Homework Help is Here – Start Your Trial Now!
Business
Accounting
Plaese explain the calculation of cost of goods sold journal entry for the question attached Journal entries for this question has already been attached. Need help in understanding how is the cost of goods sold journal entry equal to £4830

Plaese explain the calculation of cost of goods sold journal entry for the question attached Journal entries for this question has already been attached. Need help in understanding how is the cost of goods sold journal entry equal to £4830

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Plaese explain the calculation of cost of goods sold journal entry for the question attached

Journal entries for this question has already been attached. Need help in understanding how is the cost of goods sold journal entry equal to £4830

Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: 2/10 Purchased furniture £5400 for sale on credit from Home Ltd 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by cheque. 5/10 Sold goods for £ 2800 and received the money via Bank account 12/10 Paid in Cash £110 for repairing printer 18/10 Part of furniture returned to Home Ltd £250 21/10 The owner received rent £800 for flat and deposited it to the bank account 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest remains on credit. 23/10 Sold goods of £700 to David and received cash 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 30/10 The owner rented an office place in a Business Park near the London on 1* October and paid rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Sotland for her holiday. 31/10 £150 Cash received from Rayan.
Transcribed Image Text:Anne York is a sole trader who started the business of buying and selling furniture in Brighton on the 1st of October 2021. She is going to prepare accounts to 31st of September 2021. She contributed to the business with £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions during the month are as follows: 2/10 Purchased furniture £5400 for sale on credit from Home Ltd 4/10 She bought a computer for £800 and a printer £200 from a local shop in London and paid by cheque. 5/10 Sold goods for £ 2800 and received the money via Bank account 12/10 Paid in Cash £110 for repairing printer 18/10 Part of furniture returned to Home Ltd £250 21/10 The owner received rent £800 for flat and deposited it to the bank account 23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately and the rest remains on credit. 23/10 Sold goods of £700 to David and received cash 24/10 Bought a new Laptop for business use by issuing a cheque £1700 26/10 Paid the month's wages to the part-time shopkeeper by cheque £820 30/10 The owner rented an office place in a Business Park near the London on 1* October and paid rent by cheque £850 31/10 The owner has also paid £ 1200 from the business bank account to book a hotel and flight in Sotland for her holiday. 31/10 £150 Cash received from Rayan.
Anne York Journal Entries Date Accounts Title Debit Credit Oct 1 Bank £ 10,000 Cash £ 4,800 Flat £ 45,000 £ 12,000 Car Anne York, Capital £ 71,800 (To record capital contributed in the business) Oct 2 Inventory Accounts Payable (To record furniture purchased on account) £ 5,400 £ 5,400 Oct 4 Computer Printer Bank £ 800 200 £ 1,000 (To record computer and printer purchased) Bank Sales Revenue Oct 5 2,800 2,800 (To record sales revenue earned in cash) Oct 12 Repair Expense £ 110 Cash 110 (To record repair expense incurred) Oct 18 Accounts Payable £ 250 Inventory (To record furniture returned on account) 250 Oct 21 Bank Rent Revenue £ 800 £ 800 (To record rent revenue earned) Oct 23 Accounts Receivable 300 Cash £ 1,800 Sales Revenue £ 2,100 (To record sales revenue earned on account) Oct 23 Cash Sales Revenue 700 £ 700 (To record sales revenue earned in cash) Oct 24 Laptop £ 1,700 Bank £ 1,700 (To record Laptop Purchased) Oct 26 Wages Expense Bank 820 £ 820 (To record wages expense incurred) Oct 30 Rent Expense Bank 850 £ 850 (To record rent expense incurred) Oct 31 Hotel Expense 1,200 Cash 1,200 (To record hotel expense incurred) Oct 31 Cash £ 150 Accounts Receivable 150 (To record amount received on account) Oct 31 Cost of Goods Sold £ 4,830 Inventory 4,830 (To record cost of Goods sold incurred)
Transcribed Image Text:Anne York Journal Entries Date Accounts Title Debit Credit Oct 1 Bank £ 10,000 Cash £ 4,800 Flat £ 45,000 £ 12,000 Car Anne York, Capital £ 71,800 (To record capital contributed in the business) Oct 2 Inventory Accounts Payable (To record furniture purchased on account) £ 5,400 £ 5,400 Oct 4 Computer Printer Bank £ 800 200 £ 1,000 (To record computer and printer purchased) Bank Sales Revenue Oct 5 2,800 2,800 (To record sales revenue earned in cash) Oct 12 Repair Expense £ 110 Cash 110 (To record repair expense incurred) Oct 18 Accounts Payable £ 250 Inventory (To record furniture returned on account) 250 Oct 21 Bank Rent Revenue £ 800 £ 800 (To record rent revenue earned) Oct 23 Accounts Receivable 300 Cash £ 1,800 Sales Revenue £ 2,100 (To record sales revenue earned on account) Oct 23 Cash Sales Revenue 700 £ 700 (To record sales revenue earned in cash) Oct 24 Laptop £ 1,700 Bank £ 1,700 (To record Laptop Purchased) Oct 26 Wages Expense Bank 820 £ 820 (To record wages expense incurred) Oct 30 Rent Expense Bank 850 £ 850 (To record rent expense incurred) Oct 31 Hotel Expense 1,200 Cash 1,200 (To record hotel expense incurred) Oct 31 Cash £ 150 Accounts Receivable 150 (To record amount received on account) Oct 31 Cost of Goods Sold £ 4,830 Inventory 4,830 (To record cost of Goods sold incurred)
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS