On January 13, 2018 Astra Ltd is preparing to close its financial statements for the year 2017. At that date is has calculated the following accruals for 2017: Electricity for December 2017 $2,000 Water for December $650 Audit fees for the year 2017 $5,500 On March 13 2018, it has paid the above expenses in full, however audit fees actually paid were $5,000 since the auditors decided to give a discount to the company. Required: Prepare the journal entries for 2017 and 2018 taking into account the above.
On January 13, 2018 Astra Ltd is preparing to close its financial statements for the year 2017. At that date is has calculated the following accruals for 2017: Electricity for December 2017 $2,000 Water for December $650 Audit fees for the year 2017 $5,500 On March 13 2018, it has paid the above expenses in full, however audit fees actually paid were $5,000 since the auditors decided to give a discount to the company. Required: Prepare the journal entries for 2017 and 2018 taking into account the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accrued Expenses
On January 13, 2018 Astra Ltd is preparing to close its financial statements for the year 2017. At that date is has calculated the following accruals for 2017: Electricity for December 2017 $2,000
Water for December $650
Audit fees for the year 2017 $5,500
On March 13 2018, it has paid the above expenses in full, however audit fees actually paid were $5,000 since the auditors decided to give a discount to the company.
Required:
Prepare the
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