Brice Foran Hair Care has a balance date of 30/6/X1. You have reviewed their accounts and found
Question:
Brice Foran Hair Care has a balance date of 30/6/X1. You have reviewed their accounts and found that several adjustments need to be made prior to the preparation of the final financial statements.
Question 1
Brice paid for his building and contents insurance policy on 28/2/X1, it is a 12-month policy and cost $7,200 (excluding GST). On the template below prepare:
- A balance day adjustment for this insurance payment.
- The reversing entry that should be processed on 1/7/X1.
Note, you do not need to enter a reference number for these journal entries.
General Journal GJ1
Date | Details | Ref | Debit $ | Credit $ |
---|---|---|---|---|
Question 2
Brice pays his staff fortnightly in arrears. Paydays for his staff around the 30th June are:
- Thursday 20th June 20X1
- Thursday 4th July 20X1
The fortnightly wages expense is $12,500.00. On the template below:
- Prepare an accrual entry for wages expense as at 30/6/X1
- Prepare the reversing entry that would be processed on 1/7/X1
Note, you do not need to enter a reference number for these journal entries.
General Journal GJ1
Date | Details | Ref | Debit $ | Credit $ |
---|---|---|---|---|
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding