The Unadjusted Trial Balance has been provided along with outstanding balance day adjustments for a business. The
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The ‘Unadjusted Trial Balance’ has been provided along with outstanding balance day adjustments for a business. The task is to make these adjusting entries in the ‘Journal’, then post the entries into the various 'Ledger' accounts.
Fill in the empty general journal and use the relevant/ applicable chart of accounts for the ledger ( an example of ledger layout has been provided).
EXAMPLE FOR LEDGER TEMPLATE - USE RELEVANT CHART OF ACCOUNTS PROVIDED FOR THE LEDGER
Transcribed Image Text:
Business Name: Mr Augustus Trading As 'LonelyWorld' 'Lonely World' is owned and operated by Mr Augustus. He has some basic bookkeeping knowledge and has been keeping a pretty good record of his business so far and has even managed to do some of the needed balance day adjustments already. There are a few balance day adjustment items remaining that he was unsure on and so he has enlisted your help and has provided you with his unadjusted trial balance for the month of August 2021. Your task is to record the adjusting entries in the 'Journal', post these entries to the 'Ledger', manually prepare the 'Adjusted Trial Balance' and finally help fill out the 'Income Statement' and 'Balance Sheet' based on the 'Adjusted Trial Balance' for the month of August 2021. You can assume all other balance day adjustments not listed have already been accounted for. 1. Adjusting Items: Date 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 Relevant information: Description On August 1, 2021 the business paid $15246 (including GST) for 11 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. The business obtained a bank loan for the amount of $33600 on August 1, 2021. The bank charges interest of 7% per annum and interest payments are due quarterly. The interest on the $33600 loan is yet to be recorded. The bank loan is due in August 2026. The motor vehicle is depreciated using the straight-line method. It has a useful life of 11 years and a zero residual value. Received $1320 (including GST) from a client at the start of August 2021 for consultation services. The amount was initially recorded as unearned revenue and GST Collected. The business provided these consultation services by the end of August 2021. The business hires 18 sales staff. Each sales staff member's GROSS wage is $968 per week [PAYG withheld of $176]. At the end of the month, the business owed its employees 2 weeks of wages and that is yet to be recorded. The business hires 4 general office assistants. Each assistant is paid a NET wage of $1232 per fortnight [PAYG withheld of $198]. At the end of the month, the business owed its office assistants 1 week of wages that has not yet been recorded. The office furniture is depreciated using the straight-line method. It depreciates at 25% per annum and is assumed to have a zero residual value. On August 1, 2021 the business paid $6930 (including GST) for 7 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid. On August 11, 2021 the business purchased 13 toners worth $1716 (including GST) and recorded the amounts as Office Supplies and GST Paid. Mr Augustus counted the toners at the end of August 2021 and found that 9 of these toners have been consumed but their consumption has not been recorded. Business Name: Mr Augustus Trading As 'LonelyWorld' 'Lonely World' is owned and operated by Mr Augustus. He has some basic bookkeeping knowledge and has been keeping a pretty good record of his business so far and has even managed to do some of the needed balance day adjustments already. There are a few balance day adjustment items remaining that he was unsure on and so he has enlisted your help and has provided you with his unadjusted trial balance for the month of August 2021. Your task is to record the adjusting entries in the 'Journal', post these entries to the 'Ledger', manually prepare the 'Adjusted Trial Balance' and finally help fill out the 'Income Statement' and 'Balance Sheet' based on the 'Adjusted Trial Balance' for the month of August 2021. You can assume all other balance day adjustments not listed have already been accounted for. 1. Adjusting Items: Date 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 31/8/21 Relevant information: Description On August 1, 2021 the business paid $15246 (including GST) for 11 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. The business obtained a bank loan for the amount of $33600 on August 1, 2021. The bank charges interest of 7% per annum and interest payments are due quarterly. The interest on the $33600 loan is yet to be recorded. The bank loan is due in August 2026. The motor vehicle is depreciated using the straight-line method. It has a useful life of 11 years and a zero residual value. Received $1320 (including GST) from a client at the start of August 2021 for consultation services. The amount was initially recorded as unearned revenue and GST Collected. The business provided these consultation services by the end of August 2021. The business hires 18 sales staff. Each sales staff member's GROSS wage is $968 per week [PAYG withheld of $176]. At the end of the month, the business owed its employees 2 weeks of wages and that is yet to be recorded. The business hires 4 general office assistants. Each assistant is paid a NET wage of $1232 per fortnight [PAYG withheld of $198]. At the end of the month, the business owed its office assistants 1 week of wages that has not yet been recorded. The office furniture is depreciated using the straight-line method. It depreciates at 25% per annum and is assumed to have a zero residual value. On August 1, 2021 the business paid $6930 (including GST) for 7 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid. On August 11, 2021 the business purchased 13 toners worth $1716 (including GST) and recorded the amounts as Office Supplies and GST Paid. Mr Augustus counted the toners at the end of August 2021 and found that 9 of these toners have been consumed but their consumption has not been recorded.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries Date Account Debit Credit 3182021 Insurance Expense 1142 Prepaid Insurance 3182021 R... View the full answer
Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
Posted Date:
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