Q2.: You are required to record the adjusting entries for the following information a. The opening balance on 1 January 2020, for the supplies is RO12500. On 1 March 2020, the company purchased supplies for RO 32100 in cash. On 31 December 2020, the balance of supplies in the company is RO 14600. b. On 1 January 2020, the company paid RO 38000 cash as rent expenses in advance Rent expense per month is R 0 1500. On 5 January 2016, a company received in advance rent of RO 42000 for 15 months. d. The cost of a machine is RO 75000 and has a useful life of 5 years, the company uses Straight Line method to calculate expense. e. Interest on bank loan of RO 3200 which is due on 31 December is not yet paid. f. Interest on investment income for the year RO 14500 of which OR 12000 has been received.

Q2.: You are required to record the adjusting entries for the following information a. The opening balance on 1 January 2020, for the supplies is RO12500. On 1 March 2020, the company purchased supplies for RO 32100 in cash. On 31 December 2020, the balance of supplies in the company is RO 14600. b. On 1 January 2020, the company paid RO 38000 cash as rent expenses in advance Rent expense per month is R 0 1500. On 5 January 2016, a company received in advance rent of RO 42000 for 15 months. d. The cost of a machine is RO 75000 and has a useful life of 5 years, the company uses Straight Line method to calculate expense. e. Interest on bank loan of RO 3200 which is due on 31 December is not yet paid. f. Interest on investment income for the year RO 14500 of which OR 12000 has been received.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.8E: Adjustment for supplies Answer each of the following independent questions concerning supplies and...

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