Please check if the double entries are correct. Also does drawing affect the year end adjustment? and what should be the date? year end date or the day the transaction took place?
Additional information for year end adjustments: (1) Inventory as at 30 June 2019 was $78,230 and its net realizable value was valued at $69,880. 30/6/19 Ending Inventory Adjustments GJOO0002 Inventory $69,880.00 GJO00002 Inventory Adjustments $69.880.00 GJ000002 Inventory Adjustments $55,000.00 GJO00002 Inventory $55,000.00 (2) It is decided to write off the balance of New World Ltd (Ref: BD561) and Hong Kong Stores (Ref: BD965) as bad debts 30/6/19 Sale; New World Lid BD561 Trade Receivables $8.950.00 BD561 Impairment loss on T/Rec $8,950.00 30/6/19 Sale: Hong Kong Store BD965 Trade Receivables $8,956.00 BD965 Impairment loss on T/Rec $8.956.00 30/6/19 New World Ltd: Credit from BD561 SJO00003 Trade Receivables $8,950.00 SJ000003 Trade Receivables $8.950.00 30/6/19 Hong Kong Store: Credit from BD965 SJ000004 Trade Receivables $8,956.00 SJO00004 Trade Receivables $8.956.00 (3) Insurance expenses $1 1,760 covers the period from 1 January 2019 to 31 December 2019. 30/6/19 Prepayment of Insurance exp GJOO0003 Prepayments $5,880.00 GJOO0003 Insurance $5,880.00 (4) The following information were accrued expenses at 30 June 2019: Salaries $22,800 Carriage outwards $3,000 Accountant's fee $20,800 30/6/19 Accured Expenses GJ000004 Salaries $22.800.00 GJ000004 Carriage outwards $3,000.00 GJ000004 Accountant's fee $20,800.00 GJOO0004 Accurals $46,600.00 (5) Interest income $6,800 on loan to K Ltd was not yet received. 30/6/19 Accured Interest Income GJO00005 Accured Interest Income $6.800.00 GJO00005 Interest Inco $6.800.00 (6) The suspense account was analyzed and several errors were found: 4Sales was overcast by $700 Sundry expenses was undercast by $400 Motor expenses was overcast by $500 30/6/19 Correction of errors GJO00006 Sales $700.00 GJO00006 Suspense $700.00 GJOO0006 Sundry Expenses $400.00 GJOO0006 Suspense $400.00 GJ000006 Suspense $500.00 GJOOOO06 Motor Expenses $500.00 (7) Commission of $12,845 for June has not been paid. 30/6/19 Accured expenses -Commission for June GJO00007 Commission $12 845.00 GJO00007 Accurals $12.845.00 (8) Some office equipment costing $5,500 was purchased on 29 June and its payment by cheque (cheque no. 325700) had been completely omitted from the records. 29/6/19 Purchase of Office Equipment 325700 Cash at bank $5,500.00 325700 Office Equipment at Cost $5,500.00 (9) The owner had withdrawn some goods costing $3,800 form the business for personal use on 6 June 2019. No recording had been made Date ID# Account Debit Credit Job 6/6/19 Drawings of goods GJO00008 Drawings $3.800.00 GJ000008 Purchases $3,800.00 (10) After reviewing the customers' credit, Master trading company considered it appropriate to keep the level of the allowance for impairment loss on trade receivables the same as last year. 30/6/19 Sale: New World Lid BD56 Trade Receivables $8.950.00 BD561 Impairment loss on T/Rec $8,950.00 30/6/19 Sale: Hong Kong Store BD965 Trade Receivables $8,956.00 BD965 mpairment loss on T/Rec $8,956.00 30/6/19 New World Ltd: Credit from BD561 SJ000003 Trade Receivables $8.950.00 SJO00003 Trade Receivables $8,950.00 30/6/19 Hong Kong Store: Credit from BD365 SJ000004 Trade Receivables $8,956.00 SJO00004 Trade Receivables $8.956.00 (11) Depreciation is provided at 10% per annum on office equipment using the straight line method and 10% per annum on motor vans based on the reducing balance method. It is the company's policy to provide a full year's UIdepreciation in the year of purchase 30/6/19 Depreciation GJO00009 Depreciation $2.150.00 GJO00009 Office Equipment Accum Dep $2.150.00 GJO00009 Depreciation $3,940.00 GJ000009 Motor van Accum Dep $3,940.00 6
