Ledger account balances prior to any balance day

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Ledger Account balances (prior to any Balance Day Adjustments) as at 30 June 2016:Insurance$ 2,400Rent1,800Interest Income1,400Plant10,000Accumulated DepreciationPlant6,000Accounts Receivable (before bad debts write offsee info. below)5,550Allowance for Doubtful Debts200Additional Information:On 1 December 2015 a one-year insurance premium was paid, for $2,400 plus GST.Insurance cover starts on 1 December.Rent paid in advance $150 at 30 June 2016.Interest earned but not received $350 at 30 June 2016.Depreciation to be provided $1,000 at 30 June 2016.Bad Debts to be written off $500 plus $50 GST at 30 June 2016.Allowance for Doubtful Debts to be adjusted to 5.5% of Accounts Receivable.Tip: In your calculation, remember to consider the bad debt amount to be written offand the existing Allowance for Doubtful Debts balance.Required:(a)General Journal entries for the Balance Day Adjustments.(b)Reversing General Journal entries on 1 July 2016.
Units Covered: FNSACC311, FNSACC312, BSBFIA401FNS40217 Module 1.1 Assignment_1811Page50of60(a) & (b) General Journals:DateParticularsDebitCredit30/6/16Prepaid Expenses1,400Insurance1,400Insurance Paid in Advance1/7/16Insurance1,400Prepaid Expenses1,400Reversal of Balance Day Adjustment30/6/16Prepaid Rent150Rent150Rent paid in Advance1/7/16Rent150Prepaid Rent150Reversal of Balance Day Adjustment30/6/16Revenue Accrued350Interest Revenue350Revenue due but not yet received1/7/16Interest Revenue350Revenue Accrued350Reversal of Balance Day Adjustment30/6/16DepreciationPlant1,000Accumulated Depreciation - Plant1,000Depreciation charged for the year30/6/16Bed debts500GST Collected50Accounts Receivable550Bad Debts Written off30/6/16Doubtful debts75Allowance for Doubtful Debts75Adjustment to Allowance Doubtful Debts (5,550-550) x 5.5%
Units Covered: FNSACC311, FNSACC312, BSBFIA401FNS40217 Module 1.1 Assignment_1811Page51of60The following questions are based on the material in Chapter 16:20.You are provided with the General Ledger with balances (in part (b) below) of E. Norman after balance dayadjustments have been posted.Required:(a)Prepare the closing general journal entries.(b)Post entries to the General Ledger.(c)Post-closing Trial Balance.(a) General Journal of E. NormanDateParticularsDebitCredit30/6Sales44,593Trading44,593Balance transferred to Trading A/c30/6Trading21,118COGS21,118Balance transferred to Trading A/c30/6Trading23,475Profit & Loss23,475Gross profit transferred to P&L A/c30/6Commissions Received807Profit & Loss807Balance transferred to P&L A/c30/6Profit & Loss5,624Freight Outwards475Insurance228Electricity532Telephone190Salaries & Wages2,470Rates238Discount Allowed1,007Rent484Balances transferred to P&L A/c30/6Profit & Loss18,658Capital18,658Net profit transferred to Capital A/c
Units Covered: FNSACC311, FNSACC312, BSBFIA401FNS40217 Module 1.1 Assignment_1811Page52of60(b) General Ledger: E. NormanTrading AccountDateDetailsFolioDebitCreditBalance30/6SalesN/A44,59344,593 CRCOGSN/A21,11823,475 CRProfit & LossN/A23,4750Profit and LossAccountDateDetailsFolioDebitCreditBalance30/6Trading AcctN/A23,47523,475 CRCommissions ReceivedN/A80724,282 CRFreight OutwardsN/A47523,807 CRN/A22823,579 CRN/A53223,047 CRN/A19022,857 CRN/A2,470

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