Jenny owns a retail store. Her financial year ends on 31 July.

Jenny owns a retail store. Her financial year ends on 31 July. On 31 July 20–1:

Jenny purchased stationery, $112, on credit from AB Supplies

Jenny took goods, costing $130, for personal use

Jenny depreciated her shop fittings by $180.

a. Prepare journal entries to record these items. Narratives are required.

On 31 July 20–1 the balances in Jenny’s ledger included the following:
                                                           $
Rent ……………………………….     3,120
Sales …………………………….     95,600
Purchases returns …………      1,720

One quarter of the rent relates to Jenny’s apartment above the shop.

b. Prepare journal entries to adjust the rent and to record the year-end transfers to the income statement for the three accounts. Narratives are required.

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