Paul Richard has a business named Splash-wear which sells various leather jackets to the market.
During the month of February, the following transactions were occurred:
Feb 1: The owner has brought additional $1,00,000 cash and $25,000 of goods in the business.
Feb 3: Purchased jackets on account from a supplier of $70,000 of which $35,000 paid in check.
Feb 6: Sold clothes of $75,000 in which 70% has been received in cash and for the rest 3/10 net 30 discount term has been imposed.
Feb 9: Paid insurance premium for $12,000 in cash which covers 1 year insurance policy.
Feb 13: Purchased staplers, scissors, shopping bags, punching machine and envelops for $ 5,500 on account.
Feb 17: One of the customers have paid $1,500 as pre-order charge for a classy leather jacket which is not available in the store right now.
Feb 21: Made full payment to the supplier (Feb 2) of $35,000, less 4% discount.
Feb 23: Utilities bill of $700 has been paid from the bank.
Feb 26: Payment has been received from the accounts receivable (related to Feb 6).
Feb 28: One of the previous payment from an account receivable is being uncollectible of $2,000.

Required:

a) Present the journal entries for the above transactions.

b) Post the journal entries to the ledger.

c) Present a trial balance from the ledger accounts.

Answer rating: 100% (QA)

1 cash ac 100000 goods ac 25000 to owners capital account 125000 2 purchase ac 105000 to sellers ... View the full answer