(a) Record the following transactions in a set of double-entry accounts: (b) Balance the relevant accounts and...
Question:
(b) Balance the relevant accounts and prepare a trial balance (making sure that it agrees).
(c) Prepare an income statement for the month and a statement of financial position at the month end. Assume that there are no prepaid or accrued expenses at the end of the month and ignore any possible depreciation.
1 February Lee (the owner) put £6,000 into a newly-opened business bank account to start a new business 3 February 5 February 6 February 9 February 10 February 11 February 15 February 19 February 21 February 25 February 28 February Bought inventories for £2,600 for cash Bought some equipment (non-current asset) for cash for £800 Bought inventories costing £3,000 on credit Paid rent for the month of £250 Paid £240 for electricity for the month Paid general expenses of £200 Sold inventories for £4,000 in cash; the inventories had cost £2,400 Sold inventories for £3,800 on credit; the inventories had cost £2,300 Lee withdrew £1,000 in cash for personal use Paid £2,000 to trade payables Received £2,500 from trade receivables
Step by Step Answer:
a and b Cash 1 Feb Equity 6000 3 Feb Inventories 2600 15 Feb Sales 4000 5 Feb Equipment 800 28 Feb Trade receivables 2500 9 Feb Rent 250 10 Feb Electr...View the full answer
Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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