Reference no: EM132936634
Question - The following transactions occurred for the month of May in the business of Henry Hofstra:
May 1 Henry invested capital amounting to $990,000 in his business. The amount was duly lodged to the bank account.
May 2 Goods valued at $250,000 were purchased for resale from Luntac Limited. Goods valued at $835,000 were sold on credit to Nostec Brown.
May 3 The electricity expense amounting to $45,000 became due and payable.
May 4 Henry decided that he would not honour the amount outstanding until May 8.
May 5 Luntac was paid $245,000 by cheque in full settlement of the purchase transacted on May 2.
May 8 The electricity bill was settled by cheque.
May 9 Nostec Brown sent by cheque $830,000 in full settlement of the transaction effected on May 3.
May 10 Plant and machinery costing $380,000 was purchased on credit from Equipment Sales Limited.
May 11 Investment income in the sum of $330,000 was earned. The cheque would be received at a later date.
May 12 Goods valued at $745,000 were purchased on credit from Equinox Limited.
May 15 Salaries in the amount of $645,000 were paid by cheque.
May 16 Cash sales amounting to $800,000 was reported for the day.
May 17 The proceeds from the sales were duly lodged to the bank account.
May 18 The income arising from the investment was duly lodged to the bank account.
May 19 $55,000 was transferred from the bank account to the cash account.
May 22 Repairs amounting to $2,500 was paid for by cash.
May 24 Equinox Limited was paid $120,000 by cheque.
May 25 Monsoon Limited was sold goods valued at $750,000 on credit.
May 26 The annual insurance pr0emium amounting to $150,000 became due and was settled. The payment was made by cheque.
May 29 Rent of $78,000 became due and payable. The payment was not made.
May 30 A cheque for dividend income in the sum of $35,000 was received and lodged to the bank account.
May 31 The company invested $350,000 in Treasury bills. The cheque was handed over to the brokerage house.
Required -
(a) Make the entries with respect to the transactions listed above in the general ledger of Henry Hofstra.
(b) Prepare the trial balance as at May 31, 2017.