Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) b) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. e) f) Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 8) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019
Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) b) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. e) f) Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 8) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...
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