Reference no: EM132554212

Question - Andrew Joel is a market trader, he opened a business named Joel Co. The company's Trial balance as at 1 December 20X8, appears below:

	$
Inventory	5,000
Equipment	3,700
Payables	500
Receivables	300
Cash at Bank	1,200
Capital	?

During December, Andrew Joel:

1. Transferred $300 of his savings into a business bank account.

2. Received loan from D. Watson, $100 cheque, repayable in 5 years.

3. Bought goods for resale on time, $320 from S. Holmes.

4. Bought a motor van by cheque, $500.

5. Goods returned to S. Holmes, $20.

6. Sold goods to AB Ltd valued $1,000, customer paid by cheque $400.

7. A Joel took goods from inventory for his own use, cost $220.

8. Sold motor van no longer required for $500 on credit to K. Lamb.

9. Purchased goods from C. Swiff $500, less 10% trade discount, pays by cheque.

10. Paid $120 to hire a van for December, using debit card.

11. Paid staff wages for December, $210 cheque.

Requires -

a. Calculating the balance of Capital account as at 1 December, 20X8.

b. Record all the transactions using double entries and ledger accounts (T-accounts).

c. Prepare Trial Balance as at 31 December 20X8.

d. Assuming that Inventory on 31 December 20X8 is $5,130. Prepare Income Statement for the period.

e. Prepare Balance Sheet as at 31 December 20X8.