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vido Ltd is a manufacturer and retailer. You are closing the books of the company for the year ended 30 June 2020. The following are
vido Ltd is a manufacturer and retailer. You are closing the books of the company for the year ended 30 June 2020. The following are the transactions:
- Office supplies having original cost Kshs 6,510 were unused till the end of the period. Office supplies having original cost of Kshs 30,800 are shown on unadjusted trial balance.
- Prepaid rent of Kshs 24,000 was paid for the months January, February and March.
- The equipment costing Kshs 120,000 has useful life of 5 years and its estimated salvage value is Kshs 38,000. Depreciation is provided using the straight-line depreciation method.
- The interest rate on Kshs 30,000 note payable is 8%. Accrue the interest for one month.
- Kshs 3,000 worth of service has been provided to the customer who paid advance amount of Kshs 4,000.
Required: Show the journal entries for each of the above transactions (10 marks)
show all explanations please and all calculations.
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