accounting

*

Computer Store

Clothing & Accessories Store

Small Appliances &

Household Supplies Store

A

Keyboard

Pants

Irons

B

Mouse

Blouse

Blenders

C

Printer

Hand Bags

Juicers

D

Surge Protector

Skirts

Dish Drainers

E

Speakers

Sandals

Rugs

January 1

Sold the following goods on credit to M. Jackson:

· 1 dozen Pants @ $3,500 each

· ½ dozen Blouse @ $1,650 each

· 1 dozen Skirts @ $1,320 each

January 1

Bought machinery by cheque $78,000.

January 2

Bought the following items on credit from J & J Manufacturers:

· 10 dozen Pants @ $2,000 each

· 10 dozen Blouse @ $6500 per dozen

· 7 boxes Juicer @ $2,500 per box

· 6 dozen Skirts @ 2,250 each

· 8 dozen Sandals @ $1,500 per dozen

January 2

Withdrew $93,000 cash from the bank account to be used in the business.

January 3

Cash Sales:

· 1 dozen Pants @ $2,520 each

· 1 dozen Blouse @ $2,950 each

· 1 dozen Skirts @ $3,400 each

January 3

Paid rent by cheque $40,000.

January 5

Sold goods on credit to P. Simpson:

· 18 units Pants @ $1,650 each

· 3 dozen Blouse @ $1,200 each

· 1 dozen Sandals @ $2,500 per dozen

January 6

Bought fixtures with cash $55, 000.

January 7

Cash Sales:

· 3 boxes Hand Bags @ $5,875 per box

· 1 dozen Skirts @ $2,400 each

· 1 dozen Sandals @ $2,500 per dozen

January 8

Paid wages $42, 000 by cheque.

January 9.

Returned goods to J & J Manufacturers as items were damaged:

· 18 units Pants

· 3 boxes Hand Bags

January 11

Paid the following expenses by cheque:

· Telephone $9,100;

· Electricity $12,300 and

· General Expenses $2,600

January 13

Sold goods on credit to A. Holness:

 1 dozen Skirts @ $1,400 each

January 15

Paid J & J Manufacturers by cheque and received a 5% cash discount.

January 15

Paid office wages with cash $20,000

January 16

Owner withdrew $12,200 cash to pay his daughter’s school fees.

January 18

Collected cheque from P. Simpson for goods sold on January 5th, 2017, allowing a 2.5% discount

January 19

Purchased computer and desk from Singer Jamaica valued at $30,600, paying $15,000 in cash.

January 20

Sold goods on credit to H. Jackman:

· 3 dozen Pants @ $1,650 each

· 3 dozen Blouse @ $1,200 each

· 2 dozen Sandals @ $3,500 per dozen

January 22

Paid wages with cheque $10,000.

January 24

1 dozen Skirts returned to us by A. Holness as they were the wrong brand.

January 27

Bought goods on credit from J & J Manufacturers Ltd.:

· 6 dozen Pants @ $ 2,100 each

· 10 boxes Hand Bags @ $ 2,850 per box

· 3 dozen Sandals @ $ 1,080 per dozen

January 29

A. Holness paid half of what he owed us by cheque after deducting a 10% cash discount.

January 30

H. Jackman sent us ½ dozen B

January 30

Cash Sales:

· 3 dozen Pants @ $ 2,935 each

· 1 dozen Blouse @ $ 1,950 each

· 4 Hand Bags @ $ 4,500 per box

· 2 dozen Skirts @ $ 1,400 per dozen

Task 1:

Enter the above transactions in the appropriate subsidiary book/book of original entry and then post the transactions to the relevant ledgers. Ensure that you use all the relevant books. The opening entries should be shown in the General Journal for the period.

Task 2:

Prepare the Trial Balance as at January 31, 2017.

Task 3:

On a Stock/Store Ledger, determine the value of the closing stock using the:

National Commercial Bank

Date

Particulars

Withdrawals

Deposits

Balance

Jan 1

Balance b/f

234,000

Jan 1

Cheque (M. Jackson)

20,000

254,000

Jan 2

Standing Order (Insurance Expense)

6,400

247,600

Jan 2

Cheque

93,000

154,600

Jan 8

Rent

40,000

114,600

Jan 8

Wages

42,000

72,600

Jan 11

Telephone expense

9,100

63,500

Jan 11

Electricity

12,300

51,200

Jan 11

General expenses

2,600

48,600

Jan 19

Cheque

15,600

33,000

Jan 22

Wages

10,000

23,000

Jan 24

Credit Transfer (J & J Manufacturers Ltd)

32,000

(9,000)

Jan 29

Standing Order

15,000

(24,000)

Jan 31

Bank charges

650

(24,650)

Task 5:

(1)

Update the Cashbook for January 2017 and balance it off.

(2)

Draw up a Bank Reconciliation Statement as at January 31, 2017; reconciling the corrected cash book balance with the bank statement

February 1

Bought goods on credit from J & J Manufacturers Ltd valued at

· 12 boxes of Hand Bags @ $2,750

· 4 dozens Skirts @ $2,300

· 5 dozens Sandals @ $1,750

February 2.

Sold the following to A. Holness on credit

· Pants: 30 units @ $3,500

· Sandals: 2 dozen @ $2,000

February 3.

Paid wages $10,000 by cash

February 4.

Paid cleaning expense $2,500 by cash

February 5.

Received a cheque from A. Lewis $14,200

February 6.

Paid electricity bill by cheque $5,400

February 7.

Deposit $80,000 of cash into bank.

February 9.

Paid water rate by cash $6,800

February 12.

Paid J&J Manufacturers Ltd. by cheque $60,000

February 15.

Paid for the maintenance of machinery $6,000 by cash

February 17.

Cash sales paid directly into bank:

· Pants: 15 units @ $3,500

· Hand Bags: 3 boxes @ $2,500

· Sandals: 4 boxes @ $2,500

February18.

Bought goods on credit from J & J Manufacturers Ltd.

Pants: 50 units @ $2,000 per unit

Blouse: 5 dozen @ $6,500 per dozen

Hand Bags: 3 boxes @ $2,500 per box

February 19.

Paid wages $12,000 by cash

February 20

Paid telephone bill of $8,000 by cash

February 24.

Sold the following to A. Holness on credit:

Pants: 3 units @ $3,500

Blouse: 3 dozen @ $1,200 each

Task 6:

Enter the above transactions in the appropriate subsidiary book/book of original entry and then post the transactions to the relevant ledgers. Ensure that you use all the relevant books. The opening entries should be shown in the General Journal for the period.

Task 7:

Extract a trial balance as at February 28, 2017.

Task 8:

Prepare the Financial Statements for the period ending February 28, 2017. The following additional information must be considered when preparing the financial statements:

1. Closing Stock as per the stock valuation method used as per Task 3 above.

2. Depreciate non-current assets as follows:

a. Fixtures & fittings – 15% on the straight line basis.

b. Delivery van – 20% on the reducing balance basis

c. Machinery – 20% on the reducing balance basis.

d. Computer desk – 25% on the straight-line basis.

e. Land is not depreciated.