Question

Record the general journal entries.

12 donated his motor vehicle to the firm. Original cost: $15,000. Current market value: $3,000 in exchange for ordinary shares @$1 per share 2. Arranged an interest only loan with Grand Bank for $8,000; interest at 5% p.a.; payable quarterly. Principal amount to be repaid 31 December 2022. Loan amount deposited in account today. 3. Depreciate the vehicle equally over 6 years with no residual value. This is to certify that is the holder of 12,000 ordinary shares in MBB Catering Supplies Pty. Ltd. on payment of $1 per share. silouge byl sulod sce Amount paid: $12,000 Date: 1 January 2019 ultrice SUBJECT: End of month adjustments: Please attend to relevant adjustments to determine the profit or loss made in the first month of trading. Some adjustments relate to the invoices received but other adjustments that need to be considered are: 1. One of the ice cream machines cannot be sold unless we price it at $850 due to some damage that occurred in the storeroom 2. Wages owing to a part-time assistant is $600 3. All shelves are to be depreciated as a whole using straight-line method, at 20% p.a. | 4. The Tiki Room settled their account in full on the 28th January, 11: 1. Took vehicle to Doncaster Auto Repairs for fitting of new air conditioner, replacing the existing one which is broken. The new Air Conditioner is of the same brand and model as the old one. Invoice will be provided on completion of work. 2. Paid Michael for the following amounts: $70 petrol; $20 telephone expenses; $15 stationery expenses. 3. Transfer to Michael's personal account $600 as wage. 1. The manager of the 'Talking Parrot" advised that the firm would not be able to pay their account owing to a fire at the premises and having no cash reserves to pay creditors. No insurance in place to cover the fire. 2. Wages owing to the assistant at the end of month is $325 3. Take up other adjustments to accounts as per those at the end of January. 4. Coffee machine is to be depreciated at 40% pa reducing balance.

Answer 1

Dr. Cr.

1. Sundry asset a/c. Dr.    3000

To Vendor A/c. 3000

Vendor a/c. Dr.    3000

To share capital a/c. 3000

2. Bank A/c dr. 8000

To loan a/c. 8000

3. Depreciation a/c Dr. 500

To vehicle a/c. 500

B. Only 1st will make loss to business

Loss due to damage a/c dr. 850

To. Stock a/c. 850

C. 1. Petrol a/c dr. 70

Telephone exp. Dr. 20

Stationary a/c dr. 15

To. Michael. A/c. 105

2. Wages a/c dr. 600

To. Cash a/c. 600

D.

2. Wages a/c dr. 325

To wages outstanding. 325