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Trout Swimming School uses a sales journal, purchases journal, cash receipts journal, cash payments journal and...

Trout Swimming School uses a sales journal, purchases journal, cash receipts journal, cash payments journal and a general journal. The business also maintains subsidiary ledgers for accounts receivable and accounts payable, in addition to the related control accounts (ignore GST). The relevant account balances as of December 31, 2019 were as follows.

Account No.

Account Title

Account balance

Debit

Credit

100

Cash at Bank

$54,000

120

Accounts Receivable

66,000

140

Inventory

95,000

200

Equipment

1,250,000

300

Accounts Payable

$55,000

330

Bank Loan

600,000

400

S. Salmon, Capital

810,000

500

Sales

-

510

Sales Returns and Allowances

-

520

Discount Received

-

600

Purchases

-

610

Discount Allowed

-

$1,465,000

$1,465,000

The accounts receivable and accounts payable subsidiary ledger balances were as follows.

.

Accounts Receivable

Accounts Payable

M. Falzon

$13,200

Nelligan Ltd

$11,000

S. H. Guan

8,800

Pellham & Co

11,000

R. Jamal

22,000

Yap United Ltd

33,000

  1. Khalil

16,500

K. Mezzini

5,500

66,000

$55,000

The following transactions occurred during the first quarter of 2020.

Jan 3

S. H. Guan took advantage of the 2% sales and paid off her account

11

Sold a $10,000 item to K. Mezzine on account, invoice no. 401

15

Purchased $30,000 of inventory from Pellharm & Co on credit. Terms 2/10, n/30

18

Received $6,000 from M. Falzon on his account. No discount was allowed.

20

Paid $11,000 to Pellham & Co on its previous account balance. No discount was taken.

25

Paid $30,000 owing to Pellham & Co, taking advantage of the 2% discount.

Feb 10

A cash sale of $20,000 was made to a new customer, E. Tsiros

14

R. Jamal paid $11,000 on his account, outside the discount period

23

Sold a $5,000 item to K. Mezzini on account, invoice no. 402

28

Paid $22,00 on the Yap United Ltd account. No discount was received.

Mar 4

Purchased $40,000 in inventory from Nelligan Ltd on credit. Terms n/30.

16

Sold a $500 item to A. Khalil on account, invoice 403

22

Paid $22,000 on the Nelligan Ltd account

27

A $500 sales allowance was given to A. Khalil, due to a defective product.

Required

  1. Enter the first quarter’s transactions in the appropriate journals. Refer to the provided Chart of Accounts for the appropriate account names.
  2. Prepare a trial balance as at March 31, 2020.

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