Adjusting_entries - Manual Accounting Practice Set...

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Unformatted text preview: Manual Accounting Practice Set Extremely Board, Australasian Edition 3 Feedback: Adjusting entries This is a feedback page. Please review this page carefully because later pages in this practice set build on the feedback provided here. After you have reviewed your feedback page, click Continue at the bottom of this page to move on to the next page of your practice set. Your progress Your grading Your grading outcome (still in progress) Points (prior to this page) Points (on this page) Points (after this page) Total Awarded Total 1036 1,103 44 44 − 134 1080 1,281 Completed: 81% (approximately) Remaining pages will take: up to 4 hours The time frames we provide are a guide only. It may take you more or less time to complete each step. You are now asked to journalise and post the adjusting entries after completing the worksheet. This is because, in the manual accounting system, the worksheet is not part of the journals and ledgers. Therefore completing the Adjustments column in the worksheet does not automatically update the appropriate ledger accounts. Since this practice set is a manual accounting practice set, you are still required to manually journalise the adjusting entries and post them to the general ledger as a separate step. The purpose of adjusting entries is to ensure that the general ledger account balances reflect the income earned and expenses incurred during the accounting period. Remember that the details of the end of month adjustments for June are as follows: Cash Registers owned by the business: original purchase price was $7,000, estimated useful life was 5 years, and estimated residual value was $2,000 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. Store Fixtures owned by the business: original purchase price was $37,000, estimated useful life was 8 years, and estimated residual value was $5,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. The water usage for the month of June is estimated to be $126. The estimated electricity payable as at the end of June is $429. Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from 25 June to 30 June inclusive) are estimated to have been $310 per day. Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is $235. Interest earned from short­term investments in EastPac Bank for the month of June is $115. Office supplies totalling $2,955 are still on hand at 30 June. 15 days of rent remained pre­paid at the start of June. 3 months of advertising remained pre­paid at the start of June. 5 months of insurance remained pre­paid at the start of June. When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month. Additionally, a stocktake revealed that the balance of inventory on hand as at 30 June is equal to the closing balance of the Inventory account. This means there is no adjusting entry required for inventory shrinkage. Instructions for adjusting entries 1) Use the worksheet to assist you in recording the adjusting entries in the general journal. 2) Post the adjusting entries from the general journal to the general ledger accounts. 3) Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Adjusted Balance row must still be filled out in order to receive full points. Back­On­Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: Enter all answers to the nearest whole dollar. You are also required to apply the journals and ledgers instructions provided in previous weeks. Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. Show All Special Journals General Journal Subsidiary Ledgers General Ledger (Q=861.generalJournalAdjEntries) GENERAL JOURNAL Date Post Ref. Account and Explanation Jun 30 Depn Expense: Cash Registers Accum Depn: Cash Registers Jun 30 Depn Expense: Store Fixtures Accum Depn: Store Fixtures Jun 30 Water Expense Water Payable Jun 30 Electricity Expense Electricity Payable Jun 30 Wages Expense Wages Payable Debit Credit 560 83 0 151 0 83 561 328 0 161 0 328 542 126 0 222 0 126 541 381 0 221 0 381 516 1860 0 220 0 1860 Jun 30 Interest Expense Interest Payable Jun 30 Interest Receivable Interest Revenue Jun 30 Office Supplies Expense Office Supplies Jun 30 Rent Expense Prepaid Rent Jun 30 Advertising Expense Prepaid Advertising Jun 30 Insurance Expense Prepaid Insurance 571 235 0 225 0 235 112 115 0 403 0 115 544 739 0 130 0 739 540 4000 0 140 0 4000 511 2000 0 141 0 2000 543 670 0 142 0 670 Feedback GENERAL JOURNAL Date Explanation Post Ref. Debit Credit Jun 11 Sales Returns and Allowances 401 2,800 Jun 11 GST Collections 240 280 Jun 11 ARC ­ Jump Around 110/110­3 3,080 (sales return) Jun 11 Inventory 120 1,500 Jun 11 Cost of Sales 500 1,500 (sales return) Jun 21 APC ­ Hike 210/210­3 2,112 Jun 21 Inventory 120 1,920 Jun 21 GST Outlays 135 192 (purchase return) Jun 30 Depn Expense: Cash Registers 560 83 Jun 30 Accum Depn: Cash Registers 151 83 (adjusting entry) Jun 30 Depn Expense: Store Fixtures 561 328 Jun 30 Accum Depn: Store Fixtures 161 328 (adjusting entry) Jun 30 Water Expense 542 126 Jun 30 Water Payable 222 126 (adjusting entry) Jun 30 Electricity Expense 541 381 Jun 30 Electricity Payable 221 381 (adjusting entry) Jun 30 Wages Expense 516 1,860 Jun 30 Wages Payable 220 1,860 (adjusting entry) Jun 30 Interest Expense 571 235 Jun 30 Interest Payable 225 235 (adjusting entry) Jun 30 Interest Receivable 112 115 Jun 30 Interest Revenue 403 115 (adjusting entry) Jun 30 Office Supplies Expense 544 739 Jun 30 Office Supplies 130 739 (adjusting entry) Jun 30 Rent Expense 540 4,000 Jun 30 Prepaid Rent 140 4,000 (adjusting entry) Jun 30 Advertising Expense 511 2,000 Jun 30 Prepaid Advertising 141 2,000 (adjusting entry) 543 670 Jun 30 Insurance Expense Jun 30 Prepaid Insurance 142 670 (adjusting entry) (Q=870­112.InterestReceivable_adjEntry) GENERAL LEDGER Account: Interest Receivable Account No. 112 Date Description Ref. Debit Credit 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 115 0 0 May Accrued interest revenue Balance 115 115 DR DR Feedback Account: Interest Receivable Account No. 112 Date Description May 31 Balance Jun 30 Accrued interest revenue Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 115 115 DR 115 DR (Q=870­130.StoreSupplies_adjEntry) Account: Office Supplies Account No. 130 Date Balance Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 739 3,694 DR May Supplies used 2955 2955 DR DR Feedback Account: Office Supplies Account No. 130 Date May Description 31 Balance Ref. Debit Credit Balance 3,694 DR Jun 30 Supplies used Jun 30 Adjusted Balance GJ 739 2,955 DR (Q=870­140.PrepaidRent_adjEntry) Account: Prepaid Rent Account No. 140 Date 2,955 DR Description Ref. Debit Credit Balance 2,000 DR CPJ 4,000 6,000 DR 0 4000 May 31 Balance Jun 15 Prepaid rent Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Rent expense GJ 2000 2000 DR DR Feedback Account: Prepaid Rent Account No. 140 Date Description May 31 Balance Jun 15 Prepaid rent Jun 30 Rent expired Jun 30 Adjusted Balance Ref. Debit Credit 2,000 DR CPJ 4,000 6,000 DR GJ 4,000 2,000 DR 2,000 DR (Q=870­141.PrepaidAdvertising_adjEntry) Account: Prepaid Advertising Account No. 141 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 2000 6,000 DR May Advertising expense Balance 4000 4000 DR DR Feedback Account: Prepaid Advertising Account No. 141 Date Description May 31 Balance Jun 30 Benefits consumed Ref. Debit Credit Balance 6,000 DR GJ 2,000 4,000 DR Jun 30 Adjusted Balance 4,000 DR (Q=870­142.PrepaidInsurance_adjEntry) Account: Prepaid Insurance Account No. 142 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 670 3,350 DR May Insurance expense 2680 2680 DR DR Feedback Account: Prepaid Insurance Account No. 142 Date Description May 31 Balance Jun 30 Insurance expired Jun 30 Adjusted Balance Ref. Debit Credit 3,350 DR GJ 670 2,680 DR 2,680 DR (Q=870­151.AccDepnCapitalAsset2_adjEntry) Account: Accum Depn: Cash Registers Account No. 151 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 83 1,750 CR May Depreciation-one month Balance 1833 1833 CR CR Feedback Account: Accum Depn: Cash Registers Account No. 151 Date Description May 31 Balance Jun 30 Depreciation ­ one month Jun 30 Adjusted Balance Ref. Debit Credit Balance 1,750 CR GJ 83 1,833 CR 1,833 CR (Q=870­161.AccDepnCapitalAsset1_adjEntry) Account: Accum Depn: Store Fixtures Account No. 161 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 328 18,375 CR May Depreciation-one month 18703 18703 CR CR Feedback Account: Accum Depn: Store Fixtures Account No. 161 Date Description May 31 Balance Jun 30 Depreciation ­ one month Jun 30 Adjusted Balance Ref. Debit Credit 18,375 CR GJ 328 18,703 CR 18,703 CR (Q=870­220.WagesPayable_adjEntry) Account: Wages Payable Account No. 220 Date May Description Ref. 31 Balance Jun Balance 4 Paid staff wages Debit Credit Balance 1,000 CR CPJ 1,000 0 0 1860 Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Accrued wages expense GJ 1860 1860 CR CR Feedback Account: Wages Payable Account No. 220 Date May Jun Description 31 Balance 4 Paid staff wages Jun 30 Accrued wages expense Jun 30 Adjusted Balance Ref. Debit Credit Balance 1,000 CR CPJ 1,000 0 GJ 1,860 1,860 CR 1,860 CR (Q=870­221.ElectricityPayable_adjEntry) Account: Electricity Payable Account No. 221 Date Description Ref. Debit Credit 1,298 CR CPJ 1,250 48 CR 0 381 May 31 Balance Jun 12 Paid electricity bill Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Accrued electricity expense Balance GJ 429 429 CR CR Feedback Account: Electricity Payable Account No. 221 Date Description May 31 Balance Jun 12 Paid electricity bill Jun 30 Accrued electricity expense Jun 30 Adjusted Balance Ref. Debit Credit 1,298 CR CPJ 1,250 48 CR GJ 381 429 CR 429 CR (Q=870­222.WaterPayable_adjEntry) Account: Water Payable Account No. 222 Date Balance Description Ref. Debit Credit 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 126 130 CR May Accrued water expense Balance 256 256 CR CR Feedback Account: Water Payable Account No. 222 Date Description May 31 Balance Jun 30 Accrued water expense Jun 30 Adjusted Balance Account: Interest Payable Ref. Debit Credit Balance 130 CR GJ 126 256 CR 256 CR (Q=870­225.InterestPayable_adjEntry) Account No. 225 Date Description Ref. Debit Credit 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 0 235 235 CR May Accrued interest expense Balance 470 470 CR CR Feedback Account: Interest Payable Account No. 225 Date Description May 31 Balance Jun 30 Accrued interest expense Jun 30 Adjusted Balance Ref. Debit Credit 235 CR GJ 235 470 CR 470 CR (Q=870­403.InterestRevenue_adjEntry) Account: Interest Revenue Account No. 403 Date Description Ref. Debit Credit Balance 0 CRJ 572 572 CR 0 115 May 31 Balance Jun 30 Interest received from the bank Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Accrued interest revenue Balance GJ 687 687 CR CR Feedback Account: Interest Revenue Account No. 403 Date Description May 31 Balance Jun 30 Interest received from the bank Jun 30 Accrued interest revenue Jun 30 Adjusted Balance Account: Advertising Expense Account No. 511 Ref. Debit Credit Balance 0 CRJ 572 572 CR GJ 115 687 CR 687 CR (Q=870­511.AdvertisingExpense_adjEntry) Date Description Ref. Debit Credit 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 2000 0 0 May Prepaid advertising Balance 2000 2000 DR DR Feedback Account: Advertising Expense Account No. 511 Date Description May 31 Balance Jun 30 Benefits consumed Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 2,000 2,000 DR 2,000 DR (Q=870­516.WagesExpense_adjEntry) Account: Wages Expense Account No. 516 Date Balance Description Ref. Debit Credit 0 CPJ 7,131 7,131 DR 1860 0 May 31 Balance Jun 30 Total from cash payments journal Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ Accrued wages expense Balance 8991 8991 DR DR Feedback Account: Wages Expense Account No. 516 Date Description Ref. May 31 Balance Jun 30 Total from cash payments journal Jun 30 Accrued wages expense Jun 30 Adjusted Balance Debit Credit 0 CPJ 7,131 7,131 DR GJ 1,860 8,991 DR 8,991 DR (Q=870­540.RentExpense_adjEntry) Account: Rent Expense Account No. 540 Date Description Balance Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance Prepaid rent GJ 4000 0 0 May 4000 4000 DR DR Feedback Account: Rent Expense Account No. 540 Date Description May 31 Balance Jun 30 Rent expired Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 4,000 4,000 DR 4,000 DR (Q=870­541.ElectricityExpense_adjEntry) Account: Electricity Expense Account No. 541 Date Description Ref. Debit Credit 381 0 0 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ Balance May Accrued electricity expense Balance 381 381 DR DR Feedback Account: Electricity Expense Account No. 541 Date Description May 31 Balance Jun 30 Accrued electricity expense Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 381 381 DR 381 DR (Q=870­542.WaterExpense_adjEntry) Account: Water Expense Account No. 542 Date Description May 31 Balance Jun 30 Accrued water expense Balance Ref. Debit GJ Credit Balance 126 0 0 126 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 126 DR Feedback Account: Water Expense Account No. 542 Date Description May 31 Balance Jun 30 Accrued water expense Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 126 126 DR 126 DR (Q=870­543.InsuranceExpense_adjEntry) Account: Insurance Expense Account No. 543 Date Description Ref. Debit Credit 670 0 0 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ Balance May Prepaid insurance Balance 670 670 DR DR Feedback Account: Insurance Expense Account No. 543 Date Description May 31 Balance Jun 30 Insurance expired Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 670 670 DR 670 DR (Q=870­544.SuppliesExpense_adjEntry) Account: Office Supplies Expense Account No. 544 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 GJ 739 0 0 May Supplies used Balance 739 DR Jun 30 Adjusted Balance 739 DR Feedback Account: Office Supplies Expense Account No. 544 Date Description May 31 Balance Jun 30 Supplies used Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 739 739 DR 739 DR (Q=870­560.DepnExpenseCapitalAsset2_adjEntry) Account: Depn Expense: Cash Registers Account No. 560 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 83 0 0 May Depreciation-one month Balance 83 83 DR DR Feedback Account: Depn Expense: Cash Registers Account No. 560 Date Description May 31 Balance Jun 30 Depreciation ­ one month Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 83 83 DR 83 DR (Q=870­561.DepnExpenseCapitalAsset1_adjEntry) Account: Depn Expense: Store Fixtures Account No. 561 Date Description Ref. Debit Credit Balance 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ 328 0 0 May Depreciation-one month Balance 328 328 DR DR Feedback Account: Depn Expense: Store Fixtures Account No. 561 Date Description May 31 Balance Jun 30 Depreciation ­ one month Jun 30 Adjusted Balance Ref. Debit Credit 0 GJ 328 328 DR 328 DR (Q=870­571.InterestExpense_adjEntry) Account: Interest Expense Account No. 571 Date Description Ref. Debit Credit 235 0 0 31 Balance Jun 30 Jun 30 Jun 30 Jun 30 Adjusted Balance GJ Balance May Accrued interest expense Balance 235 235 DR DR Feedback Account: Interest Expense Account No. 571 Date Description May 31 Balance Jun 30 Accrued interest expense Jun 30 Adjusted Balance Manual Accounting Practice Set Extremely Board, Australasian Edition 3 (VTA3q) © 2009 ­ 2014 Perdisco / latin /. v., learn thoroughly Terms Of Use | Privacy Policy | Friday, September 11, 2015, 17:18 Ref. Debit Credit Balance 0 GJ 235 235 DR 235 DR ...
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