The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration. 1. On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at 8% interest. The principal and interest are payable on 15 August. 2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance. 3. The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid. 4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue. 5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during the year and $190 of supplies are on hand as at 30 June. Required: Prepare the necessary adjusting entries at 30 June.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
ek 4
The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information,
make the necessary
1. On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at 8% interest.
The principal and interest are payable on 15 August.
2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for
$660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both
purchases were recorded by debiting Prepaid Insurance.
3. The business has two part-time employees who each earn $220 a day. They both worked the last
3 days in June for which they have not yet been paid.
4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for
the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during
the year and $190 of supplies are on hand as at 30 June.
Required:
Prepare the necessary adjusting entries at 30 June.
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