Question

Question 3

(20 marks)

Linda Jewel started a business, Jewelry By Design, a proprietorship, in November 2018. The following transactions transpired in November 2018:

• November 01: Linda Jewel deposited $ 5,000 of her personal funds to Jewelry By Design.
• November 01: Jewelry By Design paid $ 1,000 for November’s rent.
• November 10: Jewelry By Design invoiced a customer $ 7,000 regarding creating necklaces for the customer.
• November 13: Jewelry By Design paid $ 700 cash for office supplies and purchased on account $ 3,000 office furniture.
• November 20: Jewelry By Design attended a craft fair and received $ 3,500 cash for selling bracelets.
• November 22: Jewelry By Design collected payment for the November 10 sale.
• November 26: Jewelry By Design paid $ 1,500 accounts payable.

Required:

1. Prepare journal entries for the above transactions.
2. Post the journal entries to T-accounts. Identify the postings by date. Date the ending balance of each T-account Nov. 30.
3. Prepare Jewelry By Design’s unadjusted trial balance at November 30, 2018.

Answer 1

Part A

Accounts Ref Debit Credit Date 2018 1-Nov $ 5,000 $ 5,000 1-Nov $ 1,000 $1,000 10-Nov $ 7,000 Cash Capital Cash introduced to business Rent Cash Rent paid through cash Accounts Receivable Sales Credit Sale made to customer Office Supplies Office Furniture Cash Accounts Payable Office Supplies purchased in cash and furniture in credit Cash $ 7,000 13-Nov $ $ 700 3,000 $ 700 $ 3,000 20-Nov $ 3,500 Sales $ 3,500 22-Nov $ 7,000 $ 7,000 Cash Sales made in craft fair Cash Accounts Receivable Cash received for sale made on November 10 Accounts Payable Cash Cash paid for Accounts payable 26-Nov $ 1,500 $ 1,500

Part B

Date Particulars 1-Nov Capital 20-Nov Sales 22-Nov Accounts Receivables T-Accounts Cash Account Amount Date Particulars 5,0001-Nov Rent 3,500 13-Nov Office Supplies 7,000 26-Nov Accounts Payable 30-Nov Closing balance 15,500 Total Amount $ 1,000 $ 700 $ 1,500 $ 12,300 $ 15,500 Total $ Capital Account Amount Date Particulars Date Particulars 1-Nov Cash Amount $ 5,000 30-Nov Closing Balance Total $ $ 5,000 5,000 Total $ 5,000 Rent Account Amount Date Particulars Amount Date Particulars 1-Nov Cash 1,000 30-Nov Closing Balance Total $1,000 $ 1,000 Total 1,000

Accounts Receivable Account Amount 7,000 Date Particulars Amount Date Particulars 10-Nov Sales Total 7,000 22-Nov Cash Total $ 7,000 $ 7,000 Office Supplies Account Amount Date Particulars Amount Date Particulars 13-Nov Cash 700 30-Nov Closing Balance Total $ | $ 700 700 Total $ 700 Office Furniture Account Amount 3,000 Date Particulars Amount Date Particulars 13-Nov Accounts payable 30-Nov Closing Balance Total $3,000 $ 3,000 Total 3,000

Date Particulars 26-Nov Cash 30-Nov Closing Balance Total Accounts Payable Account Amount Date Particulars Amount 1,500 13-Nov Office Furniture | $ 3,000 1,500 3,000 Total $ 3,000 Date Particulars Amount Sales Account Amount Date Particulars Accounts 10-Nov Receivable 10,500 20-Nov Cash 10,500 Total 30-Nov Closing Balance Total $ 7,000 $ 3,500 $ 10,500

Part C

Credit $ 5,000 Jewelry By Design Unadusted Trial Balance November 30 2018 Account Name Debit Cash $ 12,300 Capital Rent $ 1,000 Office Supplies $ 700 Office Furniture $ 3,000 Accounts Payable Sales Total $ 17,000 $ 1,500 $ 10,500 $ 17,000

Accounts Ref Debit Credit Date 2018 1-Nov $ 5,000 $ 5,000 1-Nov $ 1,000 $1,000 10-Nov $ 7,000 Cash Capital Cash introduced to business Rent Cash Rent paid through cash Accounts Receivable Sales Credit Sale made to customer Office Supplies Office Furniture Cash Accounts Payable Office Supplies purchased in cash and furniture in credit Cash $ 7,000 13-Nov $ $ 700 3,000 $ 700 $ 3,000 20-Nov $ 3,500 Sales $ 3,500 22-Nov $ 7,000 $ 7,000 Cash Sales made in craft fair Cash Accounts Receivable Cash received for sale made on November 10 Accounts Payable Cash Cash paid for Accounts payable 26-Nov $ 1,500 $ 1,500

Date Particulars 1-Nov Capital 20-Nov Sales 22-Nov Accounts Receivables T-Accounts Cash Account Amount Date Particulars 5,0001-Nov Rent 3,500 13-Nov Office Supplies 7,000 26-Nov Accounts Payable 30-Nov Closing balance 15,500 Total Amount $ 1,000 $ 700 $ 1,500 $ 12,300 $ 15,500 Total $ Capital Account Amount Date Particulars Date Particulars 1-Nov Cash Amount $ 5,000 30-Nov Closing Balance Total $ $ 5,000 5,000 Total $ 5,000 Rent Account Amount Date Particulars Amount Date Particulars 1-Nov Cash 1,000 30-Nov Closing Balance Total $1,000 $ 1,000 Total 1,000

Accounts Receivable Account Amount 7,000 Date Particulars Amount Date Particulars 10-Nov Sales Total 7,000 22-Nov Cash Total $ 7,000 $ 7,000 Office Supplies Account Amount Date Particulars Amount Date Particulars 13-Nov Cash 700 30-Nov Closing Balance Total $ | $ 700 700 Total $ 700 Office Furniture Account Amount 3,000 Date Particulars Amount Date Particulars 13-Nov Accounts payable 30-Nov Closing Balance Total $3,000 $ 3,000 Total 3,000

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Credit $ 5,000 Jewelry By Design Unadusted Trial Balance November 30 2018 Account Name Debit Cash $ 12,300 Capital Rent $ 1,000 Office Supplies $ 700 Office Furniture $ 3,000 Accounts Payable Sales Total $ 17,000 $ 1,500 $ 10,500 $ 17,000