Question 8: (12 marks) The following information relates to Chris's Florist Shop at June 30, 2026, the end of its first year of operations. (All purchases were made for cash unless stated otherwise) 1. On July 2, 2025, Chris purchased equipment for $12,000. The equipment is expected to have a useful life of 8 years. The expected residual value is zero. and Chris will use straight-line depreciation. 2. On August 1, 2025, a one-year insurance policy was purchased for $1,740. 3. On February 1, 2026, a corporate customer paid $2,080 as full payment for a one-year contract for fresh flowers to be delivered to its offices every Monday morning At June 30th, 21 of the required 52 deliveries had been completed. 4. On July 2, 2025, Chris purchased enough supplies to last the entire first year of operations for $4,400. At June 30, 2026, Chris counted the supplies on hand and calculated the cost, which amounted to $1,035 5. Chris pays her store assistant on alternate Fridays. The last pay day in June was June 20th and the first pay day after year end is July 4th The assistant worked 30 hours during this period of which 20 were in July and the rest in June. The assistant earns $11.80 per hour. Required: a) For each transaction, prepare any adjusting entries required at June 30, 2026 b) Chris uses reversing entries Prepare any reversing entries required for July 1, repare any rev 2026.
Question 8: (12 marks) The following information relates to Chris's Florist Shop at June 30, 2026, the end of its first year of operations. (All purchases were made for cash unless stated otherwise) 1. On July 2, 2025, Chris purchased equipment for $12,000. The equipment is expected to have a useful life of 8 years. The expected residual value is zero. and Chris will use straight-line depreciation. 2. On August 1, 2025, a one-year insurance policy was purchased for $1,740. 3. On February 1, 2026, a corporate customer paid $2,080 as full payment for a one-year contract for fresh flowers to be delivered to its offices every Monday morning At June 30th, 21 of the required 52 deliveries had been completed. 4. On July 2, 2025, Chris purchased enough supplies to last the entire first year of operations for $4,400. At June 30, 2026, Chris counted the supplies on hand and calculated the cost, which amounted to $1,035 5. Chris pays her store assistant on alternate Fridays. The last pay day in June was June 20th and the first pay day after year end is July 4th The assistant worked 30 hours during this period of which 20 were in July and the rest in June. The assistant earns $11.80 per hour. Required: a) For each transaction, prepare any adjusting entries required at June 30, 2026 b) Chris uses reversing entries Prepare any reversing entries required for July 1, repare any rev 2026.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 8: (12 marks)
The following information relates to Chris's Florist Shop at June 30, 2026, the end of its
first year of operations. (All purchases were made for cash unless stated otherwise)
1. On July 2, 2025, Chris purchased equipment for $12,000. The equipment is
expected to have a useful life of 8 years. The expected residual value is zero.
and Chris will use straight-line depreciation.
2. On August 1, 2025, a one-year insurance policy was purchased for $1,740.
3. On February 1, 2026, a corporate customer paid $2,080 as full payment for a
one-year contract for fresh flowers to be delivered to its offices every Monday
morning At June 30th, 21 of the required 52 deliveries had been completed.
4. On July 2, 2025, Chris purchased enough supplies to last the entire first year of
operations for $4,400. At June 30, 2026, Chris counted the supplies on hand
and calculated the cost, which amounted to $1,035
5. Chris pays her store assistant on alternate Fridays. The last pay day in June
was June 20th and the first pay day after year end is July 4th The assistant
worked 30 hours during this period of which 20 were in July and the rest in June.
The assistant earns $11.80 per hour.
Required:
a) For each transaction, prepare any adjusting entries required at June 30, 2026
b) Chris uses reversing entries Prepare any reversing entries required for July 1,
repare any rev
2026.
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