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Prepare adjusting entries to reflect the following transactions for Martin Pty Ltd as at 30 June 200

Question:

1. Prepare adjusting entries to reflect the following transactions for Martin Pty Ltd as at 30 June 2009. A A wages bonus due to the motel manager totaling $12,000 for the financial year has not yet been recorded. B On 1 October 2008 a comprehensive insurance policy covering building and contents was taken out for the year ended 30 September 2009, the annual premium of $2,400 being paid on 1 October 2008. C Interest on investments held amounting to $450 is due but has not yet received. D In May 2009, commission of $360 had been received in advance for the six months ending 31 October 2009. The business has performed the required services for May and June 2009. E Accrued electricity charges were $92 and telephone charges were $102.


2. From the adjusted trial balance below, prepare closing entries and calculate the ending balance of Retained Earnings account. Trial Balance as at 30 June 2009 Accounts DR CR Cash at bank 30,800 Accounts receivable 60,200 Prepaid insurance 7,000 Supplies inventory 14,000 Printing Equipment 108,000 Accumulated depreciation – printing equipment 98,000 Accounts payable 14,000 Salaries payable 3,640 Service revenue received in advance 15,680 Share capital 56,000 Retained earnings 15,400 Service revenue 78,200 Salaries expense 31,640 Insurance expense 2,380 Depreciation expense 9,600 Supplies expense 6,100 Rent expense 11,200 280,920 280,920 Ending balance retained earnings = 3. Engineering Services Ltd prepared the following adjusted and post-closing entries trial balances for the month ended at 31 st March. Adjusted Trial Balance.


Post-closing entries trial balance Account names Dr $ Cr $ Dr $ Cr $ Cash 898 898 Accounts receivable 2 652 2 652 Supplies 1 920 1 920 Office equipment 15 600 15 600 Accumulated Depreciation 3 594 3 594 Accounts Payable 1 260 1 260 Service revenue received in advance 780 780 Salaries Payable 600 600 Share Capital 9 400 9 400 Dividends 800 Retained earnings 5 400 5 436 Service Revenue 7 200 Depreciation Expense 344 Supplies Expense 750 Salaries Expense 2 520 Rent Expense 2 400 Tax expense 350 Totals $28 234 $28 234 $21 070 $21 070 Required: Prepare a classified balance sheet at 31 march. Balance Sheet 4. Inventory and Cost of Sales problem Aromas Ltd retails aromatic candles and entered the following trading transactions in the month of February: PURCHASES SALES Date Details Units Unit Cost Total Cost Units 1/2 O.


Balance 100 $5 7/2 Purchased 600 $3 12/2 Sold 650 15/2 Purchased 200 $4 26/2 Sold 100 Determine the cost of ending inventory at 28 February and COGS for the month assuming Periodic recording method and Weighted Average cost flow assumption. Use 4 decimals for unit costs and round to the nearest integer for units and total costs.

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