Download Manual Accounting Practice Set: Adjusting Entries and more Exercises Accounting in PDF only on Docsity!
Your progress
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.
Your grading
Your grading outcome (still in progress) Awarded Total Points (prior to this page) 1036 1 , 103 Points (on this page) 44 44 Points ( after this page) − 134 Total 1080 1 , 281 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. 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 short term 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 pre paid at the start of June.
Depn Expense: Cash Registers Accum Depn: Cash Registers Depn Expense: Store Fixtures Accum Depn: Store Fixtures Water Expense Water Payable Electricity Expense Electricity Payable Wages Expense Wages Payable 3 months of advertising remained pre paid at the start of June. 5 months of insurance remained pre paid 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 Use the worksheet to assist you in recording the adjusting entries in the general journal. Post the adjusting entries from the general journal to the general ledger accounts. 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. Back On Track 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. Special Journals General Journal Subsidiary Ledgers General Ledger (Q= 861 .generalJournalAdjEntries)
GENERAL JOURNAL
Date Account and Explanation Post Ref. Debit Credit Jun 30 560 83 0 151 0 83 Jun 30 561 328 0 161 0 328 Jun 30 542 126 0 222 0 126 Jun 30 541 381 0 221 0 381 Jun 30 516 1860 0 220 0 1860 1 ) 2 ) 3 ) Show All
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) Jun 30 Insurance Expense 543 670
Jun 30 Prepaid Insurance 142 670 (adjusting entry) (Q= 870 112 .InterestReceivable_adjEntry)
GENERAL LEDGER
Account: Interest Receivable Account No. 112 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 GJ 115 0 115 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 115 DR Feedback Account: Interest Receivable Account No. 112 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Accrued interest revenue GJ 115 115 DR Jun 30 Adjusted Balance 115 DR (Q= 870 130 .StoreSupplies_adjEntry) Account: Office Supplies Account No. 130 Date Description Ref. Debit Credit Balance May 31 Balance 3 , 694 DR Jun 30 Supplies used GJ^0 739 2955 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 2955 DR Feedback Account: Office Supplies Account No. 130 Date Description Ref. Debit Credit Balance May 31 Balance 3 , 694 DR Accrued interest revenue
Jun 30 Adjusted Balance 4 , 000 DR (Q= 870 142 .PrepaidInsurance_adjEntry) Account: Prepaid Insurance Account No. 142 Date Description Ref. Debit Credit Balance May 31 Balance 3 , 350 DR Jun 30 Insurance expense GJ 0 670 2680 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 2680 DR Feedback Account: Prepaid Insurance Account No. 142 Date Description Ref. Debit Credit Balance May 31 Balance 3 , 350 DR Jun 30 Insurance expired GJ 670 2 , 680 DR Jun 30 Adjusted Balance 2 , 680 DR (Q= 870 151 .AccDepnCapitalAsset 2 _adjEntry) Account: Accum Depn: Cash Registers Account No. 151 Date Description Ref. Debit Credit Balance May 31 Balance 1 , 750 CR Jun 30 GJ^0 83 1833 CR Jun 30 Jun 30 Jun 30 Adjusted Balance 1833 CR Feedback Account: Accum Depn: Cash Registers Account No. 151 Date Description Ref. Debit Credit Balance May 31 Balance 1 , 750 CR Jun 30 Depreciation one month GJ 83 1 , 833 CR Jun 30 Adjusted Balance 1 , 833 CR Depreciation-one month
(Q= 870 161 .AccDepnCapitalAsset 1 _adjEntry) Account: Accum Depn: Store Fixtures Account No. 161 Date Description Ref. Debit Credit Balance May 31 Balance 18 , 375 CR Jun 30 GJ 0 328 18703 CR Jun 30 Jun 30 Jun 30 Adjusted Balance 18703 CR Feedback Account: Accum Depn: Store Fixtures Account No. 161 Date Description Ref. Debit Credit Balance May 31 Balance 18 , 375 CR Jun 30 Depreciation one month GJ 328 18 , 703 CR Jun 30 Adjusted Balance 18 , 703 CR (Q= 870 220 .WagesPayable_adjEntry) Account: Wages Payable Account No. 220 Date Description Ref. Debit Credit Balance May 31 Balance 1 , 000 CR Jun 4 Paid staff wages CPJ 1 , 000 0 Jun 30 GJ^0 1860 1860 CR Jun 30 Jun 30 Jun 30 Adjusted Balance 1860 CR Feedback Account: Wages Payable Account No. 220 Date Description Ref. Debit Credit Balance May 31 Balance 1 , 000 CR Jun 4 Paid staff wages CPJ 1 , 000 0 Jun 30 Accrued wages expense GJ 1 , 860 1 , 860 CR Jun 30 Adjusted Balance 1 , 860 CR (Q= 870 221 .ElectricityPayable_adjEntry) Depreciation-one month Accrued wages expense
Account No. 225 Date Description Ref. Debit Credit Balance May 31 Balance 235 CR Jun 30 GJ 0 235 470 CR Jun 30 Jun 30 Jun 30 Adjusted Balance 470 CR Feedback Account: Interest Payable Account No. 225 Date Description Ref. Debit Credit Balance May 31 Balance 235 CR Jun 30 Accrued interest expense GJ 235 470 CR Jun 30 Adjusted Balance 470 CR (Q= 870 403 .InterestRevenue_adjEntry) Account: Interest Revenue Account No. 403 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Interest received from the bank CRJ 572 572 CR Jun 30 GJ^0 115 687 CR Jun 30 Jun 30 Jun 30 Adjusted Balance 687 CR Feedback Account: Interest Revenue Account No. 403 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Interest received from the bank CRJ 572 572 CR Jun 30 Accrued interest revenue GJ 115 687 CR Jun 30 Adjusted Balance 687 CR (Q= 870 511 .AdvertisingExpense_adjEntry) Account: Advertising Expense Account No. 511 Accrued interest expense Accrued interest revenue
Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Prepaid advertising GJ^2000 0 2000 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 2000 DR Feedback Account: Advertising Expense Account No. 511 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Benefits consumed GJ 2 , 000 2 , 000 DR Jun 30 Adjusted Balance 2 , 000 DR (Q= 870 516 .WagesExpense_adjEntry) Account: Wages Expense Account No. 516 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Total from cash payments journal CPJ 7 , 131 7 , 131 DR Jun 30 GJ 1860 0 8991 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 8991 DR Feedback Account: Wages Expense Account No. 516 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Total from cash payments journal CPJ 7 , 131 7 , 131 DR Jun 30 Accrued wages expense GJ 1 , 860 8 , 991 DR Jun 30 Adjusted Balance 8 , 991 DR (Q= 870 540 .RentExpense_adjEntry) Account: Rent Expense Account No. 540 Date Description Ref. Debit Credit Balance Accrued wages expense
Jun 30 Jun 30 Jun 30 Adjusted Balance 126 DR Feedback Account: Water Expense Account No. 542 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Accrued water expense GJ 126 126 DR Jun 30 Adjusted Balance 126 DR (Q= 870 543 .InsuranceExpense_adjEntry) Account: Insurance Expense Account No. 543 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Prepaid insurance GJ^670 0 670 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 670 DR Feedback Account: Insurance Expense Account No. 543 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Insurance expired GJ 670 670 DR Jun 30 Adjusted Balance 670 DR (Q= 870 544 .SuppliesExpense_adjEntry) Account: Office Supplies Expense Account No. 544 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Supplies used GJ^739 0 739 DR Jun 30 Jun 30
Jun 30 Adjusted Balance (^) 739 DR Feedback Account: Office Supplies Expense Account No. 544 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Supplies used GJ 739 739 DR Jun 30 Adjusted Balance 739 DR (Q= 870 560 .DepnExpenseCapitalAsset 2 _adjEntry) Account: Depn Expense: Cash Registers Account No. 560 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 GJ^83 0 83 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 83 DR Feedback Account: Depn Expense: Cash Registers Account No. 560 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 Depreciation one month GJ 83 83 DR Jun 30 Adjusted Balance 83 DR (Q= 870 561 .DepnExpenseCapitalAsset 1 _adjEntry) Account: Depn Expense: Store Fixtures Account No. 561 Date Description Ref. Debit Credit Balance May 31 Balance 0 Jun 30 GJ 328 0 328 DR Jun 30 Jun 30 Jun 30 Adjusted Balance 328 DR Depreciation-one month Depreciation-one month
