Q.1.2 The following pre-adjustment trial balance appeared in the books of MusketeerTraders at the end of their financial year 30 September 2019. Ignore VAT.FolioDebit(R)Credit(R)Statement of financial position sectionCapital400 000Drawings5 500Land and Buildings450 000Motor Vehicles225 000Accumulated depreciation: Vehicles65 000Financial Asset: Fixed deposit : JP107 000HouseBank3 200Debtors control48 220Trading Inventory24 640Mortgage Loan210 520Creditors Control33 980Nominal Accounts SectionSales1 200 000Sales ReturnsCost of Sales18 800800 340Rent Income45 000Interest Income4 600Service Income8 700Rent Expense66 700O The Independent Institute of Education (Pty) Ltd 2020Page 3 of 14202020FolioDebit(R)Credit(R)Credit Losses3 500Wages and Salaries102 380Cleaning Materials6 300Office consumables5 400Interest on mortgage loanElectricity2 50011 250Rates and services4 870Fuel12 300Advertising50 700Telephone25 6001971 0001971 000Additional information and adjustments as at 30 September 2019:1.The stock take revealed the following items on hand:- Trading Inventory -R 11 000- Office consumables - R 3402.Depreciation must be provided for on vehicles at 25% per annum according to thestraight-line method. No vehicles were bought or sold during the year.3.The following adjustments must be made to enforce the accrual concept:-- Telephone prepaid for October 2019 - R1300- Rent income received in advance - R 3 500- Accrued interest on fixed deposit – R 5 35oWages and salaries payable - R6 0004.Create an allowance for credit losses to the amount of R 870.Required:Prepare the post adjustment trial balance of Musketeer Traders on 30 September 2019.

Adjustment entries: Cost of Sales Dr. 13,640 To Trading…

Additional information and adjustments as at 30 September 2019: 1. The stock take revealed the following items on hand: • Trading Inventory -R 11 000 Office consumables - R 340 2. Depreciation must be provided for on vehicles at 25% per annum according to the straight-line method. No vehicles were bought or sold during the year. 3. The following adjustments must be made to enforce the accrual concept: Wages and salaries payable - R 6 000 • Telephone prepaid for October 2019 -R 1 300 Rent income received in advance - R 3 500 - Accrued interest on fixed deposit - R5 350 4. Create an allowance for credit losses to the amount of R 870. Required: Prepare the post adjustment trial balance of Musketeer Traders on 30 September 2019.

Additional information and adjustments as at 30 September 2019: 1. The stock take revealed the following items on hand: • Trading Inventory -R 11 000 Office consumables - R 340 2. Depreciation must be provided for on vehicles at 25% per annum according to the straight-line method. No vehicles were bought or sold during the year. 3. The following adjustments must be made to enforce the accrual concept: Wages and salaries payable - R 6 000 • Telephone prepaid for October 2019 -R 1 300 Rent income received in advance - R 3 500 - Accrued interest on fixed deposit - R5 350 4. Create an allowance for credit losses to the amount of R 870. Required: Prepare the post adjustment trial balance of Musketeer Traders on 30 September 2019.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11EA: Prepare adjusting journal entries, as needed, considering the account balances excerpted from the...

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