Analyse the above and prepare the necessary 31 December 2018 adjusting journal
entries to describe the information provided. No narrations required
(1) The company bought a small warehouse on 1 January 2018 that costs
$465,000. The warehouse is expected to have a residual value of $30,000
at the end of its estimated useful life of 20 years.
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Timed Online Assignment – July Semester 2020
(2) Since the company does not occupy the entire warehouse, it rented out
space to two tenants at $600 per month each starting on 1 October 2018.
The first tenant paid $1,200 for two months’ rent on 1 October 2018.
However, no further payments have been made. On 1 October 2018, the
second tenant paid $3,600 for six months’ rental.
(3) On 1 January 2018, to finance the purchase of the warehouse, the
company took a loan of $150,000 from the bank. The company only
needed to start making the first principal repayment on 1 January 2021.
The bank charged an interest of 5% per annum. Interest for the loan is
payable on 1 January and 1 July. Interest for the six mont
Extracted text: Click & Save Pte Ltd is an e-commerce company that offers online shopping in books, stationeries, music, videos, electronics, software, and fashion products in Singapore. Following is the unadjusted trial balance of Click & Save Pte Ltd as at 31 December 2018. Debit (S) Credit (S) Share capital Retained earnings, 31 December 2017 300,000 82,500 Warehouse at cost 465,000 Motor vehicles at cost 300,000 Provision for depreciation • Warehouse • Motor vehicles Cost of goods sold Sales 75,000 1,691,100 2,775,900 General expenses Wages and salaries 62,400 538,200 Allowance for doubtful debts 3,600 Accounts receivable 222,600 Accounts payable 174,900 Bank 37,950 Bank Loan 150,000 Inventory Rent received in advance 245,700 4,800 Interest expense 3,750 3,566,700 3,566,700 You are given the following additional information: