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1. ACE ARCH started a business on 1 May and, during the first month, entered into the following transactions:
May 1 ACE ARCH starts business as a sole proprietor with $20,000 in
cash
May 2 Pays $15,000 cash into a business bank account
May 4 Purchases goods on credit from JM for $2,000
May 6 Purchases goods from ERD on credit for $3,000
May 7 Pays wages in cash $60
May 10 Pays rent by cheque $80
May 12 Sells goods for cash $210
May 16 Buys furniture for $1,500 paying by cheque
May 19 Sells goods on credit to SP for $580
May 22 Buys goods for cash $3,900
May 24 Buys fittings for cash $600
Pays carriage outwards costs by cheque $25
May 25 Pays wages by cash $110
Sells goods for cash $430
May 27 Receives part payment from SP of $330 by cheque
Pays carriage inwards costs by cheque $20
May 28 Pays advertising by cheque $25
Sells goods for cash $890
May 29 Sells goods on credit to KM for $8,090
May 30 Withdraws $100 cash for his personal use
Required:
Prepare ledger account entries to record the transactions and then balance the accounts at the end of the month
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