1. The following transactions relate to the business of Patrick Jones. He decides that the accounting period should end on March 31", of every year. 2020 Invested the following to start the business: Cash $20,000; Furniture that cost him $10,000 Jan 1 but with a market value of $7,500; equipment with a book value of S12,000. 1 Borrowed from Town Bank $10,000 at an interest rate of 9% p.a. 10 Invested $ 10,000 in the business in cash. Records were correctly made. 30 Withdrew for personal use $ 2,000 in cash and correctly recorded in the books. Mar 31 Determined that the total sales for the 3 months amounted to $ 90,000. ($30,000 on credit and the balance on cash) 31 Purchased inventory on credit S20.000 and on cash S30,000 31 Paid wages $6,000 31 Paid the interest on the loan taken on January 1, in cash.

Required: A. Show necessary journal entries for the above transactions.

Answer rating: 100% (QA)

Journal entries Date Account titles and explanation Debit Credit 2020 ... View the full answer