“You are now asked to journalize 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 journalize
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 revenues earned and expenses
incurred during the accounting period.
Remember that the details of the end of month adjustments
for June are as follows:
Office Furniture owned by
the business: original purchase price was $7,000, estimated useful life was 4
years, and estimated residual value was $1,000 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.
Office Equipment owned by
the business: original purchase price was $46,000, estimated useful life was 11
years, and estimated residual value was $3,500 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 $116.
The estimated electricity
payable as at the end of June is $268.
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 June 25 to June 30 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
$220.
Office supplies totaling
$2,251 are still on hand at June 30.
One month of prepaid rent
expired during June. Remember that at the beginning of June, the business paid
two month’s worth of rent in advance.
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.
After taking a physical count of inventory at the end of
the month, the balance of inventory on hand as at June 30 is found to be equal
to the closing balance of the Merchandise Inventory account. This means there
is no adjusting entry required for inventory shrinkage.
Instructions for adjusting entries
1)Use the.perdisco.com/resources/html/scenario/accPS3popup17.html””>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.
Back-On-Track functionality
.0/msohtmlclip1/01/clip_image001.gif”” alt=””Learning centre icon””>
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.perdisco.com/resources/html/scenario/accPS3popup20.html””>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 AllSpecial JournalsGeneral JournalSubsidiary LedgersGeneral Ledger
(Q=861.generalJournalAdjEntries)
GENERAL JOURNAL
Date
Account and Explanation
Post
Ref.
Debit
Credit
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
Jun
30
(select)
(select)
(Q=870-130.StoreSupplies_adjEntry)
GENERAL LEDGER
Account: Office Supplies
Account No. 130
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
2,515 DR
Jun
1
Cash purchase
CPJ
334
2,849 DR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
1
Prepaid rent
CPJ
8,300
8,300 DR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
9,000 DR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
5,000 DR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Office Furniture
Account No. 151
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
1,875 CR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Office Equipment
Account No. 161
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
16,420 CR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
1,110 CR
Jun
4
Paid staff wages
CPJ
1,110
0
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
805 CR
Jun
3
Paid electricity bill
CPJ
743
62 CR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
117 CR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(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
GJ
600
600 CR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(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
7,089
7,089 DR
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
30
Jun
30
Jun
30
Jun
30
Adjusted Balance
(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542
Date
Description
Ref.
Debit
Credit
Balance
May
31
Balance
0
Jun
30
“
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