Problem # Sofia James Is A Marketing Entrepreneur Who Has Panache For Selling Anything. She
Uploaded by
Debbie DebzProblem # Sofia James Is A Marketing Entrepreneur Who Has Panache For Selling Anything. She
Uploaded by
Debbie DebzACCOUNTS ASSIGNMENT
Problem # Sofia James is a marketing entrepreneur who has panache for selling anything. She
opened a pastry shop in February 2019, specializing in sourcing and distributing the most delicious
cakes and pastries. She rented a shop by Sovereign North and commenced business on February 1.
The following transactions took place during the month.
Feb 1 Sofia invested the following assets into the business: cash, $80,000; office furniture, $20,000
Feb 1 Transferred $15,000 of the cash to the bank.
Feb 2 Paid rent for February by cheque $10,000
Feb 2 Purchased delivery van on credit from Mona Motors Ltd. for $40,000
Feb 3 Bought a refrigerator from Courts, paying by cash $15,000
Feb. 3 Bought merchandise for resale by cash $35,000.
Feb 3 Sold merchandise to Candy Craze, for cash $10,000 and on credit to Just Cakey $60,000.
Feb 5 Sold merchandise on credit to Simply Yummy $5,600.
Feb 6 Just Cakey settled their account with cash receiving a 3.5% cash discount.
Feb 6 Merchandise valued at $950, to Simply Yummy on February 5, was returned to Sofia James,
the wrong order went out
Feb 7 Bought merchandise on credit from Sweetopia $25,000.
Feb 8 Sold merchandise on credit to Chocolate Delights Ltd $36,000.
Feb 11 Bought custom packaging (classified as an expense) for Valentine’s Day for cash $6,200.
Feb 12 Bought merchandise on credit from Fruits, Nuts and More $8,500.
Feb 13 Returned $600 worth of merchandise to Fruits, Nuts and More
Feb 14 Sold merchandise collecting via the debit card machine amounting to $20,500
Feb 18 Lodged cash of $30,000 to the business bank account
Feb 20 Paid Sweetopia $23,800 in full settlement of the balance outstanding by cheque having
received a discount of $1,200
Feb 23 Commission was received by cash, $5,000 from Just Hot Buns Ltd for outstanding sales on
February 14th
Feb 25 Paid wages and utilities by cash $10,500 and $16,800 respectively
General Journal
Amount ($)
Date Account Title and Explanations Ref Debit Credit
2019
February 1
Cash 80,000.00
Office Furniture 20,000.00
Capital 115,000.00
Bank 15,000.00
Rent Expenses 10,000.00
2
Bank 10,000.00
Total
