Answer to Question #209094 in Accounting for Derek Lewis

Question

a). Journalize and post adjusting entries, using the following information:

• The actual light bill received from Light Company is $10,000.
• Depreciation for a G Wagon has not been taken into account for the month. The business uses the reducing balance method to depreciate motor vehicles at a rate of 12% per annum.
• The furniture and point-of-sale machine in the business are to be depreciated using the straight-line method at a rate of 8%. Depreciation for furniture & point-of-sale

the machine has not been taken into account.

The following transactions:

July 1 Miss Ryce stated business with a G Wagon valued at $1,200,000.

July 2 Miss Ryce purchased store furniture from Royal Cabinets Limited using a cheque

amounting to $120,000.

July 3 Miss Ryce paid Telesales Electronics $15,000 with a cheque to set up her point-of-sale machine at the store.

July 22 Miss Ryce paid cash for the following utility bills for the month:

Utility Amount

Light Company $13,000

Answer 1

July 1 Dr Bank $1,200,000

Cr Capital $1,200,000

July 2 Dr Store furniture $120,000

Cr Bank $120,000

July 3 Dr Telesales Electronics $15,000

Cr Bank $15,000

July 22 Dr Utility Light Company $13,000

Cr Cash $13,000