Analyze and record these transactions in financial statement

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Reference no: EM133560835

Question: CM ltd is a commercial distributor of plant-based meat substitutes to grocery stores and chains in western Canada. CM ltd and the company's management team have successfully grown the operation to the point where they are able to distribute their products nationally. CM ltd had the following transactions in the month of September. September 1: CM Ltd borrowed $20,000 from the bank. The interest rate on the loan is 3% per annum, and the terms of the loan state that the loan is to be repaid at the end of each month in the amount of $1,500 per month plus interest. September 1: CM Ltd renewed the annual insurance policy covering its warehouse and paid the premium for the 12-month policy in the amount of $5,700. The term of the policy is from September 1 to august 31 of the following year. September 4: the company purchased inventory at a cost of $33,000 from a producer on account. September 10: CM Ltd recorded its sales for the first 10 days of the month. Total sales (half in cash and half on account) amounted to $21,000 and the inventory related to these sales was determined to have a cost of $14,700. September 19: paid $9,600 suppliers who had previously sold CM ltd inventory on account. September 27: paid employee wages in the amount of $4,500. September 29: CM ltd accepted a payment of $9,600 from a local independent grocer who placed an order for 960kg of plant based sausages to be delivered in mid October for an Oktoberfest promotion. September 30: CM ltd made the necessary month end entry related to the insurance policy September 30: CM ltd made the necessary month end entry related to record the bank loan. Analyze and record these transactions in a financial statement using accounting equation template

Reference no: EM133560835

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