On the 1th January 2022, the Company Metal Trade Ltd has been founded. Here below are the transactions as recorded

1th Jan The investors pay 1 000 000 dollars up as capital to Metal Trade

2nd Jan Metal Trade purchases 100 tons of aluminum for 200 000 dollars. Payment is deferred

3rd Jan Metal Trade received an order for 40 tons of aluminum from a client

4th Metal Trade received a payment of 70 000 dollars as an advance payment of 60% of the 40 tons . The remaining part of the order will be paid at delivery

5th Metal Trade agrees to hire 10 workers starting from the 10th of Jan, pay day on the 22nd for 2000 dollars per month each

7th Jan Metal Trade pays cash 100 000 dollars for supplies of aluminum

9th Jan Metal Trade pays an advance of 30 000 dollars for the whole year of supply of electricity

12th Jan Metal Trade pays 50% of its debt to the seller of aluminum

15th Jan Metal Trade delivers the 40 tons to its client and receives the payment of the outstanding debt

18th Jan Metal Trade invests 150 000 dollars in new machinery

22th Jan Metal Trade pays its workers

25th Jan A client orders 20 tons of aluminum and pays cash 2500 per ton

28th Jan Metal Trade pays 50 000 dollars of taxes

9th Feb please understand by yourself what happens on this day

INSTRUCTIONS:

Please prepare the journal, ledger, trial balance and rudimentary balance sheet for Metal Trade

Answer rating: 100% (QA)

Journal Entries Date GL Name Debit Credit 1st Jan Bank Ac Dr 1000000 To Share Capital 1000000 Being ... View the full answer