The following transactions occurred in Pest Control Ltd during the month of June 2022: June 1...
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The following transactions occurred in Pest Control Ltd during the month of June 2022: June 1 Purchased insurance for a year starting 1 June 2022 with annual premium costing $3,600. The full amount was prepaid on 1 June 2022 in advance. The business had no other insurance policy. The business purchased equipment for $5,600. 25% was paid by cash and the remainder is to be paid on 15 August 2022. A payment of 3 months' rental beginning on 16 June 2022 was prepaid. The rental fee was $1,000 per month. June 16 June 16 June 30 Cash of $3,000 was received from a customer as an advance payment for a service that will be completed in July 2022. The following additional information was available at the end of Pest Control's financial year ending 30 June 2022: 1) Interest charges for an outstanding bank loan amounting to $900 were incurred but remained unpaid and unrecorded as at 30 June 2022. 2) Accrued wages for the year ending 30 June 2022 amounting to $2,000 had not been recorded. 3) Depreciation rate for the equipment is at 20% per annum. Required (a) Prepare the general journal entries to record the above transactions for the month of June 2022. (4 Marks) (c) (b) Prepare the adjusting entries that are required for Pest Control Ltd for the financial year ending 30 June 2022. (9 Marks) Prepare any relevant reversing entry. Note: Narrations / explanations are NOT required. (2 Marks) The following transactions occurred in Pest Control Ltd during the month of June 2022: June 1 Purchased insurance for a year starting 1 June 2022 with annual premium costing $3,600. The full amount was prepaid on 1 June 2022 in advance. The business had no other insurance policy. The business purchased equipment for $5,600. 25% was paid by cash and the remainder is to be paid on 15 August 2022. A payment of 3 months' rental beginning on 16 June 2022 was prepaid. The rental fee was $1,000 per month. June 16 June 16 June 30 Cash of $3,000 was received from a customer as an advance payment for a service that will be completed in July 2022. The following additional information was available at the end of Pest Control's financial year ending 30 June 2022: 1) Interest charges for an outstanding bank loan amounting to $900 were incurred but remained unpaid and unrecorded as at 30 June 2022. 2) Accrued wages for the year ending 30 June 2022 amounting to $2,000 had not been recorded. 3) Depreciation rate for the equipment is at 20% per annum. Required (a) Prepare the general journal entries to record the above transactions for the month of June 2022. (4 Marks) (c) (b) Prepare the adjusting entries that are required for Pest Control Ltd for the financial year ending 30 June 2022. (9 Marks) Prepare any relevant reversing entry. Note: Narrations / explanations are NOT required. (2 Marks)
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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