Required:
- A) Prepare a chart of accounts for the business using the following format:
| Number | Account | Element | Current/NC |
| 101 | Cash | Asset | Current |
- B) Record the December transactions in the appropriate journal: sales, purchases, cash receipts, cash payments and general
- C) Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed
- D) Prepare a trial balance as at 31 December 2019 using a worksheet. Complete the worksheet using the following additional information.
- Office supplies at 31 December total $900
- Insurance cover expires on 31 September 2019
- Equipment has a useful life of 4 years
- Commission revenue of $39 600 has accrued during December
- The Warehouse has a useful life of 40 years and residual value of $20,160
- Inventory at 31 December is $28 800
- Interest is accrued on the loan at the rate of 5% pa.
- E) Prepare a fully classified statement of profit or loss for December and a classified statement of position at the end of December
- F) Prepare and post the adjusting and closing entries
- G) Prepare a post-closing trail balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger
- H) You have been provided with the following information about two competitors.
