Arthur Magee is preparing his financial statements for the year ending 31 December 2014 and approaches...

 

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Arthur Magee is preparing his financial statements for the year ending 31 December 2014 and approaches you for help on three ledger accounts. He provides you with the following information about the ledger accounts. Balances at 1 January 2014 Insurance paid in advance Wages outstanding Rent received in advance Transactions During The Year Paid for insurance £1,019 by bank standing order Paid wages in cash £15,000 Received £2,600 rent by cheque £562 £306 £36 Balances at 31 December 2014 Insurance prepaid £345 £105 £419 Rent receivable in arrears Wages accrued Prepare the three ledger accounts for Arthur Magee indicating the correct yearly charge to be included in the income statement. Arthur Magee is preparing his financial statements for the year ending 31 December 2014 and approaches you for help on three ledger accounts. He provides you with the following information about the ledger accounts. Balances at 1 January 2014 Insurance paid in advance Wages outstanding Rent received in advance Transactions During The Year Paid for insurance £1,019 by bank standing order Paid wages in cash £15,000 Received £2,600 rent by cheque £562 £306 £36 Balances at 31 December 2014 Insurance prepaid £345 £105 £419 Rent receivable in arrears Wages accrued Prepare the three ledger accounts for Arthur Magee indicating the correct yearly charge to be included in the income statement.

Answer rating: 100% (QA)

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