Question
The ledger of Edwards Consultants on 30 June 2021 includes the following selected accounts before adjusting entries have been prepared: Debit $ Credit $ Prepaid
The ledger of Edwards Consultants on 30 June 2021 includes the following selected accounts before adjusting entries have been prepared:
Debit $ | Credit $ | |
Prepaid insurance | 20700 | |
Office supplies | 13200 | |
Equipment | 82800 | |
Bank loan | 135000 | |
Revenue received in advance | 58000 | |
Service revenue | 475000 | |
Wages expense | 87250 |
An analysis of the accounts shows the following adjustments that need to be made:
a) The equipment bought on 1 June 2021 depreciates over 6 years.
b) $28560 worth of services were performed during June in relation to $58000 of revenue received in advance.
c) Interest of $1240 is accrued on the bank loan.
d) Office supplies on hand as at 30 June 2021 total $8150.
e) The 12-months insurance policy was purchased on 1 June 2021.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started