Journal Entry

A B C D E F G H 7 at I January 2018 are shown on the accompanying worksheet. 8 9 The following information about Darbys Derbys Ltd is available: 10 11 - The business has an accounting period of one month. It determines profit or loss for each month 12 on its worksheet following proper accrual principles 13 14 15 The opening balance in the prepayments column relates to rent for the months of January, 16 February and March 2018 which was paid in December 2017 17 18 The accrual on 1 January relates to an amount owing for advertisements that appeared in the 19 local newspaper in December 2017. 20 21 - The shop fittings owned by the business have an expected life of 8 years, and an expected 22 residual value of $1 000 at the end of that time. 23 24 The following transactions took place during January 2018: 25 26 The business borrowed $4 800 from Darby's sister. The loan is to be repaid in three year s 27 time but interest at 5% per annum has to be paid (in arrears) each six months, starting on 1 28 July 2018. 29 72 Paid an insurance premium of $1 200 that will cover the business until 30 June 2018 30 3 Received payment for accounts receivable $6 000. 31 6 Purchased hats on credit $12 000. 32 8 Credit sales of hats $14 000 (these hats had cost $9 000) 33 12 Paid wages of $1 400 34 15 Cash sales of hats $5 000 (these hats had cost $3 000) Question Worksheet