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On july 1 2014 the indigo ltd rented out part of its

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10.On July 1 2014 the Indigo Ltd rented out part of its property and collected $9000 inadvance for anine-month period. The receipt was credited to a liability account. At 31 December 2014, IndigoLtd’s year-end, which of the following adjusting journal entries should be made?a.DR Cash $6000; CR Rent income $6000b.DR Rent income $3000; CR Unearned rent income $3000*c.DR Unearned rent income $6000; CR Rent income $6000d.DR Rent receivable $6000; CR Rent income $6 000
11.During 2014 The Style Hairdressing Salon paid out $41 000 in wages from its bank account. Atyear-end 2014 wages owing but unpaid were $1600. The salon uses accrual accounting. Howmuch would be reported as wages expense for 2014?
12.Xi Co has a bills receivable for $3089 given in settlement of a debt. The value of the bill is made upof principal of $3000 and interest of $89. When the note is paid, at the end of its 90 day term, Xi Co’sbank is debited with $ _____ and bills receivable is credited with $3089.
*b.$3089c.$2911d.$3200PART B: Problem SolvingQuestions – Answer all questionsQuestion 1 (6 marks)On 30 June 2017, the accountant for NCD Maintenance calculated that 1 month’s interest of $420 hadaccrued on a bank loan. An interest payment of $1600 was made on 30 September 2017.RequiredA.Give the adjusting entry needed on 30 June 2017.B.Give the closing entry.C.Assuming that no reversing entry was made, give the entry to record the interest payment on 30September 2017.

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Term
Fall
Professor
DR.Pak Lee
Tags
Balance Sheet, Expense

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