Question
QUESTION 1 (30 MARKS) D.O Desks uses a perpetual inventory system. The balance of assets and liabilities were as follows as at 1 June 2021:
QUESTION 1 (30 MARKS) D.O Desks uses a perpetual inventory system. The balance of assets and liabilities were as follows as at 1 June 2021: Debit ($) Credit ($) Cash at bank 59,000 Accounts Receivable 85,000 Inventory 150,000 Equipment 484,000 Accounts Payable 78,000 Capital 700,000 The following transactions occurred during June 2021 (Ignore GST) June 1 D.O issued a cheque $32,000 to Merrylands Markets for purchase made in May 2021. 2 Purchased 100 desks on credit for $120 each from Merrylands Markets, terms 3/10, n/30. 10 Returned 8 damaged desks for $120 each to Merrylands Markets. 12 Paid Merrylands Markets in full, less discount. 15 Sold 500 desks on credit to Sunflower School for $150 each, terms: 3/10, n/30. (cost price $120 each) 17 Purchased equipment worth $28,000, it was paid by cheque. 18 Sunflower School returned 10 damaged desks worth $1,500 (cost price $120 each). 20 Owner withdrew $1,500 cash for personal use. 24 Received payment in full from Sunflower School, less discount. 25 Paid the telephone bills by cheque $1,000. 26 Paid the salaries by cheque to employees $28,500. D.O Desks chart of accounts contained the following accounts: Cash at Bank, Equipment, Sales, Accounts Receivable, Discount Allowed, Inventory, Sales Returns and Allowances, Accounts Payable, Cost of Sales, Discount Received, Drawings, Capital, Telephone Expense, Salaries Expense. REQUIRED a) Show ALL the ledger accounts (T-accounts) and post the June transactions (NO JOURNAL ENTRY IS REQUIRED). (22 marks) b) Prepare a trial balance as at 30 June 2021. (8 marks
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