question archive Wanna Be Rich Trading, owned by Richie Richer, sells casual wear for both men and women
Wanna Be Rich Trading, owned by Richie Richer, sells casual wear for both men and women
Subject:AccountingPrice: Bought3
Wanna Be Rich Trading, owned by Richie Richer, sells casual wear for both men and women. He
ended trading on December 31, 2021 with the following assets and liabilities:
Bank Loan (repayable in 2025) $200,000
Office Furniture $500,000
Bank $300,000
Shop Equipment $100,000
During the month of January 2022, the following transactions occurred:
Jan 1 Rented premises for $50,000 per month. Wanna Be Rich Trading paid
$150,000 for the first quarter to March 31, 2022 by cheque.
Jan 2 Purchased inventory work $80,000 on credit from Already Rich Ltd.
Jan 2 Sold a quarter of the inventory for $40,000 cash, funds lodged immediately
Jan 7 Paid cheque to Already Rich Ltd for half the goods purchased on Jan. 2.
Jan 8 Paid insurance for Jan $7,500 by cheque
Jan 14 Sold the remaining inventory for credit as follows:
Rochelle Dealer $30 000
Samantha McGregor $25,000
Percival Kingdom $25,000
Janet Justice $80,000
Jan 16 Purchased goods on credit from All Traders Co. $160,000
Jan 17 Sold good for cash $75,000
Jan 18 Purchased computer equipment for $30,0000 by cash
Jan 21 Sold half the inventory for $100,000 cash, funds lodged immediately
Jan 25 Rich Richer withdraws $10,000 from the bank for use in the business.
Jan 31 Purchased office supplies costing $3,500, cash.
Jan 31 Paid shop assistant wages $25,000 by cheque
Jan 31 Paid electricity bill for Richie Richer's mother in cash $15,000
Questions
task 1
1 Journalize the opening balances for Richie Richer on January 1, 2022 and
calculate the figure for capital
task 2
Journalize the above transactions in the general ledger (no narrations required)
for the month of January 2022
task 3
Post the transactions to the ledger accounts
task 4
Extract a trial balance at January 31, 2022
please make sure to include purchase accounts in task 3 and 4
