Make the bookkeeping of the following enterprise, prepare the end of period statements.
a. Journalize and post to the ledger the transactions of “Puppies and Toys Corp.” during December 2017.
b. Make the closing record of the V.A.T. accounts, for the cost flow assumption the method to present the highest profit in the statements and for the depreciation record straight-line method will be used.
c. Prepare the Income Statement and the Balance Sheet for the end of December 2017.
 

Carrie Wilson and four of her friends decided to create a new business called “Puppies and Toys Corp.”, to import and sell the Fuzzy Puppy toys for children. During December of 2017, they have realized the following transactions: (V.A.T. 18%, inventory evaluation method will be chosen to increase the profit in the balance sheet in perpetual way and straight-line method for the depreciation)

Dec. 1 They have undertaken to deposit $30,000 each in cash and Carrie is to transfer some office furniture with a value of $12,000 (Estimated useful life 5 years) and computer equipment worth $7,000 (Estimated useful life 5 years). The same day they have deposited only $20,000 each in cash and the assets that Carrie had promised.
Dec. 2 Carrie Wilson as the manager of the business opened a bank account in the name of the business and deposited $60,000, received a chequebook.
Dec. 3 Rented a shop in a mall for $3,000 monthly rent, paid 6 months rent by a daily cheque.
Dec. 6 Purchased 3,000 pcs. of puppy toys for $10 each, paid the bill from the bank account, accepted the bill for assembling of the toys for $1.80 per piece and the bill for the carriage freight $0,20 per piece. Received the toys in the inventories.
Dec. 9 Bought a new van for $15,000 to distribute the toys paid $2,700 in cash and signed 30 equally amounted notes monthly payable for the balance. (Estimated useful life 5 years)
Dec. 10 Billed and delivered 2,400 pieces of toys for $26 each, received $13,632 in cash and 48 monthly notes for $1,000 each.
Dec. 14 Received $20,000 cash prepayment for a sales agreement signed with Pocahontas Toys Co.
Dec. 18 Purchased from another importer 12,000 pieces of toys $14 each, issued a matured cheque.
Dec. 19 An ad (advertisement) to appear in the next month’s bulletin is $700 and paid in cash.
Dec. 23 Billed and delivered 10,200 pieces of toys to different clients, average price is $29, received $49,044 cash and 30 equal monthly notes for the balance.
Dec. 26 Billed and delivered to Pocahontas Toys Co. 500 pieces of toys for $24 each.
Dec. 30 Paid the note given for the van.
Dec. 31 Accrued the wages of the salesmen $3,200 to be paid on the 5th of the following month.

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a Journalize and post to the ledger the transactions of Puppies and Toys Corp during December 2017 Dec 1 Cash 100000 Office furniture 12000 Computer e... View the full answer