In the Books of ABC Hardware Stores
(a) Journal Entries
Particulars	Debit (Amount in USD)	Credit (Amount in USD)	Date
Cash A/c	20000
To Capital A/c		20000
Truck A/c	8000
To Cash A/c		4000
To Accounts Payable		4000
Office Maintenance A/c	2100
To Accounts Payable		2100
Insurance A/c	1800
To Cash A/c		1800
Accounts Payable	1500
Accounts Payable	1400
To Cash A/c		2900
Salaries A/c	2800
To Cash A/c		2800
Fuel A/c	350
To Cash A/c		350
Drawings A/c	3000
To Cash A/c		3000
Purchases A/c	7500		01-04-19
To Nasr Co A/c		7500
Nasr Co A/c	7500		06-04-19
To Cash A/c		7125
To Cash Discount A/c		375
Purchases A/c	11900		15-07-19
To El-Noor Co A/c		11900
Sami Co A/c	36000		01-08-19
To Sales A/c		36000
El-Noor Co A/c	11900		15-08-19
To Cash A/c		11900
Cash A/c	36000		05-11-19
To Sami Co A/c		36000
Cash A/c	2800		01-10-19
To Sales A/c		2800
Total	154550	154550
Statement of Stock at Cost (FIFO)	Units	Rate	Amount (USD)
Opening Balance	300	10	3000
Purchases:	300		3000
01-04-19	500	15	7500
15-07-19	700	17	11900
	1200		19400
Sales:
01-08-19	300	10	3000
	500	15	7500
	400	17	6800
	1200
01-10-19	100	17	1700
	1300		19000
Closing Balance (at Cost Price)	200	17	3400

In the Books of ABC Hardware Stores
(b) Trial Balance for the year ended 31.12.2019
Particulars	Opening Balance	Debit (Amount in USD)	Credit (Amount in USD)	Closing Balance
Cash A/c	5000	58800	33875	29925	BS
Stock (200 units @ 17/-)	3000	19400	19000	3400	BS
Capital A/c	-8000	0	20000	-28000	BS
Drawings A/c	0	3000	0	3000	BS
Truck A/c	0	8000	0	8000	BS
Accounts Payable	0	2900	6100	-3200	BS
Office Maintenance A/c	0	2100	0	2100	P & L
Insurance A/c	0	1800	0	1800	P & L
Salaries A/c	0	2800	0	2800	P & L
Fuel A/c	0	350	0	350	P & L
Purchases A/c	0	19400	0	19400	P & L
Sales A/c	0	0	38800	-38800	P & L
Cash Discount A/c	0	0	375	-375	P & L
TOTAL	0	118550	118150	400

In the Books of ABC Hardware Stores
© Profit & Loss Account for the year ended 31.12.2019
Particulars	Debit (Amount in USD)	Particulars	Credit (Amount in USD)
Opening Stock	3000	Sales	38800
Purchases	19400	Closing Stock	3400
Gross Profit c/f	19800
	42200		42200
Office Maintenance A/c	2100	Gross Profit b/f	19800
Insurance A/c	1800	Cash Discount	375
Salaries A/c	2800
Fuel A/c	350
Net Profit	13125
	20175		20175

In the Books of ABC Hardware Stores
(d) Balance Sheet as on 31.12.2019
Particulars	Liabilities (USD)	Particulars	Assets (USD)
Capital:			Fixed Assets:
Opening Balance	8000		Truck	8000
(+) Addition	20000
(+) Net Profit	13125		Current Assets:
(-) Drawings	-3000	38125	Cash A/c	29925
			Closing Stock	3400
Accounts Payable		3200
TOTAL		41325		41325

The following transactions require adjustments in the trial balance. Prepare the adjusted trial balance.

1. Depreciation on equipment for the year was $500.
2. Half of the insurance is relevant to next year.
3. An inventory count shows $600 of cleaning supplies on hand on December 31.
4. Accrued but unpaid employee salaries were $1,000.
5. ABC Co. rents out a property for $ 100 per month. $ 1500 was received in the year ended December 31, 2019
6. ABC has a bank deposit in which it receives an interest income of $ 100 per month. At year-end, it is found that ABC received $ 600 in total.

instructions

1. Prepare an adjusted trial balance on December 31.
2. Prepare the income statement and owner’s equity statement for 2019 and a classified balance sheet at December 31, 2019.

Answer rating: 100% (QA)

Books of ABC Hardware Stores General Journal Particulars Dr Cr 20000 Cash ... View the full answer