Question
Vole starts 2005 with the following opening balances: common stock $750, accounts payable $350, other payable $500, tax due $150, long-term assets $750, inventory $500,
Vole starts 2005 with the following opening balances: common stock $750, accounts payable $350, other payable $500, tax due $150, long-term assets $750, inventory $500, accounts receivable $250 and cash $250. During 2005, it enters into the following transactions:
(1) Purchases inventory worth $1,000 on credit (2) Makes a cash sale for $1,000, which represents twice original cost
(3) Pays a $120 electricity bill in cash (this is the electricity used for this year) (4) Purchases a vole-strangling machine for $600 on credit (recorded in other payable)
(5) Makes further sales of $1,200, also at twice original cost, on credit (6) Pays an insurance bill for $90 (this is the insurance service used for this year) and wages of $400 in cash (this is the employee service used for this year)
(7) Pays last years tax of $150 (8) Pays $600 to other payable and $570 to accounts payable. It also collects 80% of accounts receivable
(9) Tax is payable at 35% on profits before tax (10) Dividends of $100 are declared but not paid
Record the balances
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