Fundamentals of Accounting: Journal Entries, Adjusting Entries and Accounting Standards

Unit: ACC101 – Fundamentals of Accounting
I
Weighting: The assignment is worth 40% of the total unit weight.
Instructions:
1. Students are required to cover all stated requirements.
2. Your answer must be uploaded to Moodle in word file
with your full name and student ID number.
3. You need to support your answers with appropriate Harvard
style references where necessary.
4. Only include information in your appendixes that has
been directly referred to in the body of your document.
5. Include a title/cover page containing the subject title and code
and the name, student id number and name.
6. Please save the document as
ACC101_B1T32018_first
name_Surename_Student Number
Eg:ACC101_B1T32018_John_Smith_20160000
1

Question 1 Practical Questions (15 marks in total)
The following transactions for ABC Constructions occurred during April and
May 2014:
April 1 Owner contributes capital of $40 000, by an additional injection of
cash.
April 3 Cash is received from a customer, F. Turnip, $14 000.
April 5 Supplies are requisitioned for use in the office, $500.
April 9 Installation services are provided on credit for $13 500 to Banana
Ltd.
April 12 A $7 000 loan is taken out with AMP Loans Ltd. Interest is
payable at 10% p.a.
April 18 A bill for electricity consumed is received, $400.
April 24 Office fixtures are purchased from Dots Ltd for $6 000. $2 000 is
paid immediately by cheque, the remainder is due in July.
April 27 A cheque is issued in payment of the electricity account received
on 18 April.
April 29 Prepaid insurance costs have been used to the extent of $800.
May 1 Payment on account is made by cheque to Apple Suppliers, $40
000.
May 2 Supplies are purchased on account from Deluxe Supplies Ltd, $2
900.
May 13 Rent for the month is paid by cheque, $7 000.
May 17 Insurance expired, $780.
May 23 Installation equipment is purchased on account from Apple
Suppliers, $26 000.
May 29 A salary of $5 000 is paid by cheque.
Required
Assuming that the accounting period is a calendar year, prepare general
journal entries for ABC Constructions Ltd during April and May 2014.
Ignore GST.
Particulars Dr Cr
Cash A/c..Dr 40000
To Capital A/c 40000
(Being Capital added to business)

Cash A/c..Dr 14000
To Accounts Receivable A/c 14000
(Being Cash received from F. Turnip)
Supplies A/c..Dr 500
To Supplies Payable A/c 500
(Being Supplies requisitioned)
Sundry Debtors A/c..Dr 13500
To Sales A/c 13500
(Being Services rendered on credit to Banana Ltd)
Cash A/c.....Dr 7000
To Loan A/c 7000
(Being Loan taken)
Utilities A/c...Dr 400
To Utilities Payable A/c 400
(Being Utilities bill outstanding)
Fixtures A/c...Dr 6000
To Bank A/c 2000
To Fixture Payable A/c 4000
(Being Fixture purchased on cash and credit basis)
Utilities Payable A/c..Dr 400
To Bank A/c 400
(Being Outstanding bill paid)
Insurance A/c..Dr 800
To Prepaid Insurance A/c 800
(Being insurance utilized)