Question

make creating your own numbers to create a journal for a business recording the first two months of operations include sales,wages,investment,acountspayable,acountsreceivable,workinprogress,cashtransactions,depriciation,inventory,dividends,amortizations,and any other accounts needed to complete the task to show entries for a running business start with a 3,000,000 million as the initial investment and make the company grow and show how the profits occured throughout the journal entries and transfer the entries to a ledger

A journal (or journals) including journal entries for the first two (2) months of operations. At least

40 business transactions are required (but you may have more). This is where your knowledge,

creativity and thoroughness will be evaluated.

·

A general ledger (if doing this project manually, you may use T-Accounts to represent the general

ledger as long as it is clear and organized). Make sure to include any necessary subsidiary ledgers

for jobs, customers and suppliers.

Answer 1

Date	Particulars	Debit Amount	Credit Amount
1/1/2019	Cash A/c / Bank A/c	$ 3,000,000.00
	To Capital Account A/c		$ 3,000,000.00
	(Being the business start with 3,000,000 as an initial investment)
2/1/2019	Assets A/c	$   150,000.00
	To Cash/ Bank A/c		$    150,000.00
	(Assets purchased of $150000)
2/1/2019	Stock A/c	$ 1,150,000.00
	To Cash/ Bank A/c		$ 1,150,000.00
	(Stock purchased of $1150000 by cash)
4/1/2019	Stock A/c	$ 1,250,000.00
	To Creditors A/c		$ 1,250,000.00
	(Stock purchased of $1250000 on Credit)
10/1/2019	Wages A/c	$   125,000.00
	To Cash A/c/ Bank A/c		$    125,000.00
	(Labour Payment of $125000)
12/1/2019	Direct Exp. A/c	$   100,000.00
	To Cash A/c/ Bank A/c		$    100,000.00
	(Petty and other exp. Of $100000 paid)
15/1/2019	Indirect Exp. A/c	$   125,000.00
	To Cash A/c/ Bank A/c		$    125,000.00
	(Petty and other exp. Of $125000 paid)
15/1/2019	Petty Exp. A/c	$   105,000.00
	To Cash A/c/ Bank A/c		$    105,000.00
	(Petty and other exp. Of $105000 paid)
18/01/2019	Investment A/c	$     25,000.00
	To Cash A/c/ Bank A/c		$      25,000.00
	(Bond and shares purchased)
19/01/2019	Work in progess	$ 2,625,000.00
	To Stock		$ 2,400,000.00
	To wages		$    125,000.00
	To Direct Expenses		$    100,000.00
	(All the direct material labour and overhead tr, into WIP)
19/01/2019	Finish Goods A/c	$ 2,625,000.00
	To Work in Progress		$ 2,625,000.00
	(WIP converted into Finish goods)
22/01/2019	Cash A/c/ Bank A/c	$ 1,850,000.00
	Sales A/c		$ 1,850,000.00
	(Finish Goods sold in Cash )
22/01/2019	Account Receivable A/c	$ 1,350,000.00
	Sales A/c		$ 1,350,000.00
	(Finish Goods sold in credit basis )
25/01/2019	Cash A/c/ Bank A/c	$ 1,250,000.00
	To Account Receivable A/c		$ 1,250,000.00
	(cash realised from the customer)
25/01/2019	Bad Debts A/c	$   100,000.00
	To Account Receivable A/c		$    100,000.00
	($100000 got bad debt)
25/01/2019	Creditors A/c	$ 1,150,000.00
	To Cash A/c/ Bank A/c		$ 1,150,000.00
	(Amount paid to creditors)
25/01/2019	Creditors A/c	$   100,000.00
	To Discount Received		$    100,000.00
	(Discount Received from creditors )
30/1/2019	Cash A/c/ Bank A/c	$       1,000.00
	To Interest Received on Bonds		$        1,000.00
	(1 Month Interest recd. On investment)
30/1/2019	Depreciation A/c	$       5,000.00
	To Assets		$        5,000.00
	(Depreciation for 1 month)
30/01/2019	Dividend A/c	$     10,000.00
	To CashA/c/ Bank A/c		$      10,000.00
	(Dividend Paid)
2/2/2019	Assets A/c	$   150,000.00
	To Cash/ Bank A/c		$    150,000.00
	(Assets purchased of $150000)
2/2/2019	Stock A/c	$ 1,150,000.00
	To Cash/ Bank A/c		$ 1,150,000.00
	(Stock purchased of $1150000 by cash)
4/2/2019	Stock A/c	$ 1,250,000.00
	To Creditors A/c		$ 1,250,000.00
	(Stock purchased of $1250000 on Credit)
10/2/2019	Wages A/c	$   125,000.00
	To Cash A/c/ Bank A/c		$    125,000.00
	(Labour Payment of $125000)
12/2/2019	Direct Exp. A/c	$   100,000.00
	To Cash A/c/ Bank A/c		$    100,000.00
	(Petty and other exp. Of $100000 paid)
15/2/2019	Indirect Exp. A/c	$   125,000.00
	To Cash A/c/ Bank A/c		$    125,000.00
	(Petty and other exp. Of $125000 paid)
15/2/2019	Petty Exp. A/c	$   105,000.00
	To Cash A/c/ Bank A/c		$    105,000.00
	(Petty and other exp. Of $105000 paid)
18/02/2019	Investment A/c	$     25,000.00
	To Cash A/c/ Bank A/c		$      25,000.00
	(Bond and shares purchased)
19/02/2019	Work in progess	$ 2,625,000.00
	To Stock		$ 2,400,000.00
	To wages		$    125,000.00
	To Direct Expenses		$    100,000.00
	(All the direct material labour and overhead tr, into WIP)
19/02/2019	Finish Goods A/c	$ 2,625,000.00
	To Work in Progress		$ 2,625,000.00
	(WIP converted into Finish goods)
22/02/2019	Cash A/c/ Bank A/c	$ 1,850,000.00
	Sales A/c		$ 1,850,000.00
	(Finish Goods sold in Cash )
22/02/2019	Account Receivable A/c	$ 1,350,000.00
	Sales A/c		$ 1,350,000.00
	(Finish Goods sold in credit basis )
25/02/2019	Cash A/c/ Bank A/c	$ 1,250,000.00
	To Account Receivable A/c		$ 1,250,000.00
	(cash realised from the customer)
25/02/2019	Bad Debts A/c	$   100,000.00
	To Account Receivable A/c		$    100,000.00
	($100000 got bad debt)
25/02/2019	Creditors A/c	$ 1,150,000.00
	To Cash A/c/ Bank A/c		$ 1,150,000.00
	(Amount paid to creditors)
25/02/2019	Creditors A/c	$   100,000.00
	To Discount Received		$    100,000.00
	(Discount Received from creditors )
28/2/2019	Cash A/c/ Bank A/c	$       2,000.00
	To Interest Received on Bonds		$        2,000.00
	(1 Month Interest recd. On investment)
28/2/2019	Depreciation A/c	$     10,000.00
	To Assets		$      10,000.00
	(Depreciation for 1 month)
30/01/2019	Dividend A/c	$     10,000.00
	To CashA/c/ Bank A/c		$      10,000.00
	(Dividend Paid)