For each scenario calculate the adjustment at 30 June 2017 and identify the accounts that will be
Question:
For each scenario calculate the adjustment at 30 June 2017 and identify the accounts that will be Debited and Credited.
1. The balance of the Allowance for Bad Debts is $9,000. The calculation for the allowance using the Ageing of Receivables method results in a value of $9,800.
Adjustment at 30 June 2017 Answer
Dr Account: Answer Bad Debt Expense OR Allowance for Bad Debts
Cr Account: Answer Bad Debt Expense OR Allowance for Bad Debts
2. All the special journals have been posted for the current year. The account Supplies on Hand has a balance of $8,000. A count of supplies reveals that there are actually $6,000 on hand.
Adjustment at 30 June 2017 Answer
Dr Account: Answer Supplies Expense OR Supplies on Hand
Cr Account: Answer Supplies Expense OR Supplies on Hand
3. The following journal was processed on 1 May 2017 - no adjustments have being made:
Dr | Cr | ||
Prepaid Rent | 24,000 | ||
GST | 2,400 | ||
Cash At Bank | 26,400 | ||
Payment of 12 months rent |
Adjustment at 30 June 2017 Answer
Dr Account: Answer Prepaid Rent OR Cash at Bank OR Rent Expense
Cr Account: Answer Prepaid Rent OR Cash at Bank OR Rent Expense
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong