Question

E3.12 Journalise basic transactions and adjusting entries. (LO4)

Selected accounts of Snowmass Ltd are shown here.

Required

After analysing the accounts, journalise (a) the July transactions and (b) the adjusting entries that were made on 31 July. (Hint: July transactions were for cash.)

Salaries expense \begin{tabular}{r|r|r} \hline July 15 & 1200 & \\ 31 & 1200 & \\ \multicolumn{4}{c}{ Service revenue } \\ \hline & July 14 & 3000 \\ & 31 & 900 \\ & 31 & 500 \end{tabular} Service revenue received in advance \begin{tabular}{lr|rrr} \hline July 31 & July 1 & Bal. & 1500 \\ & & 20 & & 700 \end{tabular}