Analyse the above and prepare the necessary 31 December 2018 adjusting journal entries to describe the information provided. No narrations required. Wages and salaries are due but still remained unpaid at 31 December 2018, $7,550. This amount has not been included in the wages and salaries figure shown in the unadjusted trial balance above. (5) The company estimated that as at 31 December 2018, 4% of accounts receivable will be uncollectible. (6) No depreciation has been charged for the year ended 31 December 2018. The company depreciates non-current assets held at 31 December 2018 as follows: -- Warehouse: Assuming straight line over 20 years. -- Motor vehicles: Assuming a five-year life span and the double declining balance depreciation. All motor vehicles are assumed to have no residual value.
Analyse the above and prepare the necessary 31 December 2018 adjusting journal entries to describe the information provided. No narrations required. Wages and salaries are due but still remained unpaid at 31 December 2018, $7,550. This amount has not been included in the wages and salaries figure shown in the unadjusted trial balance above. (5) The company estimated that as at 31 December 2018, 4% of accounts receivable will be uncollectible. (6) No depreciation has been charged for the year ended 31 December 2018. The company depreciates non-current assets held at 31 December 2018 as follows: -- Warehouse: Assuming straight line over 20 years. -- Motor vehicles: Assuming a five-year life span and the double declining balance depreciation. All motor vehicles are assumed to have no residual value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Analyse the above and prepare the necessary 31 December 2018
entries
Wages and salaries are due but still remained unpaid at 31 December
2018, $7,550. This amount has not been included in the wages and salaries
figure shown in the unadjusted
(5) The company estimated that as at 31 December 2018, 4% of
receivable
(6) No
The company depreciates non-current assets held at 31 December 2018
as follows:
-- Warehouse: Assuming straight line over 20 years.
-- Motor vehicles: Assuming a five-year life span and the double
declining balance depreciation. All motor vehicles are assumed to
have no residual value.
Transcribed Image Text:Click & Save Pte Ltd is an e-commerce company that offers online shopping in books,
stationeries, music, videos, electronics, software, and fashion products in Singapore.
Following is the unadjusted trial balance of Click & Save Pte Ltd as at 31 December
2018.
Debit (S)
Credit (S)
Share capital
Retained earnings, 31 December 2017
300,000
82,500
Warehouse at cost
465,000
Motor vehicles at cost
300,000
Provision for depreciation
• Warehouse
• Motor vehicles
Cost of goods sold
Sales
75,000
1,691,100
2,775,900
General expenses
Wages and salaries
62,400
538,200
Allowance for doubtful debts
3,600
Accounts receivable
222,600
Accounts payable
174,900
Bank
37,950
Bank Loan
150,000
Inventory
Rent received in advance
245,700
4,800
Interest expense
3,750
3,566,700
3,566,700
You are given the following additional information:
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