Question 1 (A) Nomad is a retailer of hiking products. The business uses the perpetual method to record inventory. An extract of the account balances at 30 November 2021 follows: $ Bank overdraft 9,000 Accounts receivable 8,000 Inventory 50,000 Accounts payable 7,000 Capital 60,000 In the month of December 2021, Nomad has the following transactions: 1st December Paid $5,000 of the November accounts payable balance. Purchased 50 items at $400 each on account from 2nd December supplier, terms 3/10, net 30. 5th December Sold on account 30 items at $800 each (cost $400 each), terms 2/10, net 30. 6th December Paid $4,800 for advertising for 1 January to 31 December 2022. 7th December Customer of 5 December returned 8 items. 8th December Cash sales $8,000 (cost $4,000). 12th December Received payment in full from customer of 5 December 31st December A physical stock-take shows a loss of 2 items that cost a A tv ? each), terms 2/10, net 30. 6th December Paid $4,800 for advertising for 1 January to 31 December 2022. 7th December Customer of 5 December returned 8 items. 8th December Cash sales $8,000 (cost $4,000). 12th December Received payment in full from customer of 5 December 31st December A physical stock-take shows a loss of 2 items that cost a total of $800. REQUIRED: Prepare the general journal entries to record all the above transactions. Narrations are NOT required. B I NIE TIL % C? GENERAL JOURNAL DATE DETAILS DEBIT $ AJO tv HO? W Question 1 (B) Threadbare is a fashion retailer. The business uses the perpetual method for inventory recording. On 31 December 2021, the business has the following account balances: Cash at bank $8,000, Inventory $24,000, Accounts payable $6,000, Equipment $26,000, Accounts receivable $8,000, and Capital $. (You need to calculate and record balance in general ledger account for Capital). During the month of January 2022, Threadbare has the following transactions: Jan 2 Purchased 50 items for resale on account from Walt for a total cost of $5,000. Jan 3 Credit sales to Elon $7,200 (cost $4,000). Paid $3,000 for February rent. Jan 10 Customer of Jan 3, Elon, returned damaged items sold for $540 (cost $300). Jan 14 Cash sales $900 (cost $500). Jan 20 Returned 3 damaged items to Walt (cost $300). Jan 28 Elon paid $5,000 of its December account balance and January account balance in full. Jan 31 Paid Walt for January transactions. O stv ? 5, com, returned damaged items sold for $540 (cost $300). Jan 14 Cash sales $900 (cost $500). Jan 20 Returned 3 damaged items to Walt (cost $300). Jan28 Elon paid $5,000 of its December account balance and January account balance in full Jan 31 Paid Walt for January transactions. REQUIRED: Using the above transactions, post the relevant information directly into the following ledgers. You are NOT required to prepare general journal entries. You are also required to correctly balance the General Ledger Bank account at January 31 2022. No other ledger accounts need to be balanced. 7 B I BANK Date Explanation Debit Date Explanation Jan 1 Balance 8,000 tv ? Question 2 (A) Melomania provides services to customers. The following is an extract of the unadjusted trial balance of this business at the end of its financial year ended 31December 2021: Fi DEBIT CREDIT $ Ti $ Prepaid advertising 30,000 Materials on hand 6,000 Prepaid rent 8,000 Term deposit 10,000 Accumulated depreciation - Computers Fees income 218,000 Prepaid income 30,000 Term deposit 50,000 Equipment 20,000 5,000 Accumulated depreciation- Equipment Electricity expense 12,000 tv EL TICKOMINUITTO UWV Term deposit 50,000 Equipment 20,000 Accumulated depreciation- Equipment 5,000 Electricity expense 12,000 Computers 40,000 The following information needs to be taken into account at the end of the financial year: 1. $600 is owing for electricity supplied in December 2021. 2. $30,000 advertising was prepaid on 1 October 2021 for the period ended 31 March 2022. 3. A fee for work performed on account (credit) in December for $800 has not been recorded. 4. The equipment has a useful life of 5 years and no scrap value. It is depreciated using the straight line method. 5. The term deposit of $50,000 was invested on 1 November 2021 for 6 months at 3% interest per annum. 6. 15% of the prepaid income balance has been earned by 31 December 2021. 7. The computers have an estimated life of 4 years and are depreciated using the diminishing value (reducing balance) method. 8. At the end of the year, materials on hand are $2,000. REQUIRED: tv EN
