BACHELOR OF COMMERCE YEAR 1-ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 10.2.3 ACCOUNTING 1: ASSIGNMENT 2 [100] [25] QUESTION ONE The following information was extracted from the financial statements working papers file for year ended 31 December 2020 for Dave Song's Cleaning Services. List of balances at 31 December 2020 Debits-R Credits - R Capital: D Song 660 000 Drawings 160 000 Land and buildings at cost 582 000 Vehicle at cost 224 000 Accumulated depreciation: Vehicle (1 January 46 000 2020) Bank 360 000 Inventories: Consumables 104 000 Trade receivables 261 200 Allowance for credit losses 13 060 10% Long term loan Trade payables Fees earned Rent expense Telephone Other distribution expenses Interest on long term loan 320 000 260 000 1 036 600 160 000 10 708 454 752 19 000 2 335 660 2 335 660 Additional information not yet taken into account: 1. Included in rent expenses is an amount of R68 000 in respect of rent for 2021 which was paid and recorded in December 2020. 2. The telephone account for December 2020 of R1 540 was received but not yet paid. REGENT BUSINESS SCHOOL (RBS)-JULY 2021 31 BACHELOR OF COMMERCE YEAR 1-ACADEMIC AND ASSESSMENT CALENDAR-DISTANCE 3. Repairs to the vehicle costing R24 000 were incorrectly debited to the vehicle at cost account. No correction has been made at yet. 4. Depreciation on vehicle is taken into account on the straight-line method at 20% per year. The residual value of the vehicle is estimated at R48 000. 5. An amount of R60 000 was paid on the long term loan from the bank on 31 December 2020 and correctly recorded. 6. A trade receivable's account of R5 200 must be written off as irrecoverable. The allowance for credit losses must be adjusted to equal 10% of remaining outstanding trade receivables. 7. Consumable material on hand at 31 December 2020 is R24 000. 8. Land and buildings are not depreciated. Required: Prepare the following for Dave Song's Cleaning Services for the financial year ended 31 December 2020: 1.1 General journal entries for additional information 1 to 7. You may leave out the dates and the narrations. 1.2 (15) the asset and liabilities sections only of the statement of financial position. The equity section is not required. (10) REGENT BUSINESS SCHOOL (RBS)-JULY 2021 32