Chasing Eagles is a retail shop that sells and services a wide range of sports equipment....

 

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Chasing Eagles is a retail shop that sells and services a wide range of sports equipment. For the financial month ended 31 January 2023, ChasingEagles needs to adjust for the following events: (i) The equipment purchased for $16,500 (GST inclusive) on 1 September 2022 is depreciated at 1% per month. (ii) The business paid $2,640 (GST inclusive) on 1 August 2022 for a 12-month period insurance policy in advance. Insurance purchased was initially recorded as an asset. (iii) The business recorded a receipt of $3,300 (GST inclusive) in December 2022 for servicing of sports equipment to be completed over January and February of 2023. By the end of January 2023, 60% of equipment maintenance was completed. (iv) The business has a $100,000 bank loan with a monthly interest of $400 payable every quarter. The last interest payment of $1,200 was made on 31 December 2022. The next payment will be made on 31 March 2023. Required: Record the balance day adjustments in the general journal provided. Chasing Eagles is a retail shop that sells and services a wide range of sports equipment. For the financial month ended 31 January 2023, ChasingEagles needs to adjust for the following events: (i) The equipment purchased for $16,500 (GST inclusive) on 1 September 2022 is depreciated at 1% per month. (ii) The business paid $2,640 (GST inclusive) on 1 August 2022 for a 12-month period insurance policy in advance. Insurance purchased was initially recorded as an asset. (iii) The business recorded a receipt of $3,300 (GST inclusive) in December 2022 for servicing of sports equipment to be completed over January and February of 2023. By the end of January 2023, 60% of equipment maintenance was completed. (iv) The business has a $100,000 bank loan with a monthly interest of $400 payable every quarter. The last interest payment of $1,200 was made on 31 December 2022. The next payment will be made on 31 March 2023. Required: Record the balance day adjustments in the general journal provided.

Answer rating: 100% (QA)

i Depreciation on sports equipment Debit Depreciation Expense Sports Equipment for 165 1 ... View the full answer