Abcde Pty Ltd: Comprehensive Journal Entries and Financial Adjustments

This assignment provides a comprehensive set of journal entries for Abcde Pty Ltd for the month of July 2018, covering various business transactions including sales, purchases, rent, advertising, wages, and insurance. It includes detailed recordings of cash transactions, accounts receivable and payable, inventory management, and GST implications. Furthermore, the solution incorporates adjusting entries for prepaid insurance, depreciation of motor vehicles, office furniture, and computers, as well as provisions for stock loss, office supplies consumed, bad debt expenses, and interest expenses. The assignment also features a working section that outlines inventory purchases, sales, and balances, demonstrating a thorough application of financial accounting principles. Desklib provides this solution and many other solved assignments and past papers to assist students in their studies.

Journal Entries
In the books of Abcde Pty Ltd.
Date Particulars Dr./Cr. Amount
01-Jul-18 Cash at Bank Dr. $ 23,462
Accounts receivable Dr. $ 4,463
Inventory Dr. $ 10,760
Motor vehicle Dr. $ 20,358
Office furniture Dr. $ 12,769
Office supplies Dr. $ 687
Allowance for doubtful debt Cr. $ 489
Accumulated depreciation motor vehicle Cr. $ 2,963
Accounts payable Cr. $ 5,751
Bank loan owing Cr. $ 12,365
Accumulated depreciation office furniture Cr. $ 1,270
Share capital Cr. $ 41,075
Retained earnings Cr. $ 8,586
(Being opening balances)
02-Jul-18 Accounts receivable Dr. $ 3,190
GST Collected Cr. $ 290
Sales Cr. $ 2,900
(Being sale recorded)
02-Jul-18 Cost of Goods Sold Dr. $ 1,160
Inventory Cr. $ 1,160
(Being cost of sale of inventory recorded)
02-Jul-18 Rent expense Dr. $ 2,466
GST Paid Dr. $ 247
Bank Cr. $ 2,713
(Being rent payment for current month recorded)
02-Jul-18 Advertising expense Dr. $ 665
GST Paid Dr. $ 66
Advertising payable Cr. $ 731
(Being invoice for advertising services booked)
04-Jul-18 Bank Dr. $ 1,070
Accounts receivable Cr. $ 1,070
(Being receipt of payment from debtors recorded)
04-Jul-18 Wages expense Dr. $ 2,196
Bank Cr. $ 2,196
(Being payment of wages recorded)

05-Jul-18 Accounts receivable Dr. $ 4,235
GST Collected Cr. $ 385
Sales Cr. $ 3,850
(Being sale recorded)
05-Jul-18 Cost of Goods Sold Dr. $ 1,540
Inventory Cr. $ 1,540
(Being cost of sale of inventory recorded)
05-Jul-18 Accounts payable Dr. $ 1,393
Bank Cr. $ 1,393
(Being payment to vendors recorded)
07-Jul-18 Inventory Dr. $ 520
GST Paid Dr. $ 52
Accounts Payable Cr. $ 572
(Being purchase of inventory recorded)
09-Jul-18 Accounts payable Dr. $ 1,436
Bank Cr. $ 1,436
(Being payment to vendors recorded)
11-Jul-18 Accounts receivable Dr. $ 3,575
GST Collected Cr. $ 325
Sales Cr. $ 3,250
(Being sale recorded)
11-Jul-18 Cost of Goods Sold Dr. $ 1,318
Inventory Cr. $ 1,318
(Being cost of sale of inventory recorded)
11-Jul-18 Bank Dr. $ 882
Accounts receivable Cr. $ 882
(Being receipt of payment from debtors recorded)
13-Jul-18 Accounts payable Dr. $ 1,085
Bank Cr. $ 1,085
(Being payment to vendors recorded)
14-Jul-18 Inventory Dr. $ 572
GST Paid Dr. $ 57
Accounts Payable Cr. $ 629
(Being purchase of inventory recorded)
15-Jul-18 Insurance expense Dr. $ 2,191
GST Paid Dr. $ 219

Bank Cr. $ 2,410
(Being insurance payment made)
15-Jul-18 Office supplies Dr. $ 565
GST Paid Dr. $ 57
Accounts Payable Cr. $ 622
(Being purchase of office supplies made)
16-Jul-18 Bank Dr. $ 1,159
Accounts receivable Cr. $ 1,159
(Being receipt of payment from debtors recorded)
17-Jul-18 Computer Dr. $ 2,037
GST Paid Dr. $ 204
Accounts Payable Cr. $ 2,241
(Being purchase of computer made)
18-Jul-18 Accounts receivable Dr. $ 3,465
GST Collected Cr. $ 315
Sales Cr. $ 3,150
(Being sale recorded)
18-Jul-18 Cost of Goods Sold Dr. $ 1,299
Inventory Cr. $ 1,299
(Being cost of sale of inventory recorded)
18-Jul-18 Wages expense Dr. $ 2,460
Bank Cr. $ 2,460
(Being payment of wages recorded)
20-Jul-18 Inventory Dr. $ 520
GST Paid Dr. $ 52
Accounts Payable Cr. $ 572
(Being purchase of inventory recorded)
22-Jul-18 Accounts receivable Dr. $ 4,125
GST Collected Cr. $ 375
Sales Cr. $ 3,750
(Being sale recorded)
22-Jul-18 Cost of Goods Sold Dr. $ 1,570
Inventory Cr. $ 1,570
(Being cost of sale of inventory recorded)
24-Jul-18 Inventory Dr. $ 600
GST Paid Dr. $ 60

Accounts Payable Cr. $ 660
(Being purchase of inventory recorded)
24-Jul-18 Motor Vehicle expense Dr. $ 139
GST Paid Dr. $ 14
Bank Cr. $ 153
(Being payment of vehicle expense made)
29-Jul-18 Accounts receivable Dr. $ 4,235
GST Collected Cr. $ 385
Sales Cr. $ 3,850
(Being sale recorded)
29-Jul-18 Cost of Goods Sold Dr. $ 1,632
Inventory Cr. $ 1,632
(Being cost of sale of inventory recorded)
30-Jul-18 Inventory Dr. $ 600
GST Paid Dr. $ 60
Accounts Payable Cr. $ 660
(Being purchase of inventory recorded)
Adjusting entries
Date Particulars Dr./Cr. Amount
31-Jul-18 Prepaid insurance (2191/12*11) Dr. $ 2,008
Insurance expense Cr. $ 2,008
(Being amortization of insurance expense made)
31-Jul-18 Depreciation - Motor vehicle ((20358-2963)*20%/12) Dr. $ 290
Accumulated depreciation - Motor Vehicle Cr. $ 290
(Being depreciation for the month recorded)
31-Jul-18 Depreciation - Office furniture ((12769-624)*20%/12) Dr. $ 202
Accumulated depreciation - Office furniture Cr. $ 202
(Being depreciation for the month recorded)
31-Jul-18 Depreciation - Computer (2037*35%/12/30*15) Dr. $ 30
Accumulated depreciation - Computer Cr. $ 30
(Being depreciation for the month recorded)
31-Jul-18 Stock Loss Dr. $ 107
Inventory Cr. $ 107
(Being stock loss of 5 inventories recorded)

31-Jul-18 Office supplies consumed (687+565-209) Dr. $ 1,043
Office supplies Cr. $ 1,043
(Being office supplies consumed during the month
recorded)
31-Jul-18 Bad debt expenses (20,750*1%) Dr. $ 208
Provision for bad & doubtful debts Cr. $ 208
(Being provision for bad debts recorded)
31-Jul-18 Interest expense Dr. $ 60
Interest outstanding Cr. $ 60
(Being provision for interest expense made)
Working of Inventory
Date
Purchases Sales Balance
Unit
s @ Amount Units @ Amount Units @ Amount
01-Jul-18 538 20 $ 10,760
02-Jul-18 58 20 $ 1,160 480 20 $ 9,600
05-Jul-18 77 20 $ 1,540 403 20 $ 8,060
07-Jul-18 20 26 $ 520 423 20 $ 8,580
11-Jul-18 65 20 $ 1,318 358 20 $ 7,262
14-Jul-18 22 26 $ 572 380 21 $ 7,834
18-Jul-18 63 21 $ 1,299 317 21 $ 6,535
20-Jul-18 20 26 $ 520 337 21 $ 7,055
22-Jul-18 75 21 $ 1,570 262 21 $ 5,485
24-Jul-18 25 24 $ 600 287 21 $ 6,085
29-Jul-18 77 21 $ 1,632 210 21 $ 4,452
30-Jul-18 25 24 $ 600 235 21 $ 5,052
31-Jul-18 5 21 $ 107 230 21 $ 4,945