Answer to Question #306718 in Accounting for Linh

Question

You have the following information for MrVuong’s store for fiscal year 20X0:

January:

1^stInvest 15.000 in cash to open up the store, also sign a 3-months rental contract for the store (@500 per month and pay full in advance)

      3^rd Purchase goods at cost of 3.000 by cash

      5^th Purchase vending machine at cost of 5.000 on credit(Depreciation is estimated @$50 per month)

      6^th Sell goods @3.500 and receive cash (the mount of good originally costs 2.500)

      11^th Pay for the vending machine by cash (@5.000)

      17^th Invest more 5.000 in cash to the business

      20^th Deposit 8.000 cash to open-up a bank account

      26^thPurchase goods at cost of 10.000 on credit

      31^stSell goods (which originally cost 7.000) @9.000 on credit 

 

Requirement:

1.     Record the transactions in January and prepare Trial Balance for the month

Answer 1

1.Debit goods Credit  settlements with founders - 15000

Debit settlements with suppliers Credit cash desk - 1500

3.Debit goods Credit cash desk - 3000

5.Debit equipment Credit calculation for loans - 5000

6.Debit settlements with buyers Credit sales - 3500

Debit cash desk Credit settlements with buyers - 3500

11.Debit settlements with suppliers Credit cash desk - 5000

17.Debit goods Credit settlements with founders - 5000

20.Debit deposit account Credit cash desk - 8000

26.Debit goods Credit calculation for loans - 9000

28.Debit settlements with buyers Credit sales - 9000

Debit cash desk Credit settlements with buyers - 9000