The financial year for Crystal Catering Services ends on 30 June. After analysing the accounting records and
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Question:
- Crystal Catering Services sub-lets space in its building of $2,400 (excluding GST) per month. Crystal Catering Services has not received the rent for June 2020.
- Crystal Catering Services borrowed $15,000 from Metro Bank on 2 February 2020. The principal, plus 5% pa interest, is payable on 15 August. Accrued interest on 30 June has not been recorded.
- The sales assistant earns $130 per day. She will be paid on 3 July for the 5-day period ending 3 July 2020. Accrued wages for sales assistant on 30 June has not been recorded.
- On 18 May, Crystal Catering Services received an advance from a customer for services totalling $890 (plus GST). This was recorded in the unearned cleaning revenue. The services were provided on 26 June 2020.
- Crystal Catering Services purchased a 6-month insurance policy for $1,200 (plus GST) on 1 May 2020. The purchase of this was recorded by debiting Prepaid Insurance.
- Repairs to Crystal Jone’s, the owner of Crystal Catering Services, private motor vehicle of $620 was debited to the Vehicles expense account.
Required:
Using the information above, make the necessary adjusting entries for Crystal Catering Services for the year ended 30 June 2020.
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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