Brighton Company had the following transactions by 31st December, 2019:

1st Jan. The owner invested £9000 cash and £8000 property into the business. Brighton Company bought machinery of £3000 on account. The estimated useful life of machinery is 6 years with no residual value. The company uses straight-line depreciation method.

6th Feb. Brighton Company received £4000 cash for services yet to be performed to customers on 11th October, 2019.

1st March. Brighton Company accrued wages of £2000 that will be paid by the end of 2019.

1st April. Brighton Company bought goods for resale for £3500 on account. By the end of the year all goods were sold for £4500 but the company has not received the cash from customers yet.

1st June. Brighton Company bought a truck for £2500 cash. The estimated useful life for the truck is 5 years and the residual value is £500. The company uses straight-line depreciation method.

1st August. Brighton Company bought supplies for £800 on account. The balance of supplies by the end of the year was £300.

20th November. Brighton Company paid insurance of £2000 for the year of 2020.

31st December. Brighton Company paid £400 for utilities and £900 for rent for 2019.

Task:

1. Record the above transactions into the general journal (show your workings on depreciation).

Answer rating: 100% (QA)

Date General Journal Debit Credit 1Jan Cash dr 900000 Property Dr 800000 To Capital 1700000 Being ca... View the full answer