Training Session 1

October 27, 2023 3:00PM – 4:30PM

MASTERING THE BASICS
Name: _________________________________
Position: _________________________________

Adjusting Entries:

1. Listed below are transactions made by the Boboka Consulting during 2023:

July 1 Received a check from PP Ferries in the amount of US$ 270,000 for the professional services
to be rendered over the next 18 months.

Oct 1 Paid US$ 135,000 for advertising to be provided for the next 9 months.

Dec 31 As at Dec. 31, 2023, US$ 230,000 of salaries have accrued. Assuming that payday is on Jan. 4,
2024 and US$ 620,000 in salaries were paid on that date.

Prepare adjusting entries on each transaction for the year 2023 and the payment of salaries made on January
4, 2024.

Correction of Errors:

1. Motor vehicle expenses, US$ 500, had been debited to the bank account and credited to the motor vehicle
expenses account.

2. Wages, $800, had been debited in the rent payable account.

3. A return of goods to supplier, Ahmed, US$ 595, had been incorrectly recorded in the purchases account
journal as US$ 295.

4. The discount received total in the cash book, US$ 68, had not been entered in the discount received account.

5. A cash sale, US$125, had been entered in the sales account as US$215.

ANSWERS: