60.1K

Verified Solution

Link Copied!

Hilda prentice commenced a wholesale business on 1 April 2010 introducing cash of 10,000 as her capital. The following transactions took place within the first week.

Date Transaction

4.4 Paid 4,000 for furniture

4.4 Paid 300as rent for the week

4.4 Purchased goods for sale on credit from city store for 1,480 and global ltd for 2,175

5.4 Paid 280 for advertising

5.4 Sold goods on credit to hugh soft for 1,150, mary bold for 825 and shelly gray for 855

5.4 Cash sales 845

6.4 Received back goods sold to mary bold for 85 and to shelly gray for 30

6.4 Paid for advertising 120

7.4 Parchased goods for sale on credit from global ltd for 1,645 and from city stores for 2,185

7.4 Sold goods on credit to mary bold for 1,865 and to hugh soft for 1,775

7.4 Returned to city stores goods purchased for 140

7.4 Paid global ltd 2,175

8.4 Received 745 from mary bold

8.4 Received back goods sold to hugh soft for 210 and mary bold for 145

8.4 Cash sales 565

8.4 Hilda took 200 in cash to meet her household expenses

8.4 Returned to gloval ltd goods purchased for 210

8.4 Sold goods on credit to shelly gray for 1,565 and to hugh soft for 825

Required:

a. Set out the prime entry recording every transaction reported above.

b. Post to appropriate ledger accounts

c. Extract a trial balance as at 8 April 2010

Answer & Explanation Solved by verified expert

See Answer