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K. Barth submits to you draft accounts for the year ended 31 December 2003, and state- ment of financial position as at that date. He

K. Barth submits to you draft accounts for the year ended 31 December 2003, and state- ment of financial position as at that date. He explains that towards the end of the finan- cial year his accountant resigned and he had completed the records himself. He thinks that errors have occurred and asks your help. An examination of the accounting records reveals the following: 1. Rent due by customers Cee and Dee amounting to $480 is not included in the accounts. 2. A payment of $800 for new office furniture has been incorrectly debited to Sundry Expenses account. The furniture had been purchased just before Christmas 2003. 3. Commission due to sales representatives for the month of December, $1000, has been overlooked. 4. Repairs to Barth's private motor vehicle, $640, have been debited to Vehicle Expenses account. 5. A payment of $3000 on 1 January 2003 for additions to buildings has been debited to Repairs and Maintenance. 6. A fire insurance policy covering buildings was taken out on 31 October 2003, the annual premium of $480 being paid in advance on this date and debited to the Prepaid Insurance account. 7. Interest of $100 on the Telstra Bonds held by the business was due, but has not been received. 8. No depreciation has been recognised for the year ending 31 December. The draft statement of financial position shows the following: Buildings (at cost) Accumulated depreciation Office furniture and equipment (at cost) $80000* 16000 $64000 10 500 6500 4000 Accumulated depreciation * Does not include additions to buildings in (5) above. Depreciation is to be calculated as follows: Buildings: 2% on cost Office furniture and equipment: 20% on cost. Required: A. Show the journal entries required to make the necessary adjustments above

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