General journal entry to incorporate the opening balances

Assignment Help Financial Accounting
Reference no: EM13492015


The business has the following opening balances:

Cash At Bank

$16,478

Account Receivable

$23,791

Motor Vehicle

$30,232

Account Payable

$9,630

Bank Loan (due 2014)

$27,778

Medical Equipment

$34,884

Office Supplies

$660

Medical Supplies

$1,506

Additional Information:


 

Bank loan interest rates (% per year)

8

Motor vehicle useful life (years)

3

Motor vehicle scrap value ($)

2,503

Insurance paid for (months)

4

Rent paid for (months)

5

Medical equipment useful life (years)

4

Medical equipment scrap value ($)

3,877

Closing stock of office supplies on 30/6 ($)

553

Closing stock of medical supplies on 30/6 ($)

2,247

Date

Description

Amount

Date

Description

Amount

1-Jun

 

Paid General Insurance

$2,063

1-Jun

 

Motor Vehicle Expenses

$223

2-Jun

 

Purchase medical supplies - Cash

$443

3-Jun

 

Pet consultation - Cash

$1,650

3-Jun

 

Rent of Business Premises

$3,029

4-Jun

 

Pet consultation - Account

$1,496

5-Jun

 

Cash Withdrawals by Owner

$582

5-Jun

 

Sundry Expenses

$122

6-Jun

 

Payment to Account Payable

$1,475

6-Jun

 

Cash Withdrawals by Owner

$567

7-Jun

 

Desexing - Cash

$2,638

7-Jun

 

Purchase office supplies - Account

$447

8-Jun

 

Motor Vehicle Expenses

$134

8-Jun

 

Purchase office supplies - Account

$349

8-Jun

 

Receive Payment from Account Customers

$1,096

8-Jun

 

Staff Wages

$1,465

9-Jun

 

Vaccination - Account

$773

10-Jun

 

Advertising Expense - Cash

$474

12-Jun

 

Advertising Expense - Cash

$328

12-Jun

 

Advertising Expense - Account

$765

15-Jun

 

Staff Wages

$1,465

16-Jun

 

Pet consultation - Account

$1,388

17-Jun

 

Vaccination - Cash

$1,448

18-Jun

 

Receive Payment from Account Customers

$1,903

19-Jun

 

Vaccination - Cash

$1,275

21-Jun

 

Vaccination - Account

$1,016

22-Jun

 

Staff Wages

$1,465

22-Jun

 

Sundry Expenses

$110

24-Jun

 

Advertising Expense - Account

$770

25-Jun

 

Purchase medical supplies - Account

$653

25-Jun

 

Pet consultation - Cash

$1,585

26-Jun

 

Desexing - Cash

$2,316

26-Jun

 

Payment to Account Payable

$634

27-Jun

 

Additional cash contributed by owner

$4,875

29-Jun

 

Staff Wages

$1,465

 

 

 

 

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 pet consultation, vaccination and desexing 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 recognized as an asset.

Reference no: EM13492015

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