Opening balances

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ACC1100 -Name: Email:
Assignment # 494 Semester 1 2019 YOUSUF, MOHAMMED (29378826) [email protected]
Proprietor: Mr. M. Woodwin Name: Realtor21 Description: Real Estate Agent The business has the following opening balances: Promotional Material Supplies Furniture Bank Loan (due 2022) Account Payable Motor Vehicle Account Receivable Cash At Bank $589 $23,815 $22,715 $9,000 $30,877 $24,620 $15,358 Additional Information: Closing stock of promotional materials 30/6 ($) Furniture scrap value ($) Furniture useful life (years) Rent paid for (months) Insurance paid for (months) Motor vehicle scrap value ($) Motor vehicle useful life (years) Bank loan interest rates % s er ear 974 0 3 5 3 4,036 5 9
Date Description Amount Date Description Amount 1-Jun Paid General Insurance $2,859 2-Jun Auction commission – Cash $1,739 3-Jun Rent of Business Premises $4,015 4-Jun Payment to Account Payable $815 4-Jun Purchase promotional materials $411 4-Jun Sundry Expenses $280 4-Jun Advertising Expense – Cash $349 7-Jun Motor Vehicle Expenses $255 7-Jun Motor Vehicle Expenses $265 8-Jun Rental commission – Cash $1,627 8-Jun Payment to Account Payable $602 8-Jun Receive Payment from Account Customers $1,081 8-Jun Rental commission – Cash $1,855 8-Jun Advertising Expense – Account $607 8-Jun Staff Wages $1,204 9-Jun Rental commission – Account $1,353 9-Jun Advertising placement fees – Account $932 11-Jun Auction commission – Account $1,218 11-Jun Advertising placement fees – Cash $1,072 11-Jun Advertising placement fees – Cash $869 12-Jun Purchase promotional materials $485 14-Jun Advertising placement fees – Account $851 14-Jun Advertising Expense – Cash $366 15-Jun Advertising Expense – Account $669 15-Jun Staff Wages $1,204 18-Jun Cash Withdrawals by Owner $526 19-Jun Cash Withdrawals by Owner $498 19-Jun Auction commission – Account $1,218 21-Jun Receive Payment from Account Customers $1,087 21-Jun Rental commission – Account $1,296 22-Jun Staff Wages $1,204 25-Jun Additional cash contributed by owner $2,964 27-Jun Auction commission – Cash $1,780 29-Jun Sundry Expenses $243 29-Jun Staff Wages $1,204
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.

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