XYZ is Limited Liability Retailer Company. The following transactions took place during 2019 financial year, ending...

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XYZ is Limited Liability Retailer Company. The following transactions took place during 2019 financial year, ending 31 December 2019: 1. The company injected cash in the company in the amount of $100,000. 2. The company sold goods for $900,000 on cash and 700,000 on credit during the year. 3. At the year-end it was determined that a customer owing to the company $5,000 is recognized bankrupt. Adjustment to reflect the effect on accounts receivable balance is required. 4. A customer that previously bought a good on credit from XYZ LLC for $2000 on 01 December 2019 returned this good on 31 December 2019. No entries have been posted for this return. 5. Purchases were made in the amount of $600,000 for cash and 280,000 on credit. Closing inventory has been valued at $90,000. Assume, that there was Zero beginning inventory balance. 6. The company recognized administrative expenses during the year in the amount of $350,000. 7. Distribution expenses in the amount of $95,000 were incurred and paid for delivering goods to its customers. 8. The Company purchased equipment at the end of the year at a cost of $70,000 that the company is going to use for 3 years. 9. At the year end the company paid to suppliers in the amount of $90,000 10. Income tax expense which is payable in one months after year end was estimated to be $3000. Required: 1. State all journal entries to be recorded based on the above transactions as of 31 December 2019. 2. Present all transactions in relevant ledger accounts. 3. Please record all yearn end adjustments, including closure of revenues and expenses to Retained earnings account. 4. Extract trial balance based on the above information for the year ending 31 December 2019. XYZ is Limited Liability Retailer Company. The following transactions took place during 2019 financial year, ending 31 December 2019: 1. The company injected cash in the company in the amount of $100,000. 2. The company sold goods for $900,000 on cash and 700,000 on credit during the year. 3. At the year-end it was determined that a customer owing to the company $5,000 is recognized bankrupt. Adjustment to reflect the effect on accounts receivable balance is required. 4. A customer that previously bought a good on credit from XYZ LLC for $2000 on 01 December 2019 returned this good on 31 December 2019. No entries have been posted for this return. 5. Purchases were made in the amount of $600,000 for cash and 280,000 on credit. Closing inventory has been valued at $90,000. Assume, that there was Zero beginning inventory balance. 6. The company recognized administrative expenses during the year in the amount of $350,000. 7. Distribution expenses in the amount of $95,000 were incurred and paid for delivering goods to its customers. 8. The Company purchased equipment at the end of the year at a cost of $70,000 that the company is going to use for 3 years. 9. At the year end the company paid to suppliers in the amount of $90,000 10. Income tax expense which is payable in one months after year end was estimated to be $3000. Required: 1. State all journal entries to be recorded based on the above transactions as of 31 December 2019. 2. Present all transactions in relevant ledger accounts. 3. Please record all yearn end adjustments, including closure of revenues and expenses to Retained earnings account. 4. Extract trial balance based on the above information for the year ending 31 December 2019.

Answer rating: 100% (QA)

The journal entries a Cash injection Dr Cash 100000 Cr Capitalor Shareholders Equity 100000 b Sales Dr Cash for cash sales 900000 Dr Accounts Receivable for credit sales 700000 Cr Sales Revenue 160000... View the full answer