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Question 1 Elsa Snow has been a lover of ice cream from she was very young. She grew up wanting to own her very own
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Elsa Snow has been a lover of ice cream from she was very young. She grew up wanting to own her
very own ice creamery and did so in She opened her very own ice cream shop with several exotic
flavours of ice cream she invented herself by mixing and matching flavours. Among these creations
were nutterbutter delight a peanut butter flavoured ice cream and squeeze a peach a frozen
confection with peach pieces incorporated. The following information relates to Elsas Exotic Creamery
for the month of July
July started business with, cash, $ building, $ and a motor vehicle $
equipment, $
July received loan repayable by from the bank, $ by cheque
July paid for store furniture by cheque $
July bought merchandise for resale from Cremo, by cheque $
July purchased a blast freezer, which froze the ice cream faster, on credit from Courts Ltd for
$
July sold merchandise to Tutti Fruitalicious, for cash $
July sold merchandise on credit to Devon Mouse Ltd $ and Crazy Cream $
July merchandise valued at $ sold on credit to Crazy Cream on July was returned to Elsa as
she had sent the incorrect flavour. A credit note was given to Crazy Cream.
July bought merchandise on credit from Serge Island Dairies $
July sold merchandise on credit to Pink Bunny Enterprise $
July bought stationery for cash $
July paid Jamaica Water Commission by cash, water rates $
July returned unsatisfactory merchandise to Serge Island Dairies for $ receiving a credit note
for these goods. They sent goats milk instead of cows milk.
July bought merchandise on credit from Kristoffs Frozen Confections $
July sold merchandise to Princess Jasmine receiving a cheque for $
July Devon Mouse Ltd settled his account with cash receiving a cash discount.
July lodged cash of $ to the business bank account.
July paid Serge Island Dairies $ in full settlement of the balance outstanding by cheque having
received a discount of $
July paid utilities for July by cheque $
July paid staff salaries by cheque $
July received a cheque of $ for interest on deposits in the bank.
July purchased merchandise on credit from Olafs Milk Factory for $
July Elsa used buckets of nutterbutter delight icecream valued at $ for her sister, Annas
th birthday party
REQUIRED:
a Journalize the transactions for the month. Narrations are not necessary
b Post the above transactions in the General ledger.
c Extract a trial balance as at July
d Journalize and post the adjusting entries using the following information:
The monthly utility expense is $
One employee complained that her salary was short by $ Investigations proved that
the employee was indeed short paid for the month.
The insurance for the Creamery was due and payable by July st The annual premium is
$ and the expense is incurred on a pro rata basis.
It was found that of Pink Bunny Enterprises balance, $ has to be written off as
bad debts.
Depreciation for the motor vehicle has not been taken into account for the month. The
business uses the straight line method at a rate of ten percent per annum.
Note: when doing the adjusted T accounts only the accounts that have been affected
need to be done
e Prepare an adjusted trial balance with the inclusion of the above balances
f Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period
under review. For use in the financial statements, closing stock amounts to $ at the end of
the month.
NOTE
Could you give me the specefics for the general ledger and questions e and f please? i posted the question already and i know the limitations with formatting but please type it out.
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