2. Prepare the T-accounts for all accounts that are affected by the transactions. Date 2-Jan JOURNAL ENTRIES FOR THE YEAR ENDED 31ST DEC 2020 Particulars Cash A/C Dr. To Common Stock A/C (being common stock issued to shareholders) Debit $ Credit $ 225,000 225,000 31-Jan Cash A/C Dr. 250,000 To Loan from National Cash @4.75% A/C (being loan taken) 250,000 28-Feb Assets A/C Dr. To Party A/C (being assets purchased on account) 202,500 202,500 1-Mar Lease Rent A/C Dr. To Cash A/C 8,250 8,250 (being rent paid) 1-Mar Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000 (being interest paid) 1-Mar Cash A/C Dr. To Salary A/C 4,500 4,500 (being salary received) 28-Mar General Insurance A/C Dr. 32,500 To Cash A/C 32,500 (being insurance taken) 1-Apr Lease Rent A/C Dr. 8,250 8,250 To Cash A/C (being rent paid) 1-Apr Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000 (being interest paid) 1-Apr Cash A/C Dr. To Salary A/C (being salary received) Lease Rent A/C Dr. 4,500 4,500 1-May To Cash A/C (being rent paid) 8,250 8,250 I-May Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000 (being interest paid) 1-May Cash A/C Dr. 4,500 To Salary A/C 4,500 (being salary received) 1-Jun Lease Rent A/C Dr. 8.250 To Cash A/C 8,250 (being rent paid) 1-Jun Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000 1-Jun 1-Jun 15-Jun 1-Jul (being interest paid) Cash A/C Dr. 4,500 To Salary A/C 4,500 (being salary received) Party A/C Dr. 202,500 Payables A/C Dr. 10,500 To Cash A/C 213,000 (being payment made to creditors) McDugals A/C Dr. To Sales A/C 108,500 108,500 (being roasted coffe sold to McDugals on Account) Lease Rent A/C Dr. To Cash A/C (heing rent raid) 8,250 8,250 1-Jul 1-Jul 1-Jul 7-Jul Lease Rent A/C Dr. To Cash A/C (being rent paid) Interest on Loan A/C Dr. To Cash A/C (being interest paid) Cash A/C Dr. To Salary A/C (being salary received) Purchases A/C Dr. To Payables A/C (being 200,000 pounds coffee purchased on account) 8,250 8,250 1,000 1,000 4,500 4,500 230,000 230,000 1-Aug Lease Rent A/C Dr. To Cash A/C 8,250 8,250 (being rent paid) 1-Aug Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000- (being interest paid) 1-Aug 8-Aug Cash A/C Dr. To Salary A/C (being salary received) Cash A/C Dr. 4,500 4,500 To Cost Club A/C 342,000 342,000 1-Sep (being contract signed with Cost Club and 6 months payment received in advance) Lease Rent A/C Dr. 1-Sep To Cash A/C (being rent paid) Interest on Loan A/C Dr. To Cash A/C (being interest paid) 8,250 8,250 1.000 1,000 1-Sep Cash A/C Dr. To Salary A/C 4,500 4,500 (being salary received) 1-Sep 1-Sep 1-Oct 1-Oct 1-Oct 1-Oct 3-Oct 15-Oct 1-Nov Cost Club A/C Dr. To Sales A/C (being sales made as per contract) Advertising expenses A/C Dr. To Cash A/C (being advertising firm hired) Lease Rent A/C Dr. To Cash A/C (being rent paid) Interest on Loan A/C Dr. To Cash A/C (being interest paid) 57,000 57,000 12,000 12,000 8,250 8,250 1,000 1,000 Cash A/C Dr. 4,500 To Salary A/C 4,500 (being salary received) Cost Club A/C Dr. 57,000 To Sales A/C 57,000 (being sales made as per contract) Payables A/C Dr. To Cash A/C 175,000 175,000 (being partial payment made to creditors) Cash A/C Dr. To Sales A/C (being sales made to Joey's Cafe) Lease Rent A/C Dr. To Cash A/C (being rent paid) 8,850 8,850 8,250 8,250 1-Nov 1-Nov 1-Nov 7-Nov Interest on Loan A/C Dr. To Cash A/C (being interest paid) Cash A/C Dr. To Salary A/C (being salary received) Cost Club A/C Dr. To Sales A/C (being sales made as per contract) Super Chain A/C Dr. To Sales A/C (being sales made to Super Chain on account) 1,000 1,000 4.500 4,500 57,000 57,000 72000 72000 1-Dec Lease Rent A/C Dr. To Cash A/C 8,250 8,250 (being rent paid) 1-Dec Interest on Loan A/C Dr. 1,000 To Cash A/C 1,000 (being interest paid) 1-Dec Cash A/C Dr. 4.500 To Salary A/C 4,500 (being salary received) 1-Dec Cost Club A/C Dr. To Sales A/C (being sales made as per contract) 10-Dec 15-Dec Profit and Loss A/C Dr. To Utility bill Outstanding A/C (being utility bill due, but paid on 9 Jan next year) Dividend Paid A/C Dr. To Cash A/C (being dividend paid) 57,000 57,000 520 520 2,500 2,500 10-Dec 15-Dec 31-Dec 31-Dec 31-Dec Profit and Loss A/C Dr. To Utility bill Outstanding A/C (being utility bill due, but paid on 9 Jan next year) Dividend Paid A/C Dr. To Cash A/C (being dividend paid) Supplier A/C Dr. To Cash A/C (being raw coffee ordered, delivery expected by Jan 3) Bad Debts A/C Dr. To McDugals A/C (being loss occurred as amount uncollectible) (Amount pending = 20,000 x 2.85 x 6 months 342.000) (Uncollectible amount -10% x 342,000-34,200) Depreciation A/C Dr. To Assets A/C (being depreciation on assets charged) (Amount of depreciation 202,500/10 years x 10/12 months) TOTAL 520 520 2,500 2,500 110,000 110,000 34,200 34,200 16,875 16,875 2,400,945 2,400,945