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On march 1 , 2 0 1 4 . Shareholder of the ABC bank have $ 3 7 , 5 0 0 , 0 0

On march 1,2014. Shareholder of the ABC bank have $37,500,000 paid up capital (in cash) to start up banks operation
ON march 1,2014 to comply with the regulation. the banks must maintain 10% of its capital at the National bank of Cambodia (NBC). This capital deposit will earn interest 4% a year and will pay every six months at the end of June and December. (1/4) Of SIBOR )
On March 3,2014. open a current account with Maybank amount $2,000,000 in cash by withdrawing current account from NBC
ON March 5,2014 the bank bought a building amount $800,000 by deduction from current account with the NBC
On march 6.2014, the bank keep $100.000 cash on hand by withdrawing current account from NBC.
On march 7,2014 purchase two vehicles $70,000, property and equipment $50,500, Computer Equipment $25,000 and Computer Software 50,000 by deducting from current account with the NBC
On March 8,2014 the bank obtained an official license from NBC. On that day, the bank paid cash amount $17,000(70 million KHR) for annual license fee, which required to do amortization on monthly basis.
On March 12,2014. the bank received the following deposit in cash
Demand deposit from global Security co $ 1,300,000
Demand deposit from MOC co.280,000
Saving deposit from Imperial Security Co Ltd 240,000
Saving deposit from Mr. Smith 120,000
Saving deposit from Mr. Dary KHR 10,500,000
Time deposit from Miss. Vanna 175,000
time deposit from Mr. Ratana 330,000
The bank pay interest, 2.50% for saving account in USD and 10% for saving account in KHR and 5.50% for time deposit a year.
On March 13,2014, The bank maintained 12% of total customer deposit at the NBC and 8% of total customer deposit for Khmer Riels.
On March 15,2014 the bank paid staff salaries amounted to $6,500
On March 15,2014. the bank provided loan to Veng Song Heng company amount $50,000 at interest rate 18% the loan will be matured on 15 March, 2015
On March 22,2014 the bank decided to maintained current account in cash with interbank and correspondent by deducting current account at NBC as follow
- Maruhan bank $200,000- OSK Bank $700,000
- Vathanak Bank $30,000- Bank of Canada (USA) $100,000
On March 23,2014, the bank was ordered to transfer money out to Canada (USA) amount $75,000 from miss. Vanna by deducting from her account maintain with bank. the bank charge $60 for Telex, 2% communion of fund transfer
On March 25.2014 received fixed deposit form
- Canada Bank amount $3,000000
- Cambodia Commercial Bank (CCB) $ 70,000
On March 26,2014 The bank maintained 12% of total customer deposit at the NBC
On March 28,2014 the bank provided loan to Sharp Company amount $25,000 at interest rates 24%. The loan mature on March 29,2012 The amount of loan was withdrawn 50% and the rest is maintain in current account wit our bank.
On March 30,2014 the bank signed a contract to hire a flat for banks exchange counter. The bank paid 12 months in advance amount $12,000 This amount will amortize for 12 Months starting from April 2011.
On March 30,2014 the bank paid staff salaries amounted to $6,500
On March 31,2014 Interest income on loan to Veng Song Heng Company was received in cash.
- Depreciation on banks building was depreciated by using straight = line method. The building will depreciate for 20 years.
- Depreciation on banks property and equipment 25% per year for 4 year
- Depreciation on banks vehicles 25% per year 4 year
- Amortzation on banks Computer Software 25% per year for 4 year
- The bank prepare adjustment on prepaid expense,
- Accrual interest Receivable (AIR) on Capital Guarantee deposit,
- Accrued Interest Payable on customer deposit.
- Accrued interest on loan to sharp company.
Required: Prepare journal entries for the above transactions
Note: Exchange rate: 1USD=4.00 KHR

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