Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jammy is a business school graduate and runs a business buying and selling generators. The name of his business is Jamerators. The pre-adjusted balances at

image text in transcribedimage text in transcribed

Jammy is a business school graduate and runs a business buying and selling generators. The name of his business is Jamerators. The pre-adjusted balances at 30 June 2014 are as follows: Additional Information: 1. Jammy paid R7 200 from his personal bank account to pay a supplier of Jamerators. The bookkeeper recorded the transaction by processing a debit to accounts payable and a credit to bank. 2. Supplies purchased during the year totalled R8 800 . This transaction was omitted. 3. A computer was purchased on 01 February 2014 amounting to R25 000. A R10 000 deposit was paid and the remainder on credit. This transaction was not yet recorded. 4. Jammy's younger brother needed some of the supplies for a school project. He took some of these items home for him which cost the business R550. 5. Jamerators had been operating from a rented space for the past few years. As of 01 October 2013, Jammy moved his operations to his own warehouse in a nearby business complex. He purchased this warehouse for R2 000000 by way of a 8% mortgage loan. This transaction has not yet been recorded. 6. Interest on the mortgage loan will be paid yearly in arrears on 30 September each year. 7. Jammy purchased 25 generators costing R4 000 each. This transaction is still to be recorded. 8. Jammy withdrew R20 000 for his personal use during the year. 9. Supplies on hand at the end of the year amounted to R1250. 10. The water and electricity account was received from the municipality, but remain unpaid at year-end, totalling R750. You are required to: a) Prepare the General Journal Entries for the above transactions. b) Prepare the Trial Balance of Jamerators at 30 June 2014

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions