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The Unadjusted Trial Balance has been provided along with outstanding balance day adjustments for a business. Complete these adjusting entries in the blank Journal provided
The Unadjusted Trial Balance has been provided along with outstanding balance day adjustments for a business. Complete these adjusting entries in the blank Journal provided
Business Name: Mr Augustus Trading As 'Lonely World" 'Lonely World' is owned and operated by Mr Augustus. He has some basic bookkeeping knowledge and has been keeping a pretty good record of his business so far and has even managed to do some of the needed balance day adjustments already. There are a few balance day adjustment items remaining that he was unsure on and so he has enlisted your help and has provided you with his unadjusted trial balance for the month of August 2021. Your task is to record the adjusting entries in the 'Journal', post these entries to the 'Ledger', manually prepare the 'Adjusted Trial Balance' and finally help fill out the 'Income Statement' and 'Balance Sheet' based on the 'Adjusted Trial Balance for the month of August 2021. You can assume all other balance day adjustments not listed have already been accounted for. Relevant information: 1. Adjusting Items: Date Description 31/8/21 On August 1, 2021 the business paid $15246 (including GST) for 11 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. 31/8/21 The business obtained a bank loan for the amount of $33600 on August 1, 2021. The bank charges interest of 7% per annum and interest payments are due quarterly. The interest on the $33600 loan is yet to be recorded. The bank loan is due in August 2026. 31/8/21 The motor vehicle is depreciated using the straight-line method. It has a useful life of 11 years and a zero residual value. 31/8/21 Received $1320 (including GST) from a client at the start of August 2021 for consultation services. The amount was initially recorded as unearned revenue and GST Collected. The business provided these consultation services by the end of August 2021. 31/8/21 The business hires 18 sales staff. Each sales staff member's GROSS wage is $968 per week [PAYG withheld of $176]. At the end of the month, the business owed its employees 2 weeks of wages and that is yet to be recorded. 31/8/21 The business hires 4 general office assistants. Each assistant is paid a NET wage of $1232 per fortnight [PAYG withheld of $198). At the end of the month, the business owed its office assistants 1 week of wages that has not yet been recorded. 31/8/21 The office furniture is depreciated using the straight-line method. It depreciates at 25% per annum and is assumed to have a zero residual value. 31/8/21 On August 1, 2021 the business paid $6930 (including GST) for 7 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid. 31/8/21 On August 11, 2021 the business purchased 13 toners worth $1716 (including GST) and recorded the amounts as Office Supplies and GST Paid. Mr Augustus counted the toners at the end of August 2021 and found that 9 of these toners have been consumed but their consumption has not been recorded. Cr Acc. No. 101 102 103 104 111 141 142 143 155 156 158 159 201 222 240 Dr 371,228 56,762 114,096 33,162 9,506 13,860 6,300 4,950 34,848 17,424 68,640 18,720 28,524 31,430 Unadjusted Trial Balance "For the Month Ending 31/8/2021" Account Cash Accounts receivable Inventory Office Supplies GST Paid Prepaid Insurance Prepaid Rent Interest Receivable Office Furniture Accum. Depreciation - Office Furniture Motor Vehicle Accum. Depreciation - Motor Vehicle Accounts Payable GST Collected Interest Due Unearned Revenue Wages Payable Utilities Payable Consulting Fees Payable Bank Loan PAYG Withheld Capital Drawings Sales Revenue Service Revenue Interest Revenue Cost of Good Sold Computer Expense Office Supplies Expense Interest Expense Consulting Expense Insurance Expense Rent Expense Sales Commission Expense Utilities Expense Wage Expense Advertising Expense Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture TOTAL 9,436 2,490 3,320 2,600 33,600 6,954 362,165 6,790 241 242 243 244 251 261 301 302 401 402 403 501 601 602 603 604 605 606 607 608 609 610 651 655 274,486 39,812 4,950 54,897 1,498 5,200 13,724 8,300 24,900 7,250 835,911 835,911 The General Journal Chart of accounts Date Accounts Dr Cr Account Account Name No 101 Cash 102 Accounts Receivable 103 Inventory 104 Office Supplies 111 GST Paid 141 Prepaid Insurance 142 Droid Prepaid Rent 143 143 Interest Receivable 151 Computer equipment 152 Accum. Depreciation - Computer Equipment 155 Orice Office Furniture 156 Accum. Depreciation - Office Furniture 158 Motor Vehicle 159 Accum. Depreciation - Motor Vehicle 201 Accounts Payable 222 GST Collected 240 Interest Due 241 Unearned Revenue 242 Wages Payable 243 Utilities Payable 244 Consulting Fees Payable 251 Bank Loan 261 PAYG Withheld 301 Capital 302 Drawings 401 Sales Revenue 402 Service Revenue 403 Interest Revenue 501 Cost of Good Sold 601 Computer Expense 602 02 Office Supplies Expense 603 Interest Expense 604 Consulting Expense 605 Insurance Expense 606 Rent Expense ca 607 Sales Commission Expense 608 Utilities Expense 609 Wage Expense 610 Advertising Expense 651 Depreciation Expense - Motor Vehicle 655 Depreciation Expense - Office Furniture 658 Depreciation Expense - Computer Equipment TOTAL
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