1.Please complete the journal entries for the statement provided: Mr. Donal Gray commenced a business in October 2020 by the name Gray Repair and Services. During the month of October the following transaction took place: Journal Entries:

Date 1 October Mr. Donald Gray started Gray Repair and Services by investing $20,000.

5 October - Paid monthly insurance for the company of $2000

15 October - The company acquired tables, chairs, shelves, and other fixtures for a total of $7,000. The entire amount was paid in cash.

20 October - The company acquired service equipment for $25,000. The company paid a 50% down payment and the balance will be paid after 60 days.

25 October- Paid salaries to employees of $6000

2.

What do you understand by depreciation of assets? Write the formula for straight-line depreciation? Calculate annual depreciation of a company equipment purchased at the cost of $120,000 with salvage value of 20,000 over its 5-year useful life?

3.

Find the missing values below (all values are in $):

Sales Revenue Cost of Sales Gross Profit Other Expenses Net Profit

1. 650,000 300,000 _________ 270,000 ________ (4 marks)

2. ___________ 420,000 180,000 ___________ 50,000 (4 marks)