Chart of Accounts
Account Code	Account Title
101	Cash at Bank
110	Accounts Receivable
112	Inventory
115	Prepaid Insurance
116	Prepaid Rent
118	Office Supplies
130	Equipment
131	Accumulated Depreciation - Equipment
201	Accounts Payable
203	Wages Payable
204	GST Clearing
205	Unearned Revenue
208	Interest Payable
210	Loan Payable
301	Capital
302	Drawings
401	Service Revenue
402	Interest Revenue
403	Sales Revenue
501	Advertising Expense
503	Bank Charges
504	Cost of Sales
505	Depreciation Expense - Equipment
520	Insurance Expense
530	Interest Expense
542	Office Supplies Expense
560	Rent Expense
580	Telephone and Internet Expense
582	Utilities Expense
585	Wages Expense

1. a) Prepare general journal entries for the transactions below, using the Chart of Account account codes provided in the Excel template. Narrations are not required. (6 marks). b) Prepare an Income Statement (2 marks)
2. Upload the completed and saved template from your online quiz file folder.

Transactions for February 2024: Dates as indicated

Feb 1 Owner contributed a $2,500 photocopier to the business.

Feb 3 Paid wages of $900.

Feb 4 Sold inventory on credit for $5,280 (including GST). The cost price of the inventory was $1,400.

Feb 8 Purchased office supplies on credit for $792 (including GST).

Feb 11 Purchased inventory on credit for $24,640 (including GST).

Feb 18 Received $2,300 from customers in payment of prior sales on credit.

Feb 23 Returned inventory previously purchased on credit to a supplier for $440 (including GST).

Feb 25 Paid $6,500 owing to suppliers.

Adjusting entry to record for the month:

Feb 29 Accrue Interest expense of $400.