Question

The following information relates to Shelby Simms business for the month of June, 2020:

Jun. 1 Ms. Simms books showed the following balances brought forward from May 31^st, 2020; Loan (Due 2024) $2,500,000; Cash $1,500,000; Inventory $350,000; Bank $900,000;
Land and building $2,000,000; Motor vehicle $950,000

Jun. 2 Paid rent for June by cheque $120,000.

Jun. 3 Purchased of office furniture by cheque $150,000.

Jun. 3 Bought goods by cheque $175,000.

Jun. 4 Sold goods for cash $800,000.

Jun. 5 Sold goods on credit to Kemp $100,000.

Jun. 5 Sold goods on credit to Jane $25,000.

Jun. 6 Kemp settled his account with cash receiving a 5% cash discount.

Jun. 6 Jane returned $10,000 worth of goods

Jun. 7 Bought goods on credit from Masters $250,000.

Jun. 10 Bought stationery for cash $35,000.

Jun. 11 Paid wages by cash $95,000.

Jun. 13 Returned goods to Masters $50,000.

Jun. 15 Bought goods on credit from Generals $166,000.

Jun. 16 Sold goods for cash $100,000

Jun. 18 Lodged cash of $60,000 to the business bank account.

Jun. 20 Paid Masters by cheque in full settlement of the balance outstanding

             having received a discount of $3,000.

Jun. 23 Purchased equipment by cheque $170,000.

Jun. 25 Paid staff salaries by cheque $40,000

Jun. 26 Commission Received $90,000 by cheque.

Jun. 27 Purchased goods on credit from Sills for $85,000.

Jun. 30 Proprietor withdrew Cash of $20,000 for personal use.

REQUIRED:

1.      Journalize the transactions for the month.                                                                                                      

2.      Post the above transactions in the relevant ledgers                                

3.      Extract a trial balance as at June 30 2020.                                                

Answer 1