For each of the following independent situations and from the information below record the adjusting entry (and only the adjusting entry - do not record the original transaction or opening balance) in the General Journal, being as precise with your account titles as possible, e.g. not using supplies but supplies expense or supplies on hand. Please ignore GST. All calculations are to be worked out on a monthly (not daily) basis. Note: alternative versions of some of the questions are included. You are expected to know how to record both as you may be examined on either the question or the alternative version. Required: Record the Adjusting Entries i. Kristina Auditors is conducting the audit on Swan Productions. It is normal practice not bill or invoice the client until the audit is completed. By the end of the financial year 43 hours have been spent on the audit. The average rate is $370 per hour. Record the adjusting entry for Kristina Auditors. (Alternative: record the adjusting entry for Swan Productions) ii. Jon Ltd. invested $40,000 in a term deposit at Murray River Bank on 1 May 2020. Interest is received after one year and interest rates are 6%. Record the adjusting entry for Jon Ltd. when their financial year ends on 30 November 2020. (Alternative: record the adjusting entry for Murray River Bank) iii. On 1 March 2020, Andrew Ltd. accepts a $15,000, five percent, ten month note receivable. Record the adjusting entry for Andrew Ltd. when their financial year ends on 30 June 2020. iv. At Carin Industries salaries are paid and recorded weekly at the end of the week late on a Saturday evening for all work performed up to and including Saturday evening. The weekly salary bill is $36,000 for a six-day working week (Mon - Sat). Carin's accounting period ends on Tuesday evening. Record the adjusting entry. V. Amanda borrowed $120,000 from Eastpac Bank on 1 February 2020. Interest is paid after six months and interest rates are 8%. Record the adjusting entry for Amanda on 30 April 2020. (Alternative: record the adjusting entry for Eastpac Bank on 30 April) vi. Electricity expenses average $2,400 per year. The Electricity meter was last read exactly three months ago. The bill was received 2 months ago and paid last month. The financial year ends today. Record the adjusting entry for the three months ended today. vii. Sebastian Ltd. records uncollectible receivables using the allowance method, calculating the amount of the adjustment using the percentage of receivables approach. At the end of the financial year the balance of the Accounts Receivable account of Sebastian Ltd. is $78,000 debit, the balance of the Allowance for Bad Debts account is $1,000 credit and estimates that 2% of its receivables balance will be uncollectible. Record the adjusting entry. (Alternative: record the adjusting entry assuming the balance of the Allowance for Bad Debts account is $1,000 debit) (Alternative: record the adjusting entry using the percentage of sales approach, assuming net credit Sales Revenue was $78,000 and 2% of credit sales revenue will not be collected) viii. When supplies are purchased by Rebecca they were recorded as an asset. Calculations after an end of period stock-take revealed a closing stock (balance) of $2,000. There was an 6 opening balance of $3,000 and during the period $8,000 of supplies were purchased. Record the adjusting entry. (Alternative: record the adjusting entry assuming the supplies were recorded as an expense when purchased.) ix. Cherry pays her insurance of $24,000 annually in early September. The insurance policy covers all her claims from 12.01 a.m. on September 1. Insurance is recorded as an expense when paid and the financial year ends on December 31. Record Cherry's adjusting entry for the four months ended December 31. (Alternative: record the adjusting entry assuming the insurance was recorded as a prepayment (asset) when paid.) (Alternative: record the adjusting entry from the perspective of the insurance company assuming the insurance was recorded as a liability when received.) (Alternative: record the adjusting entry from the perspective of the insurance company assuming the insurance was recorded as revenue when received.) X. On 1 March, Raechel's Rockclimbing Ltd. paid $1,200 to the local rockclimbing magazine for a one-page advertisement for Raechel's rockclimbing skills courses. The advertisements will run each month for the next 12 months. Raechel's Rockclimbing Ltd. initially recorded the advertising as a prepayment (asset). Record the adjusting entry for Raechel's Rockclimbing Ltd. for the month of March. (Alternative: record the adjusting entry assuming the advertising was recorded as an expense when paid.) (Alternative: record the adjusting entry from the perspective of the magazine company assuming the advertising was recorded as a liability when received.) (Alternative: record the adjusting entry from the perspective of the magazine company assuming the advertising was recorded as revenue when received.) xi. When office photocopying paper is purchased it is recorded as an expense. An end of period stock-take (count) revealed a closing balance of $3,000. There was an opening balance of $1,000 and during the period $5,000 of photocopying paper was purchased. Record the adjusting entry. (Alternative: record the adjusting entry assuming the photocopying paper was recorded as an asset when purchased.) xii. James Limited received rent on the first day of November 2019, a total of $70,200 in advance for twelve months commencing on that day and records it as revenue. Record the adjusting entry for the year ending June 30, 2020 for James Limited. (Alternative: record the adjusting entry assuming the rent was recorded as a liability when received.) (Alternative: record the adjusting entry from the perspective of the tenant assuming the rent was recorded as an asset when paid.) (Alternative: record the adjusting entry from the perspective of the tenant assuming the rent was recorded as an expense when paid.) xiii. Nelson Construction received $500,000 in August 2019 for a new building project and recorded this initial cash receipt as a liability. The project is 75% complete at financial year- end. Record the adjusting entry for financial year ending June 30, 2020 for Nelson. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as revenue when received.) xiv. A tennis club offered a special rate for upfront annual memberships at the start of the season. If patrons paid their 12 months' fees in advance they only had to pay $1,200. The tennis club recorded the fees received as "Membership Revenue, and 300 people signed up. At the end of the financial year the tennis club had been operational for 3 months. Record the adjusting entry for the tennis club. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as a liability when received.) XV. Kristina owns a cruise ship and leased it for 8 years receiving $9.6 million (the entire lease amount) at the commencement of the lease. Kristina recorded the receipt of the money as Unearned Rent Revenue. Record the adjusting entry when his first financial year ends two months after the lease commenced. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as revenue when received.) xvi. On 1 September 2016, Stephen Services purchased a new digital SLR camera for $18,500. The depreciation charge for the camera is $3,000 per year. Record the adjusting entry for depreciation for the financial year ending 30 June 2020. (Alternative: record the adjusting entry assuming the camera was purchased on 1 September 2019.) (Alternative: record the adjusting entry assuming the depreciation charge was $350 per month and the camera was purchased on 1 September 2016.) (Alternative: record the adjusting entry assuming the depreciation charge was $350 per month and the camera was purchased on 1 September 2019.)