Balance Day Adjustments

Prepare journal entries for the following events (or transactions):

• Part (a): On the balance date (31 March) an adjusting entry for insurance is required. The companys insurance provides cover for the period 1 January to 31 December at a cost of $11,086 (including GST). This cost was paid earlier in the year. Assume the balance sheet approach is used.

• Part (b): On the balance date, the Company Accountant found that a client paid $2,990 (including GST) for services of which half will be provided in the next accounting period. Assume the balance sheet statement approach is used.

• Part (c): Salaries and wages expense are paid once a fortnight (or every two weeks). The fortnightly expense is $215,000 including $45,000 of PAYE tax payable. The balance date is 30 June 2021. The next payment for salaries and wages expense is 7 July 2021. The Company Accountant has to record an adjusting journal entry for salaries and wages.

• Part (d): On the balance date (31 December) an adjusting entry for rent is required. The companys rent is paid in advance on a monthly basis and is $5,290. The last payment for rent expense was 16 December, covering the period of 16 December to 15 January. Assume the income statement approach is used.

Note that dates, reference numbers and narrations are not required. Instead of a date, label the journal entries as (a), (b), (c), etc.

3 marks per journal entry; TOTAL: 12 MARKS