Problem#2

3

a) The unadjusted trial balance of ABC Lid at 30 June 2019 shows the balance of 1. Adjusting entries: prepaid insurance as $5,040. The insurance policy is for 12 months, commencing 1 March 2019. Date Account Titles Debit $ Credit $ b) Wages of $2,320 owed at 30 June has not been recorded. 2. K&K Lid prepared the following adjusted trial balance at 30 June. Prepare the closing entries at the end of June. 3. Narrations not required. Trial Balance as at 30 June Accounts DR ($) CR ($) 2. Closing entries: Cash at bank 6.200 Date Account Titles Debit $ Credit $ Accounts receivable 4.800 Equipment 18,000 Accumulated depreciation - equipment 450 Accounts payable 860 Accrued expenses 4,320 Share capital 20,000 Retained earnings 2.370 Service revenue 17,600 Wages expense 12,400 Miscellaneous expenses 4,200 45,600 45,600