1. Vidya Invested $50000 to her children storybook business

2. She purchased 1000 units of storybooks @ $2 each for cash

3. She sold 500 units of books at $5 each for cash

4. She bought 400 units of books for $3 each on account

5. She sold 600 units at $6 each for cash

6. Purchased a machine for $5000 from Zalak Auto traders

7. Paid salary $ 2500 for Naved at the end of the month

8. Paid rent of $1000 for Naveen

a.Prepare General journal entries

b.Calculate the gross profit based on

i.FIFO

ii.Weighted Average

iii.LIFO

c.Which method will you recommend for better gross profit in this instance?

d.Calculate the Net profit

e.Prepare Trial Balance

f.Prepare Income statement

g.Prepare Statement of Owners equity

h.Prepare Balance Sheet

•Calculate the gross profit ratio

•Calculate the net profit ratio

•Calculate the Asset turnover ratio

•Calculate inventory turnover ratio

Answer rating: 100% (QA)

Answer a General Journal DateParticularsLFRF 112017Vidya invested 50000 to her children storybook bu... View the full answer