Question
1 The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have
1 The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared.
Debits | Credits | |||||
100 | Prepaid insurance | $14,040 | ||||
110 | Supplies | 8,030 | ||||
120 | Equipment | 96,950 | ||||
121 | Accumulated depreciationequipment | $33,050 | ||||
200 | Bank loan | 70,560 | ||||
210 | Rent revenue received in advance | 34,830 | ||||
300 | Rent revenue | 214,360 | ||||
400 | Interest expense | |||||
410 | Wage expense | 50,320 |
An analysis of the accounts shows the following.
1. | The equipment depreciates $1,530 per month. | |
2. | The rent revenue received in advance was for the 9 months commencing 1 April. | |
3. | Interest of $870 is accrued on the bank loan. | |
4. | Supplies on hand total $2,620. | |
5. | The benefits of prepaid insurance expire at the rate of $1,170 per month. |
Required Prepare the adjusting entries at 30 June, assuming that adjusting entries are made quarterly. Additional accounts and account numbers are: 420 depreciation expense, 430 insurance expense, 220 interest payable and 440 supplies expense. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Uniform Ltd General journal | ||||
Date | Account and explanation | Post ref. | Debit $ | Credit $ |
June 30 |
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(Depreciation for the year) | ||||
June 30 | Accumulated depreciationequipment Bank loan Depreciation expense Equipment Insurance expense Interest expense Interest payable Prepaid insurance Rent revenue Rent revenue received in advance Supplies Supplies expense Wage expense |
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(Rent revenue AprilJune now revenue) | ||||
June 30 |
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(Accrued interest) | ||||
June 30 |
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(Supplies used) | ||||
June 30 |
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(Interest expense for the 3 months to June) |
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