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business
accounting 28th edition
Accounting An Introduction To Principles And Practice 9th Edition Edward A. Clarke, Michael Wilson - Solutions
At the end of the financial year, prepare the general journal to close out the sales account $32 000 and cost of sales account $19 500 to trading account and post to the general ledger.
Prepare the general journals at the end of the accounting period to close account balances for sales $73 500 and cost of sales $44100. Post the journals to the ledger.
(a) Periodic inventory If sales account is $10 000 and the calculated value of the cost of sales is $4600, what is the gross profit where periodic inventory applies?(b) Perpetual inventory If sales account is $10 000 and the cost of sales account is $4600, what is the gross profit where perpetual
(a)If sales account is $15 000, purchases $6000, inventory (beginning or opening) $500, cartage inwards $100 and inventory (end or closing) $700, what is the inventory system that is used, the cost of sales and the gross profit?(b)If sales account is $30 000 and cost of sales account is $11 600,
Prepare the general journal to transfer a gross profit of $17 000 to the profit and loss account.
From your solution to question 9.7, close the trading account and prepare the general journal to transfer the gross profit to the profit and loss account.Question 9.7Prepare general journals for the end of the accounting year to close out the accounts to the trading account from figure 9.12.
From your solution to question 9.8, prepare the general journal to close the trading account and post to the relevant account.Question 9.8Prepare the general journal at the end of the accounting period to transfer the balances of the following accounts to the trading account in the general ledger:
Enter the following amounts as T account general ledger balances, prepare the closing journals, post the journals to the ledger and balance the ledger accounts for sales $35 000, inventory (opening) $800, purchases $15 000 and cartage inwards $500. The closing physical stock take was valued at $700.
Enter these balances for sales $35 000 and cost of sales $15 600 as T account general ledger balances. Prepare the closing journals (including gross profit), post the journals and balance the ledger accounts.
At the end of the financial year, prepare the general journal to close out the accounts. Post the journal to the T accounts shown in figure 9.18. Discount Received Balance Commission Received Balance 400 700 Profit and Loss Interest Received Balance Dividend Received Balance 350 800
Prepare the closing journals from the extract of account balances of W Woog as at 31 December 2022: sales$42 933, discount received $367, interest received $687 and cost of sales $15 132.
At the financial year’s end, prepare the general journal to close out the accounts to the profit and loss account in the general ledger and post the journal to the T accounts shown in figure 9.20. Balance Balance Balance Advertising 500 Wages 10 000 Interest 2000 Balance Balance Electricity 800
If sales are $25 000, cost of sales $10 000 and other expenses $13 000, what is the net profit? Prepare the general journal for the transfer of net profit.
Prepare the general journal to transfer the net profit of $7000 to the capital account.
Drawings totalled $2500 for the year. Prepare the general journal to close this account.
From the account balances of R Jones in figure 9.25, prepare the necessary closing general journals. Extract Account Balances of R Jones as at 31 December 2022 Inventory [1-1-2022] Assets - other Liabilities Capital Drawings Sales Rent Received Interest Received Purchases Freight Inwards Sales
Prepare the general journals to close the accounts of J Smith (shown in figure 9.26) for the year ended 30 June 2022. Extract Account Balances of J Smith as at 30 June 2022 Sales Cost of Sales Discount Received Rent Received Advertising Sales Salaries Office Salaries Rent Telephone Discount Allowed
From the trial balance of B Mac Saville shown in figure 9.27, prepare the general journals to close the accounts for the year ended 31 March 2022, post the journals to the general ledger and prepare a trial balance. The solution to this question is used for the preparation of an income statement in
Using the trial balance of N Glen shown in figure 9.28, prepare the general journals to close the accounts for the year ended 31 May 2022. Post these general journals to the general ledger and prepare a trial balance. The solution to this question is used for the preparation of an income statement
From the ledger accounts of S Ingleton, shown in figure 9.32, prepare an income statement for the year ended 30 June 2022. Inventory [opening] Purchases Trading 2 138 Sales 29 016 Inventory [closing] Freight Inward 652 Profit and Loss (gross pr] 33 640 65 446 62 898 2 548 65446 Advertising Cartage
An extract of the general ledger of Cec Nock is shown in figure 9.33. You are required to prepare an income statement for the year ended 31 March 2022. Cost of Sales Profit and Loss [gross pr] Trading 7 636 Sales 8 894 16 530 16 530 16 530 Delivery Expense Salaries Sales Cleaning Office Expense
Using your answer to question 9.27, prepare an income statement for B Mac Saville for the year ended 31 March 2022.Question 9.27From the trial balance of B Mac Saville shown in figure 9.27, prepare the general journals to close the accounts for the year ended 31 March 2022, post the journals to the
Using your answer to question 9.28, prepare an income statement for N Glen for the year ended 31 May 2022.Question 9.28Using the trial balance of N Glen shown in figure 9.28, prepare the general journals to close the accounts for the year ended 31 May 2022. Post these general journals to the
From the extract general ledger accounts of H Mercure (see figure 9.34), prepare an income statement for the year ended 31 March 2022, where accounts are not grouped under headings. Inventory [opening] Purchases Trading 1 200 Sales 11 960 Inventory [closing] Profit and Loss [gross pr] 10 840 24 000
From the extract general ledger accounts of M Melbourne (see figure 9.35), prepare an income statement for the year ended 31 March 2022, where accounts are not grouped under headings. Trading 20 690 Sales Cost of Sales Profit and Loss [gross pr] 24 990 45 680 45 680 45 680 Salaries Selling Expense
From the balances of the general ledger of M Wellbrook, shown in figure 9.38, prepare a balance sheet as at 30 June 2022. Extract Account Balances of M Wellbrook as at 30 June 2022 Bank Accounts Receivable Control Inventory [30-6-2022] GST Receivable Premises Plant and Machinery Accounts Payable
From the general ledger extract shown in figure 9.39, prepare a balance sheet for N Brighton as at 30 June 2022. Extract Account Balances of N Brighton as at 30 June 2022 Bank Petty Cash Accounts Receivable Control Inventory [30-6-2022] GST Receivable Land and Buildings Machinery Motor Vehicles
Prepare a balance sheet from the extract of the general ledger for O Bonalbo on 30 June 2022, shown in figure 9.40. Extract Account Balances of 0 Bonalbo as at 30 June 2022 Petty Cash Accounts Receivable Control Inventory [30-6-2022] GST Receivable Premises Plant Furniture and Fittings Government
From the trial balance of L More (shown in figure 9.52) write next to each account name the account/statement and group abbreviations. Then, using this information, you are required to prepare:• an income statement• a balance sheet• a trial balance as at the commencement of the next
From the trial balance of M Bimby shown in figure 9.53, write next to each account name the account/statement and group abbreviations. Using this information, you are required to prepare an income statement, balance sheet and trial balance at the start of the next year. Trial Balance of M Bimby as
P Hastings has given you a list of account balances (shown in figure 9.54). Unfortunately, the list shows the accounts in a random order. Write next to each account name the account/statement and group abbreviations.Use this information to prepare an income statement and balance sheet for the year
Lita Litigiosus is a barrister of the Independent Bar. She owns chambers near the courts. The legal business is structured as a sole trader and has some employees. From the trial balance shown in figure 9.59, next to each account name write the abbreviation for the account/statement and
Chris Bones is a medical consultant who provides services to hospitals and private patients for fees. From the account balances shown in figure 9.60, next to each account name write the abbreviation for the account/statement and classification. Then use this information to:• prepare general
From the account balances of B Ramourne (shown in figure 9.61), write next to each account name the account/statement and group abbreviations. Then, using this information, you are required to:• prepare an income statement• prepare a balance sheet. Account Balances of B Ramourne as at 30 June
From the account balances of W Wauk (shown in figure 9.62), write next to each account name the account/statement and group abbreviations. Then, using this information, you are required to:• prepare an income statement, and• prepare a balance sheet. Account Balances of W Wauk as at 30 June 2022
S W Rocks has listed his accounts (see figure 9.63). Write next to each account name the account/statement and group abbreviations. You are then required to:• prepare an income statement, and• prepare a balance sheet. Account Balances of S W Rocks as at 31 March 2022 Loan Mortgage on Premises
From the account balances of K Yogle (shown in figure 9.64), write next to each account name the account/statement and group abbreviations. Then K Yogle asks that you:• prepare an income statement, and• prepare a balance sheet. Account Balances of K Yogle as at 30 June 2022 Bank Accounts
T Broadwater has provided the balances shown in figure 9.65. Write next to each account name the account/statement and group abbreviations. Then T Broadwater asks that you:• prepare an income statement, and• prepare a balance sheet. Account Balances of T Broadwater as at 31 December 2022 Petty
From the account balances of C Byron (shown in figure 9.66), write next to each account name the account/statement and group abbreviations. Then, using this information, you are required to:• prepare an income statement, and• prepare a balance sheet. Account Balances of C Byron as at 30 June
From the account listing of Dr R Wollondilly, whose service business operates as Riverside Medical Practice (see figure 9.67), you are required to:• write next to each account name the account/statement and group abbreviations• prepare an income statement for the year ended 30 June 2022•
D Talbingo operates as a landscape gardener and has provided the following account balances (see figure 9.68). For this service business you are required to:• write next to each account name the account/statement and group abbreviations• prepare an income statement for the year ended 30 June
Find the words in the computer-shaped puzzle using the words from the word list. OYZJW GA GA LE 0 M Y W GW SO Y L PS VO YO ZG I FALA URCCA FCXQ|QH|SES NE PXEERI TTRDNK DOIRE PFODNE PGNITNUOCCAPT|ZQ|KT CASHACCOUNTING W D J Y PDZI UT XDWMF ZUPU|OZ|IF|NI|K|H GEENJSMWTD NRK XTQZ EBPFFK VIDLC|PL|NW|FT
The electricity account is received every three months and the last account was processed during April for February–April. For the 10 months ended 30 April 2022 the electricity account balance was $9000 and the balance day adjustment at 30 June was calculated to be an expense accrued for
The balance on the wages account at 30 June 2022 was $20 000. Wages of $350 had been incurred but not paid. The wages paid for the first pay on 4 July totalled $1400.You are required to prepare the journals on 30 June 2022 for the balance day adjustment and the closing journal.Post these journals
Salaries to the end of May 2022 totalled $63 400. Payments for salaries in June 2022 totalled $4600. However, four days at $290 per day were worked but not paid. You are required to prepare the journal for:• adjustment at 30 June 2022• closing the account at 30 June 2022• reversal on 1 July
Prepare the adjusting journal on 30 June 2022 and reversal journal on 1 July 2022 for the following balance day adjustments:• wages incurred but not paid $750• electricity used but no account has been received and the estimated expense is $430• stationery to be accrued $150.
At 30 June 2022, the balance in the rates account was $2500 and there was a prepayment of $500.You are required to prepare the journals on 30 June 2022 for the end-of-period adjustment, the closing journal and also the reversal journal on 1 July 2022.Prepare general ledger accounts for rates and
There was a balance of $2000 in the insurance account before the payment of the annual insurance bill of $3600 on 28 February 2022, for the period March 2022 to February 2023. The accounting year ended on 30 June 2022.You are required to prepare the journals for:• adjustment at 30 June 2022•
Prepare adjusting and closing journal entries for the year ended 31 December 2022 and reversal journal entries on 1 January 2023. Also show extracts of the income statement and balance sheet for December.Ledger account balances on 31 December 2022 were insurance $1730 and wages $31 360. It was
Interest on a bank investment account of $375 had been earned but not received by 30 June 2022. The interest received account had a balance of $2138 before the adjustment.You are required to prepare the journals on 30 June 2022 for the end-of-period adjustment, the closing journal and also the
The six-monthly interest of $1500 on government bonds was due on 31 July. The balance on the interest received account was $1750 on 30 June.You are required to prepare the journal for:• adjustment at 30 June 2022• closing the account at 30 June 2022, and• reversal on 1 July 2022.Also
Prepare adjusting and closing journal entries for the year ended 31 December 2022 and extracts of the income statement and balance sheet. Also prepare reversal journal entries on 1 January 2023.General ledger balances on 31 December 2022 were wages $76 600 and interest received $6500. The
Rent of $660 ($600 + $60 GST) was received in June for the month of July. The balance of the rent received account at 30 June before the adjustment was $7800.You are required to prepare the journals on 30 June 2022 for the balance day adjustment and the closing journal, and also the reversal
On 1 July 2021 L Bathurst had entered a 24-month contract with her tenant for rent of premises for $23 100($21 000 + $2100 GST) per annum to be paid monthly in advance. At the end of the financial year, 30 June 2022, the rent received account in the general ledger was $22 750.You are required to
a Prepare general journals for the following balance day adjustments at 30 June 2022:• insurance prepaid $750• wages accrued $600• interest receivable $350• rent received in advance $495 ($450 + $45 GST).b From the previous adjustments prepare an extract balance sheet.c Prepare reversal
An extract of account balances for Enid Fisher as at 30 June 2022 showed accounts receivable $22 803, rent received $3016, interest received $1042, salaries $14 624, insurance $6573, rent $7060, bad debts $1034.The balance day adjustments required are as follows.• Insurance includes a prepayment
The business of R Williams decided on 30 June 2022 to create an allowance for doubtful debts of $1200.Using this data, you are required to:• prepare the journal for the adjustment at 30 June 2022• prepare the journal for closing the account at 30 June 2022• post the journal entries to the
On 30 June 2023 R Williams decides to increase the allowance for doubtful debts from $1200 (created in 2022)to 5% of the accounts receivable control account balance of $49 995. Bad debts expense of $3553 had already been written off during the year.Using the combined method you are required to
An extract of balances at 31 December 2022 showed accounts receivable control $60 610, allowance for doubtful debts $750, GST payable $1000 and bad debts expense $2500.Using the combined method, adjustments required at the end of December were:– an additional bad debt of $605 ($550 + $55 GST) to
P Way purchased a motor vehicle on 1 July 2021 for $38 500 ($35 000 + $3500 GST) with an estimated residual value of $3300 ($3000 + $300 GST) and an estimated useful life of four years. Using straight line depreciation, prepare the general journal on 30 June 2022:• for the balance day adjustment,
Equipment is purchased on 31 December 2021 for $23 100 ($21 000 + $2100 GST). It is to be depreciated at 15% p.a. straight line depreciation and is expected to have a residual value of $1100 ($1000 + $100 GST).As at 30 June 2022, prepare:• general journals for balance day adjustments and closing
M Bromley purchased office equipment on 1 January 2021 for $19 250 ($17 500 + $1750 GST) and expected that the useful life would be five years with a nil residual value. Use straight line depreciation.For the year ended 30 June 2022, prepare the adjustment journal and an extract of the balance
On 31 December 2020 D Burrendong used a debit card to purchase machinery for $6270 ($5700 + $570 GST) to be depreciated at 20% p.a. and an estimated scrap value of $220 ($200 + $20 GST); as well as office equipment for$4400 ($4000 + $400 GST) to be depreciated at 15% p.a. Using straight line
Indicate the correct option in the following statements:a With a perpetual inventory system, the business updates its inventory records following a sale.True/False b With a periodic inventory system, the business updates its inventory records following a sale.True/False c Which inventory system
P Indian uses perpetual inventory and during the year carries out physical stocktakes of certain inventory items.During the year ended 30 June 2022, P Indian carries out two partial physical stocktakes of certain stock items and a full end-of-year stocktake on 30 June 2022. The results of these
I Pacific keeps inventory using the perpetual inventory system and carries out a rotational stock count of a specific portion of the inventory every three months, as well as the full end-of-year stocktake as at 30 June 2022.The results of the four separate stocktakes are shown in figure 10.83. Date
The business maintains a perpetual inventory record system.Following a mid-year stocktake, the inventory had a cost of $77 960 while the inventory records were $78 950. Prepare the journal, including narration, and remember 10% GST is added to the variance account.The end-of-year stocktake totalled
From the following transactions prepare the abbreviated general journals that apply where a business uses either the periodic inventory system or the perpetual inventory system.a The business commences with $5000 cash and $7500 inventory.b Purchase of inventory on credit for $1430 ($1300 + $130
At 30 June 2021, the leave provision general ledger balances for the employees of Joan Patricia were annual leave $7382, sick and carer’s leave $3395 and long service leave $2569. No adjustments were made to the leave provision accounts during the year ended 30 June 2022.For the year ended 30
The leave provision accounts of Steven Keith at 30 June 2021 were annual leave $83 228, sick and carer’s leave$50 667 and long service leave $29 608. No adjustments were made to the leave provision accounts during the year ended 30 June 2022.For the year ended 30 June 2022, leave payments were
Complete the adjusted trial balance extract prepared on 30 June 2022 (see figure 10.93). Enter new accounts if required, as well as the amount for each adjustment, and complete the trial balance post-adjustment columns, using the summary of balance day adjustments in figure 10.94 as a guide. Assume
R Bogan prepares monthly accounts and at 31 December 2021 there was $1500 salary prepayment due to payment of Christmas and New Year holidays during December. The salary account balance to 31 December 2021 was $75 000, and this included the prepayment. The working week is from Monday to
The financial year of R Little ended on 31 December. Annual insurance premiums were paid to the insurance brokers at the end of February, for March–February. On 31 December 2020, the balance day adjustment was$500. Payments to the insurance brokers were:Prepare the general ledger account for
On 2 April 2021, D Cotter invested $125 000 in 4% state government bonds for five years. Interest is paid on 1 April and 1 October. The accounting year ended on 30 June.You are required to prepare the general ledger accounts for the investment, interest received account and the relevant balance day
R Lachlan closes her accounts on 30 June. In 2021, the July rent received in June is $490 (see figure 10.106). Year Ended 30 June 2022 2023 Deposited in Bank $6666 1$6060+ $606 GST) $8151 ($7410 + $741 GST) July Rent Received in June $572 ($520 + $52 GST) $715 ($650 + $65 GST)
Annual insurance of $5940 ($5400 + $540 GST) was paid at the end of February 2022 for the period March–February. Monthly accounts are prepared and standing journals are used; balance date is 30 June. The insurance expense account was $3400 before the February payment. Prepare in general journal
Annual local government council rates of $4800 (there is no GST) were paid on 1 February 2022. The payment is allocated to a rates prepaid account, as the business uses monthly standing journals. The balance on the rates account at 31 January 2022 was $2520. Complete:• payment of the rates on 1
The annual maintenance agreement for fire extinguishers and sprinklers was paid on 30 November 2021,$5082 ($4620 + $462 GST). The business prepares monthly accounts and wants them to accurately reflect the matching of revenue and expenses and uses the monthly standing journal method to allocate
Annual maintenance/service revenue of $59 400 ($54 000 + $5400 GST) was received by the end of March 2022, for April 2022 to March 2023. Monthly accounts are prepared and standing journals are used; balance date is 30 June. The maintenance/service revenue account was $34 500, as at 31 March
F F Kwel services fire extinguishers and sprinkler systems and has annual agreements with its customers, which must be paid for at the commencement of the annual agreement. All agreements commence on 1 February and its accounting financial year ends on 30 June. Revenue totalling $80 916 ($73 560 +
The machinery account balance at 1 July 2021 was $90 720, the accumulated depreciation $27 210 and the annual depreciation expense for the coming year $10 884. Prepare:• the monthly standing journal for July 2021• an income statement and balance sheet for the end of July 2021, and• a balance
a Prepare in general journal format the payment of an annual expense, receipt of annual revenue and purchase of a non-current asset. The business uses standing journals for processing annual expenses and revenue. The following three transactions occurred on 31 March 2022.– Insurance tax invoice
Prepare general journal entries to record the following balance day adjustments at 30 June 2022 and indicate the effect on profit from each journal.a Prepaid advertising is $852.b Unpaid salaries earned by employees of $3500.c Insurance paid before June relates to after June $1750.d Service fee
Balances on accounts as at 30 June 2022, before balance day adjustments, were: equipment $55 000, accumulated depreciation – equipment $21 000, insurance $5100 and wages $35 800.Balance day adjustments were: depreciation of equipment 15% p.a., insurance prepaid $910 and wages owed to employees
On 1 January 2021, machinery was purchased for $29 700 ($27 000 + $2700 GST) to be depreciated at 20% p.a. Insurance account was $1200 at 31 March 2021. Annual insurance premium was paid on 1 April 2021 $1980 ($1800 + $180 GST) and 1 April 2022 $2310 ($2100 + $210 GST).Prepare balance day
Complete the adjusted trial balance extract for the accounting period ending 30 June 2022 (see figure 10.117). Enter new accounts if required, as well as the amount for each adjustment, and complete the trial balance post-adjustment columns.Each part is to be treated independently from the other.
Ledger balances on 30 June 2022 before adjustments were: 12% government bonds $20 000, interest received $1800, salaries $23 530, insurance $1550, plant $49 000 and accumulated depreciation – plant $17 300.Adjustments required were as follows.– Interest was received on 12% government bonds on
General ledger balances on 31 December 2022 were: rent received $7150, interest received $3100, insurance $2580, equipment$17 000 and accumulated depreciation – equipment $3000. The adjustments for the end of the year were as follows.• January 2023 rent $550 had been deposited in December
Ledger balances on 30 June 2022 before adjustments were: machinery $50 700, accumulated depreciation – machinery$12 800, rates $8000, 12% government bonds $25 000, interest received $2850, salaries and wages $58 300, and rent received $16 250.Adjustments required were as follows.• Machinery was
D Peggy has provided the following information:– Office furniture was purchased with debit card on 1 July 2020 for $7920 ($7200 + $720 GST) with a 10% p.a.depreciation rate.– Machinery was purchased with debit card on 1 January 2021 for $52 800 ($48 000 + $4800 GST), depreciated at 15% p.a.–
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
An extract from the general ledger of D Wyangala at 30 June 2022 showed the following account balances:– accounts receivable control $68 288– allowance for doubtful debts $1421– GST payable $2500– bad debts expense $640– doubtful debts expense $250.Following further analysis of the
D Burrinjuck had written off R Krui as a bad debt for $3850 ($3500 + $350 GST) in January 2021. In June 2023, D Burrinjuck received a cheque paying 40 cents in the dollar off the original account receivable amount which had previously been written off.Prepare the relevant journals and ledgers
From the following data calculate the amount paid or received to that account during the year ended 30 June 2022.In f and in g the rental agreement is being complied with.a Wages: reversal $2543, closed out to profit and loss $60 000, balance day adjustment $1086 b Insurance: reversal $715, closed
At 30 June 2022, R Wallaroi found that the following adjustments needed to be made for the end-of-year accounts. Tax invoices had not yet been processed for the following accounts:• advertising $330 ($300 + $30 GST)• electricity $1925 ($1750 + $175 GST)• stationery $99 ($90 + $9 GST).Also,
The information in figure 10.119, for D Bendora, has been extracted from the accounts for the years ended 30 June.You are required to:a reverse balance day adjustments from 2021 b prepare the cash transactions as general journals for 2022 c prepare balance day adjustment and closing journals for
Annual insurance of $8316 ($7560 + $756 GST) was paid at the end of November 2021. Monthly accounts are prepared and standing journals are used; balance date is 30 June. The insurance expense account was $2850 before the November payment.You are required to prepare:a payment of the insurance on 30
Annual magazine subscription revenue of $73 788 ($67 080 + $6708 GST) was received at the end of January 2022.Monthly accounts are prepared and standing journals are used; balance date is 30 June. The magazine subscription revenue account was $36 154 at 31 January.You are required to prepare:a
The plant and equipment account balance at 1 July 2021 was $89 261 and the annual depreciation expense for the coming year was $13 392. Prepare a monthly standing journal.
Account balances for C Tobins as at 30 June 2022 are listed in figure 11.3. You are required to:a write in the account or statement and group abbreviations b allocate the account balances to either debit or credit in the trial balance and balance it. A/c or Stmt Group Bank Accounts Receivable
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