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Fastcom Ltd. is a company that provides mobile communication services. It adjusts and closes its books at the end of each financial year (not monthly)
Fastcom Ltd. is a company that provides mobile communication services. It adjusts and closes its books at the end of each financial year (not monthly) which ends on December 31st. The following information is for the year ending December 315t, 2018. You may ignore GST for the following questions and related requirements. Journal entries do not need narrations. Required: During the 2018 financial year, office supplies amounting to $2,000 were purchased in cash and debited in full to 'Office Supplies Inventory'. As at January 1st, 2018, the inventory count of Office Supplies Inventory' showed $600. The inventory count of Office Supplies Inventory' as at December 31st, 2018 showed $1,000. What is the required adjusting journal entry for the 2018 financial year end to adjust both the 'Offices Supplies Inventory' account and 'Office Supplies Expense' account? (a) (b) On August 1t, 2018, a one-year insurance premium on equipment in the amount of $4,800 was paid and debited in full to 'Prepaid Insurance'. Coverage began on August 1st, 2018. What is the required adjusting journal entry for the 2018 financial year end? On May 1St, 2018, the company purchased a new delivery van at a cash cost of $65,600 and properly recorded the transaction. The per annum depreciation of the van is estimated to be $13,128. No depreciation charge has been recorded as at year end. What is the required adjusting journal entry for the 2018 financial year end in relation to the depreciation charge? (c)
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