Reference no: EM132937714

Question - Chris Evans put up a retail store business on January 1, 2020. He had the following transactions for the month:

Jan. 2 Chris Invested 500,000 as inital capital of the business.

Jan. 3 He purchased supplies worth 7,500 for cash.

Jan. 3 He purchased office furniture for 14,000 on account.

Jan. 4 He purchased merchandise for 15,000 cash.

Jan. 5 He made additional purchase for 25,000 on account. Terms: FOB Shipping point, 2/10, n/30.

Jan. 5 Paid Transaction costs of 1,000 cash for January 5 purchase.

Jan. 6 He purchased office equipment for 20,000 cash.

Jan. 7 He purchased additional supplies for 1,300 cash.

Jan. 8 Sold merchandise for 24,000 on account, Cost is 18,000. Terms: FOB Destination, 2/15, n/30.

Jan. 9 Returned half of the merchandise purchased last Jan. 5.

Jan. 9 Paid delivery charges for January 8 sales, 750 cash.

Jan. 11 Paid the purchase made last Jan. 5.

Jan. 12 Chris purchased again merchandise for 25,000 for cash.

Jan. 14 Sold merchandise for 12,000 cash. Cost is 9,000.

Jan. 15 Made advance payment for insurance amount to 7,500 cash for 3 months. Expense method is used by Chris.

Jan. 18 Received collection from January 8 sales.

Jan. 20 Sold merchandise for 15,000 on account. Terms, n/30. Cost is 11,250.

Jan. 21 Paid advertising expense, 5,000 cash.

Jan. 22 Received merchandise returned by customers relating to Jan. 20 sales, 5,000.

Jan. 23 Made withdrawal of 6,750 for personal use.

Jan. 24 Paid the following expenses:

Salaries Expense - 15,000

Utilities Expense - 13,350

Miscellaneous Expense - 4,550

REQUIREMENTS - (Use both periodic and perpetual method)

1. Journalize each transactions.

2. Post to ledger.

3. Prepare unadjusted trial balance.