Reference no: EM133133526

Question - Joyce Lim has the following transactions in February 2022.

1/2/2022 Joyce Lim started a business with $450,000 and deposited the amount in the bank.

5/2/2022 Office equipment purchased on credit from City Chain for $35,000.

9/2/2022 Inventory was purchased on credit from Victoria Ltd for $25,000.

11/2/2022 Paid $19,000 for office rental by cheque.

15/2/2022 Cash sales of $89,000.

19/2/2022 Cash purchased of inventory for $50,000.

21/2/2022 The company settled the total outstanding amount due to City Chain.

22/2/2022 Provided credit sales of $110,000 to Johnson Pte Ltd.

25/2/2022 Paid $300in Cash for the staff dinner expense.

26/2/2022 Joyce Lim withdrew $3,800 from the bank for personal expenses.

27/2/2022 Johnson Pte Ltd settled the total amount of $110,000.

28/2/2022 Paid $35,600 staff salary by cheque.

Required -

1. Prepare journal entries for the above transactions. You are not required to provide any narration for the journal entries.

2. You are required to classify the following transactions as revenue expenditure or capital expenditure.

1. Payment for entertainment expenses.

2. Payment of bank interest expense.

3. Purchase eight units of laptops for the sales department.

4. Payment of monthlyoffice maintenance.

3. Maxwell company is in the factory maintenance services business, and the financial year ended is 28 February 2022. Bugis Pte Ltd has engaged Maxwell maintenance service for one year and paid $450,000starting from 1 August 2021.

Calculate the maintenance service income that Maxwell should record in the income statement for the year ended 28 February 2022.

4. Identify and explain three differences between ordinary share and preference share.