Question
Jumbo Ltd . is a furniture manufacturer and retailer. You are closing the books of the company for the year ended 30 June 2018. The
Jumbo Ltd . is a furniture manufacturer and retailer. You are closing the books of the company for the year ended 30 June 2018. The following are the transactions: (i) The company paid salaries of Ksh 80,000 for June 2018 on 4 July 2018. Total salaries for the year 2018 do not already include this figure. (ii) On 5 July 2018, the company received utility bills totaling Kshs. 35,000. (iii) Annual rent of Kshs 120,000 on Outlet B was paid on 1 January 2018 and it was recorded as prepaid rent. (iv) Semi-annual rent of Kshs.40,000 on Outlet A was also paid on 1 April 2018 and the whole amount was charged to the income statement. (v) On 30 June 2018, Kshs 60,000 was paid on account of 5-year premium membership of relevant business association. Required: Show the journal entries for each of the above transactions (10 Marks)
show and explain all procedures please.
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