2. Hongkun is sole owner of business. He has been started business since 2018. Following are transaction for the month of May 2020, prepare Journal Entry, General Ledgers and Trial Balance May 3. Reinvestment in the shape of Cash $80,000 and Equipment $20,000. May 5. Cash Sales $10,000 and on account Sales $12,000. May 6. Bought goods from Yiming and Co. $60,000 paid $15,000 cash and remaining note payable pay within 30 days. May 9. Purchase Office Equipment from Shen worth $99,000, a cash down payment of $19,000 and balance will be paid by four installments, first due on 30 May. May 21. Goods return by credit customer of worth $12,000. May 30. Paid first installment of $20,000.
2. Hongkun is sole owner of business. He has been started business since 2018. Following are transaction for the month of May 2020, prepare Journal Entry, General Ledgers and Trial Balance May 3. Reinvestment in the shape of Cash $80,000 and Equipment $20,000. May 5. Cash Sales $10,000 and on account Sales $12,000. May 6. Bought goods from Yiming and Co. $60,000 paid $15,000 cash and remaining note payable pay within 30 days. May 9. Purchase Office Equipment from Shen worth $99,000, a cash down payment of $19,000 and balance will be paid by four installments, first due on 30 May. May 21. Goods return by credit customer of worth $12,000. May 30. Paid first installment of $20,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:2. Hongkun is sole owner of business. He has been started business since 2018. Following
are transaction for the month of May 2020, prepare Journal Entry, General Ledgers
and Trial Balance
May 3. Reinvestment in the shape of Cash $80,000 and Equipment $20,000.
May 5. Cash Sales $10,000 and on account Sales $12,000.
May 6. Bought goods from Yiming and Co. $60,000 paid $15,000 cash and remaining note
payable pay within 30 days.
May 9. Purchase Office Equipment from Shen worth $99,000, a cash down payment of $19,000
and balance will be paid by four installments, first due on 30 May.
May 21. Goods return by credit customer of worth $12,000.
May 30. Paid first installment of $20,000.
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Step 1: Journal entries
VIEWStep 2: Cash account and equipment account
VIEWStep 3: Owners' equity account and Accounts receivable account
VIEWStep 4: Sales account and purchases account
VIEWStep 5: Note payable account and office equipment account
VIEWStep 6: Accounts payable account and sales return account
VIEWStep 7: Trial balance
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