Question
Nafis Hossain is operating his own mobile phone repair business, Tobi Land Limited. The unadjusted trial balance for Tobi Land Limited at March 31, 2021
Nafis Hossain is operating his own mobile phone repair business, Tobi Land Limited. The unadjusted trial balance for Tobi Land Limited at March 31, 2021 had the following normal balances. The company prepares quarterly financial statements. Account Titles . . . . . . . . . . $ Accounts Payable . . . . . . . . . . 3500 Accounts Receivable . . . . . . . . . . 5800 Cash . . . . . . . . . . 54200 Depreciation Expense - Equipment . . . . . . . . . . 370 Depreciation Expense - Machinery . . . . . . . . . . 100 Electricity Expense . . . . . . . . . . 490 Equipment . . . . . . . . . . 8600 Interest payable . . . . . . . . . . 1100 Interest Revenue . . . . . . . . . . 620 Machinery . . . . . . . . . . 5400 Nafis Hossain, Capital . . . . . . . . . . 19000 Notes Payable . . . . . . . . . . 41200 Prepaid Insurance . . . . . . . . . . 2600 Rent Expense . . . . . . . . . . 200 Service Revenue . . . . . . . . . . 3500 Supplies . . . . . . . . . . 200 Unearned Service Revenue . . . . . . . . . . 3700 Other Data: 1. A payment for Electricity Expense was recorded as $230 instead of $530. 2. A debit posting of $2800 to the Accounts Receivable account was made twice. 3. Tobi Land Limited has 8 salaried employees. Salaries are paid every Thursday for the current week. 4 employees receive a salary of $300 each per week, while the rest of the employees receive a salary of $500 each per week. Employees work five days a week (Sunday to Thursday) and they do not work on weekends (Friday and Saturday). Assume March 31 is a Monday. All the employees work through March 31st. 4. Tobi Land Limited has separate insurance policies on its equipment and its machinery. Policy ABC on the equipment, which was purchased on March 1, 2020 for $2400, has a term of one year. Policy XYZ on the machinery, which was purchased on March 1, 2021 for $3800, has a term of three years. 5. The annual interest rate on Notes Payable is 15 %. (The Notes Payable was issued on February 1, 2021)
Instructions: (a) Journalize the correcting entries for the 3-month period January 1, 2021March 31, 2021. (b) Journalize the adjusting entries for the 3-month period January 1, 2021March 31, 2021. (c) Journalize the closing entries for Interest Revenue, Electricity Expense and Salaries Expense for the 3-month period January 1, 2021March 31, 2021.
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