Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone please assist with a and b? E7 - 2 Riverside Garage, which services motor vehicles for its customers, is owned and operated by

Can someone please assist with a and b?

image text in transcribed

image text in transcribed

E7 - 2 Riverside Garage, which services motor vehicles for its customers, is owned and operated by Albie Abrahams. At 30 November 20X6, the end of the financial year, the accountant for Riverside Garage prepared a pre-adjustment trial balance, journalised and posted the adjusting entries, prepared a post-adjustment trial balance and prepared the statement of profit or loss and statement of financial position. The two trial balances at 30 November, one before adjustments and the other after adjustments, are shown below. RIVERSIDE GARAGE TRIAL BALANCES AT 30 NOVEMBER 20X6 Pre-adjustment Dr Cr Bank 12 500 Supplies on hand 1 575 Rent paid in advance 9 000 Insurance paid in advance 1 040 Equipment 46 135 Vehicle 21 900 Accounts payable 5 275 Salaries payable Property tax payable Capital 48 925 Distributions 20 000 Service fees earned 158 000 Salaries expense 78 840 Rent expense Supplies used Depreciation expense - vehicle Depreciation expense - equipment Electricity and water expense 8 010 Property tax expense 12 000 Insurance expense 1 200 212 200 212 200 Post-adjustment Dr Cr 12 500 125 750 260 36 910 17 520 6 100 880 1 020 48 925 20 000 158 000 79 720 8 250 1 450 4 380 9 225 8 835 13 020 780 1 200 214 925 214 925 General expense 79 Riverside Garage uses a capital account as the only equity account in its accounting records a. You are required to: Show the eight journal entries that were required to adjust the accounts at 30 November 20X6. None of the accounts was affected by more than one adjusting entry. b. Prepare the journal entries to close the accounting records at 30 November 20X6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions