Adjusting Entries

10/1/2020 Adjusting entries
Manual Accounting Practice Set

Mercedes Blends, Australasian Edition 3
Feedback: Adjusting entries

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Awarded Total
Points (prior to this page) 844 880
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Total 884 1,050
Completed: 75% (approximately)
Remaining pages will take: up to 4.75 hours

The time frames we provide are a guide only. It may
take you more or less time to complete each step.
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 $10,000, estimated useful life was 6 years,
and estimated residual value was $1,000 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.
Store Fixtures owned by the business: original purchase price was $35,000, estimated useful life was 8 years, and
estimated residual value was $6,000 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 $1,150.
The estimated electricity payable as at the end of June is $309.
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 $330 per day.
Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $250.
Office supplies totalling $450 are still on hand at 30 June.
One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two
month's worth of rent in advance.
3 months of advertising remained pre-paid at the start of June.
5 months of insurance remained pre-paid at the start of June.
https://www.perdisco.com/elms/qsam/html/qsam.aspx 1/14
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.
Back-On-Track functionality
Please note that any answers from previous pages carried through onto this page (either on the page or in a
popup information page) have been reset, if necessary, to the correct answers. Your particular answers from
previous pages are no longer shown.
Remember:
Enter all answers to the nearest whole dollar.

You are also required to apply the journals and ledgers instructions provided in previous weeks.
Before pressing the Submit answers button, we recommend that you click the Show All tab and check that 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 560 125 0
Accum Depn: Cash Registers 151 0 125
Jun 30 Depn Expense: Store Fixtures 561 302 0
Accum Depn: Store Fixtures 161 0 302
Jun 30 Water Expense 542 1150 0
Water Payable 222 0 1150
Jun 30 Electricity Expense 541 223 0
Electricity Payable 221 0 223
Jun 30 Wages Expense 516 1980 0
Wages Payable 220 0 1980
Jun 30 Rent Expense 540 4500 0
Prepaid Rent 140 0 4500
Jun 30 Office Supplies Expense 544 86 0
Office Supplies 130 0 86
Jun 30 Interest Expense 571 250 0
Interest Payable 225 0 250
Jun 30 Insurance Expense 543 900 0
Prepaid Insurance 142 0 900
Jun 30 Advertising Expense 511 3000 0
Prepaid Advertising 141 0 3000
Feedback
GENERAL JOURNAL
Post
Date Explanation Debit Credit
Ref.
Jun 20 Sales Returns and Allowances 401 1,500
Jun 20 ARC - Revamp Coffee Carts 110/110-3 1,500
(sales return)
Jun 20 Inventory 120 930

Jun 20 Cost of Sales 500 930
(sales return)
Jun 28 APC - Buena Vista Coffee 210/210-5 1,890

Jun 28 Inventory 120 1,890
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 125

Jun 30 Accum Depn: Cash Registers 151 125
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 302

Jun 30 Accum Depn: Store Fixtures 161 302
(adjusting entry)
Jun 30 Water Expense 542 1,150
Jun 30 Water Payable 222 1,150
(adjusting entry)
Jun 30 Electricity Expense 541 223

Jun 30 Electricity Payable 221 223
(adjusting entry)
Jun 30 Wages Expense 516 1,980

Jun 30 Wages Payable 220 1,980
(adjusting entry)
Jun 30 Interest Expense 571 250

Jun 30 Interest Payable 225 250
(adjusting entry)
Jun 30 Office Supplies Expense 544 86

Jun 30 Office Supplies 130 86
(adjusting entry)
Jun 30 Rent Expense 540 4,500

Jun 30 Prepaid Rent 140 4,500
(adjusting entry)
Jun 30 Advertising Expense 511 3,000

Jun 30 Prepaid Advertising 141 3,000
(adjusting entry)
Jun 30 Insurance Expense 543 900

Jun 30 Prepaid Insurance 142 900
(adjusting entry)
(Q=870-130.StoreSupplies_adjEntry)
GENERAL LEDGER
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance

May 31 Balance 234 DR
Jun 5 Cash purchase CPJ 302 536 DR
Jun 30 office supplies GJ 0 86 450 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 450 DR
Feedback
Account: Office Supplies

Account No. 130

May 31 Balance 234 DR
Jun 5 Cash purchase CPJ 302 536 DR
Jun 30 Supplies used GJ 86 450 DR
(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140

May 31 Balance 0
Jun 1 Prepaid rent CPJ 9,000 9,000 DR
Jun 30 rent GJ 0 4500 4500 DR
Jun 30
Jun 30
Feedback
Account: Prepaid Rent

Account No. 140

May 31 Balance 0
Jun 1 Prepaid rent CPJ 9,000 9,000 DR
Jun 30 Rent expired GJ 4,500 4,500 DR
Jun 30 Adjusted Balance 4,500 DR
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141

May 31 Balance 9,000 DR
Jun 30 payment GJ 0 3000 6000 DR
Jun 30
Jun 30
Feedback
Account: Prepaid Advertising

Account No. 141

Jun 30 Benefits consumed GJ 3,000 6,000 DR
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142

Jun 30 payment GJ 0 900 3600 DR
Jun 30
Jun 30
Feedback
Account: Prepaid Insurance

Account No. 142

Jun 30 Insurance expired GJ 900 3,600 DR
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151

May 31 Balance 2,625 CR
Jun 30 depreciation GJ 0 125 2750 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2750 CR
Feedback
Account: Accum Depn: Cash Registers

Account No. 151

Jun 30 Depreciation - one month GJ 125 2,750 CR
Jun 30 Adjusted Balance 2,750 CR
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161

Jun 30 depreciation GJ 0 302 21448 CR
Jun 30
Jun 30
Feedback
Account: Accum Depn: Store Fixtures

Account No. 161

Jun 30 Depreciation - one month GJ 302 21,448 CR
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220

Jun 4 Paid staff wages CPJ 1,143 0
Jun 30 wages GJ 0 1980 1980 CR
Jun 30
Jun 30
Feedback
Account: Wages Payable

Account No. 220

Jun 4 Paid staff wages CPJ 1,143 0
Jun 30 Accrued wages expense GJ 1,980 1,980 CR
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221

May 31 Balance 899 CR
Jun 4 Paid electricity bill CPJ 813 86 CR
Jun 30 electricity GJ 0 223 309 CR
Jun 30
Jun 30
Feedback
Account: Electricity Payable

Account No. 221

Jun 4 Paid electricity bill CPJ 813 86 CR
Jun 30 Accrued electricity expense GJ 223 309 CR
(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222

Jun 30 water GJ 0 1150 2320 CR
Jun 30
Jun 30
Feedback
Account: Water Payable

Account No. 222

Jun 30 Accrued water expense GJ 1,150 2,320 CR
(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225

Jun 30 interest GJ 0 250 500 CR
Jun 30
Jun 30
Feedback
Account: Interest Payable

Account No. 225

Jun 30 Accrued interest expense GJ 250 500 CR
(Q=870-403.InterestRevenue_adjEntry)
Account: Interest Revenue
Account No. 403

May 31 Balance 0
Jun 30 Interest received from the bank CRJ 582 582 CR
Jun 30
Jun 30
Jun 30
Feedback
Account: Interest Revenue

Account No. 403

May 31 Balance 0
Jun 30 Interest received from the bank CRJ 582 582 CR
(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511

May 31 Balance 0
Jun 30 advertising GJ 3000 0 3000 DR
Jun 30
Jun 30
Feedback
Account: Advertising Expense

Account No. 511

May 31 Balance 0
Jun 30 Benefits consumed GJ 3,000 3,000 DR
(Q=870-516.WagesExpense_adjEntry)
Account: Wages Expense
Account No. 516

May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 7,564 7,564 DR
Jun 30 wages GJ 1980 0 9544 DR
Jun 30
Jun 30
Feedback
Account: Wages Expense

Account No. 516

May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 7,564 7,564 DR

Jun 30 Accrued wages expense GJ 1,980 9,544 DR
(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540

May 31 Balance 0
Jun 30 rent GJ 4500 0 4500 DR
Jun 30
Jun 30
Feedback
Account: Rent Expense

Account No. 540

May 31 Balance 0
Jun 30 Rent Expired GJ 4,500 4,500 DR
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541

May 31 Balance 0
Jun 30 electricity GJ 223 0 223 DR
Jun 30
Jun 30
Feedback
Account: Electricity Expense

Account No. 541

May 31 Balance 0
Jun 30 Accrued electricity expense GJ 223 223 DR
(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542

May 31 Balance 0
Jun 30 water GJ 1150 0 1150 DR
Jun 30
Jun 30
Feedback
Account: Water Expense

Account No. 542

May 31 Balance 0
Jun 30 Accrued water expense GJ 1,150 1,150 DR
(Q=870-543.InsuranceExpense_adjEntry)
Account: Insurance Expense
Account No. 543

May 31 Balance 0
Jun 30 insurance GJ 900 0 900 DR
Jun 30
Jun 30
Feedback
Account: Insurance Expense

Account No. 543

May 31 Balance 0
Jun 30 Insurance expired GJ 900 900 DR
(Q=870-544.SuppliesExpense_adjEntry)
Account: Office Supplies Expense

Account No. 544

May 31 Balance 0
Jun 30 supplies GJ 86 0 86 DR
Jun 30
Jun 30
Feedback
Account: Office Supplies Expense

Account No. 544

May 31 Balance 0
Jun 30 Supplies used GJ 86 86 DR
(Q=870-560.DepnExpenseCapitalAsset2_adjEntry)
Account: Depn Expense: Cash Registers
Account No. 560

May 31 Balance 0
Jun 30 depreciation GJ 125 0 125 DR
Jun 30
Jun 30
Feedback
Account: Depn Expense: Cash Registers

Account No. 560

May 31 Balance 0
Jun 30 Depreciation - one month GJ 125 125 DR
(Q=870-561.DepnExpenseCapitalAsset1_adjEntry)
Account: Depn Expense: Store Fixtures
Account No. 561

May 31 Balance 0
Jun 30 depreciation GJ 302 0 302 DR
Jun 30
Jun 30
Feedback
Account: Depn Expense: Store Fixtures

Account No. 561

May 31 Balance 0
Jun 30 Depreciation - one month GJ 302 302 DR
(Q=870-571.InterestExpense_adjEntry)
Account: Interest Expense
Account No. 571

May 31 Balance 0
Jun 30 interest GJ 250 0 250 DR
Jun 30
Jun 30
Feedback
Account: Interest Expense

Account No. 571

May 31 Balance 0
Jun 30 Accrued interest expense GJ 250 250 DR
Manual Accounting Practice Set

Mercedes Blends, Australasian Edition 3 (VSA3q)
© 2009 - 2014 Perdisco / latin /. v., learn thoroughly
http://www.perdisco.com
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10/1/2020 Adjusting entries

Manual Accounting Practice Set

Feedback: Adjusting entries

Your progress Your grading

Your grading outcome (still in progress)

Completed: 75% (approximately)

Remaining pages will take: up to 4.75 hours

Instructions for adjusting entries

Enter all answers to the nearest whole dollar.

Jun 30 Depn Expense: Cash Registers 560 125 0

Accum Depn: Cash Registers 151 0 125

Jun 30 Depn Expense: Store Fixtures 561 302 0

Accum Depn: Store Fixtures 161 0 302

Jun 30 Water Expense 542 1150 0

Water Payable 222 0 1150

Jun 30 Electricity Expense 541 223 0

Electricity Payable 221 0 223

Jun 30 Wages Expense 516 1980 0

Wages Payable 220 0 1980

Jun 30 Rent Expense 540 4500 0

Prepaid Rent 140 0 4500

Jun 30 Office Supplies Expense 544 86 0

Office Supplies 130 0 86

Jun 30 Interest Expense 571 250 0

Interest Payable 225 0 250

Jun 30 Insurance Expense 543 900 0

Prepaid Insurance 142 0 900

Jun 30 Advertising Expense 511 3000 0

Prepaid Advertising 141 0 3000

Jun 20 Inventory 120 930

Jun 28 APC - Buena Vista Coffee 210/210-5 1,890

Jun 30 Depn Expense: Cash Registers 560 125

Jun 30 Depn Expense: Store Fixtures 561 302

Jun 30 Electricity Expense 541 223

Jun 30 Wages Expense 516 1,980

Jun 30 Interest Expense 571 250

Jun 30 Office Supplies Expense 544 86

Jun 30 Rent Expense 540 4,500

Jun 30 Advertising Expense 511 3,000

Jun 30 Insurance Expense 543 900

Date Description Ref. Debit Credit Balance

Jun 30 office supplies GJ 0 86 450 DR

Jun 30 Adjusted Balance 450 DR

Account: Office Supplies

Date Description Ref. Debit Credit Balance

Date Description Ref. Debit Credit Balance

Jun 30 rent GJ 0 4500 4500 DR

Jun 30 Adjusted Balance 4500 DR

Account: Prepaid Rent

Date Description Ref. Debit Credit Balance

Date Description Ref. Debit Credit Balance

Jun 30 payment GJ 0 3000 6000 DR

Jun 30 Adjusted Balance 6000 DR

Account: Prepaid Advertising

Date Description Ref. Debit Credit Balance

Date Description Ref. Debit Credit Balance

Jun 30 payment GJ 0 900 3600 DR

Jun 30 Adjusted Balance 3600 DR

Account: Prepaid Insurance

Date Description Ref. Debit Credit Balance

Date Description Ref. Debit Credit Balance

Jun 30 depreciation GJ 0 125 2750 CR

Jun 30 Adjusted Balance 2750 CR

Account: Accum Depn: Cash Registers