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

Transcribed Image Text:

1 Jul 21 30 Jun 22 Expense Prepaid [reversal] Bank [payment 2021 & 2022] 30 Jun 21 Insurance [bda] 30 Jun 22 Insurance [bda] Extract General Ledger of... Insurance 790 30 Jun 22 Expense Prepaid [bda] Profit and Loss 5 000 5 790 GJ CP GJ 6 GJ Expense Prepaid 790 850 1 Jul 21 Insurance [reversal] GJ GJ GJ 850 4940 5.790 790