adjusting entries, next part
You are now asked to journalize and post the adjusting entries after completing the worksheet. This is because, in the manual accounting system, the worksheet is not part of the journals and ledgers. Therefore completing the Adjustments column in the worksheet does not automatically update the appropriate ledger accounts. Since this practice set is a manual accounting practice set, you are still required to manually journalize the adjusting entries and post them to the general ledger as a separate step. The purpose of adjusting entries is to ensure that the general ledger account balances reflect the revenues earned and expenses incurred during the accounting period. Remember that the details of the end of month adjustments for June are as follows: Office Furniture owned by the business: original purchase price was $7,000, estimated useful life was 4 years, and estimated residual value was $1,000 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. Office Equipment owned by the business: original purchase price was $46,000, estimated useful life was 11 years, and estimated residual value was $3,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. The water usage for the month of June is estimated to be $116. The estimated electricity payable as at the end of June is $268. Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from June 25 to June 30 inclusive) are estimated to have been $310 per day. Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is $220. Office supplies totaling $2,251 are still on hand at June 30. One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two month's worth of rent in advance. 3 months of advertising remained prepaid at the start of June. 5 months of insurance remained prepaid at the start of June. When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month. After taking a physical count of inventory at the end of the month, the balance of inventory on hand as at June 30 is found to be equal to the closing balance of the Merchandise Inventory account. This means there is no adjusting entry required for inventory shrinkage. Instructions for adjusting entries 1)Use the worksheet to assist you in recording the adjusting entries in the general journal. 2)Post the adjusting entries from the general journal to the general ledger accounts. 3)Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Adjusted Balance row must still be filled out in order to receive full points. BackOnTrack functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: Enter all answers to the nearest whole dollar. You are also required to apply the journals and ledgers instructions provided in previous weeks. Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed. Show AllSpecial JournalsGeneral JournalSubsidiary LedgersGeneral Ledger (Q=861.generalJournalAdjEntries) GENERAL JOURNAL Date Account and Explanation Post Ref. Debit Credit Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) Jun 30 (select) (select) (Q=870130.StoreSupplies_adjEntry) GENERAL LEDGER Account: Office Supplies Account No. 130 Date Description Ref. Debit Credit Balance May Jun Jun Jun Jun Jun 31Balance 1Cash purchase 30 30 30 30 CPJ 2,515 DR 2,849 DR 334 Adjusted Balance (Q=870140.PrepaidRent_adjEntry) Account: Prepaid Rent Account No. 140 Date Description May 31Balance Jun 1Prepaid rent Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit CPJ Credit Balance 0 8,300 DR 8,300 Adjusted Balance (Q=870141.PrepaidAdvertising_adjEntry) Account: Prepaid Advertising Account No. 141 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 9,000 DR Adjusted Balance (Q=870142.PrepaidInsurance_adjEntry) Account: Prepaid Insurance Account No. 142 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 5,000 DR Adjusted Balance (Q=870151.AccDepnCapitalAsset2_adjEntry) Account: Accum Depn: Office Furniture Account No. 151 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 1,875 CR Adjusted Balance (Q=870161.AccDepnCapitalAsset1_adjEntry) Account: Accum Depn: Office Equipment Account No. 161 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 16,420 CR Adjusted Balance (Q=870220.WagesPayable_adjEntry) Account: Wages Payable Account No. 220 Date Description May 31Balance Jun 4Paid staff wages Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit CPJ Credit Balance 1,110 CR 0 1,110 Adjusted Balance (Q=870221.ElectricityPayable_adjEntry) Account: Electricity Payable Account No. 221 Date Description May 31Balance Jun 3Paid electricity bill Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit CPJ Credit Balance 805 CR 62 CR 743 Adjusted Balance (Q=870222.WaterPayable_adjEntry) Account: Water Payable Account No. 222 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 117 CR Adjusted Balance (Q=870225.InterestPayable_adjEntry) Account: Interest Payable Account No. 225 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Jun 30 Adjusted Balance (Q=870403.InterestRevenue_adjEntry) Account: Interest Revenue Account No. 403 Date Description May 31Balance Interest received from the Jun 30 bank Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 GJ 600 600 CR Adjusted Balance (Q=870511.AdvertisingExpense_adjEntry) Account: Advertising Expense Account No. 511 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870516.WagesExpense_adjEntry) Account: Wages Expense Account No. 516 Date Description May 31Balance Total from cash payments Jun 30 journal Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 CPJ 7,089 7,089 DR Adjusted Balance (Q=870540.RentExpense_adjEntry) Account: Rent Expense Account No. 540 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870541.ElectricityExpense_adjEntry) Account: Electricity Expense Account No. 541 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870542.WaterExpense_adjEntry) Account: Water Expense Account No. 542 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870543.InsuranceExpense_adjEntry) Account: Insurance Expense Account No. 543 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870544.SuppliesExpense_adjEntry) Account: Office Supplies Expense Account No. 544 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870560.DepnExpenseCapitalAsset2_adjEntry) Account: Depn Expense: Office Furniture Account No. 560 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870561.DepnExpenseCapitalAsset1_adjEntry) Account: Depn Expense: Office Equipment Account No. 561 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance (Q=870571.InterestExpense_adjEntry) Account: Interest Expense Account No. 571 Date Description May 31Balance Jun 30 Jun 30 Jun 30 Jun 30 Ref. Debit Credit Balance 0 Adjusted Balance
