Assignment
QUESTION 1: General Journal, General Ledger, Trial Balance
Paul is the sole proprietor of Auldana Custom Concrete Foundations (ACCF), a specialist construction company. The following is a list of transactions that took place during the month of May 2016.
May 1 The business purchased additional equipment costing $22,400 by increasing the loan with the bank.
May 5 The construction of a housefoundation was completed and the client was invoiced. The client paid $8,500 in cash and agreed to pay the remaining $33,500 over the following ten months.
May 10 Paul withdrew $1,200 cash for personal use.
May 15 An Advertising Bill for $1,680 was paid for in cash.
May 17 Paul hurt his wrist at work and visited his local Doctor. The consultation cost $65, which he paid for using his own credit card.
May 23 The business paid $750 off the loan owed for the purchase of equipment on May 1.
May 29 The business received $3,350 from the debtor relating to the transaction on May 5.
REQUIRED:
a. Prepare the General Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry.
b. Post thejournals from (a) above to the General Ledgers provided, ensuring a balance for each ledger is included.
c. Complete the attached Adjusted Trial Balance provided for the account balances calculated in the General Ledger from (b) above.
a. Prepare theGeneral Journal entries where required to record each transaction. Include a narration (explanation) for each journal entry.
b. Post the journals from (a) above to the General Ledger provided. All ledgers below must be footed.
Cash at Bank
May 1 Balance 5817
Accounts Receivable
May 1 Balance 16896
Equipment
May 1 Balance 46800
Drawings - ACCF
May 1 Balance 28 080
Loan
May 1 Balance 98 625
Sales
May 1 Balance 664800
Advertising Expense
May 1 Balance 26910
c. Complete the attached Adjusted Trial Balance provided. Please total both the debit and credit column on completion.
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ACCF
ADJUSTED TRIAL BALANCE
AS AT 31 MAY 2016
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Debit ($)
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Credit ($)
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Cash at Bank
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Accounts Receivable
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Inventory
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140400
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Prepaid Insurance
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4914
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Office Supplies on hand
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3276
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Furniture & Fittings
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21 030
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Accumulated Depreciation - Furniture &Fittings
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11 934
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Equipment
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Accumulated Depreciation - Equipment
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18720
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Accounts Payable
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27 027
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Loan Payable
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Paul's ACCF - Capital
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54 972
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Paul's ACCF - Drawings
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Sales Revenue
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Sales Returns and Allowances
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9924
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Cost of Sales
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412308
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Discount received
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12957
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Freight inwards
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9360
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Sales Salary Expense
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68328
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Delivery Expense
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18252
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Advertising Expense
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Rent Expense
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28 548
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Office Salaries Expense
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33750
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Electricity Expense
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7 656
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Discount Allowed
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6786
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Totals
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Attachment:- Assignment.rar