Question
The business started on 1 March 2015 and after a month of trading the following list of assets and liabilities. The following is a list
The business started on 1 March 2015 and after a month of trading the following list of assets and liabilities. The following is a list of assets and liabilities at 31 March 2015:
Bank 7 250
Accounts Receivable 2 300
Equipment 22 500
Cash Float 1 800
Inventory 8 500
Supplies Asset 4 100
Accounts Payable 11 200
The following transactions occurred during the month of April 2015:
1 April: Paid rent for the month of April and May R1 800 per month.
1 April: Sold goods for cash R800 (cost of goods sold R500).
3 April: Bought additional inventory on credit for R1 200.
5 April: Bought a new oven for R8 000, paid R2 500 cash and the balance on credit from Ben Stores.
7 April: Sold good to customers on credit for R1 000 (cost of goods sold R600). 9 April: Received money from customers who purchased on credit R650.
10 April: Penelope contributed a vehicle of R7 000 to the business. On the same day made cash sales of R1 200 (cost of goods sold R800).
15 April: Made a payment of R5 000 to outstanding creditors. On the same day purchased additional supplies for cash of R350.
17 April: Withdrew R1 500 from the bank to increase the cash float.
20 April: Paid employees salaries for the month R8 000.
21 April: Sold goods on credit for R1 800 (cost of goods sold R1 000).
23 April: Paid for an advertising campaign with a local radio station for 3 months including April at a total cost of R1 500.
25 April: Penelope took inventory home for a birthday party at a cost of R800.
27 April: Paid the electricity bill and telephone bill for the month of April R1 300 and R700 respectively.
28 April: Sold goods for cash R2 000 (cost of goods sold R1 200). Received cash from debtors R1 500 who previously purchased on credit.
30 April: Record the rent for the month of April. Supplies on hand at the end of the month amounted to R500.
You are required to: Record the above transactions in the general journal for the month of April 2015.
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