Question

1) Prepare the initial trial balance at 001.2020. (Propose a value for the accounts with a missing balance and/or add more accounts in order to make sure that the main accounting equation and the rule of totals for trial balance are applied.)

2) Propose and journalize 10 business transactions for the company for the period 001.2020-31.01.2020. (Indicate the transactions as a text/description and then record them into the journal and T-accounts.)

3) Prepare the unadjusted trial balance at 31.01.2020.

Cash	83.600
Banks	19.000
Checks	43.000
Accounts Receivable	56.000
Notes Receivable	67.400
Allowance for Uncollectible Accounts	16.000
Inventory
Prepaid Expenses - Rent	50.400
Accounts Payable	135.000
Notes Payable	152.600
Dividends	26.000
Tax payable
Bank Loan	228.000
Bonds Issued	230.000
Buildings
Furniture and fixture	250.000
Accumulated Depreciation - Buildings	30.000
Capital Stock	537.000
Unearned Revenue	110.000
Retained Earnings

Answer 1

Trial Balance as on 1/1/2020

Particulars	Debit	Credit
Cash	83,600
Bank	19,000
Check	43,000
Accounts Receivable	56,000
Notes Receivable	67,400
Allowance for uncollectible accounts		16,000
Inventory	75,000
Prepaid expense-Rent	50,400
Accounts payable		135,000
Notes payable		152,600
Dividends		26,000
Tax payable		50,000
Bank loan		228,000
Bond issued		230,000
Building	211,200
Furnitue and Fixture	250,000
Accumulated Depreciation - Buildings		30,000
Capital Stock		537,000
Unearned revenue		110,000
Retained Earnings		40,000
Freehold Land	400,000
Machiney	300,000
Total	15,55600	15,55600

2.1Received commission of 5,000 in cash

2. Purchased new land of 55,000 in cash

3. Purcahsed goods of 20000 from vendor on credit

4. Sold good on cash 145,000

5. Paid Salary & wages 5,000

6. Outstanding salary 2,000

7. Paid advance rent 4,000

8.Purchase new furniture of 11,000

9. Sold goods on cash 87,000

10. Advance tax paid 12,000

Serial No.	General Journals	Debit	Credit
1.	Cash	5,000
	Commision		5,000
	(Received commision on cash)
2.	Land	55,000
	Cash		55,000
	(Purchasad land in cash)
3.	Purchase	20,000
	Vendor		20,000
	(Purchased goods on account)
4.	Cash	145,000
	Sales		145,000
	(Sold goods to vendor on cash)
5.	Salary & Wages	5,000
	Cash		5,000
	(Paid salary and wages to workers)
6.	Salary	2,000
	Outstanding salary		2,000
	(Salary outstanding for the current month)
7.	Advance Rent	4,000
	Cash		4,000
	(Paid rent in advance)
8.	Furniture	11,000
	Cash		11,000
	(Purchased new furniture)
9.	Cash	87,000
	Sales		87,000
	(Goods sold to vendor in cash)
10.	Advance Tax	12,000
	Bank		12,000

T Accounts

Cash Account

Particulars	Amounts	Particulars	Amount
Balance b/d	83,600	Land	55,000
Commision	5,000	Salary & Wages	5,000
Sales	145,000	Furniture	11,000
Advance Rent	4,000	Balance c/d	254,100
Sales	87,000
	325,100		325,100

Commsion Account

Particulars	Amount	Particulars	Amount
		Cash	5,000

  Land Account

Particulars	Amounts	Particulars	Amount
Cash	55,000

Purchase Accounts

Particulars	Amount	Particulars	Amount
Vendor	20,000

Vendor Account

Particulars	Amount	Particulars	Amount
		Purchase	20,000

Sales Account

Particulars	Amount	Particulars	Amount
		Cash	145,000
		Cash	87,000

Salary & Wages Account

Particulars	Amount	Particulars	Amount
Cash	5,000
Outstanding salary	2,000

Salary Outstandiing Accounts

Particulars	Amount	Particulars	Amount
		Salary	2,000

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