The Johnny Thunder's Class Question.

Class Question

1. Based on the information you received in an email from Johnny take the following steps

a. Prepare journals for all 13 events or transactions (See Moodle for answer)
b. Record all journals in relevant T accounts (See Moodle for answer)
c. Prepare a trial balance as at 24 December 2007 (See Moodle for answer)

2. Review the cash position during the year.
a. Using a cash T accounts and calculate the cash balance at 31 March, 30 June, 30 September and 24 December. Where there is no reference to when cash payments were made, assume they are made on the 15th of the month.
b. Is there anything unusual about the cash balances?

3. Please review the supplementary information
a. Prepare an updated trial balance (See Moodle for answer)
b. Prepare a balance sheet showing assets and liabilities as at 31 December 2007 (See Moodle for answer)
c. Prepare an income statement for the year ended 31 December 2007 (See Moodle for answer)

If you want to practice cashbook entries, try question 2 and send me the answers.