Hi!

I tried to attempt this question as shown in the attached but the additional information confuses me and I feel like I have no idea what I'm doing.

Thanks!

13 Adjusting journal entries LO2.3 In its first year of operations, Savina Sweeties entered into the following transactions, among others: i 1 January: Bought equipment, $90 000. ii 31 February: Prepaid one year's rent, $30000. iii 1 June: Took out a one-year loan from the bank at an annual interest rate of 5 per cent, $25000. iv 1 August: Received payment for goods not yet rendered, $15000. V 1 September: Paid for salaries expense, $3000. On 31 December, Savina has earned $5000 of the $15000 in transaction (iv) and has incurred but not recorded $800 of electricity and $500 of salaries expense. Savina prepares adjusting entries on an annual basis. REQUIRED Prepare journal entries for transactions (i) to (v) and any adjusting journal entries needed at 31 December. Assume that the equipment depreciates $10000 annually. 1 receivable, account C. cash payabie, retained earnings F Tronsaction Account 1 January Debit Credit Equipment 10 000 Cash 90000 Depreciation expense 10 000 Accumulated dep. 31 Febuary Prepaid vent 30000 Cash 30 000 Rent expense 30 000 Prepaid rent 30000 I June Cash 2500 Loan payabie 25ooo Loan expense 12 so Loan payable 12 so Mass I August Accounts receivable IS000 service revenue Salories expense I september 3000 3000 Salaries payable