Merryland Company completed the following transactions during 2015-2016. The annual accounting period ends 30 June 2016. a.
Question:
Merryland Company completed the following transactions during 2015-2016. The annual accounting period ends 30 June 2016.
a. Purchased inventory on credit at cost of $13 800; perpetual inventory system is used,
b. Received a customer deposit of $17 000 from LPQ Ltd for services to be rendered in the future,
c. Borrowed $900 000 from the bank by giving the bank a six-month, 9 percent interest-bearing note payable,
d. Performed $7000 of the services paid for by LPQ; the rest will be rendered in August 2016.
e. Received the electricity bill for $26 780 which will be paid in early July.
f. On 1 June 2016 received rent in advance of $18 600 from SFT Ltd for a three-month lease of premises from 1 June to 31 August 2016.
g. Wages accrued in the last weekly payroll amounted to $12 500 and will be paid on 5 July 2016.
Required:
1. Prepare journal entries for each of these transactions.
2. Prepare all adjusting entries required on 30 June 2016.
Step by Step Answer:
Financial Accounting An Integrated Approach
ISBN: 9780170349680
6th Edition
Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson