Lola Lewis has loved fashion all her life and grew up wanting to have her very...

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Lola Lewis has loved fashion all her life and grew up wanting to have her very own shop where she could buy and sell different kinds of haute couture clothing. She achieved her goal March 2023. She opened her own clothing shop "Lola's Fabulous Boutique" that sold a wide selection of fashionable clothes. The following information relates to the transactions of Lola's Fabulous Boutique for the first month of operation March 2023. March 1 started business with, cash, $50,000 and a motor vehicle $140,000 March 2 received a long-term loan from the Victoria National Bank, $260,000 by cheque March 3 paid for store furniture by cheque $60,000. March 3 bought merchandise for resale from Forever 32, by cheque $130,000. March 4 purchased a Display Cabinet, on credit from Appliance Trading Ltd. for $150,000. March 4 sold merchandise to Macy's Fashion Shop, for cash $110,000. March 5 sold merchandise on credit to Designer Collections $105,000 and Dee's Fifth Avenue $95,000. March 7 bought merchandise on credit from Louis Button $80,000. March 8 sold merchandise on credit to Tom Ford $80,000. March 10 bought stationery with the entity's logo for cash $12,000. March 13 returned unsatisfactory merchandise to Louis Button for $5,000 receiving a credit note for these goods. March 15 bought merchandise on credit from Coco Chantal $35,200. March 16 sold merchandise to Donna Karen receiving a cheque for $135,000 March 17 Designer Collections settled their account with cash receiving a 4% discount. March 18 lodged cash of $50,000 to the business bank account. March 19 merchandise valued at $4,500, sold on credit to Dee's Fifth Avenue on March 5, was returned to Lola. A credit note was given to Dee's Fifth Avenue March 20 paid Louis Button $69,000 in full settlement of the balance outstanding by cheque having received a discount of $6,000. March 22 paid electricity by cheque $60,000, National Water Distribution by cash, water rates $30,000 and Top Shot Security, security fees of $25,000 by cheque March 25 paid staff salaries by cheque $85,000. March 28 Lola, took for her personal use a Louis Button ball gown, $18,500 March 30 received commission by cheque of $15,000 REQUIRED: A. Journalize each of the above transactions. Narrations are not required. B. Post the above transactions in the General ledger (please use only the general ledger) C. Extract an unadjusted trial balance as at March 31, 2023. D. Journalize the following adjusting entries using the following information: I. A miscalculation of overtime hours had the employees being owed two thousand five hundred dollars ($6,500) for the month of March as it relates to staff salaries. II. Three thousand six hundred dollars ($3,600) of the commission received related to the month of April 2023 III. The security fees were amended, and it was seen where approximately two thousand five hundred dollars ($2,500) was prepaid. IV. V. For the first month of business, depreciation is calculated at 9% per annum on the straight-line basis on the motor vehicle and display cabinet; and 10% per annum on the store furniture; depreciation is charged to the accounts on a monthly basis. It appears that 10% of the balance owed by Tom Ford must be written off as bad debts. Note: when doing the adjusted T accounts only the accounts that have been affected need to be done E. Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. F. Prepare the adjusted trial balance with the inclusion of the above balances. G. Prepare the statement of profit or loss and the statement of financial position for the period under review. For use in the financial statements, closing stock amounts to $7,500 at the end of the month. Lola Lewis has loved fashion all her life and grew up wanting to have her very own shop where she could buy and sell different kinds of haute couture clothing. She achieved her goal March 2023. She opened her own clothing shop "Lola's Fabulous Boutique" that sold a wide selection of fashionable clothes. The following information relates to the transactions of Lola's Fabulous Boutique for the first month of operation March 2023. March 1 started business with, cash, $50,000 and a motor vehicle $140,000 March 2 received a long-term loan from the Victoria National Bank, $260,000 by cheque March 3 paid for store furniture by cheque $60,000. March 3 bought merchandise for resale from Forever 32, by cheque $130,000. March 4 purchased a Display Cabinet, on credit from Appliance Trading Ltd. for $150,000. March 4 sold merchandise to Macy's Fashion Shop, for cash $110,000. March 5 sold merchandise on credit to Designer Collections $105,000 and Dee's Fifth Avenue $95,000. March 7 bought merchandise on credit from Louis Button $80,000. March 8 sold merchandise on credit to Tom Ford $80,000. March 10 bought stationery with the entity's logo for cash $12,000. March 13 returned unsatisfactory merchandise to Louis Button for $5,000 receiving a credit note for these goods. March 15 bought merchandise on credit from Coco Chantal $35,200. March 16 sold merchandise to Donna Karen receiving a cheque for $135,000 March 17 Designer Collections settled their account with cash receiving a 4% discount. March 18 lodged cash of $50,000 to the business bank account. March 19 merchandise valued at $4,500, sold on credit to Dee's Fifth Avenue on March 5, was returned to Lola. A credit note was given to Dee's Fifth Avenue March 20 paid Louis Button $69,000 in full settlement of the balance outstanding by cheque having received a discount of $6,000. March 22 paid electricity by cheque $60,000, National Water Distribution by cash, water rates $30,000 and Top Shot Security, security fees of $25,000 by cheque March 25 paid staff salaries by cheque $85,000. March 28 Lola, took for her personal use a Louis Button ball gown, $18,500 March 30 received commission by cheque of $15,000 REQUIRED: A. Journalize each of the above transactions. Narrations are not required. B. Post the above transactions in the General ledger (please use only the general ledger) C. Extract an unadjusted trial balance as at March 31, 2023. D. Journalize the following adjusting entries using the following information: I. A miscalculation of overtime hours had the employees being owed two thousand five hundred dollars ($6,500) for the month of March as it relates to staff salaries. II. Three thousand six hundred dollars ($3,600) of the commission received related to the month of April 2023 III. The security fees were amended, and it was seen where approximately two thousand five hundred dollars ($2,500) was prepaid. IV. V. For the first month of business, depreciation is calculated at 9% per annum on the straight-line basis on the motor vehicle and display cabinet; and 10% per annum on the store furniture; depreciation is charged to the accounts on a monthly basis. It appears that 10% of the balance owed by Tom Ford must be written off as bad debts. Note: when doing the adjusted T accounts only the accounts that have been affected need to be done E. Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. F. Prepare the adjusted trial balance with the inclusion of the above balances. G. Prepare the statement of profit or loss and the statement of financial position for the period under review. For use in the financial statements, closing stock amounts to $7,500 at the end of the month.

Answer rating: 100% (QA)

ANSWER Date Transaction Details Debit Credit Mar 1 Cash Starting Business 50000 Mar 1 Motor Vehicle Starting Business 140000 Mar 2 LongTerm Loan Payab... View the full answer