Figure 10.118 gives an example of calculating the amount of a prepaid expense transferred to profit and
Question:
Figure 10.118 gives an example of calculating the amount of a prepaid expense transferred to profit and loss, based on insurance prepaid 30 June 2021 $790, payments 2021–2022 $5000 and prepaid 30 June 2022 $850. In this example, the transfer to the profit and loss account is $4940.
From the following data and using the above as an example, calculate the amount transferred to the profit and loss account for the year ended 30 June 2022.
a Rates: prepaid $400 on 30 June 2021, bank 2021–2022 $3400, prepaid $1200 on 30 June 2022 b Salaries: accrued $850 as at 30 June 2021, bank 2021–2022 $43 800, accrued $1000 as at 30 June 2022 c Interest on government bonds: accrued $280, as at 30 June 2021, bank 2021–2022 $4500, accrued $500 as at 30 June 2022 d Rent received: received in advance $850 on 30 June 2021, bank 2021–2022 $12 000, received in advance $1150 on 30 June 2022
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson