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Prepare a correct trial balance and financial statements for the given data for BAT Inc.

Prepare a correct trial balance and financial statements for the given data for BAT Inc.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a correct trial balance and financial statements for the given data for BAT Inc.

 

 

Transactions January 1 through March 31, 20x0 1-Jan Becky invests $60,000 of her own money in return for shares from BAT Inc. 15-Jan Becky signs a 12-month lease for manufacturing premises. She will move in February 15, 20x0. She had to prepay the first month's rent and wrote a cheque on January 15, 20x0 for $2,500 which is the first month's rent. Rent is always due on the 15th of each month and covers up to the 15th of the next month. January 15th payment - Jan 15 - Feb 15 February 15th payment would cover Feb 15 - Mar 15 March 15th payment would cover Mar 15 - Apr 15 1-Feb Becky purchases desks, chairs, a fridge and other furnishings for the office for cash for $8,000. 1-Feb Becky purchased screen-printing equipment for a total of $23,000 2-Feb Becky ordered 1,000 plain t-shirts from her supplier on account for $4,000 5-Feb Becky paid cash when purchasing ink and other supplies from a local retailer The total paid was $2,500 15-Feb Becky paid rent for $2,500 22-Feb First week of on-line sales results in $300 of sales on inventory that cost $100 to make 28-Feb Becky paid her staff a total of $1,400. They began work February 15th and worked 7 days a week (a few hours a day). 1-Mar Second week of on-line sales results in $1,000 of sales on inventory that cost $333 to make 2-Mar Becky pays the amount owing to her supplier of t-shirts. 8-Mar Third week of on-line sales results in $2,100 of sales on inventory that cost $700 to make 9-Mar Becky orders more t-shirts from her supplier on account for $5,800 10-Mar Short on cash, Becky secures a short-term loan from her brother for $20,000. It is interest free, but due back to him by June 10, 20x0. 11-Mar A tour bus stopped at the wharehouse and the tourists purchased $900 of shirts that cost $300 to make 15-Mar Becky paid rent for $2,500 15-Mar Fourth week of on-line sales results in $1,500 of sales on inventory that cost $500 to make 15-Mar Becky purchased supplies on account for $4,000 15-Mar Becky gets a loan from the bank for $50,000. Interest is due annually at a rate of 6%. The full amount is due in 5 years. 15-Mar Becky paid her staff a total of $1,500 for the period of March 1 - 15. 19-Mar Becky pays a repair company $700 to provide maintenace to her equipment 22-Mar One of Becky's logos has really caught on and is selling like hotcakes! She decided to pay a lawyer $500 to get a copyright on the design. 24-Mar Fifth week of on-line sales results in $2,100 of sales on inventory that cost $700 to make 31-Mar A count of the supplies closet inventory showed a total of $750 supplies on hand
Transcribed Image Text:Transactions January 1 through March 31, 20x0 1-Jan Becky invests $60,000 of her own money in return for shares from BAT Inc. 15-Jan Becky signs a 12-month lease for manufacturing premises. She will move in February 15, 20x0. She had to prepay the first month's rent and wrote a cheque on January 15, 20x0 for $2,500 which is the first month's rent. Rent is always due on the 15th of each month and covers up to the 15th of the next month. January 15th payment - Jan 15 - Feb 15 February 15th payment would cover Feb 15 - Mar 15 March 15th payment would cover Mar 15 - Apr 15 1-Feb Becky purchases desks, chairs, a fridge and other furnishings for the office for cash for $8,000. 1-Feb Becky purchased screen-printing equipment for a total of $23,000 2-Feb Becky ordered 1,000 plain t-shirts from her supplier on account for $4,000 5-Feb Becky paid cash when purchasing ink and other supplies from a local retailer The total paid was $2,500 15-Feb Becky paid rent for $2,500 22-Feb First week of on-line sales results in $300 of sales on inventory that cost $100 to make 28-Feb Becky paid her staff a total of $1,400. They began work February 15th and worked 7 days a week (a few hours a day). 1-Mar Second week of on-line sales results in $1,000 of sales on inventory that cost $333 to make 2-Mar Becky pays the amount owing to her supplier of t-shirts. 8-Mar Third week of on-line sales results in $2,100 of sales on inventory that cost $700 to make 9-Mar Becky orders more t-shirts from her supplier on account for $5,800 10-Mar Short on cash, Becky secures a short-term loan from her brother for $20,000. It is interest free, but due back to him by June 10, 20x0. 11-Mar A tour bus stopped at the wharehouse and the tourists purchased $900 of shirts that cost $300 to make 15-Mar Becky paid rent for $2,500 15-Mar Fourth week of on-line sales results in $1,500 of sales on inventory that cost $500 to make 15-Mar Becky purchased supplies on account for $4,000 15-Mar Becky gets a loan from the bank for $50,000. Interest is due annually at a rate of 6%. The full amount is due in 5 years. 15-Mar Becky paid her staff a total of $1,500 for the period of March 1 - 15. 19-Mar Becky pays a repair company $700 to provide maintenace to her equipment 22-Mar One of Becky's logos has really caught on and is selling like hotcakes! She decided to pay a lawyer $500 to get a copyright on the design. 24-Mar Fifth week of on-line sales results in $2,100 of sales on inventory that cost $700 to make 31-Mar A count of the supplies closet inventory showed a total of $750 supplies on hand
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