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Its me again help please guys its my first time with accounts.?
I have already started but i am not sure of my answers so please if you can i need your help asap.
Lecture case studies
Case 1
Mr. John Somers operates a Bakery in his small rural community in St. Mary, Jamaica. The account balances for his bakery as of September 1, 2010 are given below.
Assets Revenue
Cash $ 2,459 Sales $72,118
Accounts Receivable 18,120
Prepaid Insurance 980 Expenses
Van 20,650 Salary Expense 14,380
Furniture and Equipment 5,963 Rent Expense 10,320
Van Expense 859
Liabilities Utilities Expense 1,213
Accounts Payable 1,590 Supplies Expense 840
Owner's Equity
John Somers?, Capital 42,076
John Somers, Drawing 40,000
The following transactions occurred during September:
a) Paid rent for the month, $1,290.
b) Paid $1,800 for one year?s coverage of liability insurance.
c) Bought bakery equipment on account from Bennett Equipment Supplies, $849, paying $200 down with the balance due in thirty days.
d) Issued sales invoice for baked products sold on account, $9,015.
e) Paid employee salaries, $1,797.
f) Received and paid gas and electric bill, $112.
g) Received cash from customers previously invoiced, $11,060.
h) Received bill for gasoline for van, used to deliver baked products, from Garza Fuel Company, $116.
i) Paid creditors on account, $1,590.
j) John Somers withdrew cash for personal use, $5,000.
Instructions:
i) Journalize the above transactions for the month of September.
ii) Record the September transactions in the T accounts. Key each transaction to the letter that identifies the transaction. Also foot the columns.
iii) Prepare a trial balance dated September 30.
iv) Prepare an income statement,
v) statement of owner?s equity and;
vi) The balance sheet for month ended September 30, 2010.
Get the answers
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