Recording transactions and identifying types of adjusting entry A selection of a list of transactions for Penna is as follows: Apr 1 Paid six months of rent, $5,400 (GST exclusive) (originally debited to prepaid rent account). 10 Received $2,000 (GST exclusive) from a customer for a six-month service contract that began on 1 April. This was recorded as a credit to the unearned revenue account. 15 Purchased $200 (GST exclusive) of office supplies on credit (originally debited to office supplies expense account). 18 Purchased a computer for $2,500 (GST exclusive). 30 Work performed but not yet invoiced to the customer, $6,000 (GST exclusive). 30 Employees earned $2,500 in salary that will be paid on 2 May.

 Required For each transaction, 

record each of the initial transactions, before the adjusting entry in the general journal. 

identify what type of adjusting entry would be needed on 30 April.

Answer rating: 100% (QA)

Adjusting entries are necessary to ensure that the financial statements of a business accurately reflect the transactions that have occurred during an accounting period These entries are made at the e... View the full answer