Question 1 - The Accounting Process (20 points)

The "Little Pini" company (hereinafter - the "Company") was established on January 1, 2013. The company is engaged in the import and marketing of care products.

Below are details about the company's activities in 2013 -

On the day of its establishment, the company issued 200,000 shares of NIS 1 par value each. The issue was made for NIS 1 million in cash. Mr. Pini purchased all the shares in the issue.

On February 1, 2013, the Company purchased inventory in the amount of NIS 400,000 from Mr. Levy. The Company's gross profit margin is 25% of the sale price.

On March 1, 2013, the company received a loan of NIS 30,000 from a local bank.

On April 1, 2013, the company sold inventory for $ 30,000 in cash.

On May 1, 2013, the company received NIS 80,000 for products it will supply during 2014.

On June 1, 2013, the company purchased an "Alpha" type machine for NIS 50,000. Installation and assembly costs that accrued until the machine was operated amounted to NIS 30,000. The machines are reduced by the straight-line method over 3 years, the value of the grid is NIS 30,000.

On July 1, 2013, the Company received and paid an electricity expense account in the amount of NIS 50,000 for the period between July 1, 2013 and July 1, 2016.

On September 1, 2013, the Company purchased securities for the purpose of trading at a cost of NIS 20,000 in cash. The Company sold half of the securities it purchased on October 1, 2013 for NIS 40,000.

9. The company has legal expenses in the amount of NIS 2,000 per month. As of the end of 2013, the outstanding debt balance was NIS 8,000.

On December 31, 2013, the company paid salaries to its employees in cash in the amount of NIS 15,000.

11. On December 31, 2013, the company paid current accounts according to the following details - property tax - NIS 6,000, telephone - NIS 3,000.

12. Beyond the cash sales the company had and described in section 4 above, the rest of the companys sales were on credit. The following are data in this context:

A. Total sales on credit in 2013 amounted to NIS 300,000.

B. The total collection in 2013 was NIS 100,000.

third. The company estimates the expenses for doubtful debts at 3% of sales on credit.

D. Already at the end of the year, the company knew that a debt of NIS 5,000 would not be paid to it in light of the fact that the debtor customer went bankrupt.

Required:

1. Prepare journal orders to record the company's business activity in 2013.

2. Transfer the log orders to the T accounts in the general ledger for the items: cash, fixed assets and sales.