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The following transactions were made during the first month of asole proprietors business

Determine the accounting elements:

The following transactions were made during the first month of asole proprietor's business operation:

1. Mr.  X started a grocery store. He invested $20,000 as initial investment.

2. He registered his business, paying $500 for registration fee.

3. He paid $1,200 for store rent applicable for one year.

4. He incurred and paid $2,000 for the repair of the grocery store.

5. He purchased merchandise for sale amounting to $20,000 paying $15,000 with the balance to be paid after 60 days.

6. He paid $100 for the transportation of the merchandise purchased.

7. He hired a sales lady for contract of $800 per month salary.

8. He sold $10,000 worth of merchandise for $16,000 for cash.

9. He sold $2,000 worth of merchandise for $35,000 on account.

10. He paid business taxes amounting to $460 during the month.

11. He paid $500 electricity expense during the month.

12. He paid the salary of his saleslady.

13. He paid 50% of this obligation to this supplier.

Apr 30 2018 View more View Less

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