Question
In: Accounting
Mr Smith is the owner of a wholesale store (“Conquer Wholesalers”) that sells merchandise to other...
Mr Smith is the owner of a wholesale store (“Conquer Wholesalers”) that sells merchandise to other business. At the end of November 2019 you were presented with the following balances from the general ledger:
Dr Cr
Vehicles 150 000
Accumulated depreciation on vehicles 50 000
Inventory 100 000
Trade receivables 50 000
Bank 75 000
Capital 300 000
Trade payables 25 000
Total 375 000 375 000
The following transactions were recorded during December
2019:
1 Inventory with a cost price of R50 000 were sold for R75 000 to
ABC stores on credit.
5 Mr Smith withdraws R25 000 from the business account for personal
use.
10 Stationary worth R2 000 is bought on credit from ZYX
suppliers.
14 Water and electricity is paid R2 500 cash.
18 Inventory worth R50 000 is sold for R90 000 cash to various
customers
Required:
1) Prepare a post-adjustment trial balance on 31 December 2019
(show all adjustments in
brackets).
2) Prepare the statement of comprehensive income for the month
ended December 2019. Ignore
depreciation.
3) Prepare the statement of financial position for the month ended
December 2019.
Solutions
Expert Solution
1. Journal Entries -
2. Trial Balance -
3. Statement of Comprehensive Income -
4. Statement of Financial Position -
ekkarill92 answered 2 years agoRelated Solutions
Mr Smith is the owner of a wholesale store (“Conquer Wholesalers”) that sells merchandise to other...
Mr Smith is the owner of a wholesale store (“Conquer
Wholesalers”) that sells merchandise to other
business. At the end of November 2019 you were presented with the
following balances from the general
ledger:
Dr Cr
Vehicles 150 000 DR
Accumulated depreciation on vehicles 50 000 CR
Inventory 100 000 DR
Trade receivables 50 000 DR
Bank 75 000 DR
Capital 300 000 CR
Trade payables 25 000 CR
The following transactions were recorded during December
2019:
1 Inventory with...
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