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
Transactions:
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
Comments:
This business was purchased on 1 June 2012.
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.
