Accrued Expenses

On January $13,2018$ Astra Ltd is preparing to close its financial statements for the year $2017.$

At that date is has calculated the following accruals for $2017$:

Electricity for December $2017$$$2,000$

Water for December $$650$

Audit fees for the year $2017$$$5,500$

On March $132018,$ it has paid the above expenses in full, however audit fees actually paid

were $$5,000$ since the auditors decided to give a discount to the company.

Required:

Prepare the journal entries for $2017$ and $2018$ taking into account the above.

$(10$ marks$)$