Question: please answer all three questions Question (10 marks) At year end on 30 June 2020, the unadjusted trial balance of Tea House shows the following
Question (10 marks) At year end on 30 June 2020, the unadjusted trial balance of Tea House shows the following balances for selected accounts, in alphabetical order: Bank Loan Payable $25,000 Pantry Supplies $1,750 Prepaid Rent $12,000 The following are additional information for the adjustments to be made on 30 June 2020: a. Prepaid rent was for an agreement signed on 1 February 2020 for a lease period of one year (12 months) starting from 1 March b. Pantry Supplies on hand at 30 June is $300 c. Depreciation on kitchen equipment is $300 for the year. d. Unrecorded salaries of chef and waiters for work performed in June but to be paid in July on the next pay day, amounted to $1,350. e. Interest on a 10% bank loan taken out on 1 October, 2019 has not been recorded. Required: 1 Prepare the adjusting entries to record the above month-end adjustments. Description or narration is not required. (8 marks) 2a. Distinguish between accruals from deferrals (prepayments)? From the list of items (a) to (e) above, Identify one item which is an accrual and one that is a deferral (prepayment). (1 mark) 2b. (1 mark) DELL QUIET STUDY AREA ECUS
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
