Prepare a fully classified statement of profit or loss

Assignment Help Financial Accounting

Reference no: EM132878825

The chart of accounts includes the following accounts: 306 P. Greta Drawings, 350 Profitor Loss Summary, 401 Sales, 412 Sales Returns and Allowances, 415 Discount Received,417 Commissions Revenue, 510 Purchases, 512 Purchases Returns and Allowances, 516Freight Inwards, 627 Sales Salaries Expense, 711 Depreciation Expense, 722 InsuranceExpense, 725 Discount Allowed, 727 Office Salaries Expense, 728 Office Supplies Expense and 729 Rent Expense.

(a) Record the January transactions in the appropriate journal: sales, purchases,cash receipts, cash payments and general.

(b) Post the journals to the general and subsidiary ledgers. New accounts should beadded and numbered in an orderly fashion as needed.

(c) Prepare a trial balance as at 31 January 2018 using a worksheet. Complete theworksheet using the following additional information.

1. Office supplies at 31 January total p900.

2. Insurance cover expires on 31 October 2018.

3. Annual depreciation on the equipment is p2,700.

4. Commissions revenue of p39,600 has accrued during January.

5. Inventory at 31 January is p28,800.

(d) Prepare a fully classified statement of profit or loss for January and a classifiedstatement of financial position at the end of January.

(e) Prepare and post the adjusting and closing entries.

(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgersagree with the control accounts in the general ledger.

Attachment:- Accounting Practice.rar

Reference no: EM132878825

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