At the end of the financial year ending 30 June 2022, the following adjustments are required. Balance Day Adjustments Depreciation on machinery for the year ending 30 June 2022 amounts to $4,800. Rental revenue of $1,200 is earned but has not been received. Amount of $2,800 in the Unearned Revenue account is now earned. Accrued wages at 30 June 2022 amounting to $5,600 were not included. Required: (a) Prepare all necessary adjusting entries including showing all relevant workings. (b) Explain the TOTAL FINAL NET impacts on the assets, liabilities and profit figures in the financial statements after taking into account ALL the adjusting entries in part (a). Are these figures overstated or understated if the

At the end of the financial year ending 30 June 2022, the following adjustments are required. Balance Day Adjustments Depreciation on machinery for the year ending 30 June 2022 amounts to $4,800. Rental revenue of $1,200 is earned but has not been received. Amount of $2,800 in the Unearned Revenue account is now earned. Accrued wages at 30 June 2022 amounting to $5,600 were not included. Required: (a) Prepare all necessary adjusting entries including showing all relevant workings. (b) Explain the TOTAL FINAL NET impacts on the assets, liabilities and profit figures in the financial statements after taking into account ALL the adjusting entries in part (a). Are these figures overstated or understated if the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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