Scenario 2

Use General Journal to record the following adjustment. Show your working in the answer if necessary.

Transaction 1: Wages for APC Pty Ltd total $10,000 per week, i.e. $2,000 per day for a Monday to Friday working week, and are paid each Friday. Wages this year to date are $510,000. Assume that end of the accounting period, 30 June, falls on a Wednesday. Employees have worked three days since having been paid for the previous week. (2 Marks)

Date	Accounts	DR	CR
30th June

Transaction 2: On 1 April 2019, APC Pty Ltd paid premium of $10,000 plus $1,000 GST on fire insurance for 12 months from 1 April 2019. The end of the accounting period is 30 June 2019.

Date	Accounts	DR	CR
30th June

Transaction 3: APC Pty Ltd made investment of $100,000 in Telecom Bonds on 1 July 2018. The interest rate is 10% per year. Interest is received every six months on 31 March and 30 September. Balance date is 30 June 2019. (2 Marks)

Date	Accounts	DR	CR
30th June

Transaction 4: On 1 February 2019, APC Pty Ltd received $1,500 in rent, 6 months in advance to cover a tenancy until 31 July 2019. Balance date 30 June 2019. (2 Marks)

Date	Accounts	DR	CR
30th June

Part B Total: 24 Marks