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In: Accounting

Another task you need to complete, before you prepare the annual financial statements for the year...

Another task you need to complete, before you prepare the annual financial statements for the year ending 30 June 2019, is to determine the June insurance expense, and the wage expenses for GreenEarth shop employees. How do you do the journal entry?

You’ve collected the following information.

Insurance: Insurance is now $1,200 per calendar month and is paid in advance on the 21st day of each month. So, for example, GreenEarth pays $1,200 insurance on 21 March 2019 for the period from 22 March 2019 to 21 April 2019. The insurance increased from $1,000 per calendar month from 21 January 2019. Wages: Shop staff work Monday to Saturday and wages are usually $8,000 per fortnight and are paid in arrears. The last wages payment for the year was processed on Thursday 27 June 2019 and related to the fortnightly pay period which ended on Friday 21 June.

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Expert Solution

Journal Entries:

ekkarill92 answered 2 years ago
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