Please follow the extract of the accounting Policies and Procedures of Milo Ltd. based onaccrual accounting as below:• All the prepaid expenses need to be adjusted on the last day of the period to match the revenuefor the same period.• The unused portion of the prepaid expenses need to be carried forward as current assets for thefollowing periodAny expenses due but not paid should be recognised as an expense to match the revenue of therespective period.Any revenue which is accrued in the period should be recognised as income for that period.Any revenue which is received as advance should be considered as current liability.●• The number of bad debts calculated every year, after following up the collection procedures, needto be written off on balance day of the respective financial year.• Allowance for Doubtful Debts to be 5.5 % of Accounts ReceivableThe rules of double entry accounting principles must be followed.• At balance day all Accrued income and expenses must be brought to account• At balance day all prepaid income and expenses must be adjusted so that accounts are notoverstatedYou are working with Complete Business Services on the year-end adjustments for one of yourclients, Milo Ltd. You are required to comply with the following information given by the client tofinalise the year-end adjustment entries:Ledger Account balances (prior to any Balance Day Adjustments) as of 30 June 2018:Insurance$ 2,400.00$ 1,800.00$ 1,400.00$ 10,000.00$ 6,000.00$ 5,550.00200.00RentInterest IncomePlantAccumulated DepreciationAccounts ReceivableAllowance for Doubtful Debts $Additional Information- On 1 December 2017 a one-year insurance premium was paid for $2,400 plus GST. Insurancecover starts on 1 December- Rent paid in advance $150 on 30 June 2018Interest earned but not received $350 on 30 June 2018- Depreciation to be provided $1,000 on 30 June 2018- Bad Debts to be written off $500 plus $50 GST on 30 June 2018- Allowance for Doubtful Debts to be adjusted to 5.5% of Accounts Receivable- Physical count on 30 June 2018 reveals inventory value of $68,000 and the perpetual recordsshow inventory value $70,000. Milo Ltd uses a perpetual inventory system. Prepare general journal entries for the balance day adjustments, reversing general journal entries(for some of the accounts only) on 1 July 2018, and adjustment entry to record inventory variance.Note: you need to provide the narration/description on each journal entry.Answer:Date Particulars Debit Credit

Prepaid insurance will be for July 2018 to November 2018 , ie 5 months Entries for Accrued Expenses…

Ledger Account balances (prior to any Balance Day Adjustments) as of 30 June 2018: Insurance $ Rent Interest Income Plant 2,400.00 $ 1,800.00 $ 1,400.00 $ 10,000.00 $ 6,000.00 $ 5,550.00 200.00 Accumulated Depreciation Accounts Receivable Allowance for Doubtful Debts $ Additional Information - On 1 December 2017 a one-year insurance premium was paid for $2,400 plus GST. Insurance cover starts on 1 December - Rent paid in advance $150 on 30 June 2018 - Interest earned but not received $350 on 30 June 2018 Depreciation to be provided $1,000 on 30 June 2018 - - Bad Debts to be written off $500 plus $50 GST on 30 June 2018 - Allowance for Doubtful Debts to be adjusted to 5.5% of Accounts Receivable - Physical count on 30 June 2018 reveals inventory value of $68,000 and the perpetual records show inventory value $70,000. Milo Ltd uses a perpetual inventory system.

Ledger Account balances (prior to any Balance Day Adjustments) as of 30 June 2018: Insurance $ Rent Interest Income Plant 2,400.00 $ 1,800.00 $ 1,400.00 $ 10,000.00 $ 6,000.00 $ 5,550.00 200.00 Accumulated Depreciation Accounts Receivable Allowance for Doubtful Debts $ Additional Information - On 1 December 2017 a one-year insurance premium was paid for $2,400 plus GST. Insurance cover starts on 1 December - Rent paid in advance $150 on 30 June 2018 - Interest earned but not received $350 on 30 June 2018 Depreciation to be provided $1,000 on 30 June 2018 - - Bad Debts to be written off $500 plus $50 GST on 30 June 2018 - Allowance for Doubtful Debts to be adjusted to 5.5% of Accounts Receivable - Physical count on 30 June 2018 reveals inventory value of $68,000 and the perpetual records show inventory value $70,000. Milo Ltd uses a perpetual inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Following are transactions of Leduc Company: 2023 Dec.11 Accepted a $16,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account. Made an adjusting entry to record the accrued interest on the Fred Calhoun note. Closed the Interest income account. 31 31 2021 Jan. 10 Feb. 10 Mar. 5 29 May 7 June 9 Aug. 8 11 31 Oct. 12 Nov.19 Discounted the Fred Calhoun note at the bank at 7%. The Fred Calhoun note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee. Accepted a $5,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed. Discounted the Donna Reed note at the bank at 7.5%. The Donna Reed note had been received by the bank and paid by Donna Reed. Accepted a $7,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller. Received payment of the maturity value of the Jack Miller note. Accepted an $9,000, 60-day, 5% note dated this…
im.3
Brooks Inc. issued a $220,000, six-month, 6% note to purchase equipment on August 1, 2022. Brooks Inc's fiscal year end is September 30. The journal entry to record unpaid, accrued interest as of September 30, 2022 is: Interest expense 6,600 Interest payable 6,600 Interest expense 13,200 Interest payable 13,200 Interest expense 2,200 Interest payable 2,200
Adjusting entry: On 1 December 2019, Count-On-Us Pty Ltd invested $50,000 in a term deposit at Commonwealth Bank. Interest is received after one year and the interest rate is 6% p.a. Instructions: Record the adjusting entry for the year ending 30 June 2020 by selecting the correct accounts and amounts that are debited and credited.
Required Information [The following Information applies to the questions displayed below.] Agrico Incorporated accepted a 10-month, 11% (annual rate), $5,650 note from one of its customers on July 15, 2022; Interest is payable with the principal at maturity. a-2. Prepare the Journal entry to record the Interest earned by Agrico during its year ended December 31, 2022. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Do not round your Intermediate calculation. Round your answers to 2 decimal places. View transaction list View journal entry worksheet No A Event 1 Accumulated depreciation General Journal Debit Credit
A note payable of $60,000, 90-day, 8% was issued on November 1, 2020. What is the amount of the accrued interest on Deconnber 31, 20207 OA S400 OB. 5600 OC S1200 OD. $800
Subject : Accounting
The company issued a ₱66,501 10% 120-day Notes Payable on September 30, 2020. The adjusting entry on year-end, December 31, 2020 will involve a debit to Interest Expense for how much?
On November 1, 2021, a firm issues a $10,000 6% 6-month note payable. Interest is paid with the maturity of the note. The firm performs adjusting entries each month. On April 30, when the note is repaid, the entry recorded: Decreases assets by $10,000 None are true Decreases both assets and liabilities $10,300 Includes an expense of $200 Includes an expense of $300
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
HANDOUT PROBLEM for CURRENT LIABILITIES I. Prepare journal entries for the following chronological transactions and a. You sold merchandise on account for $250,000 on account. The products cost $110,000. Your company uses a perpetual inventory system. Your sales included a two-year warranty on the product. You spent $1,400 to repair products in part "a." which were under warranty. On December 31, 2021, you estimated that there would be an additional $8,000 of b. с. repairs on products in part "a." You estimated that $5,000 of the repairs would оссur in 2022. In 2022, you performed $4,800 of repairs on products from part "a." and $1,920 of repairs on products sold in 2022. On December 31, 2022, you estimated that repairs on products sold in 2021 would be an additional $3,500 and for products sold in 2022 would be an additional $9,000. You believe that $5,400 of the $9,000 of repairs would occur d. е. in 2023. II. Based upon the transaction above, determine the amount of current…