Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) b) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. e) f) Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 8) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019
Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) b) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. e) f) Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 8) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Banksia Company completed the following transactions during 2018-2019. The annual accounting
period ends 30 June 2019.
a)
b)
Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used.
Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the
future.
c)
Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9%
interest bearing note payable.
Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August
d)
2019.
e)
f)
Received the electricity bill for AUD 24,200, which will be paid in early July.
On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of
premises from 1 June until 31 August 2019.
Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July
8)
2019.
Required:
1)
Prepare the journal entries for each of these transactions.
2)
Prepare all adjusting entries required on 30 June 2019
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