Q. 6.36 Adjusting income, expense, asset and/or liability accounts

Generate the adjustments, as a journal entry (without the narrative) using the template provided, needed for income, expense, asset and/or liability accounts for Games Pty Ltd to reflect the following transactions in the entity's financial statement for the 12-month reporting period ended 31 December 2015 using the accrual system:

a. The fortnightly salaries and wages bill of $6900 for December 2015 is due to be paid on 1 January2016.

b. The entity has $30 000 of office furniture and equipment with a $10 000 residual value that it depreciates over five years on a straight-line basis.

c. A client owes $5000 for services rendered in December 2015.

d. Games Pty Ltd utility services bill (water, telephone, electricity) for the quarter ended December 2015 has not yet been received. Based on previous bills, the quarterly expense is expected to be $1200.

e.Games Pty Ltd has a two-year subscription to a trade magazine at a cost of $2400. The subscription was paid on 1 March 2015.

f. One of Games Pty Ltd's clients was placed into liquidation in December 2015. This client owes Games Pty Ltd $6200.

g. Games Pty Ltd has a property with a carrying value of $120 000. An assessment has determined that its recoverable amount is $90 000.

Step 1. Download the Word template -Adjusting income, expense, asset and/or liability accounts(Word 13 KB)

Step 2. Fill in the Worksheet

PLEASE ANSWER IN TABLE PROVIDED

Account Debit Credit