Analyse the transaction to present the journal entries

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Reference no: EM133378572

Question

Ivan and Cindy both loves good design shoes and decided to start a company selling shoes. The company was formed on 1 June 20X2, and they decided to call the business ComfyToes Pte Ltd (CPL). The followings are the transactions for CPL for the month of June.

On 1 June, Ivan invested $50,000 and Cindy $40,000 into the company respectively as shareholders.
To ease working cash capital, the company decided on 1 June to take a 3-year bank loan of $60,000 at an attractive interest of 2% under the Business Start-up Loan Scheme. Interest is to be payable annually, every 30 May.
On 1 June, the company rented a shop, paying $43,200for 2 years rent.
On 1 June, the company acquired and paid a total of $21,600 for furniture & fixtures (F&F). The furniture & fixtures are estimated to be useful for 5 years with zero residual value. The furniture & fixtures are depreciated using the straight-line method.
On 5 June, CPL purchased $20,000 worth of shoes. 70% was paid in cash with the remaining on account. The company adopts the periodic inventory system.
On 17 June, a customer paid $200 for a pair of shoes that was currently out of stock. The shoes would be delivered to the customer once the stocks arrived.
A utility bill of $322 was received on 27 June.
The company paid out a total salary of $4,600 to both Ivan and Cindy for the month of June.
For the month of June, the company managed $15,000 of sales, 90% was on cash term and the rest on credit.
The inventory as at 31 June was $9,300.

Required:

Analyse the transaction to present the journal entries and apply accrual concepts to prepare the adjusting journal entries for ComfyToes Pte Ltd for the month of June 20X2.
Prepare the T-account for cash. Posting dates and accounts description to be clearly indicated
Prepare the adjusted trial balance of ComfyToes Pte Ltd as at June 31, 20X2.
From the adjusted trail balance, present:
- i.) The income statement for the month ending 31 June 20X2.
- ii.) The statement of financial position as at 31 June 20X2.

Reference no: EM133378572

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