accounting 655489

Objectives This assessment item relates to the course learning outcomes 1 – 3 as stated on Page 1. Details This assignment can (and should be) worked on each week commencing in Week 1, and submitted when all questions have been completed. Penalties will apply for late submission of assignments. Answer all questions. Copies of the format for General Journal, General Ledger (T Format and 3 column format) and Financial Statements will be available on Moodle. These should be used to record the answers for the assignment. Do not use a computerised accounting program for this assignment. This is an individual assignment. Question 1 17 Marks Secure Storage Services was formed on 1st May 2014. The following transaction took place during first month. Transactions on 1st May Paul Taylor invested $ 60,000 cash in business , as its sole owner. Hired two employees to work in the warehouse. They will each be paid a salary of $1000 per month. Signed a two years rental agreement on the warehouse; paid $18,000 cash in advance for the first year. Purchase furniture and Equipment costing $35,000. A cash payment of $10,000 was made immediately; the remainder will be paid in six months. Paid $1,500 cash for a 1 year insurance policy on the furniture and equipment. Purchase basic supplies for $500 cash Purchase more office supplies for $1,500 on account. Total revenue earned was 15,000 $5000 cash and @10,000 on account. Paid $400 to supplier for account payable due. Received $2,500 from customer in payment of accounts receivable. Received utility bills in the account of $200 to be paid next month. Paid monthly salaries of the two employees, totalling $2,000 Required: Prepare journal entries to record each of the events listed. (3 Marks) Open T account and Post the journal entries in T accounts. (11 Marks) Prepare trial balance as at 31st May 2014. (3 Marks) …