Reference no: EM132927488

Question - Kerry-Ann Cupid is an extraordinary baker and marketing entrepreneur who has a panache for selling any and everything. But her love is for pastries. She decided to open a pastry shop in February 2021, specializing in sourcing and distributing the most delicious cakes, candies, and pastries. She rented a shop by Sovereign North Downtown and commenced business on February 1. The following transactions took place during the month.

Feb 1 Kerry-Ann invested the following assets into the business: cash, $80,000; office furniture, $20,000, bank balance, $5,000

Feb 1 Transferred $25,000 of the cash to the bank.

Feb 2 Paid rent for February by cheque $15,000

Feb 2 Purchased delivery van on credit from Mona Motors Ltd. for $40,000

Feb 3 Bought a refrigerator from Ashley Electronic Store, paying by cash $15,000

Feb. 3 Bought merchandise for resale by cash $35,000.

Feb 3 Sold merchandise to Candy Craze, for cash $10,000 and on credit to Just Cakey $60,000.

Feb 5 Sold merchandise on credit to Simply Yummy $6,500.

Feb 6 Just Cakey settled their account with cash receiving a 3.5% cash discount.

Feb 6 Merchandise valued at $950, to Simply Yummy on February 5, was returned to Kerry-Ann, the wrong order went out. A credit note was issued.

Feb 7 Bought merchandise on credit from Sweetopia $25,000.

Feb 8 Sold merchandise on credit to Chocolate Delights Ltd $38,000.

Feb 11 Bought custom packaging and cards (classified as an expense) for Valentine's Day for cash $7,500.

Feb 12 Bought merchandise on credit from Fruits, Nuts and More $8,500.

Feb 13 Returned $600 worth of merchandise to Fruits, Nuts and More. They had accidentally sent extra merchandise she did not order.

Feb 13 Bought additional merchandise, strawberry flavored heart-shaped cupcakes from Cakes by Lila, on credit $20,000.

Feb 13 Purchased fuel $10,000 cash for the delivery van, in order to do the deliveries to customers free of cost on Valentine's day.

Feb 14 Sold merchandise collecting via the debit card machine amounting to $20,500

Feb 14 Sold merchandise collecting cash, $32,000. After all it is Valentine's day!!

Feb 18 Lodged cash of $35,000 to the business bank account

Feb 20 Paid Sweetopia $23,800 in full settlement of the balance outstanding by cheque having received a discount of $1,200

Feb 23 Commission was received by cash, $5,200 from Just Hot Buns Ltd for outstanding sales on February 14th

Feb 25 Paid wages and utilities by cash $10,500 and $16,800 respectively.

Feb 26 Kerry-Ann took pastries for her daughter's 5th birthday party amounting to $7,000

Feb 27 Paid Cakes by Lila before the due date receiving at 10% discount, we paid her via a direct bank transfer to her account

Feb 28 Chocolate Delight, deposited $13,000 to our bank account as part payment of their outstanding balance

REQUIRED -

1. Journalize each of the above transactions. Narrations are not required.

2. Post the above transactions in the General ledger (please use only the general ledger).