Financial data for Safety Hire as of 30 June 2019 are:
Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019. (10 marks)
On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST).
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101; Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503.
- a) Prepare the general journal entries to record the above transactions. (6.25 marks)
- b) Post the entries from the general journal to the general ledger accounts (running balance
format) and enter the posting references in the general journal. (2.75 marks)
- c) Prepare a trial balance as at 31 July 2018. (1 mark)
The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration.
- On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at8% interest. The principal and interest are payable on 15 August.
- Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance.
- The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid.
- On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
- The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during the year and $190 of supplies are on hand as at 30 June.
Prepare the necessary adjusting entries at 30 June. (10 marks)
Date Accounts Ref Debit Credit
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.
|Adjusted trial balance||Income statement||Balance sheet|
Account Cash at Bank
Accounts Receivable Prepaid Rent
Office Supplies Equipment
Accum. Depr. Equip’tAccounts Payable Salaries Payable Unearned Revenue F. Elliot, Capital
F. Elliot, Drawings Painting Revenue Salaries Expense
Rent Expense Depreciation Expense Telephone Expense Office Supplies Used Sundry Expenses
Profit for the period
1 230 75 600 1 800 8 320 160 000
106 000 6 050 8 040 4 020 10 080 9 200 $412 340
ELLIOT PAINTING SERVICES
for the year ended 30 June 2019
25 000 54 000 8 760 3 430 101 500
- a) Complete the worksheet. (6 marks)
- b) Prepare the closing entries necessary at 30 June 2019, assuming that this date is the end of the
entity’s accounting period.(4 marks)