5. On August 24th, bank bought $20,000 worth of accounting system from Fino Ltd. and issued...

5. On August 24th, bank bought $20,000 worth of accounting system from Fino Ltd. and issued a post-dated cheque to pay this supplier. Date on the cheque was October 15th What would be the adjusting entry to record this transaction?

6. Few weeks later, on September 17th, owner of the Fino Ltd. came to bank to clear the cheque before the maturity date. Bank charged 3% commission for cashing the cheque before the date written on the cheque

7. At the end of January, Bank accountant made records of the staff salaries. Amount of monthly salary is $44,000. Barker bank generally pays its staff salaries within the three working days of the following month. (3rd February) So, what would be the adjusting entry for the salary payment on 31st January?

8. What would be the adjusting entry for the salary payment on 3rd February? 9. On 1st Jan 2013, Booster Bank borrowed loan of $3,000,000 from Redstone Bank. Monthly interest rate of the loan is 5%. Booster bank pays interest to the lender at the end of every monthly. (12 months). What would be the adjusting entry for interest payments for the following 1 month?

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ekkarill92 answered 1 year ago

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