Below is the additional information available on 30 June: a. The bank loan was borrowed at the beginning of June. Interest on the bank loan for June is due. The monthly interest is charged at 0.8%. b. The washing machine was purchased at the beginning of June. Kathy estimates the washing machine can be used for 5 years and there is no residual value after that. c. Prepaid rent was paid at the beginning of June for June, July and August. d. Kathy did a stocktake and found there were $180 supplies on hand. e. Services provided for $50 cash received and recorded in advance. f. Jacky worked casually for Kathy in June. Kathy owed him wages of $600. g. Services of $2,400 were provided but not recorded and cash has not been receive. Required Prepare adjusting entries for Kathy's Laundry using the additional information.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Kathy starts her laundry business on 1 June 2021. The business gets income
by providing laundry services to customers. The trial balance for Kathy's
Laundry at the end of June before adjustments is as follows:
Kathy's Laundry
Trial Balance
As at 30/06/2021
Debits
Accounts
Cash at bank
Accounts receivable
Supplies
Prepaid rent
Washing machine
Accounts payable
Unearned revenue
Bank loan
Capital, Kathy
Drawings
Service revenue
Electricity expense
Credits
41,600
500
300
3,000
6,000
300
200
30,000
20,000
500
1,700
300
52,200
52,200
Transcribed Image Text:Kathy starts her laundry business on 1 June 2021. The business gets income by providing laundry services to customers. The trial balance for Kathy's Laundry at the end of June before adjustments is as follows: Kathy's Laundry Trial Balance As at 30/06/2021 Debits Accounts Cash at bank Accounts receivable Supplies Prepaid rent Washing machine Accounts payable Unearned revenue Bank loan Capital, Kathy Drawings Service revenue Electricity expense Credits 41,600 500 300 3,000 6,000 300 200 30,000 20,000 500 1,700 300 52,200 52,200
Below is the additional information available on 30 June:
a. The bank loan was borrowed at the beginning of June. Interest on the bank
loan for June is due. The monthly interest is charged at 0.8%.
b. The washing machine was purchased at the beginning of June. Kathy
estimates the washing machine can be used for 5 years and there is no
residual value after that.
c. Prepaid rent was paid at the beginning of June for June, July and August.
d. Kathy did a stocktake and found there were $180 supplies on hand.
e. Services provided for $50 cash received and recorded in advance.
f. Jacky worked casually for Kathy in June. Kathy owed him wages of $600.
g. Services of $2,400 were provided but not recorded and cash has not been
гeceive.
Required
Prepare adjusting entries for Kathy's Laundry using the additional information.
Transcribed Image Text:Below is the additional information available on 30 June: a. The bank loan was borrowed at the beginning of June. Interest on the bank loan for June is due. The monthly interest is charged at 0.8%. b. The washing machine was purchased at the beginning of June. Kathy estimates the washing machine can be used for 5 years and there is no residual value after that. c. Prepaid rent was paid at the beginning of June for June, July and August. d. Kathy did a stocktake and found there were $180 supplies on hand. e. Services provided for $50 cash received and recorded in advance. f. Jacky worked casually for Kathy in June. Kathy owed him wages of $600. g. Services of $2,400 were provided but not recorded and cash has not been гeceive. Required Prepare adjusting entries for Kathy's Laundry using the additional information.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education