Question $1$

Jack Smith, a baker, has been working at his friend's bakery a part time basis for the past $3$ years. As of January $1,2018,$ Jack decided to pursue his own dreams of buying and selling pastries. He rented a space from his friend and entered into the following transactions during January $2018$:

Jan $1$ Jack invested the following assets into the business: cash, $$12,000$; office equipment, $$30,000$ and a bank balance of $$80,000.$

Jan $2$ Paid rent for January by cheque $$14,000$

Jan $2$ Purchased motor vehicle on credit from Deals on Wheels Ltd$.$ for $$50,000.$

Jan $3$ Bought office furniture from Kurtz JA$.$ Ltd$,$ paying by cheque $$15,000$

Jan. $3$ Bought merchandise for resale by cheque $$20,000.$

Jan $3$ Sold merchandise to Candy Lou, for cash $$10,000.$

Jan $4$ Sold merchandise on credit to Patrick Poser $$40,000.$

Jan $5$ Sold merchandise on credit to Janice Russell $$4,500.$

Jan $6$ Patrick Poser settled his account with cash receiving a $5\%$ cash discount.

Jan $6$ Merchandise valued at $$1,050,$ sold to Janice Russell on January $5,$ was returned to Jack Smith. A credit note was given to Janice Russell.

Jan $7$ Sold merchandise on credit to J$.$F$.$ Mills Ltd $$33,000.$

Jan $8$ Bought merchandise on credit from Natalie Lowe $$12,000.$

Jan $11$ Received a long term loan from JNBC Bank for $ $45,000$ by cheque.

Jan $11$ Bought stationery for cash $$12,000.$

Jan $15$ Bought merchandise on credit from Nickette Morgan $$17,500.$

Jan $18$ Lodged cash of $$13,500$ to the business bank account

Jan $20$ Jack took pastries for his daughter's $5^{th}$ birthday party amounting to $$7,000$

Jan $20$ Paid Natalie Lowe $$10,800$ in full settlement of the balance outstanding by cheque having received a discount of $$1,200.$

Jan $20$ Paid Natalie Lowe $$10,800$ in full settlement of the balance outstanding by cheque having received a discount of $$1,200.$

Jan $25$ Commission was received by cash, $$5,000.$

Jan $12$ Paid wages by cash $$15,000.$

Jan $27$ Purchased merchandise on credit from Kukupas Creations for $$8,000.$

Jan $30$ Paid electricity by cash $$5,600,$ insurance $$12,000$ by cheque.

c$)$ Extract an unadjusted trial balance as at January $31,2018$ with the inclusion of the appropriate headings