At the end of the financial year ending 30 June 2022, the following adjustments are required. Balance Day Adjustments Depreciation on machinery for the year ending 30 June 2022 amounts to $4,800. Rental revenue of $1,200 is earned but has not been received. Amount of $2,800 in the Unearned Revenue account is now earned. Accrued wages at 30 June 2022 amounting to $5,600 were not included. Required: (a) Prepare all necessary adjusting entries including showing all relevant workings. (b) Explain the TOTAL FINAL NET impacts on the assets, liabilities and profit figures in the financial statements after taking into account ALL the adjusting entries in part (a). Are these figures overstated or understated if the
At the end of the financial year ending 30 June 2022, the following adjustments are required. Balance Day Adjustments Depreciation on machinery for the year ending 30 June 2022 amounts to $4,800. Rental revenue of $1,200 is earned but has not been received. Amount of $2,800 in the Unearned Revenue account is now earned. Accrued wages at 30 June 2022 amounting to $5,600 were not included. Required: (a) Prepare all necessary adjusting entries including showing all relevant workings. (b) Explain the TOTAL FINAL NET impacts on the assets, liabilities and profit figures in the financial statements after taking into account ALL the adjusting entries in part (a). Are these figures overstated or understated if the
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 10P: Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any...
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