Question

Part A (15 marks) he business of Brightspark Electrical Services for the The following information relates to the business of Brightspark Electrical s. month of June 2017 June 2 8 18 K. Pellham withdrew $8 500 cash from the business for personal ment for $15 000. A deposit of $5 000 was paid from Purchased new equipment for S15 000. A deposit of $5 000 was the business bank account and a mortgage loan with CBA was arranged for the remaining balance. Earned fees totalling $6 100 from customers for performing electrical installations. Of this, 60% of the fees were collected in cash and 40% will be received within 30 days. Received $3 800 from customers for electrical installations to be performed in July 2017 24 Required: 1) Prepare journal entries to record the above transactions for the month ended 30 June 2017. Narrations ARE required. (15 marks) Date Credit Debit Account

Answer 1

Solution:

Journal entries for the month ending 30 June 2017

Date Particulars       Debit Credit

2June Drawings Account Dr. $8500

To Cash account $8500

(Being $8500 withdrawl from busineess for personal use)

8 June Equipment account Dr.   $1500

To bank account    $5000

To lona account $10000

(Being new equipment purchace of $15000, $5000 paid by

Bank and $10000 by a mortgage loan with CBA)

18 June Cash account Dr. $3660

Bills recievebale account Dr. $2440

To earned Fees account $6100

(Being Fees earned of $6100 out of which $3660 (60%) recieved

in cash, and rest will recieve with in 3 days (Before17 july).

24 June Cash account Dr. $3800

To advance Fees $3800

(Being advance fees of $3800 recieved for the month of July)