Reference no: EM132576014

Miss Sue Clear had the following transactions for her new bookstore. However, she has not done any accounting course so she is dependent on you to assist her with January's ledger entries.

Jan 2009

1 Miss Clear invested $90,000 in the business; $50,000 was put into a bank account whilst the balance was kept in cash.

1 Paid $15,000 by cheque for furniture and fittings.

2 Cash purchases of books $2,000.

2 Credit purchases of books from D. Parch, $12,000.

5 Return of books to D. Parch $1,000

19 Cash sales $35,000

19 Credit sales to L. Plonk $18,000

21 Cheque received from L. Plonk $16,000, a discount was allowed to Plonk.

22 Cash withdrawn from the bank for business use $500

30 Cash payment to D. Parch $10,000 a discount for the balance was received.

Required:

Question 1: Prepare the ledger accounts to record the first month's transactions for the bookstore.

Question 2: Balance each account at January 31, 2003 and explain trial balance at that date.