Journal entries (25 marks)

STU Ltd provides computer training services. STU charges $8,000 per day and allows customers 30
days to pay invoices. The following events occurred for STU Ltd during the month of June 2015:
a)
b)
c)
d)
e)

Issued shares for cash consideration of $40,000.

Delivered twenty days of training during the month ending 30 June 2015.
Received $176,000 cash for invoices previously raised in May 2015.
Paid $30,000 for three months of rent covering 1 June 2015 to 31 August 2015.
Prepaid petrol cards at 31 May 2015 are $1,500. The petrol cards were used up during the
month ending 30 June 2015.
f) Received cash for five days of training to be delivered in the first week of July 2015.
g) Depreciation on a motor vehicle for the month ending 30 June 2015 is $1,000.
h) Paid wages of $80,000 during the month. Wages owing at 31 May 2015 are $10,000. Wages
owing at 30 June 2015 are $15,000.
i) Interest on a bank loan for the month of June is $800 but has not yet been paid.
j) Cash dividends of $5,000 declared and paid.
k) Accounts payable of $22 000 were paid on 1 July 2015.
Prepare the journal entries and adjusting journal entries to record the transactions above.
Transaction
number

Account name

Debit

Credit