Introductory Accounting - Observation Exercise - Chapter 1
Question 1
Record the following transactions in the ledger of Edinburgh Calculators, and prepare a Trial Balance as at 31st May 2017.
| 2017 |
|
| 1st May |
Edinburgh commenced business by contributing the following assets and liabilities:
Cash at bank $40,000, Stock $70,000, Fixtures & Fittings $40,000
Buildings $500,000, Mortgage on buildings $300,000
|
| 2nd May |
Purchased stock on credit $4 400 from The Calculator Factory
Paid power and light, $410 cash
|
| 3rd May |
Cash purchases $870
Purchased new fixtures and fittings for $25,000, paying a cash deposit of $5,000 and the balance to be paid to Fitting Fixtures Ltd. in 60 days
|
| 4th May |
Returned stock to The Calculator Factory $300 |
| 7th May |
Settled account with Calculator Factory less 10% discount
Cash Sales $3,200
|
| 9th May |
Paid advertising, $11700 cash |
| 11th May |
Cash Sales $3,000 |
| 15th May |
Credit sales to P. Hudson $1,200 |
| 17th May |
P. Hudson returned faulty goods valued at $200 |
| 19th May |
Paid Wages $2,600 Cash Sales $1,550 |
| 23rd May |
Paid Fitting Fixtures Ltd. $5,000 off the amount owing Cash Sales $860
Credit purchases from Numbered Buttons Ltd $2,760
|
| 25th May |
Purchased additional buildings for $300,000 The terms were a cash deposit of $30,000, and a new loan from POQ Loans for $270,000. Cash purchases $360. |
| 29th May |
Paid wages $2,600 P. Hudson settled their account, less 10% discount |
| 31st May |
Stanley (the owner) withdrew stock valued at $650 for personal use Paid insurance, $660 cash |