W. Falconetti commenced business on 1 January 2023 trading as Tri-Corp Drapers. In accounting for its inventory transactions, the firm uses the PERIODIC RECORDING METHOD. The business transactions for January were:

January 2 Deposited R18 000 in a current banking account in the name of the business.

3 Purchased and paid R2 400 for shop fixtures and fittings.

4 Paid rent R600.

5 Bought goods for resale on credit for R3 960 and paid R40 transportation costs on the items purchased.

9 Paid insurance premiums R240.

11 Paid R150 for advertising space in Albany Weekly Mail.

12 Purchased office supplies on credit R90.

15 Banked receipts from cash sales R2 800.

17 Paid R1 800 to creditors and was granted settlement discounts of R50.

22 Falconetti withdrew R100 from the bank for personal use and took inventory costing R250 for his private consumption.

24 Paid postmaster R60 for telephone service.

25 Recorded credit sales for the month R1 100.

31 Received and banked R600 from debtors and allowed settlement discounts of R30.

31 Fixtures and fittings must be depreciated by R40.

31 Unused offices supplies at 31 January amounted to R50.

A physical inventory count at 31 January showed that the cost of unsold inventory on hand was R1 250.


REQUIRED:

(a) Record all the transactions for January in journal form (ignore narrations).

(b) Post the journal entries to the attached ledger accounts.

(c) Take out a trial balance at 31 January.

(d) Prepare financial statements for January 2023.

(e) Prepare closing journal entries and post to the ledger accounts.

(f) Balance the real accounts.

(g) Prepare the post-closing trial balance.



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