Questions
Required: Complete the adjustment journal by indicating which account to debit and to credit. No Transaction...

Required:

Complete the adjustment journal by indicating which account to debit and to credit.

No

Transaction

Account

Dr

Account

Cr

1.

Portion of prepaid insurance which has now expired (been used up)

2.

Revenue earned but not yet received or billed

3.

Insurance expense which has not been used up (there is still future cover)

4.

Portion of recognised revenue which is considered unearned

5.

Expenses incurred but not yet paid

6.

Revenue received in advance which is now earned

Question 2                                                                                                 18 Marks

From the information given below prepare the income statement, statement of owner’s equity and balance sheet (classify balance sheet entries)

CUD SERVICES

Trial Balance as at 31 December 2019

Account

Debit $

Credit $

Cash at bank

Accounts receivable

Office supplies

Prepaid insurance

Long-term bank loan

Equipment

Accumulated depreciation – equipment

Accounts payable

Capital

Drawings

Accounting services revenue

Salaries expense

Advertising expense

Repairs expense

Sundry expense

Electricity expense

Telephone expense

Interest on bank loan expense

6 200

20 000

7 260

1 725

82 800

27 000

43 250

2 250

1 260

7 520

3 405

2 620

    1 350

35 000

14 600

15 000

?

126 500

            

$

$

Income statement

Statement of owners’ equity

Balance sheet

Assets

Liabilities and Owner’s Equity

Question 3                                                                                                 10 Marks

Required:

Use the following information from the records of Preston Partners to prepare an income statement under the periodic inventory system for the year ended 30 June 2017.

Purchases

Inventory, 1 July 2016

Inventory, 30 June 2017

Selling and distribution expenses

Sales

Purchases returns and allowances

Sales returns and allowances

Administrative expenses

Freight inwards

Finance expenses

186 600

13 860

12 920

45 420

268 860

4 420

6 220

16 460

3 180

2 020

Income statement

In: Accounting

1. Briefly explain the three domains of living organisms. 2. Tabulate the difference between prokarytic and...

1. Briefly explain the three domains of living organisms.

2. Tabulate the difference between prokarytic and eukaryotic cells.

In: Biology

Explain the difference between nominal GDP and real GDP by constructing a hypothetical three-good two-year economy.

Explain the difference between nominal GDP and real GDP by constructing a hypothetical three-good two-year economy.

In: Economics

Describe the difference between spontaneous and induced mutations AND provide THREE sources from which these mutations...

Describe the difference between spontaneous and induced mutations AND provide THREE sources from which these mutations might arise.

In: Biology

Course: quality assurance in food processing What are the three types of audits? Please explain the...

Course: quality assurance in food processing

What are the three types of audits? Please explain the differences between them.

In: Biology

Give three examples of how YOU think like an economist. response should be between 150 to...

Give three examples of how YOU think like an economist.

response should be between 150 to 350 words

In: Economics

Compare and contrast transformation, transduction and conjugation. Include at least 5 different comparisons/contrasts between all three.

Compare and contrast transformation, transduction and conjugation. Include at least 5 different comparisons/contrasts between all three.

In: Biology

What does the research evidence say about the three theories concerning the relationship between organizational culture...

What does the research evidence say about the three theories concerning the relationship between organizational culture and, performance.

In: Operations Management

What is the major difference between oligopoly and the other three market structures (perfect competition, monopolistic...

What is the major difference between oligopoly and the other three market structures (perfect competition, monopolistic competition, and monopoly)?

In: Economics

Discuss the differences between horizontal, vertical and ratio analysis? What are three major reasons to hold...

  1. Discuss the differences between horizontal, vertical and ratio analysis?

  1. What are three major reasons to hold cash in an organization?

In: Finance