Question:

Arthur Magee is preparing his financial statements for the year ended 31 December 2014 and approaches you for help in respect of three ledger accounts. He provides you with the following information about the ledger accounts. Balances at 1 January 2014 Insurance paid in advance 562 Wages outstanding 306 Rent received in advance 36 Transactions during the year Paid for insurance 1,019 by bank standing order. Paid wages in cash 15,000 Received 2,600 rent by cheque Balances at 31 December 2014 Insurance prepaid 345 Rent receivable in arrears 105 Wages accrued 419 Prepare the three ledger accounts for Arthur Magee indicating the correct yearly charge to be included in the income statement.

May I know how to go about this?