Jessie Samuels, a sole trader, owns a retail shop in Brownie Town that sells a designer...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jessie Samuels, a sole trader, owns a retail shop in Brownie Town that sells a designer shoe items. She named it "Jess Come Buy". The following information relates to the transactions of Jess Come Buy" for the first month of operation May 2021. May 1 started business with, cash, $50,000, motor vehicle $120,000 and building, $250,000 May 2 received a long term loan from the First Union Bank, $260,000 by cheque May 3 paid for store furniture by cheque $50,000. May 3 bought merchandise for resale by cheque S130,000. May 4 sold merchandise to Dillard's Department Store, for cash S110,000. May 5 sold merchandise on credit to New York & Co $105,000 and Nordstrom $95,000. May 6 rented Tory Burch a booth for the month of May to display their new summer arrivals, $15,000. The contract states that they will pay this amount by cash on June 5, 2021. May 7 bought merchandise on credit from Jimmy Choo $80,000. May 8 sold merchandise on credit to Neiman Marcus $65,000. May 10 bought fancy stationery with the entity's logo for cash $21,000. May 11 Being a new kid on the block, aggressive marketing and advertising was needed. Jess hired Willz Marketing Associates to advertise the business is various magazines. She paid them $60,000 cash. May 13 returned merchandise to Jimmy Choo for $6,000 receiving a credit note for these goods. May 14 purchased a Display Cabinet, (place in fumiture account) on credit from Courts Ltd for $150,000. May 15 bought merchandise on credit from Manolo Blahnik $35,200. May 16 sold merchandise receiving a cheque for $135,000 May 17 New York & Co settled their account with cash receiving a 5% discount. May 18 lodged cash of $45,000 to the business bank account. May 19 merchandise valued at $5,500, sold on credit to Nordstrom on May 5, was returned a credit note was given to Nordstrom May 20 paid Jimmy Choo $65,000 in full settlement of the balance outstanding by cheque. The outstanding amount after payment was received as a discount. (Tip: rough check the balance re the debits and credit for Jimmy) May 22 paid electricity by cheque $60,000, water rates by cash, $25,000 and security fees of $25,000 by cheque May 25 paid staff salaries by cheque $85,000. May 28 Jessica, took some merchandise, a pair of crystal studded sandals to wear to her husband's birthday party S15,000 May 30 received commission by cheque for selling a Limited-Edition Jimmy Choo, patent leather pumps of $20,000 REQUIRED: a) Journalize the transactions for the month. (Narrations are not necessary) b) Post the above transactions in the General ledger. c) Extract a trial balance as May 31, 2021. d) Journalize the following adjusting entries using the following information: > The total monthly water rate is $30,000. > One employee's salary was overpaid by $4,500. Investigations proved that a miscalculation occurred and the employee was indeed over paid for the month. > The insurance for the shop was due and payable by May 1". The annual premium is $48,000 and the expense is incurred monthly. This was not previously included in the transactions listed > It was found that of Neiman Marcus balance, $4,000 must be written off as bad debts. > Three thousand dollars (S3,000) of the Commission received was for the month of June 2021 > For the first month of operation, depreciation annually is calculated at: o Building – 9% Straight Line o Motor Vehicle - 15% Straight Line o Furmiture – 12% Straight line e) Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. (Please refer to notes re the journals) f) Prepare an adjusted trial balance with the inclusion of the above balances g) Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. For use in the financial statements, closing stock amounts to $25,000 at the end of the month. Jessie Samuels, a sole trader, owns a retail shop in Brownie Town that sells a designer shoe items. She named it "Jess Come Buy". The following information relates to the transactions of Jess Come Buy" for the first month of operation May 2021. May 1 started business with, cash, $50,000, motor vehicle $120,000 and building, $250,000 May 2 received a long term loan from the First Union Bank, $260,000 by cheque May 3 paid for store furniture by cheque $50,000. May 3 bought merchandise for resale by cheque S130,000. May 4 sold merchandise to Dillard's Department Store, for cash S110,000. May 5 sold merchandise on credit to New York & Co $105,000 and Nordstrom $95,000. May 6 rented Tory Burch a booth for the month of May to display their new summer arrivals, $15,000. The contract states that they will pay this amount by cash on June 5, 2021. May 7 bought merchandise on credit from Jimmy Choo $80,000. May 8 sold merchandise on credit to Neiman Marcus $65,000. May 10 bought fancy stationery with the entity's logo for cash $21,000. May 11 Being a new kid on the block, aggressive marketing and advertising was needed. Jess hired Willz Marketing Associates to advertise the business is various magazines. She paid them $60,000 cash. May 13 returned merchandise to Jimmy Choo for $6,000 receiving a credit note for these goods. May 14 purchased a Display Cabinet, (place in fumiture account) on credit from Courts Ltd for $150,000. May 15 bought merchandise on credit from Manolo Blahnik $35,200. May 16 sold merchandise receiving a cheque for $135,000 May 17 New York & Co settled their account with cash receiving a 5% discount. May 18 lodged cash of $45,000 to the business bank account. May 19 merchandise valued at $5,500, sold on credit to Nordstrom on May 5, was returned a credit note was given to Nordstrom May 20 paid Jimmy Choo $65,000 in full settlement of the balance outstanding by cheque. The outstanding amount after payment was received as a discount. (Tip: rough check the balance re the debits and credit for Jimmy) May 22 paid electricity by cheque $60,000, water rates by cash, $25,000 and security fees of $25,000 by cheque May 25 paid staff salaries by cheque $85,000. May 28 Jessica, took some merchandise, a pair of crystal studded sandals to wear to her husband's birthday party S15,000 May 30 received commission by cheque for selling a Limited-Edition Jimmy Choo, patent leather pumps of $20,000 REQUIRED: a) Journalize the transactions for the month. (Narrations are not necessary) b) Post the above transactions in the General ledger. c) Extract a trial balance as May 31, 2021. d) Journalize the following adjusting entries using the following information: > The total monthly water rate is $30,000. > One employee's salary was overpaid by $4,500. Investigations proved that a miscalculation occurred and the employee was indeed over paid for the month. > The insurance for the shop was due and payable by May 1". The annual premium is $48,000 and the expense is incurred monthly. This was not previously included in the transactions listed > It was found that of Neiman Marcus balance, $4,000 must be written off as bad debts. > Three thousand dollars (S3,000) of the Commission received was for the month of June 2021 > For the first month of operation, depreciation annually is calculated at: o Building – 9% Straight Line o Motor Vehicle - 15% Straight Line o Furmiture – 12% Straight line e) Post the above adjusting entries to their respective accounts in the general ledger creating additional accounts as the journals would dictate. (Please refer to notes re the journals) f) Prepare an adjusted trial balance with the inclusion of the above balances g) Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. For use in the financial statements, closing stock amounts to $25,000 at the end of the month.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries Date Account Title and Explaination Post Debit Credit Ref Cash Motor Vehicle Buildi... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The following information relates to the Jimmy Johnson Company. Instructions Use the dollar-value LIFO method to compute the ending inventory for Johnson Company for 2010through Date December 31,...
-
The following information relates to the Plus Factors Group plc for the years to 30 September 20X8 and 20X9: Ordinary dividends were declared as follows: Interim 1.12 pence per share (20X8, l.67p)...
-
The following information relates to the manufacturing operations of Fargo Development Co. during the month of July. The company uses job order costing. a. Purchases of direct materials during the...
-
Certain companies regard the management of cultural diversity as a way of developing new competencies that give them certain advantages. They are, for example, able to recruit and hold on to good...
-
During 2014, Saskatchewan Enterprises Ltd., a private entity, incurred $4.7 million in costs to develop a new software product called Dover. Of this amount, $1.8 million was spent before establishing...
-
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. This predetermined rate was based on 8,000 estimated direct labor-hours and $171,200 of estimated total...
-
The fastest baseball pitchers can throw the \(0.145-\mathrm{kg}\) ball at speeds of about \(45 \mathrm{~m} / \mathrm{s}\). Ignoring air resistance, what height must the ball be dropped from to hit...
-
(Stock-Based Compensation) Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future...
-
calculate both intrinsic value and time value for the options that you have picked. ANZ GROUP HOLDINGS LIMITED ANZ LAST PRICE / TODAY'S CHANGE $25.280+$0.350 (1.403 %) Industry Group: Banks VOLUME...
-
Hauck Financial Services has a number of passive, buy-and-hold clients. For these clients, Hauck offers an investment account whereby clients agree to put their money into a portfolio of mutual funds...
-
An adult 68.0 kg cheetah can accelerate from rest to 20.1 m/s (45.0 mph ) in 2.00 s You may want to review (Page). For related problem-solving tips and strategies, you may want to view a Video Tutor...
-
The interest rate paid by the European Central Bank (ECB) on excess reserves declined below zero in 2014 (and remained there as of 2019). What was the rationale behind this move to a negative deposit...
-
Read the following quotation from Stephen Denning: These days, command-and-control approaches are unlikely to generate positive responses in employees, let alone the marketplace. The era when top...
-
Suppose that a central bank that is operating on the downward-sloping portion of the reserve demand curve decides to purchase $1,000 worth of foreign exchange reserves and then sterilize this foreign...
-
There are a number of examples of exchange rate systems. a. The Bretton Woods system, set up after World War II, pegged exchange rates to the U.S. dollar. It collapsed in 1971 after U.S. inflation...
-
If velocity were constant at 1.5 while M2 rose from $11 trillion to $12 trillion in a single year, what would happen to nominal GDP? If real GDP rose 2.09 percent, what would be the level of...
-
To add two fixed point numbers Group of answer choices The same adder circuit that adds two integer numbers can be used. We need an adder circuit fixed to wall. None Impossible to add two fixed point...
-
A liquid flows upward through a valve situated in a vertical pipe. Calculate the differential pressure (kPa) between points A and B. The mean velocity of the flow is 4.1 m/s. The specific gravity of...
-
The financial statements for the business of Jets Ski Equipment are shown below. Additional information 1. All purchases and sales of inventories are on credit. 2. On 1 July 2019, J. Waters injected...
-
Some of the most recent financial statements for Hyland Pty Ltd are shown below. Additional information 1. All purchases and sales of inventories are on credit. 2. On 1 July 2020, the shareholders...
-
The statement of cash flows for Cash4Cars Ltd follows. Ignore GST. Required (a) Explain the information that would be presented in Note 29 of Cash4Cars Ltds financial statements. (b) Explain the...
Study smarter with the SolutionInn App