On 1 May 20x7, the assets and liabilities of Snappy Sheets, owned by John Dlomo, were: Transactions for May: 3
On 1 May 20x7, the assets and liabilities of Snappy Sheets, owned by John Dlomo, were:
Transactions for May:
3 Purchased sheets for resale and paid R1 700.
6 Sold inventory for cash, R2 300.
13 Purchased inventory for resale on credit, R1200.
16 Sold inventory on credit for R1 600.
24 Sold equipment for R360 and received a cheque for the amount.
26 Purchased furniture on credit for R600.
27 Sold inventory for cash, R1 800.
• Inventory on hand on 31 May, as determined by physical count was R900.
• Snappy Sheets uses the periodic system for recording inventory movements.
You are required to:
1. Open the general ledger accounts and enter the balances on 31 May 20x7.
2. Record the transactions in the general journal and post to the general ledger (ignore VAT).
3. Extract a trial balance.
4. Prepare the trading statement of Snappy Sheets for the month ended 31 May 20x7 and the statement of financial position on that date.
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