Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Breaking Waves is a business that rents out holiday accommodation in Port Elliott, a small coastal town in South Australia. The following transactions took place
"Breaking Waves" is a business that rents out holiday accommodation in Port Elliott, a small coastal town in South Australia. The following transactions took place during January 2020: 2020 January 2 The owner, Ms. Cath Johnson purchased a small mini van that she will use to transport clients to and from the airport. The total cost of the mini van was $25,000. Ms. Johnson paid a deposit of $4,000 and will pay the remaining balance over the next year to the supplier. 4 Ms. Johnson took her family to a restaurant for dinner as it was her birthday. She used cash from the business bank account to pay the total bill of $410. 8 Ms. Johnson send an invoice to a company who had some of their staff stay in the holiday accommodation for a week. The total invoice was $2,800 and this amount will be paid to "Breaking Waves\" over the next two months. 15 Ms. Johnson paid total salaries to her staff for the first two weeks of January amounting to $6,000 in total. 28 The company who owes money to "Breaking Waves" after their staff stayed in the holiday accommodation earlier in January paid $800. 31 Ms. Johnson recorded additional revenue for "Breaking Waves" for the last part of January 2020. Cash Revenue amounted to $12,000 and Credit Revenue (where clients have not paid yet) totaled $18,000. REQUIRED: Based on the information provided, record the necessary journal entries in template provided. Journals need to be formatted correctly and include a narration (explanation) for each journal entry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started