Prepare journal entries for additional information

SECTION B (40 marks) Answer One questions in this Section. Kelly Ltd that sells toys extracted the following unadjusted trial balance from its books for the financial year ending on 31 December 2020 Debit Credit Account title Accounts payable 234,000 Accounts receivable 362,000 Allowance for doubtful accounts (1 January 2020) 4,000 Equipment 300,000 Accumulated depreciation - equipment (1 January 2020) 80,000 Delivery trucks 500,000 Accumulated depreciation - delivery trucks (1 January 2020) 200,000 Common stock (620,000 shares at Si par value cach) 620,000 Additional paid-in capital 400,000 Cash at bank 9,457,500 Inventories (1 January 2020) 720,000 Bank loan (required to make a $20,000 repayment by the year 74,000 ended 31 December 2021) Retained earnings (1 January 2020) 8,000,000 Rent expense 36,000 Revenues (all revenues are on credit) 2,310,000 Purchases 210,000 Wages expense 327,000 Insurance expense 1,500 Total 11,918,000 11.918,000 1 Additional information: Kelly Ltd owed $5,000 in wages to employees for working the last 15 days in December 2020. The employees will be paid in January 2021. No record had been made. 2 Rent expense of $27,000 recorded in the book covers the rental period from 1 January 2021 to 30 Oct 2021. All bank loans were drawn on 1 September 2020. The annual interest rate was 6%. The first due date for interest payment is on 31 August 2021. No record had been made. Sales invoices showed that the terms of revenues of S110,000 are FOB destination. The merchandises will arrive at the customer's warehouse on 18 March 2021. The terms of the rest of revenues are FOB shipping point. The merchandises will arrive at the customer's warehouse on 18 February 2021. All sales had been recorded in revenues account. 3