Part B

On 1 July 2015, the ledger of Annie Clothing Ltd contained the following liability accounts, Accounts Payable $78,000, PAYG Withheld Tax Payable $1,750, Revenue Received in Advance $21,000. During July the following selected transactions occurred.

July 14	Provided services for customers who had made advance payments of $7500
20	Paid taxation department $1750 for PAYG withheld tax deducted from wages in June 2015.
24	Borrowed $27 000 from South Coast Bank on a 6-month, 12%, $27 000 note.
During July the entitys employees earned wages of $20 000. Payroll deductions related to these wages were $1400 for a health fund, $1900 for PAYG withheld tax, and $1800 for superannuation. Assume that wages earned during July will be paid during August

Prepare journal entries to record the July transactions and the adjusting entries at 31 July for the note payable and for wages expense. State your answer in the space provided.

[Answer and show workings here]

Annie Clothing Ltd Journal
Transaction	Account Titles	Dr $	Cr $
July 14
July 20
July 24
July 31