Week 4 practice question no 22 PDF

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Summary

accounting practice no 21 about acc cycle, adjusting journal entries...

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22 The accounting cycle General Journal of Johnvo Photography Date Description Posting Debit $ Ref 1 Cash 100 000 Contributed capital Equipment 65 000 Cash Supplies 2 000 Cash Prepaid insurance 3 700 Cash Cash 100 000 Bank loan 6 Cash 22 500 Unearned revenue 8 Accounts receivable 42 000 Service revenue 12 Advertising expense 7 000 Cash 18 Accounts receivable 34 000 Service revenue 24 Dividends 5 000 Cash 30 Prepaid rent 18 000 Cash

100 000 100 000 22 500

121 800 Supplies 2 000 2 000 Contributed capital

Credit $

100 000 65 000 2 000 3 700 100 000 22 500 42 000 7 000 34 000 5 000 18 000

Service revenue

Cash Accounts receivable Supplies Equipment Prepaid insurance Prepaid rent Unearned revenue Bank loan Contributed capital Service revenue Advertising expense Dividends Totals

Johnvo Photography Unadjusted Trial balance At 30 April Debit 121 800 76 000 2 000 65 000 3 700 18 000

22 500 100 000 100 000 76 000 7 000 5 000 298 500

Adjusting Journal entries at 30 April Date Account 30 April Depreciation expense Accumulated depreciation Interest expense Interest payable Insurance expense Prepaid insurance Salaries expense Salaries payable

Prepaid insurance 3 700 3 700 0 Salaries payable 8 000 8 000

Credit

Debit 1 085

298 500

Credit 1 085

500 500 3 700 3 700 8 000 8 000 Accumulated depreciation 1 085 1 085

Depreciation expense 1 085 1 085

Interest payable 500 500 Interest expense 500 500

Insurance expense 3 700 3 700

Cash Accounts receivable Supplies Equipment Accumulated Depreciation Prepaid insurance Prepaid rent Unearned revenue Interest payable Salaries payable Bank loan Service revenue Contributed capital Advertising expense Depreciation expense Interest expense Insurance expense Salaries expense Dividends Totals

Service revenue Expenses Advertising expense Depreciation expense Interest expenses Insurance expense Salaries expense Total expenses Profit

Salaries expense 8 000 8 000 Johnvo Photography Adjusted Trial balance At 30 April Debit 121 800 76 000 2 000 65 000

Credit

1 085 0 18 000 22 500 500 8 000 100 000 76 000 100 000 7 000 1 085 500 3 700 8 000 5 000 308 085 Johnvo Photography Statement of Comprehensive Income For the month ending 30 April 76 000 (7 000) (1 085) (500) (3 700) (8 000) (20 285) 55 715

308 085

Retained earnings Net profit Dividends

Johnvo Photography Statement of Changes in Equity For the month ending 30 April 0 55 715 (5 000)

Retained earnings ending balance

50 715

Johnvo Photography Statement of financial position As at 31 April Assets Current Assets Cash Accounts receivable Supplies Prepaid rent

121 800 76 000 2 000 18 000

Total Current Assets

217 800

Non Current Assets Equipment Accumulated Depreciation

65 000 1 085

Total Assets

281 715

Liabilities Current Liabilities Unearned revenue Interest payable Salaries payable

22 500 500 8 000

Total Current Liabilities

31 000

Non Current Liabilities Bank loan

100 000

Total Liabilities

131 000

Equity Contributed capital Retained earnings

100 000 50 715

Total Equity

150 715

Total Liabilities + Equity

281 715

Closing Journal Entries Date 30 April 30 April

30 April

Account Service revenue Retained earnings Retained earnings Advertising expense Depreciation expense Interest expense Insurance expense Salaries expense Retained earnings Dividends

Service revenue 76 000 76 000

Depreciation expense 1 085 1 085 Salaries expense 8 000 8 000

Cash Accounts receivable Supplies Equipment Prepaid insurance Prepaid rent Accumulated Depreciation Unearned revenue Interest payable Salaries payable Bank loan Contributed capital Retained earnings Totals

Debit 76 000

Credit 76 000

20 285 7 000 1 085 500 3 700 8 000 5 000 5 000 Retained earnings 20 285 76 000 5 000 50 715 Interest expense 500 500

Advertising expense 7 000 7 000

Insurance expense 3 700 3 700

Dividends 5 000 5 000 Johnvo Photography Post Closing Trial balance At 30 April Debit 121 800 76 000 2 000 65 000 0 18 000

282 800

Credit

1 085 22 500 500 8 000 100 000 100 000 50 715 282 800...