You are the accountant for Wacky Wednesdays Ltd. The following information is made available for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are the accountant for Wacky Wednesdays Ltd. The following information is made available for the year ended 30 June 2021: 1. On 1 January 2021 Wacky Wednesdays Ltd purchased a Delivery vehicle for $20,000. The vehicle will have a useful life of 4 years and an estimated residual value of $2,000. No depreciation has been recorded for this vehicle yet. 2. On 1 April 2021 Wacky Wednesdays Ltd paid an amount of $8,000 for insurance for March-October 2021. This payment was allocated (posted) to the Prepaid Insurance account on 1 April 2021. 3. Electricity expense for June 2021, has not been recorded or paid yet. Wacky Wednes1days received the electricity bill on 3 July 2021, with a total amount of $500 owing to the service provider. 4. Wacky Wednesdays Ltd performed services for a client on 25 June 2021 but did not invoice the I client before the end of the financial year. The total amount of that Wacky Wednesdays Ltd will charge to the client is $6,000. 5. On June 30, 2021 Wacky Wednesdays Ltd estimated that 3% of their customers would not be able to pay their accounts. The total amount owing to Wacky Wednesdays by clients was $12,000. Required: Prepare the end-of-period adjusting entries required on 30 June 2021. Show clearly your calculations. Narrations (brief explanations) are required for ALL journal entries. You are the accountant for Wacky Wednesdays Ltd. The following information is made available for the year ended 30 June 2021: 1. On 1 January 2021 Wacky Wednesdays Ltd purchased a Delivery vehicle for $20,000. The vehicle will have a useful life of 4 years and an estimated residual value of $2,000. No depreciation has been recorded for this vehicle yet. 2. On 1 April 2021 Wacky Wednesdays Ltd paid an amount of $8,000 for insurance for March-October 2021. This payment was allocated (posted) to the Prepaid Insurance account on 1 April 2021. 3. Electricity expense for June 2021, has not been recorded or paid yet. Wacky Wednes1days received the electricity bill on 3 July 2021, with a total amount of $500 owing to the service provider. 4. Wacky Wednesdays Ltd performed services for a client on 25 June 2021 but did not invoice the I client before the end of the financial year. The total amount of that Wacky Wednesdays Ltd will charge to the client is $6,000. 5. On June 30, 2021 Wacky Wednesdays Ltd estimated that 3% of their customers would not be able to pay their accounts. The total amount owing to Wacky Wednesdays by clients was $12,000. Required: Prepare the end-of-period adjusting entries required on 30 June 2021. Show clearly your calculations. Narrations (brief explanations) are required for ALL journal entries.
Expert Answer:
Answer rating: 100% (QA)
Depreciation Adjustment The Company purchased a car on January 1 2021 worth 20000 with a useful life of 4 years and an estimated residue value of 2000 The depreciation expense for the car needs to be ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
On July 1, 2018, Kazuyuki Corporation purchased an equipment for $90,000. At the time of purchase, the equipment had an estimated useful life of 4 years and an estimated residual value of $10,000....
-
Mirandas Motor Mechanics analysed the accounting records and other data for the business. The following information is made available for the year ended 30 June 2016: 1. Salaries and wages owing to...
-
The financial year for Crystal Catering Services ends on 30 June. After analysing the accounting records and other data for the business of Crystal Catering Services, the following information is...
-
which you describe and reflect on one of your favorite pop culture artifacts. Your goals will be simple: you will describe in detail a popular film, tv show, ad campaign, performer, song,...
-
Nisson Distributing Ltd. completed the following merchandising transactions in the month of April 2018. At the beginning of April, Nisson's general ledger showed Cash $4,000; Accounts Receivable...
-
Palins Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information...
-
Explain the criteria for revenue recognition.LO3
-
Cemeteries are filled with projects that went out of control. Below are several causes that can easily develop into out-of-control conditions. In which phase of a project should each of these...
-
(1) Find an equation for the tangent line to the parametric curve, at the point corresponding to the indicated value of parameter t: {\"2 \"a i=4. 3;: t272t, (2) Find the area between the parametric...
-
1. Suppose you wanted to predict Winnings ($) using only the number of poles won (Poles), the number of wins (Wins), the number of top five finishes (Top 5), or the number of top ten finishes (Top...
-
How does the difference in structure of the leaves relate to their function
-
Write a C code to check whether a given substring is present in the given string after a specific index value (Take input from user: string, substring, and the index value). For example: String...
-
A gymnast weighing 68 kg attempts a handstand using only one arm. He plants his hand at an angle resulting in the reaction force shown. a) Find the resultant force (acting on the Center of Mass) 0.25...
-
Assignment Instructions The newly appointed accountant of a start-up company Pioneer Limited, which has received funding from two sharks jointly in the Shark Tank against the issue of debentures, has...
-
Assume that variables i, j, and k are assigned to registers x5, x6, and x7, respectively. Assume that the base address of the arrays A and B are in registers x28 and x29, respectively. Use temporary...
-
Problem 01.008 - Stress in a link supporting a conveying system Link AC has a uniform rectangular cross section in. thick and 1 in. wide. Determine the normal stress in the central portion of the...
-
The number of farms in the United States t years after 1925 is f(t) million, where f(t) is graphed in Figure A, and f'(t) and f''(t) are graphed in Figure B. Click the icon to view Figure A. Click...
-
Carlton Stokes owns and operates a car-detailing business named SuperShine & Detailing. For $150, Carltons business will hand wash and wax customers cars, vacuum the interior, and thoroughly clean...
-
On September 14, 2012, Jay purchased a passenger automobile that is used 75 percent in his accounting business. The automobile has a basis for depreciation purposes of $35,000, and Jay uses the...
-
Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2012, Kent's W-2 as the controller of a local...
-
Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2012, Diane's wages are $17,100 and she receives dividend...
-
Computing unit cost for department and for completed units} with beginning inventory Robert E. Lee Company has two production departments. Blending had 1,000 units in process at the beginning of the...
-
Identifying cost flows in process cost system} List in columnar form the transactions and the accounts debited and credited to reflect the flow of costs through a process cost accounting system for...
-
Departmental cost work sheet analysis; cost of production} summary, three departments, no beginning inventories Goode Manufacturing Co. has three departments and uses the process cost system of...
Applied Strategic Business Management Business Management 1st Edition - ISBN: 6203193437 - Free Book
Study smarter with the SolutionInn App