Answer each of the following five parts assuming a balance date of 30 June, 2017. Journal...

 

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Answer each of the following five parts assuming a balance date of 30 June, 2017. Journal narrations are not required. (a) (b) (c) (d) (e) Kane Pty Ltd entered into a loan of $10,000 on 1 March 2017 and was being charged interest at 12% simple per annum. Prepare any required general journal adjusting entry for the financial year assuming no payment of interest has been made. Dele Pty Ltd had accounts receivable at 30 June 2017 totaling $76,100 Dr. The doubtful debts allowance at the same time was $2,310 Cr, but it was decided by the accountant to increase the allowance for doubtful debts to 2% of accounts receivable after writing off $3,100 in uncollectable accounts. Prepare the necessary general journal entries to record the above events. Ericson Pty Ltd, a small Australian service company, has 10 employees. The current annual payroll for these employees is $375,000. The employees are entitled to four weeks of annual leave. Calculate the annual cost of the leave and provide a general journal entry to record the weekly accrual of annual leave. Lloris Pty Ltd purchased machinery for $380,000 on 1 March 2017. It is estimated that the machinery will have a working life of 10 years but the company believes it will only use the machinery for 6 years and then sell it for an estimated $20,000. The company uses the straight-line method of depreciation for the machinery. The company purchased a computer on 1 July 2015 for $10,000. The company believes it will use the computer for ten years and can sell it at the end of that period for $500. The company uses the reducing balance method of depreciation and a depreciation rate of 26% p.a. Prepare the necessary gen jour entries to record the depreciation of the two assets for the financial year ending 30 June 2017. Dembele Pty Ltd paid $4,200 for 6 months advertising on the 1 January 2017. The transaction was initially recorded as an expense. Prepare any required adjusting entry for the financial year ending 30 June 2017. Justify your answer. Answer each of the following five parts assuming a balance date of 30 June, 2017. Journal narrations are not required. (a) (b) (c) (d) (e) Kane Pty Ltd entered into a loan of $10,000 on 1 March 2017 and was being charged interest at 12% simple per annum. Prepare any required general journal adjusting entry for the financial year assuming no payment of interest has been made. Dele Pty Ltd had accounts receivable at 30 June 2017 totaling $76,100 Dr. The doubtful debts allowance at the same time was $2,310 Cr, but it was decided by the accountant to increase the allowance for doubtful debts to 2% of accounts receivable after writing off $3,100 in uncollectable accounts. Prepare the necessary general journal entries to record the above events. Ericson Pty Ltd, a small Australian service company, has 10 employees. The current annual payroll for these employees is $375,000. The employees are entitled to four weeks of annual leave. Calculate the annual cost of the leave and provide a general journal entry to record the weekly accrual of annual leave. Lloris Pty Ltd purchased machinery for $380,000 on 1 March 2017. It is estimated that the machinery will have a working life of 10 years but the company believes it will only use the machinery for 6 years and then sell it for an estimated $20,000. The company uses the straight-line method of depreciation for the machinery. The company purchased a computer on 1 July 2015 for $10,000. The company believes it will use the computer for ten years and can sell it at the end of that period for $500. The company uses the reducing balance method of depreciation and a depreciation rate of 26% p.a. Prepare the necessary gen jour entries to record the depreciation of the two assets for the financial year ending 30 June 2017. Dembele Pty Ltd paid $4,200 for 6 months advertising on the 1 January 2017. The transaction was initially recorded as an expense. Prepare any required adjusting entry for the financial year ending 30 June 2017. Justify your answer.

Answer rating: 100% (QA)

a Interest expense for the year ended 30 June 2017 10000 x 12 x 612 600 b Writeoff of ... View the full answer