You are a Graduate Accountant at Crase & Stone Accounting Services. It is now the end...
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You are a Graduate Accountant at Crase & Stone Accounting Services. It is now the end of the financial year and based on the information she has provided below by Anna, you have been asked you to prepare any necessary balance day adjusting journals. Use the General Journal document provided to record the correctly formatted journal entries required and include a narration (explanation) for each entry. 1. Office Salaries which are payable but have not yet been recorded as at 30 June 2021 are $7,850. 2. Anna conducted a count of her stationery room on 30 June 2021. This count revealed that office supplies still on hand at that time were $7,500. 3. Both the Furniture & Fittings and the Delivery Vans are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows: Furniture & Fittings Delivery Vans Estimated Useful life 10 years 8 years Estimated Residual $5,000 $80,000 4. During the year, Anna also purchased a new computer and printer package for the office. The package cost $7,824 and was purchased on 1 February 2021. Anna has estimated that the package will have a useful life of 4 years, after which she expects to be able to sell it for $1,200 5. On 30 June 2021, Anna reviewed her outstanding Accounts Receivable balance. Based on her previous experience, she has estimated that 3% of this balance is unlikely to be collected. 6. A custom made, specially imported "Glamping" tent costing $13,720 was ordered and paid for by a customer on 25 June 2021. At the time of the sale, Anna recorded this amount as Sales Revenue. Anna has confirmed with the manufacturer that the tent will not be delivered and available for the customer until at least 25 August 2021. 7. On 1 November 2020, Anna took out a 2-year insurance policy for her inventory, contents and vehicles and cost $32,760. This policy was paid for from the business bank account on the same day and was recorded as Prepaid Insurance. 8. Anna's last telephone bill for the business was for the month ending 31 May 2021, and this account was paid in early June. She has not yet received the June account but has estimated that the cost of her telephone and internet usage up until 30 June 2021 was $1,500. You are a Graduate Accountant at Crase & Stone Accounting Services. It is now the end of the financial year and based on the information she has provided below by Anna, you have been asked you to prepare any necessary balance day adjusting journals. Use the General Journal document provided to record the correctly formatted journal entries required and include a narration (explanation) for each entry. 1. Office Salaries which are payable but have not yet been recorded as at 30 June 2021 are $7,850. 2. Anna conducted a count of her stationery room on 30 June 2021. This count revealed that office supplies still on hand at that time were $7,500. 3. Both the Furniture & Fittings and the Delivery Vans are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows: Furniture & Fittings Delivery Vans Estimated Useful life 10 years 8 years Estimated Residual $5,000 $80,000 4. During the year, Anna also purchased a new computer and printer package for the office. The package cost $7,824 and was purchased on 1 February 2021. Anna has estimated that the package will have a useful life of 4 years, after which she expects to be able to sell it for $1,200 5. On 30 June 2021, Anna reviewed her outstanding Accounts Receivable balance. Based on her previous experience, she has estimated that 3% of this balance is unlikely to be collected. 6. A custom made, specially imported "Glamping" tent costing $13,720 was ordered and paid for by a customer on 25 June 2021. At the time of the sale, Anna recorded this amount as Sales Revenue. Anna has confirmed with the manufacturer that the tent will not be delivered and available for the customer until at least 25 August 2021. 7. On 1 November 2020, Anna took out a 2-year insurance policy for her inventory, contents and vehicles and cost $32,760. This policy was paid for from the business bank account on the same day and was recorded as Prepaid Insurance. 8. Anna's last telephone bill for the business was for the month ending 31 May 2021, and this account was paid in early June. She has not yet received the June account but has estimated that the cost of her telephone and internet usage up until 30 June 2021 was $1,500.
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Dr Cr Office supplies expense 7850 To office supplies payable 7850 Offic... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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