Trial Balance 30 June 2020 Account Name Debit ($) Credit ($) Cash at Bank 6 820 Accounts Receivable 20 000 Prepaid Insurance 6 000 Property, Plant and Equipment (PP&E) 270 000 Accumulated Depreciation – PP&E 50 000 Office Computers 64 000 Accumulated depreciation – Office Computers 10 000 Accounts Payable 11 528 Unearned Sales Revenue 16 000 Bank Loan 48 000 P. Clayton, Capital (1 July 2019) 188 142 P. Clayton, Drawings 10 900 Sales Revenue 319736 Other Revenue Inventory (1 July 2019) 50 786 Purchases 150 800 Purchases Returns and Discount 26 890 Rent Expense 34 050 Gas and Electricity Expense 10 870 Office Cleaning Expense 6 530 Wages and Salaries Expense 25 900 Telephone Expense 2 700 Insurance Expense 8 440 Advertising Expense 2 500 Totals 670 296 670 296 (Continued next page) The following information has not yet been recorded: The balance in the unearned sales revenue included an amount of $2 000 which had been earned by delivering goods to a customer on 30 June 2020. The business sold goods of $15 000 to a customer but issued no invoice until 3 July 2020. Accrued wages and salaries of $800 are to be paid on 2 July 2020. The Property, Plant and Equipment (PP&E) are expected to have a useful life of 10 years and will then be sold for an estimated amount of $20 000. The Office computers are expected to have a useful life of 6 years and will then be sold for an estimated amount of $4 000. The business paid an annual insurance premium of $6 000 for one year on 1 January 2020. It is estimated that 5% of the balance of Accounts Receivable on 30 June 2020 is unlikely to be received. A physical stock-take at 30 June 2020 revealed $50 000 of inventory on hand. The business has not paid an advertising invoice of $3 260 on 30 June 2020. REQUIRED: Based on the information provided above, record any necessary adjusting journal entries Each journal entry must be correctly formatted and should also include a brief narration (explanation) for the entry.

Trial Balance 30 June 2020 Account Name Debit ($) Credit ($) Cash at Bank 6 820 Accounts Receivable 20 000 Prepaid Insurance 6 000 Property, Plant and Equipment (PP&E) 270 000 Accumulated Depreciation – PP&E 50 000 Office Computers 64 000 Accumulated depreciation – Office Computers 10 000 Accounts Payable 11 528 Unearned Sales Revenue 16 000 Bank Loan 48 000 P. Clayton, Capital (1 July 2019) 188 142 P. Clayton, Drawings 10 900 Sales Revenue 319736 Other Revenue Inventory (1 July 2019) 50 786 Purchases 150 800 Purchases Returns and Discount 26 890 Rent Expense 34 050 Gas and Electricity Expense 10 870 Office Cleaning Expense 6 530 Wages and Salaries Expense 25 900 Telephone Expense 2 700 Insurance Expense 8 440 Advertising Expense 2 500 Totals 670 296 670 296 (Continued next page) The following information has not yet been recorded: The balance in the unearned sales revenue included an amount of $2 000 which had been earned by delivering goods to a customer on 30 June 2020. The business sold goods of $15 000 to a customer but issued no invoice until 3 July 2020. Accrued wages and salaries of $800 are to be paid on 2 July 2020. The Property, Plant and Equipment (PP&E) are expected to have a useful life of 10 years and will then be sold for an estimated amount of $20 000. The Office computers are expected to have a useful life of 6 years and will then be sold for an estimated amount of $4 000. The business paid an annual insurance premium of $6 000 for one year on 1 January 2020. It is estimated that 5% of the balance of Accounts Receivable on 30 June 2020 is unlikely to be received. A physical stock-take at 30 June 2020 revealed $50 000 of inventory on hand. The business has not paid an advertising invoice of $3 260 on 30 June 2020. REQUIRED: Based on the information provided above, record any necessary adjusting journal entries Each journal entry must be correctly formatted and should also include a brief narration (explanation) for the entry.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 10DQ

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Question

Trial Balance

30 June 2020

Account Name	Debit ($)	Credit ($)
Cash at Bank	6 820
Accounts Receivable	20 000
Prepaid Insurance	6 000
Property, Plant and Equipment (PP&E)	270 000
Accumulated Depreciation – PP&E		50 000
Office Computers	64 000
Accumulated depreciation – Office Computers		10 000
Accounts Payable		11 528
Unearned Sales Revenue		16 000
Bank Loan		48 000
P. Clayton, Capital (1 July 2019)		188 142
P. Clayton, Drawings	10 900
Sales Revenue		319736
Other Revenue
Inventory (1 July 2019)	50 786
Purchases	150 800
Purchases Returns and Discount		26 890
Rent Expense	34 050
Gas and Electricity Expense	10 870
Office Cleaning Expense	6 530
Wages and Salaries Expense	25 900
Telephone Expense	2 700
Insurance Expense	8 440
Advertising Expense	2 500
Totals	670 296	670 296

(Continued next page)

The following information has not yet been recorded:

The balance in the unearned sales revenue included an amount of $2 000 which had been earned by delivering goods to a customer on 30 June 2020.
The business sold goods of $15 000 to a customer but issued no invoice until 3 July 2020.

Accrued wages and salaries of $800 are to be paid on 2 July 2020.

The Property, Plant and Equipment (PP&E) are expected to have a useful life of 10 years and will then be sold for an estimated amount of $20 000.
The Office computers are expected to have a useful life of 6 years and will then be sold for an estimated amount of $4 000.
The business paid an annual insurance premium of $6 000 for one year on 1 January 2020.

It is estimated that 5% of the balance of Accounts Receivable on 30 June 2020 is unlikely to be received.
A physical stock-take at 30 June 2020 revealed $50 000 of inventory on hand.

The business has not paid an advertising invoice of $3 260 on 30 June 2020.

REQUIRED:

Based on the information provided above, record any necessary adjusting journal entries

Each journal entry must be correctly formatted and should also include a brief narration (explanation) for the entry.

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