ABC has the reporting period for 12 months ended 31 December. ABC has extracted the following....

 

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ABC has the reporting period for 12 months ended 31 December. ABC has extracted the following. Trial balance as at 31 December 20x1: Account Name Debit Cash at bank 26,164 Opening capital Loan Non-current assets Trade payables Expenses Purchases Sales Other income Trade receivable 180,000 43,508 251,900 Credit 60,000 32,000 67,032 630.528 0 91,416 Drawings 196.572 ABC needs to take account of the following matters: a, the quaterly power bills are $3,288. The last bill paid was in respect of the quater ending 31 October 20x1 b, the annual insurance bill of $11,880 was paid on 1 May 20x1 in respect of the year to 30 April 20x2 c, Sales include $1,400 received from cash customers in December in respect of items of clothing that ABC will complete in January 20x2 d. A royalty of $232 is due from a fashion magazine which used ABC's products in a fashion shoot. ABC wishes to account for this as other/ accrued income rather than trade receivables Requirements: 1. Record the adjusting entries for the transaction above 2. Prepare the T-accounts for the following accounts: Insurance expense, Utility expense, Sales, other income, accrued expense, prepayments, accrued income, deferred income. (Update the opening balance and adjustment amounts into T-accounts) 3. Prepare final trial balance for the period ABC has the reporting period for 12 months ended 31 December. ABC has extracted the following. Trial balance as at 31 December 20x1: Account Name Debit Cash at bank 26,164 Opening capital Loan Non-current assets Trade payables Expenses Purchases Sales Other income Trade receivable 180,000 43,508 251,900 Credit 60,000 32,000 67,032 630.528 0 91,416 Drawings 196.572 ABC needs to take account of the following matters: a, the quaterly power bills are $3,288. The last bill paid was in respect of the quater ending 31 October 20x1 b, the annual insurance bill of $11,880 was paid on 1 May 20x1 in respect of the year to 30 April 20x2 c, Sales include $1,400 received from cash customers in December in respect of items of clothing that ABC will complete in January 20x2 d. A royalty of $232 is due from a fashion magazine which used ABC's products in a fashion shoot. ABC wishes to account for this as other/ accrued income rather than trade receivables Requirements: 1. Record the adjusting entries for the transaction above 2. Prepare the T-accounts for the following accounts: Insurance expense, Utility expense, Sales, other income, accrued expense, prepayments, accrued income, deferred income. (Update the opening balance and adjustment amounts into T-accounts) 3. Prepare final trial balance for the period

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1 Adjusting Entries a Adjusting entry for quarterly power bills Account Debit Credit Utility Expense ... View the full answer