Journalise transactions and follow through accounting cycle to preparation of nancial statements. LO4, 5, 6, 7, 8

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Question:

Journalise transactions and follow through accounting cycle to preparation of ﬁnancial statements. LO4, 5, 6, 7, 8 On 1 July 2019, the following were the account balances of Bulwara Ltd:

Debits Cash $ 5000

Accounts receivable 5600

Supplies 2000

Store equipment 20000

$32600

Credits Accumulated depreciation $ 1000

Accounts payable 4200

Service revenue received in advance 800

Salaries payable 1000

Share capital 20000

Retained earnings 5600 $32600

During July the following summary transactions were completed:

July 8 Paid $3000 for salaries due to employees, of which $2000 is for July and $1000 is for June.

10 Received $2000 cash from customers in payment of their accounts.

12 Received $800 cash for services performed in July 2019.

15 Purchased store equipment on account $8000. 17 Purchased supplies on account $3400.

24 Paid accounts payable $2000. 24 Paid July/August rent $800.

25 Paid salaries $3000.

27 Performed services on account and invoiced customers for services provided $2300.

27 Received $1300 from customers for future service.

Other data:

1. Supplies on hand are valued at $3200.

2. Accrued salaries payable are $1000.

3. Depreciation for the month is $240.

4. Services have been performed in relation to $600 recorded in service revenue received in advance.

Required

Prepare a chart of accounts. (Hint: Refer to Wong Pty Ltd in chapter 2 of this text.)

Enter the 1 July balances in the ledger accounts (use T accounts).

Journalise the July transactions.

Post to the ledger accounts you prepared for part (c) above. Use service revenue, depreciation expense, supplies expense, salaries expense and rent expense.

Prepare a trial balance at 31 July before adjusting entries. (f) Journalise and post adjusting entries.

Prepare an adjusted trial balance.

Prepare a statement of profit or loss and a calculation of retained earnings for July and prepare a statement of financial position as at 31 July 2019.