ABC Ltd pays its employees every Friday for a five-day working week from Monday to Friday. The
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ABC Ltd pays its employees every Friday for a five-day working week from Monday to Friday. The weekly payroll amounts to $150 000. The accounting year-end is 30 June.
1. Assuming that 30 June falls on Wednesday, give the year-end adjusting entry.
2. If no adjusting entry was made on 30 June, by how much would net profit be overstated or understated? What errors would be in the balance sheet?
3. Give the entry to pay the staff on 2 July.
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YearEnd Adjusting Entry 30 June Since the accounting yearend is on 30 June and the company pays its ...View the full answer
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Related Book For 
Financial Accounting An Integrated Approach
ISBN: 9780170411028
7th Edition
Authors: Ken Trotman, Elizabeth Carson
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