Wanna Be Rich Trading, owned by Richie Richer, sells casual wear for both men and women. He ended trading on December 31, 2021 with the following assets and liabilities: Bank Loan (repayable in 2025) $200,000 Office Furniture $500,000 Bank $300,000 Shop Equipment $100,000 During the month of January 2022, the following transactions occurred: Jan 1 Rented premises for $50,000 per month. Wanna Be Rich Trading paid $150,000 for the first quarter to March 31, 2022 by cheque. Jan 2 Purchased inventory work $80,000 on credit from Already Rich Ltd. Jan 2 Sold a quarter of the inventory for $40,000 cash, funds lodged immediately Jan 7 Paid cheque to Already Rich Ltd for half the goods purchased on Jan. 2. Jan 8 Paid insurance for Jan $7,500 by cheque Jan 14 Sold the remaining inventory for credit as follows: Rochelle Dealer $30 000 Samantha McGregor $25,000 Percival Kingdom $25,000 Janet Justice $80,000 Jan 16 Purchased goods on credit from All Traders Co. $160,000 Jan 17 Sold good for cash $75,000 Jan 18 Purchased computer equipment for $30,0000 by cash Jan 21 Sold half the inventory for $100,000 cash, funds lodged immediately Jan 25 Rich Richer withdraws $10,000 from the bank for use in the business. Jan 31 Purchased office supplies costing $3,500, cash. Jan 31 Paid shop assistant wages $25,000 by cheque Jan 31 Paid electricity bill for Richie Richers mother in cash $15,000

Task 1 Journalize the opening balances for Richie Richer on January 1, 2022 and calculate the figure for capital

Task 2 Journalize the above transactions in the general ledger (no narrations required) for the month of January 2022

Tsk 3 Post the transactions to the ledger accounts

Task 4 Extract a trial balance at January 31, 2022

The following information is also available for January 31, 2022 1 Wanna Be Rich Trading uses the accruals basis to prepare its books of accounts. 2 Wanna Be Rich Trading adopts a depreciation policy to depreciate all non-current assets at the rate of 1% per month on a straight-line basis. 3 The bank loan attracts an interest of 24% per annum, payable every six months on June 30 and December 31 each year. 4 Richie Richer gave a personal friend clothes valuing $25,000 5 A manual stock count revealed that on January 31, 2022, Wanna Be Rich Trading has closing inventory of $60,000. 6 Richie Rich received a bank statement from his bankers on Jan. 31, 2022 (Appendix 1)

Task 8 Prepare the statement of Profit or Loss for the period ending January 31, 2022

Task 9 Prepare the Statement of Financial Position on January 31, 2022 Presentation