Question

Assume that you have recently been given the firm, A. Sedeno, as a gift from 1^st January, 2020.

You are required to create a new retail merchandise company.

Use the information below to assist you in preparing a proper financial accounting report after the first month of operations.

1. Open all accounts in the appropriate Ledgers.

2. Balance all accounts and extract a Trial Balance.

R. Sedeno had the following assets and liabilities on 31^st December, 2019.

Items                                                  $                      Items                          $

Cash                                                    100                 Bank                            2,180

Stock                                                  5,900                Petty Cash                120

Furniture and Fittings                      6,800              Equipment                 3,200

Motor Vehicle                                    17,500             Premises                   40,000

Debtors:                                                                     Creditors:

            L. Robertson                          1,900                          T. Hosein        250

            H. Henry                                 520                             N. Akua           1,200

Transactions during the month of January 2020 were as follows:

1          Paid N. Akua’s account less 5% discount by cheque.

2          Bought $20 stamps and $40 in stationery from cash.

3          Withdrew $200 cash from bank for office use.

6          Cash sales $1,660 of which $1,600 was banked.

8          Paid wages $800 and advertising expense $300 by cheque.

14        Robertson paid his account in cash less 3% discount.

            He bought a further $400 worth of goods on credit.

16        Received a month’s rent for a sub-let office $1,500 by cheque.

18        Cash purchase of $1,800.

20        Sedeno drew a $1,250 cheque for private use and made a down-payment of $1,000 to Ocean View Resort for a family vacation in August.

22        Bought a computer $5,000 on credit from T. Hosein.

23        Bought $860 worth of goods from T. Hosein on credit.

            Paid for cleaning supplies $36 in cash.

24        Cash sales $960. Bought stationary $24 in cash.

25        Bought a computer desk $3,000 on credit from T. Hosein.

26        Paid wages $1,200 by cheque. Returned $160 of goods bought from T. Hosein on 23^rd January. Paid Hosein’s account at the beginning of the month in cash.

28        Sold good to H. Henry invoiced at $600 less 10% trade discount.

            Purchase goods $430 on credit from N. Akua.

30        Henry returned $40 of the goods bought the previous day and paid the balance in cash.

            Sedeno borrowed $2,000 from his sister C. Sedeno.

31        Petty Cashier is reimbursed.

            **********

Closing stock was counted and value at $4,800.

Answer 1

1. Opening of Appropriate Ledger

Cash Account
Particular	Dr.	Particular	Cr.
To Opening Balance	100	By Bank	1,600
To bank	200	By Stock (Purchase)	1,800
To Stock (Sales)	1,660	By Creditors (Hosein)	250
To Stock (Sales)	960	By Debtors (Henry)	500
To C. Sedeno	2,000
To Stock (Sales)	510	To Cloasing Balance	1,280
	5,430		5,430

Bank Account
Particular	Dr.	Particular	Cr.
To Opening Balance	2,180	By Creditors (N. Akua)	1,140
To Debtors (Robertson)	1,843	(1200x95%)
(1900x97%)		By Cash	200
To Rent Income	1,500	By Wages Expenses	800
		By Advertisement Exp	300
		By Drwaing	2,250
		(1250+1000)
		By Wages Expenses	1,200
To Bank Overdraft	367
	5,890		5,890

Stock Account
Particular	Dr.	Particular	Cr.
To Opening Balance	5,900	By Cash (Sales)	1,660
To Cash	1,800	By Debtors (Robertson)	400
To Creditos (T. Hosein)	860	By Cash (Sales)	960
To Creditos (N. Akua)	430	By Stock Return	160
To Stock Return	40	By Debtors (Henry)	540
		(600x90%)
		By Cash (BF)	510
		To Closing Balance	4,800
	9,030		9,030

Petty Cash
Particular	Dr.	Particular	Cr.
To Opening Balance	120	By Stamp Expenses	20
		By Stationary Expenses	40
		By Cleaning Staff Exp	36
		By Stationary Expenses	24
	120		120

Furniture and Fittings
Particular	Dr.	Particular	Cr.
To Opening Balance	6,800
		To Closing Balance	6,800
	6,800		6,800
Premises
Particular	Dr.	Particular	Cr.
To Opening Balance	40,000
		To Closing Balance	40,000
	40,000		40,000

Equipment
Particular	Dr.	Particular	Cr.
To Opening Balance	3,200
		To Closing Balance	3,200
	3,200		3,200
Computer Items
Particular	Dr.	Particular	Cr.
To Creditors (T. Hosien)	5,000
To Creditors (T. Hosien)	3,000
		To Closing Balance	8,000
	8,000		8,000

Motor Vehicle
Particular	Dr.	Particular	Cr.
To Opening Balance	17,500
		To Closing Balance	17,500
	17,500		17,500

Debtors Account
Particular	Dr.	Particular	Cr.
To Opening Balance		By Bank	1,843
L Robertson	1,900	By Discount To Debtor	57
H. Henry	520	By Stock return	40
To Stock (Sales)	400	By Cash	500
To Stock (Sales)	540
(600x90%)		By Closing Balance	920
	3,360		3,360

Loan From C. Sedeno
Particular	Dr.	Particular	Cr.
		By Cash	2,000
To Closing Balance	200

Creditors Account
Particular	Dr.	Particular	Cr.
To Bank	1,140	By Opening Balance
To Discount by Creditors	60	T. Hosein	250
To Stock Return	160	ekkarill92 Next > < Previous Related Solutions You have recently been employed by a consulting firm as a management accounting specialist. The firm... You have recently been employed by a consulting firm as a management accounting specialist. The firm specialises in the provision of information to companies that have discrete, short term problems. Your first assignment is to a company called Malvern who specialises in construction equipment and is having trouble identifying the reasons for volatility in the profitability of its main product: The Hammer. The managers of Malvern are aware that there are a number of factors which are potentially causing them... Q1.) You have recently been appointed as a researcher for a firm of share analysts. As... Q1.) You have recently been appointed as a researcher for a firm of share analysts. As one of your first roles you are required to prepare a report for your manager to outline common techniques used to manage or manipulate earnings. From your prior accounting knowledge you would have gained an understanding of techniques you can use to examine entity performance and profitability, including trend analysis. Document what strategies you might use as an analyst to detect earnings management using... Imagine you have recently been elected President of the United States (you are free to assume... Imagine you have recently been elected President of the United States (you are free to assume you are from any party and are free to pursue any policy you think is in the best interest of the country). Your security and military advisors are concerned about China’s growing wealth and military capability. You also have members of congress who want you to change policy towards China because American manufacturing jobs often leave the country and some move to China. Your... You recently returned from a trip to Berlin, Germany. You were there from April 1st to... You recently returned from a trip to Berlin, Germany. You were there from April 1st to April 4th for a conference on World Tolerance. Before you left Abu Dhabi, on March 30th at 3:30pm, you called your bank, ADCB, and informed the bank that you were traveling and to ensure your credit card would not be blocked in Germany. The bank thanked you for the call, said the card would not be blocked and wished you a pleasant trip. Story... You recently returned from a trip to Berlin, Germany. You were there from April 1st to... You recently returned from a trip to Berlin, Germany. You were there from April 1st to April 4th for a conference on World Tolerance. Before you left Abu Dhabi, on March 30th at 3:30pm, you called your bank, ADCB, and informed the bank that you were traveling and to ensure your credit card would not be blocked in Germany. The bank thanked you for the call, said the card would not be blocked and wished you a pleasant trip. Story... Assume that you have recently been hired as the special assistant to the chief executive officer... Assume that you have recently been hired as the special assistant to the chief executive officer (CEO) of your health care organization, Thunder Hospital. Your duty is to head up the new quality improvement department. Over the last year, the hospital has experienced substantial growth but is also facing a number of patient safety concerns, including a steady increase in medical errors and a 25% rise in hospital-acquired infections. Based upon what you have learned in this course, prepare a... You have recently been hired by a new Japanese accounting firm, headquarter in Tokyo, as the... You have recently been hired by a new Japanese accounting firm, headquarter in Tokyo, as the director of Information Systems and Telecommunications. Your assignment is to assist security posture of the firm and develop a security structure for this new company. Write your recommendations and reasons to the firm’s CEO. The firm has 600 employees in Tokyo, 50 in Houston, and is planning to open two branch offices in India and California. Ten accountants will be hired at each site.... You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested... You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested in investing in a new factory. However, the CEO is unsure of where they should invest. The CEO would like to either invest in a developed or a developing country and your input is valuable to his decision. Your focus will be on providing specific information on both a developed and developing country, providing that both countries have data for the last 20 years.... You have recently been hired by Jones & Co, a small public accounting firm as an... You have recently been hired by Jones & Co, a small public accounting firm as an internal auditor. One of the firm's partners, Joe Jones, has asked you to deal with an unhappy client. The client, Susan Swan, is the owner of the city's largest jewelry store, DiamondsRUs. Ms Swan wants to remodel her store and is applying for $80,000 loan with Planters National Bank. The bank requires the use of accrual basis accounting for financial statements.  Ms Swan insists that... Assume that you are a junior auditor in a small auditing firm. You have been working... Assume that you are a junior auditor in a small auditing firm. You have been working with them for one year now. One senior auditor has been on sick leave for one week already and still has no sign of coming back to work. You have been told by the audit manager that you must complete some complicated bank reconciliation work which the senior auditor should have done but she became sick. The due date given by the manager seems... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions A pub opens its door for business at 6:00 PM. From 6:00 P.M. to 8:00 P.M.... Discussion 2 - An Integrative Approach to Psychopathology: Can you think of any cases of psychopathology... (1) Define attribute sampling and discuss why tests of controls tend to be attribute samples. (2)... What do you think is behind the emotion of jealousy? Why are some people more prone... A 1.78-kg block slides with a speed of 0.955 m/s on a frictionless horizontal surface until... A card is drawn from a standard deck of 52 cards. Find the probability that the... Think of an organization are familiar and answer the following questions: 1) As a consultant for... ADVERTISEMENT About @ 2020 WizEdu