Brice Foran Hair Care has a balance date of 30/6/X1. You have reviewed their accounts and found that several adjustments need to be made prior to the preparation of the final financial statements.

Question 1

Brice paid for his building and contents insurance policy on 28/2/X1, it is a 12-month policy and cost $7,200 (excluding GST). On the template below prepare:

2. A balance day adjustment for this insurance payment.
4. The reversing entry that should be processed on 1/7/X1.

Note, you do not need to enter a reference number for these journal entries.

General Journal GJ1

Date	Details	Ref	Debit $	Credit $

Question 2

Brice pays his staff fortnightly in arrears. Paydays for his staff around the 30^th June are:

• Thursday 20th June 20X1
• Thursday 4^th July 20X1

The fortnightly wages expense is $12,500.00. On the template below:

2. Prepare an accrual entry for wages expense as at 30/6/X1
4. Prepare the reversing entry that would be processed on 1/7/X1

Note, you do not need to enter a reference number for these journal entries.

General Journal GJ1

Date	Details	Ref	Debit $	Credit $

Answer rating: 100% (QA)

Answer Question 1 General Journal GJ1 Date Details Ref Debit Credit 306X1 Insurance Expense 600000 3... View the full answer