• (1) During December 20X9, CPL performed work amounting to $16,800 on credit, which they have billed but not yet recorded.

• (2) In November 20X9, the company had received $12,000 cash in advance from a client, TP Co., for consultation services to be provided over 3 months starting from 1 December 20X9. There was no other cash advance. In December 20X9, an estimated 25% of the services was provided for TP Co.

• (3) CPL prepaid rent for the rental of its sole office space on 1 September 20X9 for a 12-month period starting 1 September 20X9. Prior to that, the company had paid rent on a monthly basis. The rental expenses for the financial year up till 31 August 20X9 was $46,800.

• (4) The amount of salaries per month remained constant during the year 20X9. The employees have beenpaid their salaries every month-end, and their December salaries were also paid punctually on 31December 20X9. The company announced that the employees would be paid a total bonus of $8,000 for their hard work in 20X9, but the bonus would be paid only after year-end. Both the salaries for December 20X9 and the bonuses declared have yet to be recorded.

• (5) During December, the company incurred and paid $1,200 for administrative expenses in cash. This transaction has yet to be recorded.

• (6) On 3 December 20X9, CPL bought $2,500 worth of supplies on credit. There were $10,200 of supplies on hand as at 31 December 20X9. The necessary journal entry (entries) has (have) not beenrecorded.

• (7) CPL accounts for a likely impairment of accounts receivables by estimating the lifetime expected credit losses on the company’s accounts receivables as at year-end using a provision matrix and making any necessary adjustment to the “Allowance for Impairment of Accounts Receivable”account. CPL did an aging analysis and estimated that $3,610 out of the total accounts receivables as at 31 December 20X9 is likely to be uncollectible. There is no accounts receivable where CPL deems to have no reasonable expectation of collecting the contractual cash flows,

• (8) The company depreciates equipment using the double-declining method. The estimated useful life of the equipment is 8 years and its estimated residual value is $3,000. The current equipment waspurchased sometime in 20X8 and there was no disposal during 20X9. CPL has not performed the depreciation of the equipment for 20X9.

• (9) Assume no taxes.

• (a) Analysing the above information, apply and illustrate accrual accounting concepts and prepare all necessary and adjusting journal entries (journal narratives and dates NOT required) made during December 20X9 and adjusting entries made on 31 December 20X9. Please show all workings clearly to get full credit.

Answer rating: 100% (QA)

Covi Pte Ltd Journal EntriesAdjusted Journal Entries for the year ending 31st December 20X9 Type of ... View the full answer