Question

QUESTION 1: Financial Accounting and Adjusting Entries STUDENT S PLEASE NOTE: This question is NOT compulsory. You will be awarded the greater mark of your Mid-Trimester exam (done in Week 6) OR your mark obtained for Question 1 below. You may complete the rest of the paper questions 2-5) and come back to question 1 at the end if you prefer to do so. Part 1 - Recording Accounting Transactions 2 Stayzz' is a business that manages student accommodation and rentals. The following transactions took place during May 2020. 2020 May 2 The owner of, 'Stayzz, Mr Max Moodry, took his mother for lunch and used cash from the business bank account to pay $200 for this lunch. 7 Stayzz bought a delivery vehicle to transport students. The total cost of the delivery vehicle was $20,000. An amount of $5,000 was paid as a deposit and a loan was taken out for the remaining amount. 10 The business recorded Rental Income for the first part of May. Total cash received was $4,500 and an amount of $8,500 is still owed to Stayzz by other clients. 15 Mr Moodry wants to expand the business and contributed an additional amount of $20,000 from his personal savings to the business. 25 Stayzz paid $2,000 to the bank to start paying off the loan which they took out when they bought the delivery vehicle on May, 7. 31 "Stayzz bought stationery supplies from supplier on credit for a total amount of $450. These stationery supplies will be used in the administrative office at "Stayzz REQUIRED: Based on the information provided, record the necessary journal entries in the template provided Journals need to be formatted corredly and include a narration (explanation) for each journal entry. Stayzz - General Journal Date Details Debit Credit Complete the General Ledger Account below by recording relevant transactions from part 1 (remember to balance the account at the end of the month) in the template provided Loan payable $ Date Date Details Details

Answer 1

Journal Entries Date Particulars Debit $ Credit $ Dr 200 200 2 May,2020 Max Moodry Capital A/C To Drawings A/C (withdrawn cash from business bank a/c for purposes) Dr 20000 7 May,2020 Delivery Vehicle A/C To Cash/ Deposit A/C To Loan A/C (purchased delivery vehicle and 5000 made as deposit and took a loan for balance amount) 5000 15000 Dr 4500 8500 DI 10May,2020 Cash A/c Accounts Receivable/Rental income Receivable To Rental Income (4500 rent received and 8500 rent receivable) 13000 Dr 20000 15 May,2020 Cash/Bank A/C To Max Moodry Capital A/C (additional capital intoduced) 20000

Dr 20000 15 May,2020 Cash/Bank A/C To Max Moodry Capital A/C (additional capital intoduced) 20000 Dr 2000 25 May,2020 Loan A/C To Cash/Bank A/C (repayement of loan) 2000 Dr 450 31 May,2020 Stationary Supplies A/C To Accounts Payable (purchased stationary supplies on credit) 450

Loan Payable A/C Date Details $ Date Details $ 25-May-20 Cash/Bank A/C 2000 7-May-20 Delivery Vehicle A/C 15000 31-May-20 Balance 13000 15000 150001