It is discovered that 10000 cash received during the

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It is discovered that $10,000 cash received during the year and credited to sales are actually related to services to be delivered in July 2014. $5,000 of wages relating to June 2014 have not been paid and need to be accrued. Part A (12 Marks) Prepare journal entries for the necessary end of period adjustments. Account name Debit $ Credit $ Depreciation Expense – PPE Accumulated Depreciation – PPE (1 mark for each entry) Rent Expense Prepaid Rent (1 mark for each entry) Bad Debts Expense Allowance for doubtful debts (1 mark for each entry) Retained Profits Dividend Payable (1 mark for each entry) Sales revenue Unearned revenue (1 mark for each entry) Wages Expense Wages Payable (1 mark for each entry) 45 000 5 000 3 000 5 000 10,000 5,000 45 000 5 000 3 000 5 000 10,000 5,000 Distributing prohibited | Downloaded by David Wu ([email protected])lOMoARcPSD
ACCT1501 Practice Exam Questions & Solutions 2015S1 11 Part B (7 Marks) Prepare an Income Statement for the year ended 30 June 2014:
Part C (4 Marks)In the Balance Sheet as at 30 June 2014, what would be the closing balance of retained profits? Show all workings.
Closing Balance (1 mark for each item & correct figure )
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ACCT1501 Practice Exam Questions & Solutions 2015S1 12 QUESTION 6 (15 marks) Inventory The following information relates to inventory transactions of Promises Ltd for the month ending 30 June 2014: Date Cash Purchases Cash Sales Balance 1 June 100 units @ $10 10 June 80 units @ $12 18 June 140 units @ $20 25 June 30 units @ $14 30 June 50 units @ $25 Promises Ltd uses FIFO (first-in-first-out) and perpetual inventory control. Calculate the cost of goods sold based on the costs of units sold. (3 Marks)

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