EXERCISE 1.12 1.12
On 1 January 2023 the assets and liabilities of Kidds Beach Hardware, owned by A. Rhodes, were : R
Accounts payable 24 000
Accounts receivable 68 000
Bank (overdraft) 16 000
Furniture and fixtures 40 000
Land and buildings 420 000
Capital - A. Rhodes 548 000
Inventory in trade (stock) 60 000
The following transactions occurred during January:
January 13 Purchased inventory on credit 48 000
16 Sold inventory (cost price R46 850) on credit for 64 000
24 Sold a display counter for what it had originally cost and received 10 000
26 Purchased furniture on credit 8 000
27 Sold inventory (cost price R35 150) for cash (all banked) 48 000
29 A. Rhodes withdrew cash from the bank for his personal use 4 000
30 Paid wages and other administrative expense 8 000
Inventory on hand on 31 January, as determined by a physical inventory count was R26 000.
REQUIRED:
(a) Open suitably coded ledger accounts and enter the balances for assets and liabilities as on 1 January.
(b) Record the transactions for the month of January in the ledger accounts.
(c) Take out a trial balance at the end of January.
(d) Prepare the Statement of Comprehensive Income of Kidds Beach Hardware for the month ended 31 January 2023.
(e) Prepare the Statement of Financial Position of Kidds Beach Hardware at 31 January 2023.
(f) Record the closing entries to the trading and profit and loss summary accounts and to the capital account.
(g) Balance the real accounts in the ledger.
(h) Prepare a post-closing trial balance.
