Question

Flowers Co. started its operations on January 1, 2020. The following transactions took place during the first month of operations:

January 1: The owner invests $9,200,000 cash to start the business.

January 4: Purchased furniture for $992,000, paying $192,000 in cash and sign a note for the remaining balance.

January 8: Purchased office supplies for $40,000 on credit. January 11: Paid $88,000 cash for January rent.

January 15: Paid $10,800 cash for office supplies purchased on January 8.

January 21: Services billed to customers amount to $192,000.

January 22: Received utility bills for $21,000 for the month of January.

January 26: Paid $94,800 cash as salaries for the month.

January 30: Received $132,000 cash from customers in payment for services billed on January 21.

January 31: The owner withdrew $31,200 from the business for personal use.

Required:

a. Prepare Journal entries to record the above transactions.

b. Post to the appropriate ledger accounts.

c. Prepare the trial balance on January 31, 2020.

d. Prepare the financial statements of Flowers Co. on January 31, 2020.

Answer 1

Income statement of flowes co: for the Morthending Jan 31.2020 articulars Tout ($) Canticulars To Rent Enp. 86000 l By Calls 19 2000 To office enpense 40000 ! wutility enp. 21000 to calarin 94800 my Net loss 51800 243800 243800 SS

DATE: PAGE NO.: In the books of flower co Journal di penoult a. 18 Particulars if Cash Ale Dr. - To Capital Ale. (being Cash Carter buted to Capital. 200 000 1200 any Furniture Ale on 112000 Payable Note 800000 To Bulls Being Furniture furchared cash $142000 L I Office Expense 40000 To Bills. layal To Crediton 1000 supplear of 10000 Proschared (office ( و ر مل - Rent affense te or. 88000 To Cach All 8801 Rent & 88000 pault in Cash / Crediters ar 10800 1080o Amount pould to Credytory for office supplies, Cash -

7 Jan 21 DATE: 1 PAGE NO.: Deltars Customers Ale ar A 2000 TO sales. Being supply of Curnius . L 112000 billed to customers Utility Expens oor 21000 Too Bills Payable me Being utility billes of $ 21000 delosived Ton - 26. 70 Cash qura U salahns He Drr 14800 ( Being falain amounting to ( 1 rugo poud. ton bo. Cash Alo Dur 132000 To Customo sebtors 1320 Being amount of is 132000 bersed! Chrom customer Capital Aty 38200 Jan. 31.) Drawing Ale sher. 3/200 70 Cash - Bring 31200 drawihan awings of $31200 made) Capital Aloor 3/200 Bring desawsina Te Araw t raputal Ale panferred from wines 31200-

A In Co the Books of flower Ledger accounts U Date 31.1. Particulars Ant. By Cash 92,00,000 & 9200000 of Capital AIC Partenbau Itt tunt Date By drawings, 31200 lt ony Balans hd 91688001 9200 000 furniture sic particulars Arit (6) Date To Cash 2o Bills taxable. 800000 131.1 Particulars sint (4) Date 4.1. 192000 By Balame dd 990000 992800 Note 992.000 Office Expenses Alc Aut($) Date 40000 31.1. canticulars 20 creditor Date 8. 1. antrulers By Balanced Aut($) 10000 40 000 40000 Reut Particulars Particulars By Balance eld Auth! sate 86000 31.1 Date Anitt 88000 olach 88000 88000

hath ul Particulars 20 Cach sraneings Alc sut/& Date 31200 31.1 Particular By capital Amt ($) 3100 E J 7/200 31200 Date 4.1. Particular 20 Balanudd Belli Myatle nou surt (1) Date 8000 4.1 Pautenlaus By furnituu und (f) 800000 800000 800000 Date santulan 70 Cash crediten Alc puit (6) gate 10800 31.1. . Partenlas By office eup By balandd" suit ($). 10000 20900 40000 10000 distan Alc Date Particulars whales. Aut/s) Date 190000 30.1. 31.1 Particulars. By Cash By Balanudd. Aut($). 132000 60000 192800 192000 rate 22.1 Cartulain 70 Bill Paytle. Utility Expenses the aut (6) Date Carticulars 1000 | 31.1. By Balaedd Acut (6) 21000 21000 21000

Bills Payable Alc Aut/$) Date Carticulars. 21000 221 By utility enpeness ant (4) 21 000 Particular 70 Balonu eld - 31.1 21 000 24000 salarien sint 18 9460o Cartinlar o Cash Alc date 31.1. late 26.1. sut/&). 94600 Jantulau By Babild quboo 9460o tartenlies to Capital woultors 30.) Cash uc suit (8) eale 90ooooo 4.1 132000 11.1 31.1 15.1. 1261. 31.1. sartuules Aint/&). By furniture 192000 Beykent 88000 By llawings 31200 My Creditors 10800 my salaries qubool Ay Balam ld 8915200 93 32000 933 2000

DATE PAGE NO.: Trial Balance as on January 31, 2020 Particulas Capital 37699.00 Billes Payable Note (furniture 900000 Creditors Coffice at ponses) 20200 Bills Payatele (utility Fraporce. 24000 8915200 5200 Furniture 992000 12890 Debton Com Salaries, utility Expense 2.1000 saley 192.000 Rent expenre 188.000 4 0000 од ч - разы 94900 10 211000 10211000

DATE: PAGE NO.: 31, 2020 Financial statements Flawer Co. on January 31/3/2016 Sheat as on Balance ASSETS . 912000 EXED ASSETS 1 Property Plant & equipment Current Assets. OHS200 60000 Trade Receivables Total Assets. 9967200 @ ciabilitley Current liabiliting Bills Payable Note (Furnitore Creditor office expenre. / Bills fasable Cutility Bils 2 - habilities CA Capital and Resowy & Surflen 809000 28200 21000 850200 Capital Income & Account Retained earnings 9168800 (51800 4117000 9967200 Liability I capital. (A + B)