Professional Documents
Culture Documents
Week 3 Illustrative Example Solutions
Week 3 Illustrative Example Solutions
30 April
MARIST ENTERPRISES
A. General Journal
Date Particulars Debit Credit
1. Interest Expense 460
Interest Payable 460
Accrued interest on loan payable
(1.5 mark; 0.5 mark for each correct accounts, 0. 25
mark for each correct amt)
2. Office Supplies Expense 3 460
Office Supplies 3 460
Office supplies used
(1.5 mark; 0.5 mark for each correct accounts, 0. 25
mark for each correct amt)
(1 mark; 0.25 mark for each correct accounts, 0.25 mark for each correct amt)
B. Assume that closing journal entries are raised at the end of April. Close only the
necessary entries to determine profit for the period.
(1 mark; 0. 25 mark for each correct accounts, 0.25 mark for each correct amt)
(6 marks; 0. 5 mark for each correct expense account, 0.5 mark for each correct expense amt)
Profit and Loss Summary 57136
Capital 52000
138950 138950
E)
Reverse all accruals and deferrals only for which original entries were made to temporary accounts
i.e. revenue and expenses. Reversing entries are made at the beginning of the next accounting period
to simplify the recording in the next accounting period. (3 marks)