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Final Practice

The document summarizes the initial assets, liabilities, and equity of Smithson Co. as of May 1, 20XX. It then lists various business transactions that occurred throughout May, including purchasing equipment, making sales, collecting payments from customers, repaying a loan, and paying suppliers. The requirements are to record these transactions in a general journal, update the general ledger accounts, and prepare a trial balance as of May 31, 20XX.

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Huyền Trang
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278 views2 pages

Final Practice

The document summarizes the initial assets, liabilities, and equity of Smithson Co. as of May 1, 20XX. It then lists various business transactions that occurred throughout May, including purchasing equipment, making sales, collecting payments from customers, repaying a loan, and paying suppliers. The requirements are to record these transactions in a general journal, update the general ledger accounts, and prepare a trial balance as of May 31, 20XX.

Uploaded by

Huyền Trang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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At the beginning of May, 20XX, Smithson Co commenced business with the following assets

and capitals:

Dr ($) Cr ($)

Sales 250,000

Tools and Jigs 10,000

Goods 105,000

Office equipment 5,500

Salaries and wages 20,500

Trade Receivables 135,000

Trade Payables 115,300

Cash 136,800

Owner’s Capital 47,500

Total 412,800 412,800

During May, 20XX of operations of this business, the following transactions occurred.
5/5: Smithson Co purchased office equipment on credit for business use for $2 000
7/5: Sales to C Matthews $500, cost of sale: 350$, C Matthew was allowed to make payment
within October, 20XX.
15/5 Sold goods to a formal employee on cash $150, cost of goods sold: $150
17/5 A credit customer, P. Holden made the payment of $10 for previous sale
19/5 Smithson Co repaid to Overseas Bank Ltd: 3000$ of principle
24/5: The business paid a trade creditor $700 in cash
31/5 Bought a machine on credit from A, cost $2.500

Requirement:
Recording these above transactions in general journal as this sample
Sample:

Date Description Debit $ Credit $


1
2
5
7

General Ledger of Smithson Co (accounts in T format)

Account name
Date Particulars Debit $ Date Particulars Credit $

Balance the accounts of Smithson Co. Then prepare the trial balance for Smithson Co on 31 May 20XX
as the following sample:
Trial Balance of …………… on …………….. 20XX

ACCOUNT Dr $ Cr $

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