Question

The question is to make a general journal. Could anyone help me to solve this question! THANK YOU !!!!!

Proprietor: Name: Description: Mr. M. Woodwin Realtor21 Real Estate Agent Additional Information: Bank loan interest rates (% per year) Motor vehicle useful life (years) Motor vehicle scrap value (S) Insurance paid for (months) Rent paid for (months) Furniture useful life (years) Furniture scrap value ($) Closing stock of promotional materials 30/6 (S) The business has the following opening balances: Promotional Material Supplies Furniture Bank Loan (due 2022) Account Payable Motor Vehicle Account Receivable Cash At Bank $538 $29,249 $22,062 S8,702 $36,244 S16,163 $16,670 10 2,952 863 Transactions: Date Description Advertising Expense - Cash Description Amount Date Amount S2,605 1-Jun Paid General Insurance 2-Jun $379 Receive Payment from Account Customers $1,491 Rent of Business Premises $4,041 3-Jun 3-Jun 3-Jun Advertising placement fees - Cash S1,003 4-Jun Purchase promotional materials $343 Advertising placement fees - Cash $996 Motor Vehicle Expenses $264 4-Jun 4-Jun 7-Jun Rental commission - Cash $1,555 7-Jun Receive Payment from Account Customers S1,462 8-Jun Staff Wages $1,882 $1,341 11-Jun Auction commission - Cash Motor Vehicle Expenses 11-Jun $107 12-Jun Advertising Expense - Account $526 Rental commission - Cash $1,532 Purchase promotional materials 12-Jun 14-Jun $326 15-Jun Staff Wages $1,070 14-Jun Advertising placement fees - Account Auction commission - Account S1,341 $991 Rental commission - Account S1,434 15-Jun 16-Jun Cash Withdrawals by Owner Payment to Account Payable 17-Jun $418 19-Jun $1,277 $1,791 19-Jun Auction commission - Cash 19-Jun Cash Withdrawals by Owner $508 21-Jun Sundry Expenses $258 22-Jun Advertising Expense - Account $762 $903 22-Jun Staff Wages S1,341 22-Jun Auction commission - Account Payment to Account Payable Additional cash contributed by owner 24-Jun $1,017 24-Jun $3,621 25-Jun Sundry Expenses $185 Advertising Expense - Cash 25-Jun $321 28-Jun Rental commission - Account S1,310 29-Jun Advertising placement fees - Account S1,000 29-Jun Staff Wages S1,341 Comments: This business was purchased on 1 June. You are required to prepare a general journal entry to incorporate the opening balances into the current period, including the balancing capital figure. You will need to refer to the Additional Information section for your adjusting entries. The rent and insurance period start on 1 June. Show three types of revenue, namely rental commission, auction commission and advertisement placement fees. All revenues received were for the month of June. Unless otherwise indicated, all transactions are on a cash basis. Use one general Account Receivable for all debtors and one general Account Payable for all creditors. Your Balance Sheet should show assets and liabilities divided into current and non-current. Staff work a 7-day week and are paid on the 8th day. Assume all prepayments are initially recognised as an asset.

Answer 1

Date Account title & explanation Debit Credit 1-Jun Promotional Material Supplies 538 Furniture 29249 Motor Vehicle 36244 Accounts Receivable 16163 Cash at Bank 16670 Bank Loan 22062 Accounts Payable 8702 Owner's Capital 68100 (To record purchase of business and difference is transferred to Capital) 64 65 2605 1-Jun Prepaid Insurance Cash at Bank (To record insurance paid) 2605 379 1-Jun Advertising expense Cash at Bank (To record advertising expense) 379 1491 3-Jun Cash at Bank Accounts Receivable (To record Cash at Bank received) 1491

4041 3-Jun Prepaid Rent Cash at Bank (To record prepaid paid) 4041 1003 3-Jun Cash at Bank Advertising Placement Fees (To record advertising placement fees) 1003 343 4-Jun Promotional Material Supplies Cash at Bank (To record purchase of Promotional Material) 343 996 4-Jun Cash at Bank Advertising Placement Fees (To record advertising placement fees) 996 264 4-Jun Motor Vehicle expenses Cash at Bank (To record Motor Vehicle expenses) 264 1555 7-Jun Cash at Bank Rental Commission (To record Rental Commission) 1555

1462 02 7-Jun Cash at Bank Accounts Receivable (To record Cash at Bank received) 1462 103 104 105 1341 8-Jun Wages expense Cash at Bank (To record Wages expenses) 1341 107 108 109 1882 11-Jun Cash at Bank Auction Commission (To record Auction Commission) 1882 111 112 107 11-Jun Motor Vehicle expenses Cash at Bank (To record Motor Vehicle expenses) 107 114 115 116 117 18 12-Jun Advertising expense Accounts Payable (To record advertising expense) 119 120 121 1532 12-Jun Cash at Bank Rental Commission (To record Rental Commission) 1532 123

125 326 126 14-Jun Promotional Material Supplies Cash at Bank (To record purchase of Promotional Material) 127 128 1070 129 130 131 14-Jun Accounts Receivable Advertising Placement Fees (To record advertising placement fees) 132 1341 133 134 135 15-Jun Wages expense Cash at Bank (To record Wages expenses) 1341 136 137 991 138 15-Jun Accounts Receivable Auction Commission (To record Auction Commission) 139 140 141 1434 142 16-Jun Accounts Receivable Rental Commission (To record Rental Commission) 143 144 145 146 147 418 17-Jun Owner's Withdrawls Cash at Bank (To record drawings)

1277 149 150 19-Jun Accounts Payable Cash at Bank (To record payment made) 1277 151 152 1791 19-Jun Cash at Bank Auction Commission (To record Auction Commission) 1791 508 153 154 155 156 157 158 159 160 161 162 19-Jun Owner's Withdrawls Cash at Bank (To record drawings) 508 258 21-Jun Sundry expense Cash at Bank (To record Wages expenses) 258 163 762 22-Jun Advertising expense Accounts Payable (To record advertising expense) 762 164 165 166 167 168 169 170 171 903 22-Jun Accounts Receivable Auction Commission (To record Auction Commission) 903

1341 173 174 22-Jun Wages expense Cash at Bank (To record Wages expenses) 1341 175 176 1077 24-Jun Accounts Payable Cash at Bank (To record payment made) 178 179 1077 3621 24-Jun Cash at Bank Owner's Capital (To record additional Capital contributed) 182 183 3621 185 185 186 187 25-Jun Sundry expense Cash at Bank (To record Wages expenses) 185 188 321 25-Jun Advertising expense Cash at Bank (To record advertising expense) 190 191 321 1310 28-Jun Accounts Receivable Rental Commission (To record Rental Commission) 194 195 1310

1000 197 198 29-Jun Accounts Receivable Advertising Placement Fees (To record advertising placement fees) 1000 199 200 1341 201 202 29-Jun Wages expense Cash at Bank (To record Wages expenses) 1341 203 204 205 Adjusting Entries 206 184 207 208 209 30-Jun Interest Expense (22062*10%*1/12) Interest Payable (To record accrued interest expense) 184 210 925 (36244-2952)/3*1/12 30-Jun Depreciation Expense - Motor Vehicle Accumulated Depreciation -Motor Vehicle (To record depreciation expense) 925 211 212 213 214 215 216 812 (29249-0)/3*1/12 30-Jun Depreciation Expense - Furniture Accumulated Depreciation - Furniture (To record depreciation expense) 812 217 218 868 219 220 30-Jun Insurance expense (2605/3*1) Prepaid insurance (To record expired insurance) 868 221

1347 223 224 225 30-Jun Rent expense (4041/3*1) Prepaid Rent (To record expired rent) 1347 227 344 228 30-Jun Supplies expense (538+343+326 - 863) Promotional Material Supplies (To record supplies consumed during the Year) 344 229 230 383 231 232 30-Jun Wages Expense (1341/7*2) Wages Payable ((To record accrued wages) 383 233 234 235 236