Reference no: EM132962529

Question - The following selected transactions relate to Barca Traders, Date January 2020 Transactions owner L. Messi.

1 L Messi commenced Barca Traders by contributing inventory of $300 and cash of $10,000.

2 Purchased inventory costing $2,000 on credit.

4 Returned defective goods, which cost $400, purchased on 2 January.

10 Sold goods for $700 (cost price $560) on credit.

11 Cash sales $500 (cost price $290)

12 Goods costing $200 and sold on credit for $300 were returned by the customer

14 Paid the amount owed on the 2 January purchase.

18 Received $100 on account

31 Physical stock take showed $1,200 of inventory on hand.

Required -

(a) Prepare general ledger accounts for inventory and cost of goods sold using the perpetual inventory method. NB: Ignore GST.

(b) Make an adjusted Trial Balance using the periodic inventory method. NB: Ignore GST.

(c) Make an extract of the Income Statement for the perpetual inventory method for January 2020.