Since you required almost all of the income you earned by working odd jobs throughout the summer

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Question:

Since you required almost all of the income you earned by working odd jobs throughout the summer to pay your tuition, on September 1, you invested $2,000 and your parents invested $1,000 into ORDI return for $3,000 of common shares.

 On September 2, ORDI received a $7,000 small business loan from the bank. Interest only payments are required on the last day of every month at a rate of 3% per year with the $7,000 borrowed repayable on August 31, 2022.

 On September 4, ORDI took delivery of and paid for a refrigerator to store groceries at a cost of $3,450.

 On September 5, you visited Costco where you purchased and paid $1,200 for an Acer Aspire laptop.

 Also on September 5, you purchased Sage 50 Pro Accounting 2020, the accounting software package you selected for ORDI, for $350 from Best Buy’s website (www.bestbuy.ca).

 On September 8, ORDI purchased groceries, toilet paper and beer at a cost of $5,100. Payment is due to the supplier on September 22. On the advice of your BUS 285 instructor, you plan to account for these essentials in the Purchases account rather than the Inventory account.

 Also on September 8, you paid $100 cash to your brother in return for allowing you to use his truck to transport the essentials purchased to your home since the supplier was not able to deliver them until September 30.  Although you did not intended for ORDI to offer its service until September 16, you received several requests for essentials from students via Facebook Messenger so you agreed to offer a parking lot pickup on September 13. The students were required to pay for orders totaling $4,500 through ORDI’s website.

 On September 15, you paid $2,550 towards the essentials purchased on September 8.

Instructions

1. You have decided to journalize the transactions described above (in good form). You remember your instructor telling you that requires that you date the journal entries and include a brief explanation for each transaction. For any transactions that did not affect the accounting equation and should not be journalized, you plan to make a note that no journal entry is required as a reminder to yourself.

2. After journalizing the transactions for September 1 to 15, you have decided to post the transactions to T accounts.

3. Even though a trial balance would normally be prepared only at month end, you cannot wait to practice your new accounting skills. Therefore, you have decided to prepare an unadjusted trial balance (in good form) as at September 15.