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I Question 1 - 14 marks Prepare adjusting journal entries for the following items on December 31, the end of the fiscal year. You can
I Question 1 - 14 marks Prepare adjusting journal entries for the following items on December 31, the end of the fiscal year. You can use the table below if it is helpful. a) Depreciation on equipment, $2,500 b) Services performed but not yet paid, $3,500 c) Salaries owed to employees at year-end, $2,500 d) Unearned service revenue earned, $5,500 e) Supplies used during the year, $3,200 f) Prepaid rent expired during the year, $7,500 g) Interest accrued on note receivable, $1000 Date Account Debit Credit Question 2 - 14 marks Question 2 - 14 marks On December 1, 2018, Gelly Sales sold machinery to Kath Ltd. for $2,000. Kath could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 12% interest. Gelly accrues interest only at year-end. On September 1, 2019 Gelly collected the whole amount due from Kath Ltd. Provide all of the required journal entries for Gelly Sales for 2018 and 2019, and, for Kath Ltd. the 2018 required journal entries, assuming a one-year useful life and $200 estimated residual value for the equipment. You can use the tables below if it is helpful. General Journal- Gelly Sales Date Account Debit Credit EI General Journal- Kath Ltd. Debit Credit Date Account Question 3 - 27 marks Malone Transport incurred the following transactions in the months of November and December 2019. Nov Entered into a contract with a client for three months of delivery services 1 beginning November 1. The client paid $6,000 for all three months today. 5 Received $300 from a client for services billed last month. 6 Performed delivery services and billed a client $5,000. 15 Paid the monthly telephone bill, $650. 18 Paid the monthly utility bill, $260. 23 Paid for the packing supplies purchased last month, $1,600. 30 Paid the assistant's salary, $ 1,900. 1 Dec 4 Received $1,500 from a client on account. 15 Purchased packing supplies on account, $3,200. 22 Received $2,600 cash from a client for delivery services. 31 Paid for the monthly telephone and utility bill, $200 and $340 respectively. 31 A NSF cheque for $100 was returned by the bank. The company determined that the lower of cost and net realizable value for 31 inventory is $50. Inventory in the perpetual system is currently recorded at $75. Record each transaction in the general journal. You can use the table below if it is helpful
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