received cash. 17 June: The company purchased supplies for 30,000, 50% by cash and 50% on credit. 20 June: The company sold goods 20,000, 50% on credit and for the remaining 50% the company received cash. 23 June: The company paid for rent 500. 27 June: The company paid for advertisement 250 and for telephones 235. 30 June: The company received from its customers 9,000. 4 July: A customer paid in advance 250 for future purchases. 8 July: The company paid 2,180 to its suppliers. Preparation of journal entries Date Particular 01-Jun Cash Land Mcdonalds Capital (To record owner invested in bussiness) Debit Credit $ 35,000 $ 55,000 $ 90,000 $ 12,000 04-Jun Supplies Accounts payable (To record purchase of supplies) $ 12,000 $ 2,500 08-Jun Supplies Accounts payable ($2500 * 50%) Cash ($2500 * 50%) (To record purchase of supplies) $ $ 1,250 1,250 $ 14,050 13-Jun Cash Sales revenue (To record goods sold) $ 14,050 $ 30,000 17-Jun Supplies Accounts payable ($30000 * 50%) Cash ($30000 * 50%) (To record purchase of supplies) $ $ 15,000 15,000 ulu $ $ 10,000 10,000 20-Jun Cash ($20000 * 50%) Accounts Receivable ($20000 * 50%) Sales revenue (To record goods sold) $ 20,000 B D C 500 $ A 23-Jun Rent expense Cash (To record rent expense) $ 500 $ 485 27-Jun Advertisement and telephone expense Cash ($250 + $235) (To record advertisement and telephone expense) $ $ 485 $ 9,000 30-Jun Cash Accounts Receivable (To record cash collection) $ 9,000 $ 250 04-Jul Cash Uneaned sale revenue (To record advance received) $ 250 $ 2,180 08-Jul Cash Accounts payable (To record cash paid) $ 2,180 $ 400 12-Jul Cash Rent revenue (To record rent received) $ 400 $ 1,200 13-Jul Cash Short term loan payable (To record short term loan taken) $ 1,200 $ 4,450 20-Jul Vehicle Cash ($4450 * 60%) Lease liability ($4450 * 40%) (To record vehicle purchased) $ $ 2,670 1,780 $ 5,500 21-Jul Machinery Cash (To record machinery purchased) $ 5,500 $ 13,050 26-Jul Cash Sales revenue (To record goods sold) $ 13,050 $ 1,000 27-Jul Accounts Receivable Sales revenue (To record goods sold) $ 1,000 $ 200 28-Jul Rent expense Cash $ 200 (To record rent expense) 250 $ $ 100 29-Jul Electricity expense Sundry expense Cash ($250 + $100) (To record expense paid) + $ 350 $ 120 31-Jul Prepaid insurance Cash (To record prepaid insurance paid) $ 120