Question
Question 5 ( 5 marks) Annie Brown owns a construction designing firm called Achi Design. The unadjusted trial balance on 30 June 2019 below was
Question 5(5 marks)
Annie Brown owns a construction designing firm called Achi Design. The unadjusted trial balance on 30 June 2019 below was prepared by her accountant.
Achi Design
Unadjusted Trial Balance
As at 30 June 2019
Account
Debit ($)
Credit ($)
Cash at bank
144,150
Accounts receivable
276,450
Allowance for doubtful debts
3,750
Prepaid advertising
31,800
Office supplies
26,250
Office equipment
279,300
Accumulated depreciation - office equipment
34,200
Accounts payable
175,050
Unearned fees
38,700
A, Brown, Capital
239,850
Design fees revenue
1,509,300
Rent expense
198,600
Salaries & wages expenses
1,012,500
Telephone expense
31,800
2,000,850
2,000,850
The following additional information is available at 30 June.
1. Unused supplies on hand on 30 June totalled $2,700 2. The Unearned Fees account includes $12,350 received for fees earned during June. 3. Estimated annual depreciation on the office equipment is 10% of the cost of the asset. 4. Advertising costing $20,200 was consumed during the year 5. Based on ageing analysis, 4% of the total accountsreceivable are estimated as doubtful debts.
Required
Prepare the adjusting entries at the end of the accounting period. Ignore narrations.
Question 5(5 marks)
Annie Brown owns a construction designing firm called Achi Design. The unadjusted trial balance on 30 June 2019 below was prepared by her accountant.
Achi Design | ||
Unadjusted Trial Balance | ||
As at 30 June 2019 | ||
Account | Debit ($) | Credit ($) |
Cash at bank | 144,150 |
|
Accounts receivable | 276,450 |
|
Allowance for doubtful debts |
| 3,750 |
Prepaid advertising | 31,800 |
|
Office supplies | 26,250 |
|
Office equipment | 279,300 |
|
Accumulated depreciation - office equipment |
| 34,200 |
Accounts payable |
| 175,050 |
Unearned fees |
| 38,700 |
A, Brown, Capital |
| 239,850 |
Design fees revenue |
| 1,509,300 |
Rent expense | 198,600 |
|
Salaries & wages expenses | 1,012,500 |
|
Telephone expense | 31,800 |
|
| 2,000,850 | 2,000,850 |
The following additional information is available at 30 June.
Required
Prepare the adjusting entries at the end of the accounting period. Ignore narrations.
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