Part 1 for part 1 here please check picture attached here, thanks. Part 2 Additional information as at 30 June 2020 - Show journal entries to record the above adjustments. Date Particulars Debit Credit Rates were paid in June 20 amounting to $1050 for June 2020, July 2020 & August 2020. 1 30/06/20 Prepayments (A) Rates (E) Prepaid rates for July and August Interest accrued on investment was $1,950 2 30/06/20 Dr Accrued revenue (A) Cr Interest Revenue (R) Accrued Interest Income at 30 June Closing Inventory $15,500 3 30/06/20 Dr Trading Cr Inventory (Opening) Opening inventory to trading 4 30/06/20 Dr Inventory (Closing) Cr Trading Take up closing inventory from trading Depreciation expense on equipment for the year is $4,400. 5 30/06/20 Dr Depreciation Expense (E) Cr Accumulated Depreciation - Equip. (-A) Depreciation expense on equipment for the year Subscription Revenue paid in advance was $200 6 30/06/20 Dr Subscriptions Revenue (R) Cr Deferred Revenue (L) Subscription Revenue paid in advance Wages of $2,600 are paid every four weeks for the preceding four weeks. At 30 June it has been three weeks since the employees were last paid. 7 30/06/20 Dr Wages (E) Cr Accrued Expenses (L) Accrued wages for June due but not paid on bal date. The water bill for the quarter ending March was $2750 (GST inclusive). No bill has been received as yet for the June Quarter 8 30/06/20 Dr Water Expense (E) Cr Accrued Expenses (L) Accrued water for June quarter Interest on the loan is 9.15% pa and is payable monthly in arrears - round to whole dollar (base calculation on days, not months) 9 30/06/20 Dr Interest Expense (E) Cr Accrued Expenses (L) June Interest on the loan at 9.15% pa Prepaid Advertising $2,000 for July 2020 10 30/06/20 Dr Prepayments (A) Cr Advertising Expense (E) Prepaid advertising for July Discount on accounts payable, $1,100 (GST inclusive). 11 30/06/20 Dr Accounts Payable (L) Cr Discount Revenue (R) Cr GST paid (A) Discount on accounts payable Purchase returns, $660 (GST inclusive) 12 30/06/20 Dr Accounts Payable (L) Cr Purchase Return (-E) Cr GST paid (A) Record purchase return Garden Artistry Pty Ltd provided plants and garden art to the local council under contract. The contract was worth $5,000 and was 75% complete as at 30 June. The council can only be invoiced on completion of the contract. 13 30/06/20 DrAccrued revenue (A) Cr Sales (R) Accrued revenue from Council contract. $9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020. An invoice from the supplier is not expected until then end of July. 14 30/06/20 Dr Purchases (E) Cr Accrued Expenses (L) Accrued inventoryy purchases for June It is estimated that $250 of electricity was used in June. However the bill has not been received as yet. 15 30/06/20 Dr Electricty expense (E) Cr Accrued Expenses (L) Accrued electricity expense for June Insurance expenses for the year ending 2020 was $4,000. 16 30/06/20 Dr Prepayments (A) Cr Insurance Expense (E) Prepaid insurance for 2021. One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (GST inclusive) which was for the garden supplies purchased during 2019- May $110, June $990 and July $550. 17 30/06/20 Dr Provision for Doubtful Debts (-A) Dr GST Collected (L) Cr Accounts Receivable (A) Write off if May and June 19 bankrupt landscaper amount owing 18 30/06/20 Bad Debts (E) GST Collected (L) Accounts Receivable (A) Write off of July bankrupt landscaper amount owing Provision for doubtful debts is to be 2.5% of accounts receivable balance. 19 30/06/20 Dr Doubtful Debts (E) CR Provision for Doubtful Debts (-A) Provision of Doubtful debts 2.5% of AR balane at YE

Part 1 for part 1 here please check picture attached here, thanks. Part 2 Additional information as at 30 June 2020 - Show journal entries to record the above adjustments. Date Particulars Debit Credit Rates were paid in June 20 amounting to $1050 for June 2020, July 2020 & August 2020. 1 30/06/20 Prepayments (A) Rates (E) Prepaid rates for July and August Interest accrued on investment was $1,950 2 30/06/20 Dr Accrued revenue (A) Cr Interest Revenue (R) Accrued Interest Income at 30 June Closing Inventory $15,500 3 30/06/20 Dr Trading Cr Inventory (Opening) Opening inventory to trading 4 30/06/20 Dr Inventory (Closing) Cr Trading Take up closing inventory from trading Depreciation expense on equipment for the year is $4,400. 5 30/06/20 Dr Depreciation Expense (E) Cr Accumulated Depreciation - Equip. (-A) Depreciation expense on equipment for the year Subscription Revenue paid in advance was $200 6 30/06/20 Dr Subscriptions Revenue (R) Cr Deferred Revenue (L) Subscription Revenue paid in advance Wages of $2,600 are paid every four weeks for the preceding four weeks. At 30 June it has been three weeks since the employees were last paid. 7 30/06/20 Dr Wages (E) Cr Accrued Expenses (L) Accrued wages for June due but not paid on bal date. The water bill for the quarter ending March was $2750 (GST inclusive). No bill has been received as yet for the June Quarter 8 30/06/20 Dr Water Expense (E) Cr Accrued Expenses (L) Accrued water for June quarter Interest on the loan is 9.15% pa and is payable monthly in arrears - round to whole dollar (base calculation on days, not months) 9 30/06/20 Dr Interest Expense (E) Cr Accrued Expenses (L) June Interest on the loan at 9.15% pa Prepaid Advertising $2,000 for July 2020 10 30/06/20 Dr Prepayments (A) Cr Advertising Expense (E) Prepaid advertising for July Discount on accounts payable, $1,100 (GST inclusive). 11 30/06/20 Dr Accounts Payable (L) Cr Discount Revenue (R) Cr GST paid (A) Discount on accounts payable Purchase returns, $660 (GST inclusive) 12 30/06/20 Dr Accounts Payable (L) Cr Purchase Return (-E) Cr GST paid (A) Record purchase return Garden Artistry Pty Ltd provided plants and garden art to the local council under contract. The contract was worth $5,000 and was 75% complete as at 30 June. The council can only be invoiced on completion of the contract. 13 30/06/20 DrAccrued revenue (A) Cr Sales (R) Accrued revenue from Council contract. $9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020. An invoice from the supplier is not expected until then end of July. 14 30/06/20 Dr Purchases (E) Cr Accrued Expenses (L) Accrued inventoryy purchases for June It is estimated that $250 of electricity was used in June. However the bill has not been received as yet. 15 30/06/20 Dr Electricty expense (E) Cr Accrued Expenses (L) Accrued electricity expense for June Insurance expenses for the year ending 2020 was $4,000. 16 30/06/20 Dr Prepayments (A) Cr Insurance Expense (E) Prepaid insurance for 2021. One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (GST inclusive) which was for the garden supplies purchased during 2019- May $110, June $990 and July $550. 17 30/06/20 Dr Provision for Doubtful Debts (-A) Dr GST Collected (L) Cr Accounts Receivable (A) Write off if May and June 19 bankrupt landscaper amount owing 18 30/06/20 Bad Debts (E) GST Collected (L) Accounts Receivable (A) Write off of July bankrupt landscaper amount owing Provision for doubtful debts is to be 2.5% of accounts receivable balance. 19 30/06/20 Dr Doubtful Debts (E) CR Provision for Doubtful Debts (-A) Provision of Doubtful debts 2.5% of AR balane at YE

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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Part 1

for part 1 here please check picture attached here, thanks.

Part 2

Additional information as at 30 June 2020 - Show journal entries to record the above adjustments.

		Date	Particulars	Debit	Credit
Rates were paid in June 20 amounting to $1050 for June 2020, July 2020 & August 2020.	1	30/06/20	Prepayments (A) Rates (E) Prepaid rates for July and August
Interest accrued on investment was $1,950	2	30/06/20	Dr Accrued revenue (A) Cr Interest Revenue (R) Accrued Interest Income at 30 June
Closing Inventory $15,500	3	30/06/20	Dr Trading Cr Inventory (Opening) Opening inventory to trading
	4	30/06/20	Dr Inventory (Closing) Cr Trading Take up closing inventory from trading
Depreciation expense on equipment for the year is $4,400.	5	30/06/20	Dr Depreciation Expense (E) Cr Accumulated Depreciation - Equip. (-A) Depreciation expense on equipment for the year
Subscription Revenue paid in advance was $200	6	30/06/20	Dr Subscriptions Revenue (R) Cr Deferred Revenue (L) Subscription Revenue paid in advance
Wages of $2,600 are paid every four weeks for the preceding four weeks. At 30 June it has been three weeks since the employees were last paid.	7	30/06/20	Dr Wages (E) Cr Accrued Expenses (L) Accrued wages for June due but not paid on bal date.
The water bill for the quarter ending March was $2750 (GST inclusive). No bill has been received as yet for the June Quarter	8	30/06/20	Dr Water Expense (E) Cr Accrued Expenses (L) Accrued water for June quarter
Interest on the loan is 9.15% pa and is payable monthly in arrears - round to whole dollar (base calculation on days, not months)	9	30/06/20	Dr Interest Expense (E) Cr Accrued Expenses (L) June Interest on the loan at 9.15% pa
Prepaid Advertising $2,000 for July 2020	10	30/06/20	Dr Prepayments (A) Cr Advertising Expense (E) Prepaid advertising for July
Discount on accounts payable, $1,100 (GST inclusive).	11	30/06/20	Dr Accounts Payable (L) Cr Discount Revenue (R) Cr GST paid (A) Discount on accounts payable
Purchase returns, $660 (GST inclusive)	12	30/06/20	Dr Accounts Payable (L) Cr Purchase Return (-E) Cr GST paid (A) Record purchase return
Garden Artistry Pty Ltd provided plants and garden art to the local council under contract. The contract was worth $5,000 and was 75% complete as at 30 June. The council can only be invoiced on completion of the contract.	13	30/06/20	DrAccrued revenue (A) Cr Sales (R) Accrued revenue from Council contract.
$9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020. An invoice from the supplier is not expected until then end of July.	14	30/06/20	Dr Purchases (E) Cr Accrued Expenses (L) Accrued inventoryy purchases for June
It is estimated that $250 of electricity was used in June. However the bill has not been received as yet.	15	30/06/20	Dr Electricty expense (E) Cr Accrued Expenses (L) Accrued electricity expense for June
Insurance expenses for the year ending 2020 was $4,000.	16	30/06/20	Dr Prepayments (A) Cr Insurance Expense (E) Prepaid insurance for 2021.
One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (GST inclusive) which was for the garden supplies purchased during 2019- May $110, June $990 and July $550.	17	30/06/20	Dr Provision for Doubtful Debts (-A) Dr GST Collected (L) Cr Accounts Receivable (A) Write off if May and June 19 bankrupt landscaper amount owing
	18	30/06/20	Bad Debts (E) GST Collected (L) Accounts Receivable (A) Write off of July bankrupt landscaper amount owing
Provision for doubtful debts is to be 2.5% of accounts receivable balance.	19	30/06/20	Dr Doubtful Debts (E) CR Provision for Doubtful Debts (-A) Provision of Doubtful debts 2.5% of AR balane at YE

Balance Day Adjustments - Show journal entries to record the adjustments.
Trial Balance (Before Balance Day Adjustments) - As at 30 June 2020
Account Title
Credit $
Debit $
27,736
Cash
Accounts Receivable
35,650
Provision for Doubtful Debts
950
Inventory
Purchases
Sales Revenue
10,500
386,000
575,000
120,000
1,200
Investments
Interest Expense
Interest Revenue
2,500
20,000
2,000
Loan
Subscriptions Revenue
Insurance Expense
Wages
Advertising Expense
|Water
7,500
65,666
5,800
7,500
40,000
Equipment
Accumulated Depreciation - Office Equipment
Accounts Payable
4,600
5,552
40,000
GST Collected
GST Paid
15,500
Capital 1/7/19
Rates
95,000
Drawings
Electricity
Total
3,600
12,000
6,950
745,602
745,602

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