Reference no: EM133016228
Question - Adam set up a business and in the first nine days of trading thefollowing transactions occurred:
(1) January Adam introduces $10,000 capital by cash.
(2) January Adam buys supplies worth $4,000 and pays by cash.
(3) January Adam buys a delivery van for $2,000 and pays by cash.
(4) January Adam buys $1,000 of purchases on credit.
(5) January Adam sells goods for $1,500 and receives a cash of that amount.
(6) January Adam sells all his remaining goods for $5,000 on credit.
(7) January Adam pays to his supplier payable of $800 by cash.
(8) January Adam pays rent of $200 by cash.
(9) January Adam draws $100 for living expenses from the business bank account.
There is no closing stock. Both Supplies and Purchases will be accounted for as inventory for sale
Required -
(a) Write double entries of the given transactions.
(b) Complete the relevant ledger accounts.
(c) Extract a trial balance.
(d) Prepare the income statement for the first nine days.
(e) Prepare the Statement of financial position as at 9 January.
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