Math Problem Solver

The following details were obtained from the books of Caree Sangster for the year ended

December 31, 2023.

1) At January 1, 2023 $100,000 of her personal funds was used to start the business, $90,000

was used to open a bank account and $10,000 was placed in a cash pan for business use. 2) Personal motor vehicle valued at $2,500,000 was also brought into the business by Caree

for business use.

3) Loan of $2,500,000 was borrowed from CIBC at an interest rate of 5% per annum for 5 years. It is repayable in equal annual instalments. The first annual payment was due in \=December 2023 at which time 5% of the total loan is also due for interest. These payments were all made on the due date from the business bank account. 3) The premises from which the business operates is rented at $30,000 monthly. All

payments have been made by bank transfer on the due date of the 1st of each month.

4) Total Purchases made for the year amounted to $4,500,000 of which $2,000,000 was on

credit. $75,000 worth of purchases were returned to suppliers. Balance due to creditors at December 31 was $275,000.

5) Total sales for the year was $8,000,000 of which $2,000,000 represented credit sales.

6) All monies received from sales were banked except for $100,000 monthly which was taken from the cash sales by Caree for her personal use. At the end of the year a total of $120,000 was due to Caree from credit customers.

7) Every month a cheque is encashed for $15,000 and placed in the cash pan to be used for cash expenses. 8) Purchase of stationery monthly by cash is $5,000.

9) There is a casual worker working on an ad hoc basis who is paid cash $6,000 per month. 10) Sales returned to the business for the year amounted to 1% of total sales. 11) Other annual expenses relating to the business are Salaries $900,000, Electricity

$150,000; Water $80,000 and Insurance $55,000. 12) Commissions received by Sarah for the year amounted to $120,000. This amount was

lodged to the business bank account.

11) Furniture and Fixture purchased during the year amounted to $60,000 and a machine was purchased for $110,000. Furniture and fixture was paid for by cheque and the Machine

credited from ATL Jamaica.

Required:

A) Enter the above mentioned transactions in the relevant journals and then post to