Y6

6.5 Note, this question should not be attempted until cash discounts and trade discounts been covered (see Chapters 13 and 14). On 1 October 20X9, the owner of the USS Enterprise, Mr Kirk, decided that he will boldly go keep his records on a double entry system. His assets and liabilities at that date were: Fixtures and equipment 20,000 Stock including weapons 15,000 Balance at Universe Bank 17,500 Cash 375 Creditors - Spock 3,175 Scott 200 - Mccoy 500 Kirk's transactions during October were as follows: Sold faculty phasers, original cost $500, to Klingon Corp, for cash f5,000 Bought Photon Torpedoes (weapons), on credit from Central Council $2,500 Sold Stocks to Aardvarks, original cost $250, on credit, E1,500 Bought Cloaking Device (Fixture and Fittings) from Klingon Corp $3,500 Paid the balance owed to Spock at 1 October less a 5% cash discount 6 Paid Central Council full amount due by cheque Received full amount due from Aardvarks by cheque Part 1 @ Introduction to double entry bookkeeping 8 Paid Klingon Corp by cheque after deducting 20% trade discount 9 Paid, by bankers order, f10,000 for repairs to Enterprise following disagreement over amount owing to Klingon Corp and faculty phasers. Required: Open Enterprise's ledger accounts at 1 October, recordsall transactions for the month, balance the ledger accounts, and prepare a trial balance as at 31 October