Requirements: Record the transactions in the ledger of A. Baker, balance off the accounts, and prepare a trial balance at 31 May. Using the trial balance draw up the Statement of Trading and Profit or Loss for the year end and a Statement of Financial Position at 31 May. Note that you are only required to submit the Statement of Trading and Profit or Loss and the Statement of Financial Position. The T-Accounts and the Trial Balance should ONLY be done as workings.1 Started in business with $1,500 in the bank and $500 cash. 2 Purchased goods to the value of $1,750 from C. Dunn, to pay within 60 days. 3 Bought fixtures and fittings for the bakery for $150, paying by cheque. 6 Bought goods on time from E. Farnham for $115. 10 Paid rent of $300 paying cash. 12 Bought stationery - cash book and invoices -for $75 - paying by cash. 14 Sold goods on time, value $125, to G. Harlem. 20 Bought an old van for deliveries for $2,000 on time from I. Jumpstart. 30 Paid wages of $450 net for the month by cheque. 31 Summarised cash sales for the month and found them to be $2,500. Took a cheque for $500 as own wages for the month. Banked $2,000 out of the cash sales over the month. 31 Closing inventory was $500
Requirements: Record the transactions in the ledger of A. Baker, balance off the accounts, and prepare a trial balance at 31 May. Using the trial balance draw up the Statement of Trading and Profit or Loss for the year end and a Statement of Financial Position at 31 May. Note that you are only required to submit the Statement of Trading and Profit or Loss and the Statement of Financial Position. The T-Accounts and the Trial Balance should ONLY be done as workings.
1 Started in business with $1,500 in the bank and $500 cash.
2 Purchased goods to the value of $1,750 from C. Dunn, to pay within 60 days.
3 Bought fixtures and fittings for the bakery for $150, paying by cheque.
6 Bought goods on time from E. Farnham for $115.
10 Paid rent of $300 paying cash.
12 Bought stationery - cash book and invoices -for $75 - paying by cash.
14 Sold goods on time, value $125, to G. Harlem.
20 Bought an old van for deliveries for $2,000 on time from I. Jumpstart.
30 Paid wages of $450 net for the month by cheque.
31 Summarised cash sales for the month and found them to be $2,500. Took a cheque for $500 as own wages for the month. Banked $2,000 out of the cash sales over the month.
31 Closing inventory was $500
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