Question

Stine Inc.
Trial Balance as at 31 December 2017
Account Title	Debit	Credit
	$	$
Share Capital		2,000,000
Plant, property and equipment (net)	1,800,000
Accumulated depreciation - Equipment		50,000
Inventory	800,000
Provision for bad debts		300,000
Trade creditors		65,000
Trade debtors	600,000
Retained profits at 1 January 2017		535,000
Revaluation surplus at 1 January 2017		200,000
Cash	800,000
Sales		2,000,000
Cost of sales	600,000
Other operating expenses	50,000
Tax expense	300,000
Wages expense	200,000
Total	5,150,000	5,150,000

The following transaction about Stine Inc. during the year:

(i) On July 1 2017, an additional 300,000 shares were issued at $ 4 per share for cash.

(ii) On September 1 2017, One of Stine Inc.'s customer, who owes the company $ 200,000, went bankrupt.

(iii) On September 12 2017, Stine Inc. issued bonus shares, which was financed by capitalizing $ 200,000 retained profits.

(iv) On October 10 2017, The value of one equipment increased by $ 100,000

(v)  Stine Inc. had not adjusted the bad debt provision or the year ended 2017

(vi) On December 30 2017,  Stine Inc. received a $ 500,000 bill for audit fee from its auditor, which would be due on January 30, 2018

Prepare journal entries without narratives to record the above transaction (i) - (vi)

Answer 1