The following transactions took place during the month of June 2021 in the books of Ms. Ruth Charles Wholesale.

Jun 1

Ms. Ruth Charles started her wholesale business with $23,000 cash.

Jun 2

She purchased some equipment costing $16,000 paying a deposit of $6,000 and signing a Note Payable for the remainder.

Jun 4

Bought inventory costing $4,000 on credit.

Jun 6

Received a 10% loan from the Credit Union of $11,000 to purchase a Motor Vehicle.

Jun 7

Sold inventory for $5,400 cash.

Jun 8

Sold inventory on credit for $8,000.

   Jun10

Purchased inventory costing $5,000 paying cash to acquire.

Jun 12

Paid Rent for warehouse space $1,000.

Jun 14

Paid Salaries & Wages of $6,000.

Jun 16

Ruth withdrew $3,000 from the bank for her own use.

Jun 18

Paid $1,000 to the Note Payable.

Jun 19

Paid $500 in Interest Expense.

Jun 21

Inventory was returned to Accounts Payable costing $200.

Jun 23

Receive part payment from Accounts Receivables of $3,000.

 Jun 25

Paid Accounts Payable $1,000.

Jun 26

Purchased inventory for $2,700 cash.

Jun 28

Cash Sale of inventory $4,300.

Jun 30

Customers returned wrongly ordered inventory costing $100.

Required:

a)    Journalize the above transactions

b)   Post the journal entries into the respective ledgers (T-Accounts)

c)    Draft up an unadjusted Trial Balance for Ruth Charles Wholesale.

Answer rating: 100% (QA)

a Journal entries Jun 1 Cash 23000 Capital 23000 To record owners investment Jun 2 Equipment 16000 Accounts Payable 10000 Notes Payable 6000 To record purchase of equipment with a deposit and a note p... View the full answer