Questions and Answers of Accounting 28th Edition

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
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
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
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
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
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
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
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 +
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
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
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
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;
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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,
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
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
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
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 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
Account balances for C Pappinbarra as at 31 March 2022 are listed in figure 11.4. You are required to:a enter the account or statement and group abbreviations, and b allocate the account balances to
The trial balance for Waugh Hope and Co has problems (figure 11.5). You are required to:a enter the account or statement and group abbreviations b allocate the account balances in the trial balance
From the following balance day adjustments for C Parrabel, complete the table in figure 11.7 showing the general ledger accounts affected and the account or statement and group abbreviations to which
From the following balance day adjustments for B Kunderang, complete the table in figure 11.9 showing the general ledger accounts affected, and the account or statement and group to which each
From the following balance day adjustments for C Dungay, complete the table in figure 11.10, showing the general ledger accounts affected and the account or statement and group to which each general
The account balances for Myrtle Scrub are listed in a trial balance for the year to 30 June 2022 and the balance day adjustments are also shown (figure 11.13). Myrtle asks you to enter:a balance day
Don Dingalong provides the following trial balance for December 2022 (figure 11.16) and asks you to enter:a balance day adjustment amounts in the trial balance if the account already exists b the
From the following pre-adjustment trial balance of Clarence Way as at 30 June 2022 (figure 11.18) and the balance day adjustment listing, prepare an 8-column worksheet.Adjustments required as at 30
From the pre-adjustment account listing of Ann Gourie, shown in figure 11.20, and the relevant balance day adjustments, prepare an 8-column worksheet for the year ended 31 March 2022.The following
From the following pre-adjustment trial balance of R Murrumbidgee (figure 11.21) as at 30 June 2022 and balance day adjustment listing, prepare an 8-column worksheet.Adjustments required are listed
(a) Periodic inventory D Blowering prepared the following list from the general ledger with the required adjustments to be made for the financial year (figure 11.22). You are required to prepare an
The general ledger account balances of B Plowman for 30 June 2022 are shown in figure 11.24, together with a list of balance day adjustments. You are required to prepare an 8-column worksheet.Balance
From the extract 8-column worksheet of Jenny McLaughlin, shown in figure 11.30, enter the abbreviation for the account or statement and group in the columns on the right of the statement and then
From the extract 8-column worksheet shown in figure 11.31 for Maureen Payne, enter the abbreviation for the account or statement and group in the columns on the right of the statements and then
From the extract 8-column worksheet shown in figure 11.32 for John Spalding, enter the abbreviation for the account or statement and group in the columns on the right of the statements and then
From the account balances in figure 11.33 and balance day adjustments for G Gardiner for 31 December 2022, prepare an 8-column worksheet, an income statement and a balance sheet.Balance day
Lita Litigiosus has provided you with the following list of account balances as at 30 June 2022 (figure 11.35) and balance day adjustments. You have been requested to prepare an 8-column worksheet,
Dr R Queanbeyan has provided you with the following list of account balances as at 30 June 2022 (figure 11.36)and balance day adjustments. The business uses a periodic inventory method for recording
From the list of account balances, shown in figure 11.37, as at 30 June 2022 from the general ledger of D Jounama, together with the balance day adjustments, you are required to prepare an 8-column
You are asked by Julia Kreiger to prepare an 8-column worksheet and then an income statement and balance sheet for the year ended 30 June 2022. Use the account balances in figure 11.38 and the
You have received from R Shoalhaven, who operates a veterinary practice, the trial balance and a number of adjustments for the year ended 30 June 2022 (shown in figure 11.39). She asks that you
L Hume operates an appliance service business for refrigerators, washing machines, clothes dryers and dishwashers.The trial balance and a number of adjustments for the year ended 30 June 2022 are
You have received a list of balances and balance day adjustments from Dr R Smart (figure 11.41) and have been requested to prepare an 8-column worksheet and then use it to prepare an income statement
The trial balance shown in figure 12.13 has been extracted from the ledger of B Blue and you are required to write next to each account name the account, statement and group abbreviation. Using this
The adjusted trial balance for the year to 30 June 2022 for E L Alamein is shown in figure 12.14. You are required to:• list the account, statement and group abbreviations next to each account
Using the adjusted trial balance of O Lightfoot from figure 12.15 you are required to:• enter the account, statement and group abbreviation next to each account name• prepare an income
The adjusted account balances are listed in the trial balance of B Montgomery for 30 June 2022(see figure 12.16). Your are required to:• list the account, statement and group abbreviations next to
From the list of account balances for Margaret Robertson as at 30 June 2022 (figure 12.24), you are required to write the account, statement and group abbreviations next to each account name,
From the list of account balances as at 30 June 2022 of Harry Moxey (see figure 12.25), you are required to write the account, statement and group abbreviation next to each account name, including
You have been asked by Joe Madeley to prepare an income statement and balance sheet for the year ended 30 June 2022. So that there is a greater chance the financial statements will be correct, you
Which of the alternatives below most correctly answers the following statement?A trial balance will reveal errors where:a transactions are duplicated in the entry from the journal to the general
June 2022 tax invoices from L George $187 ($170 + $17 GST) for stationery and R Macquarie $583 ($530 +$53 GST) for vehicle expenses had not been processed through the June purchases journal. You are
In the accounts of S Urara, a tax invoice for the sale of goods to C Boronia was correctly prepared for $627($570 + $57 GST). However, it was erroneously entered and processed in the sales journal
In the accounts of P Toona, an account payable tax invoice for office equipment from G Heath for $8415 ($7650+ $765 GST) was erroneously entered and processed in the purchases journal as $5148 ($4680
In the accounts of T Lasiandra, inventory was purchased on credit from D Shores for $1617 ($1470 + $147 GST). However, there was an error and its entry and processing in the purchases journal was for
Motor vehicle expenses of $1735 had been incorrectly allocated and posted from the purchases journal to the motor vehicle account.Prepare the general journal to correct this error.
R Capertee, who uses control accounts, raised a tax invoice for $1342 ($1220 + $122 GST) to B Cider but it has been incorrectly allocated through the sales journal to B Spider.Prepare the general
In the accounts of A Bottlebrush, a tax invoice for the sale of stock $385 ($350 +$35 GST) to Glen Bawn was processed through the sales journal incorrectly as $836 ($760 + $76 GST). Control accounts
Inventory was delivered to a customer on 30 June 2022 valued at $7579 ($6890 + $689 GST). However, there was a problem with the invoicing process and a tax invoice was not raised for the
You have found three specific errors in the accounts of E Poinsettia and they all need correction. Control accounts are used for receivables and payables.ERROR 1 The tax invoice from L Redman for the
Having checked the monthly accounts of Honey Suckle for account allocations, three errors were found that needed correction through the general journal. Subsidiary ledgers and control accounts are
In the accounts of R Hibiscus, four errors were found from journal postings made during the month. These require correction by general journal. Subsidiary ledgers are used.ERROR 1 Somehow a tax
The following information is extracted from the books and records of Q Don at 30 June 2022 (figure 12.37). You are required to write next to each account name the account, statement and group
The balances from the adjusted trial balance of L Tobruk for 31 December 2022 are given in Figure 12.35. Write next to each account name the account, statement and group abbreviations as an aid to
Using the adjusted account balances for H Joshua (shown in figure 12.36), you are required to prepare for the year ended 30 June 2022:• an income statement• a balance sheet. as at 30 June 2022
The following account balances in figure 12.37 are from the ledger of C Earnest at 30 June 2022. Enter the account, statement and group abbreviations for the accounts and the additional balance day
The account balances in figure 12.38 are from the ledger of Dorothy McCoy at 30 June 2022. The account, statement and group abbreviations should be entered. After incorporating the balance day
You are required to prepare for D Robert an income statement and balance sheet for the period ended 30 June 2022. The account, statement and group abbreviations should be entered. The account
Using the account balances at 31 December 2022 from the general ledger of Mary Doggett shown in figure 12.40, prepare an income statement and balance sheet that incorporates the balance day
You are required to prepare an income statement and balance sheet for the year ended 30 June 2022 from the account list and adjustments for R Abercrombie, shown in figure 12.41. The account,
You are required to prepare an income statement and balance sheet for the six months ended 30 June 2022 from the account list and adjustments of L Tuggerah, a dentist, shown in figure 12.42. The
You are required to prepare an income statement and balance sheet for the year ended 30 June 2022 from the account list and adjustments for L Eucumbene, a builder, shown in figure 12.43. The account,
During September 2022, R Cudgegong found that there were a number of errors and omissions made in the general ledger and the subsidiary ledgers. You are required to make the necessary journal
a Show correcting journal entries, if appropriate, for the following errors. Subsidiary ledgers are used.i Payment for motor vehicle $26 400 ($24 000 + $2400 GST) was processed to the office repairs
You have found two specific errors in the accounts of A H Coramba and they both need correction.a. The tax credit note received from the account payable Vic Hair for $40.26 ($36.60 + $3.66 GST)
Three errors have been found in the records of T O Dorrigo and require correction by general journal.a The purchases account was used in error when a new photocopier (office equipment) was purchased
Five errors have been found in the records of A V Kingfisher and require correction by general journal.a Courier charges paid through the petty cash book $55 ($50 + $5 GST) were posted in the general
The accounts of D R Kookaburra revealed four errors and require correction by general journal.a Rent of $869 was incorrectly allocated and posted to rates from the cash payments journal.b The tax
The accounts of P L Lorikeet revealed a number of matters that require attention and correction by general journal.a Cash receipts journal totals for the month were posted to the general ledger only
There are four errors in the records of C R Sherwood that require correction by general journal.a The cash payments journal showed a payment to the account payable L Jacaranda of $3674 after
Select from the alternative pro forma general journals shown in figures 12.45 to 12.48 the one that most accurately corrects the errors in the accounts of C Tallawudjah.a A tax invoice selling
From the following clues relating to depreciation, complete the crossword in figure 13.1.Across 3 The opposite of revenue.4 This asset is expected to be of use to the business for longer than 12
Indicate whether the following statements are true or false.a An asset register that includes motor vehicles would show the costs of servicing and running costs of each vehicle.True/False b The asset
On 11 March 2022 William Dumbrell ordered office desks, chairs and filing cabinets for the refurbished office area of the business from Stylish Office Designs costing $16 500 ($15 000 + $1500 GST).
On 1 July 2021, equipment of $24 189 ($21 990 + $2199 GST) was purchased for cash and is to be depreciated at 15% p.a. with a residual value of $1100 ($1000 + $100 GST). Prepare:a the straight line
Office furniture and fittings $4158 ($3780 + $378 GST) and motor vehicle $34 716 ($31 560 + $3156 GST) were both purchased on credit on 1 July 2021 and depreciated using the straight line method.
On 1 July 2021, the business purchased and had installed a computer system costing $19 030 ($17 300 + $1730 GST). It is anticipated to have a useful life of four years (25% p.a.) and the straight

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