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Manual Accounting Practice Set

Technology Boutique, Australasian Edition 3

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Information from previous pages
 General instructions
 Policies and procedures
 All transactions
 Adjusting entries information
 Trial balance - May
 Schedules of accounts - May
 Inventory cards - May
 Bank reconciliation - May
 Bank statement - June
 Special printing information
 Journals and ledgers instructions
 Inventory cards instructions
 Inventory cards - June
 General ledger pre adjusting
 Subsidiary ledgers pre adjusting
 Worksheet

You are now asked to journalise and post the adjusting entries after completing the worksheet. This is
because, in the manual accounting system, the worksheet is not part of the journals and ledgers. Therefore
completing the Adjustments column in the worksheet does not automatically update the appropriate
ledger accounts. Since this practice set is a manual accounting practice set, you are still required to
manually journalise the adjusting entries and post them to the general ledger as a separate step.

The purpose of adjusting entries is to ensure that the general ledger account balances reflect the income
earned and expenses incurred during the accounting period.

Remember that the details of the end of month adjustments for June are as follows:

 Cash Registers owned by the business: original purchase price was $9,000, estimated useful life was 6
years, and estimated residual value was $500 at the end of the useful life. Depreciation is calculated on a
monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly
depreciation expense divided by the number of months in a year.
 Store Fixtures owned by the business: original purchase price was $54,000, estimated useful life was 10
years, and estimated residual value was $3,000 at the end of the useful life. Depreciation is calculated on
a monthly basis using the straight line method. The monthly depreciation charge is calculated as the
yearly depreciation expense divided by the number of months in a year.
 The water usage for the month of June is estimated to be $125.
 The estimated electricity payable as at the end of June is $469.
 Sales staff work every single day during the week including weekends and are paid on a weekly basis.
Wages were last paid up to and including 24 June. Wages incurred after that day (from 25 June to 30
June inclusive) are estimated to have been $1,880 per day.
 Interest expense incurred during the month of June but not yet paid to ZNZ Bank for the bank loan is
$235.
 Interest earned from short-term investments in BitiBank for the month of June is $115.
 Office supplies totalling $2,183 are still on hand at 30 June.
 15 days of rent remained pre-paid at the start of June.
 3 months of advertising remained pre-paid at the start of June.
 5 months of insurance remained pre-paid at the start of June.
When calculating the portion of prepayments that expire during the month of June, you are asked to assume
that an equal amount of expense is incurred per month.

Additionally, a stocktake revealed that the balance of inventory on hand as at 30 June is equal to the closing
balance of the Inventory account. This means there is no adjusting entry required for inventory shrinkage.

Instructions for adjusting entries


1)Use the worksheet to assist you in recording the adjusting entries in the general journal.
2)Post the adjusting entries from the general journal to the general ledger accounts.
3)Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even
for ledgers with a balance of zero. Although each ledger already has a running balance, the Adjusted
Balance row must still be filled out in order to receive full points.

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 You are also required to apply the journals and ledgers instructions provided in previous weeks.
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all relevant accounting records have been completed.

Show All Special Journals General Journal Subsidiary Ledgers General Ledger

(Q=861.generalJournalAdjEntries)

GENERAL JOURNAL

Post
Date Account and Explanation Debit Credit
Ref.

Jun 30 Depn Expense: Cash Registers (select) 560 118 0

Accum Depn: Cash Registers (select) 151 0 118

Jun 30 Depn Expense: Store Fixtures (select) 561 425 0

Accum Depn: Store Fixtures (select) 161 0 425

Jun 30 Water Expense (select) 542 125 0

Water Payable (select) 222 0 125

Jun 30 Electricity Expense (select) 541 386 0

Electricity Payable (select) 221 0 386


Jun 30 Wages Expense (select) 516 11280 0

Wages Payable (select) 220 0 11280

Jun 30 Interest Expense (select) 571 235 0

Interest Payable (select) 225 0 235

Jun 30 Interest Receivable (select) 112 115 0

Interest Revenue (select) 403 0 115

Jun 30 Office Supplies Expense (select) 544 807 0

Office Supplies (select) 130 0 807

Jun 30 Rent Expense (select) 540 3600 0

Prepaid Rent (select) 140 0 3600

Jun 30 Insurance Expense (select) 543 620 0

Prepaid Insurance (select) 142 0 620

Jun 30 Advertising Expense (select) 511 3000 0

Prepaid Advertising (select) 141 0 3000

- Feedback

GENERAL JOURNAL

Post
Date Explanation Debit Credit
Ref.
Jun 10 Sales Returns and Allowances 401 5,130
Jun 10 GST Collections 240 513
Jun 10 ARC - Hypertronics 110/110-3 5,643
(sales return)

Jun 10 Inventory 120 2,580


Jun 10 Cost of Sales 500 2,580
(sales return)

Jun 21 APC - Pony 210/210-3 4,224


Jun 21 Inventory 120 3,840
Jun 21 GST Outlays 135 384
(purchase return)

Jun 30 Depn Expense: Cash Registers 560 118


Jun 30 Accum Depn: Cash Registers 151 118
(adjusting entry)

Jun 30 Depn Expense: Store Fixtures 561 425


Jun 30 Accum Depn: Store Fixtures 161 425
(adjusting entry)

Jun 30 Water Expense 542 125


Jun 30 Water Payable 222 125
(adjusting entry)

Jun 30 Electricity Expense 541 386


Jun 30 Electricity Payable 221 386
(adjusting entry)

Jun 30 Wages Expense 516 11,280


Jun 30 Wages Payable 220 11,280
(adjusting entry)

Jun 30 Interest Expense 571 235


Jun 30 Interest Payable 225 235
(adjusting entry)

Jun 30 Interest Receivable 112 115


Jun 30 Interest Revenue 403 115
(adjusting entry)

Jun 30 Office Supplies Expense 544 807


Jun 30 Office Supplies 130 807
(adjusting entry)

Jun 30 Rent Expense 540 3,600


Jun 30 Prepaid Rent 140 3,600
(adjusting entry)

Jun 30 Advertising Expense 511 3,000


Jun 30 Prepaid Advertising 141 3,000
(adjusting entry)

Jun 30 Insurance Expense 543 620


Jun 30 Prepaid Insurance 142 620
(adjusting entry)

(Q=870-112.InterestReceivable_adjEntry)

GENERAL LEDGER
Account: Interest Receivable
Account No. 112
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

115
3 Accrued intere 115 0
Jun GJ
0 DR

3
Jun
0
3
Jun
0

115
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Interest Receivable
Account No. 112
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest revenue GJ 115 115 DR

Jun 30 Adjusted Balance 115 DR


(Q=870-130.StoreSupplies_adjEntry)
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
Ma 3
Balance 2,990 DR
y 1

2183
3
Jun Supplies used 0 807
0 GJ
DR

3
Jun
0

3
Jun
0

2183
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 2,990 DR
Jun 30 Supplies used GJ 807 2,183 DR

Jun 30 Adjusted Balance 2,183 DR


(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
Ma 3
Balance 1,800 DR
y 1
1
Jun Prepaid rent CPJ 3,600 5,400 DR
5

1800
3
Jun Rent expired 0 3600
0 GJ
DR

3
Jun
0

3
Jun
0

1800
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 1,800 DR
Jun 15 Prepaid rent CPJ 3,600 5,400 DR
Jun 30 Rent expired GJ 3,600 1,800 DR

Jun 30 Adjusted Balance 1,800 DR


(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
Ma 3
Balance 9,000 DR
y 1

6000
3 Benefits cons 0 3000
Jun GJ
0 DR
3
Jun
0

3
Jun
0

6000
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 9,000 DR
Jun 30 Benefits consumed GJ 3,000 6,000 DR

Jun 30 Adjusted Balance 6,000 DR


(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
Ma 3
Balance 3,100 DR
y 1

2480
3
Jun Insurance exp
GJ
0 620
0 DR

3
Jun
0

3
Jun
0

2480
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 3,100 DR
Jun 30 Insurance expired GJ 620 2,480 DR

Jun 30 Adjusted Balance 2,480 DR


(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
Ma 3
Balance 2,125 CR
y 1

2243
3
Jun Depreciation - 0 118
0 GJ
CR

3
Jun
0

3
Jun
0

2243
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 2,125 CR
Jun 30 Depreciation - one month GJ 118 2,243 CR

Jun 30 Adjusted Balance 2,243 CR


(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
Ma 3
Balance 18,275 CR
y 1

18700
3 Depreciation - 0 425
Jun GJ
0 CR
3
Jun
0

3
Jun
0

18700
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 18,275 CR
Jun 30 Depreciation - one month GJ 425 18,700 CR

Jun 30 Adjusted Balance 18,700 CR


(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
Ma 3
Balance 6,500 CR
y 1
Paid staff
Jun 4 CPJ 6,500 0
wages

11280
3 Accrued w ag 0 11280
Jun
0 GJ
CR

3
Jun
0

3
Jun
0

11280
Ju 3
Adjusted Balance
n 0 CR
- Feedback
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 6,500 CR
Jun 4 Paid staff wages CPJ 6,500 0
Jun 30 Accrued wages expense GJ 11,280 11,280 CR

Jun 30 Adjusted Balance 11,280 CR


(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
Ma 3
Balance 1,423 CR
y 1
1 Paid electricity
Jun CPJ 1,340 83 CR
0 bill

552
3
Jun Accrued elect 0 469
0 GJ
CR

3
Jun
0

3
Jun
0

552
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 1,423 CR
Jun 10 Paid electricity bill CPJ 1,340 83 CR
Jun 30 Accrued electricity expense GJ 386 469 CR

Jun 30 Adjusted Balance 469 CR


(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
Ma 3
Balance 127 CR
y 1

252
3
Jun Accrued w ate 0 125
0 GJ
CR

3
Jun
0

3
Jun
0

252
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 127 CR
Jun 30 Accrued water expense GJ 125 252 CR

Jun 30 Adjusted Balance 252 CR


(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
Ma 3
Balance 235 CR
y 1

470
3
Jun Accrued intere
GJ
0 235
0 CR

3
Jun
0

3
Jun
0
470
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 235 CR
Jun 30 Accrued interest expense GJ 235 470 CR

Jun 30 Adjusted Balance 470 CR


(Q=870-403.InterestRevenue_adjEntry)
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1
Ju 3 Interest received from
CRJ 766 766 CR
n 0 the bank

881
Ju 3 Accrued intere 0 115
n 0 GJ
CR

Ju 3
n 0

Ju 3
n 0

881
Ju 3
Adjusted Balance
n 0 CR

- Feedback
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 766 766 CR
Jun 30 Accrued interest revenue GJ 115 881 CR

Jun 30 Adjusted Balance 881 CR


(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

3000
3
Jun Benefits cons 3000 0
0 GJ
DR

3
Jun
0

3
Jun
0

3000
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 3,000 3,000 DR

Jun 30 Adjusted Balance 3,000 DR


(Q=870-516.WagesExpense_adjEntry)
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1
Ju 3 Total from cash
CPJ 45,205 45,205 DR
n 0 payments journal

56485
Ju 3 Accrued w ag 11280 0
n 0 GJ
DR
Ju 3
n 0

Ju 3
n 0

56485
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 45,205 45,205 DR
Jun 30 Accrued wages expense GJ 11,280 56,485 DR

Jun 30 Adjusted Balance 56,485 DR


(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

3600
3
Jun Rent expired 3600 0
0 GJ
DR

3
Jun
0

3
Jun
0

3600
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent expired GJ 3,600 3,600 DR

Jun 30 Adjusted Balance 3,600 DR


(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

469
3
Jun Accrued elect 469 0
0 GJ
DR

3
Jun
0

3
Jun
0

469
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 386 386 DR

Jun 30 Adjusted Balance 386 DR


(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1
125
3
Jun Accrued w ate 125 0
0 GJ
DR

3
Jun
0

3
Jun
0

125
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued water expense GJ 125 125 DR

Jun 30 Adjusted Balance 125 DR


(Q=870-543.InsuranceExpense_adjEntry)
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

620
3 Insurance exp 620 0
Jun
0 GJ
DR

3
Jun
0

3
Jun
0

620
Ju 3
Adjusted Balance
n 0 DR
- Feedback
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 620 620 DR

Jun 30 Adjusted Balance 620 DR


(Q=870-544.SuppliesExpense_adjEntry)
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

807
3
Jun Supplies used 807 0
0 GJ
DR

3
Jun
0

3
Jun
0

807
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Supplies used GJ 807 807 DR

Jun 30 Adjusted Balance 807 DR


(Q=870-560.DepnExpenseCapitalAsset2_adjEntry)
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1
118
3
Jun Depreciation - 118 0
0 GJ
DR

3
Jun
0

3
Jun
0

118
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 118 118 DR

Jun 30 Adjusted Balance 118 DR


(Q=870-561.DepnExpenseCapitalAsset1_adjEntry)
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

425
3 Depreciation - 425 0
Jun
0 GJ
DR

3
Jun
0

3
Jun
0

425
Ju 3
Adjusted Balance
n 0 DR
- Feedback
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 425 425 DR

Jun 30 Adjusted Balance 425 DR


(Q=870-571.InterestExpense_adjEntry)
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
Ma 3
Balance 0
y 1

235
3
Jun Accrued intere 235 0
0 GJ
DR

3
Jun
0

3
Jun
0

235
Ju 3
Adjusted Balance
n 0 DR

- Feedback
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 235 235 DR

Jun 30 Adjusted Balance 235 DR


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Manual Accounting Practice Set
Technology Boutique, Australasian Edition 3 (VTA3q)

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