Question: Evergreen Limited issues $ 4 0 , 0 0 0 worth of shares to its equity investors in exchange for cash. The company purchases machinery

Evergreen Limited issues $40,000 worth of shares to its equity investors in exchange for cash.
The company purchases machinery for textile production for $50,000, paying $20,000 in cash and the remaining balance on account.
Evergreen Limited sells textile products to Fashion Limited on account for $25,000.
The company receives $10,000 in cash from Fashion Limited as a partial payment for the transaction listed in Ref-3.
Evergreen Limited pays $15,000 in cash for employee wages for the month of March 2024.
The company pays $5,000 towards the account owed to the supplier related to Ref-2.
Evergreen Limited purchases additional textile supplies inventory for $7,000 on account and records the inventory as an asset.
Evergreen Limited receives an electricity bill of $3,000 for the electricity used in the month of March 2024, which will be paid next month in April 2024.
Evergreen Limited distributed dividends of $1,000 in cash to its shareholders on 31st March 2024.Q7(a): Journalise each transaction for Evergreen Limited for the month of March 2024 and identify each transaction by number reference (Ref.). It is up to you to decide the appropriate general ledger account names for recording the transactions. You may omit general journal narrations and ignore GST. Fill in your answer in the boxes provided. Not all boxes need to be completed. Make sure each Debit (Dr) and Credit (Cr) entry is typed in on a separate line within the Inspera text answer box.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Journal Entries for Evergreen Limited March 2024 Ref1 Issuance of Shares Evergreen Limited issues 40000 worth of shares in exchange for cash Dr Cash 40000 Cr Share Capital 40000 Ref2 Purchase of Machi... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!