The following summarised transactions, for the financial year ending June 30 2023, relate to the business...

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The following summarised transactions, for the financial year ending June 30 2023, relate to the business of Emma Clarke, a sole trader, who sells men's and women's clothing. Emma uses a perpetual inventory system in the business. 1. Purchased clothing with a list price of $330 000 on credit. As this was a bulk purchase the supplier gave a trade discount of 15% off the list price. Emma paid cash of $4 400 for transportation inwards costs. 2. Made cash sales of $220 000 and credit sales of $143 000. Cost of goods sold was $137 000. 3. Some of the clothing purchased during the year was damaged upon delivery. The clothing was returned to the supplier who agreed to cancel $3 300 of the original purchase. 4. Paid $44 000 for selling and administrative expenses. 5. Paid cash totalling $270 000 to suppliers having received discounts totalling $11 000 for prompt payments. 6. Unhappy credit customers returned clothing with a selling price of $3 300 and these were returned to stock. The cost of goods returned was $1 500. 7. Received cash totalling $110 000 from trade debtors having given discounts of $5 500 for prompt payments. 8. After trading finished on 30 June 2023, a stocktake showed that the cost of unsold clothing on hand was $165 000. The opening balance of the Inventory Account on 1 July 2022 was $55 000DR. Required: Part A: Prepare general journal entries to record transactions one to seven. You are not required to complete narrations or posting references. (10 marks) The following summarised transactions, for the financial year ending June 30 2023, relate to the business of Emma Clarke, a sole trader, who sells men's and women's clothing. Emma uses a perpetual inventory system in the business. 1. Purchased clothing with a list price of $330 000 on credit. As this was a bulk purchase the supplier gave a trade discount of 15% off the list price. Emma paid cash of $4 400 for transportation inwards costs. 2. Made cash sales of $220 000 and credit sales of $143 000. Cost of goods sold was $137 000. 3. Some of the clothing purchased during the year was damaged upon delivery. The clothing was returned to the supplier who agreed to cancel $3 300 of the original purchase. 4. Paid $44 000 for selling and administrative expenses. 5. Paid cash totalling $270 000 to suppliers having received discounts totalling $11 000 for prompt payments. 6. Unhappy credit customers returned clothing with a selling price of $3 300 and these were returned to stock. The cost of goods returned was $1 500. 7. Received cash totalling $110 000 from trade debtors having given discounts of $5 500 for prompt payments. 8. After trading finished on 30 June 2023, a stocktake showed that the cost of unsold clothing on hand was $165 000. The opening balance of the Inventory Account on 1 July 2022 was $55 000DR. Required: Part A: Prepare general journal entries to record transactions one to seven. You are not required to complete narrations or posting references. (10 marks)

Answer rating: 100% (QA)

1 Purchase of clothing Inventory Account cost 286 500 330 000 x 085 Account... View the full answer