Question
The following information relates to: Hair Consultancy Group. Hair Consultancy Group . Unadjusted Trial Balance as at 30 th September 2019 Debit $ Credit $
The following information relates to: Hair Consultancy Group.
Hair Consultancy Group.
Unadjusted Trial Balance as at 30th September 2019
Debit $
Credit $
Bank
1,330
Accounts Receivable
18,190
Allowance for Doubtful Debts
700
Prepaid Rent
4,000
Journal Subscriptions Prepaid
2,500
Fixtures and Fittings
55,600
Accumulated Depreciation on Fixtures and Fittings
5,800
Goodwill
100,000
Accounts Payable
1,300
Consulting Service Revenue Received in Advance
7,000
M. Smith - Capital
138,000
M. Smith Drawing
11,900
Consulting Service Revenue
62,970
Rent expense
9,000
Salaries expense
13,250
215,770
215,770
Additional Information:
1. Bad Debts of $190 are to be written off. The Allowance for Doubtful Debts is to be adjusted to 5% of Accounts Receivable.
2. Prepaid Rent includes of $4,000 for rent for the months of September and October 2019.
3. Fixtures and Fittings are depreciated on a straight -line basis: cost price was $55,600 estimated scrap value is $600 and the estimated economic life if 10 years.
4. The account Consulting Services Revenue received in Advance, includes $3,000 which is now earned in September 2019.
5. Journal Subscription Prepaid includes $500 for Journals to be delivered in October 2019.
6. Salaries accrued but unrecorded on 30 September 2019, $3,780
Required:
- General Journal entries to record the balance day adjustments on 30 September 2019.
- Closing entries on 30 September 2019
- Reversing entries on 1st Oct 2019
- A fully classified Balance Sheet as at 30th September 2019, showing Net Assets.
The following information relates to: Hair Consultancy Group.
Hair Consultancy Group.
Unadjusted Trial Balance as at 30th September 2019
| Debit $ | Credit $ |
Bank | 1,330 |
|
Accounts Receivable | 18,190 | |
Allowance for Doubtful Debts |
| 700 |
Prepaid Rent | 4,000 |
|
Journal Subscriptions Prepaid | 2,500 |
|
Fixtures and Fittings | 55,600 | |
Accumulated Depreciation on Fixtures and Fittings |
| 5,800 |
Goodwill | 100,000 |
|
Accounts Payable |
| 1,300 |
Consulting Service Revenue Received in Advance |
| 7,000 |
M. Smith - Capital |
| 138,000 |
M. Smith Drawing | 11,900 |
|
Consulting Service Revenue |
| 62,970 |
Rent expense | 9,000 | |
Salaries expense | 13,250 | |
215,770 | 215,770 |
Additional Information:
1. Bad Debts of $190 are to be written off. The Allowance for Doubtful Debts is to be adjusted to 5% of Accounts Receivable.
2. Prepaid Rent includes of $4,000 for rent for the months of September and October 2019.
3. Fixtures and Fittings are depreciated on a straight -line basis: cost price was $55,600 estimated scrap value is $600 and the estimated economic life if 10 years.
4. The account Consulting Services Revenue received in Advance, includes $3,000 which is now earned in September 2019.
5. Journal Subscription Prepaid includes $500 for Journals to be delivered in October 2019.
6. Salaries accrued but unrecorded on 30 September 2019, $3,780
Required:
- General Journal entries to record the balance day adjustments on 30 September 2019.
- Closing entries on 30 September 2019
- Reversing entries on 1st Oct 2019
- A fully classified Balance Sheet as at 30th September 2019, showing Net Assets.
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