Question 3 (10 marks)

The ledger of Electrical Services Pty Ltd on 30 June 2016 includes these selected accounts and corresponding account numbers before adjusting entries have been prepared:

Name of account

Debits $

Credits $

Prepaid electricity

12,000

Supplies

5,600

Equipment

60,000

Accumulated depreciation - Equipment

5,460

Bank loan

52,000

Revenue received in advance

27,000

Rent revenue

156,000

Interest revenue

-

Wage expense

36,400

An analysis of the accounts shows the following:

1)Equipment depreciates at $800 per month.

2)Revenue received in advance was for rent revenue for 6 months starting 1 January 2016.

3)Interest of $2,600 is accrued on the bank loan.

4)Supplies on hand total $2,000.

5)Electricity was prepaid for 12 months commencing on 1 January 2016.

Required:

Prepare the adjusting entries at 30 June 2016. Narrations are not required.

[Answer here]

Electrical Services Pty Ltd

Transaction

Account Titles

Dr $

Cr $

1

2

3

4

5