Question

Dance for the same account. Do you agree? Why or why not? P3-6B The following independent items for Théâtre Dupuis during the year ended November 30, 2017, may Prepare tra require a transaction journal entry, an adjusting entry, or both. The company records all prepaid costs as assets and adjusting all unearned revenues as liabilities and it adjusts accounts annually. 1. Supplies on hand amounted to $950 on November 30, 2017. On January 31, 2017, additional supplies were (LO2,3) purchased for $2,880 cash. On November 30, 2017, a physical count showed that supplies on hand amounted to $670. 2. Théâtre Dupuis puts on 10 plays each season. Season tickets sell for $200 each and 310 were sold in August for the upcoming 2017-2018 season, which starts in September 2017 and ends in June 2018 (one play per month). Théâtre Dupuis credited Unearned Revenue for the full amount received. 3. The total payroll for the theatre is $4,500 every Wednesday for employee salaries earned during the previous five-day week (Wednesday through Sunday). Salaries were last paid and recorded) on Wednesday, November 29. In 2017, November 30 falls on a Thursday. The next payday is Wednesday, December 6, 2017. 4. Théâtre Dupuis rents the theatre to a local seniors' choir, which uses the space for rehearsals twice a week at a rate of $425 per month. The new treasurer of the choir accidentally sent a cheque for $245 on November 1. The treasurer promised to send a cheque in December for the balance when she returns from her vacation. On December 4, Théâtre Dupuis received a cheque for the balance owing from November plus all of December's rent. 5. On June 1, 2017, the theatre borrowed $11,000 from La caisse populaire Desjardins at an annual interest rate of 4.5%. The principal and interest are to be repaid on February 1, 2018. 6. Upon reviewing the books on November 30, 2017, it was noted that the utility bill for the month of November had not yet been received. A call to Hydro-Québec determined that the utility bill was for $1,420. The bill was paid on December 10. 7. Owned a truck during the year that had originally been purchased on December 1, 2013, for $37,975. The truck's estimated useful life is eight years. Instructions D) (a) Prepare the journal entries to record the original transactions for items 1 through 5. (b) Prepare the year-end adjusting entries for items 1 through 7. (c) Prepare the journal entries to record: 1. the payment of wages on Wednesday, December 6 (item 3). 2. the receipt of the cheque from the seniors choir on December 4 (item 4). 3. the payment of the utility bill on December 10 (item 6). 4. the payment of the note and interest on February 1, 2015 (item 5). anne why an unadjusted trial balance may not contain com - 1 7 to illustrate you

Answer 1

a & b) Journal entries;
Sl.	Date	Acc Titles	Debit $	Credit $
1	30-Nov-17	Supplies expense	3160		(950+2880-670)
		Supplies		3160
		(supplies exp. Recorded)
2	30-Nov-17	Unearned revenue	18600		(310*200*3/10)
		Revenue		18600
		(revenue for 3 mths recorded)
3	30-Nov-17	Salaries & wages exp.	900		(4500/5)
		salaries & wages payable		900
		(salaries & wages for one day made payable)
4	30-Nov-17	Accounts receivable	180		(425-245)
		Rent revenue		180
		(theatre rent for Nov recd. In Dec, so made receivable)
5	30-Nov-17	Interest exp.'	247.5		(11000*4.5%*6/12)
		Interest payable		247.5
		(interest on borrowing made payable)
6	30-Nov-17	Utilities exp.	1420
		Accounts Payable		1420
		(utilities exp. Made payable)
7	30-Nov-17	Depreciation exp.'	4747		(37975/8)
		Acc Dep-truck		4747
		(depreciation for truck booked)
c)
1	6-Dec-17	salaries & wages payable	900
		Cash		900
		(salaries & wages for nov. paid)
2	4-Dec-17	Cash	180
		Accounts receivable		180
		(recovered for debtors)
3	10-Dec-17	Accounts Payable	1420
		Cash		1420
		(Nov utilities bill paid)
4	1-Feb-18	Borrowings	11000
		Interest expense	82.5		(11000*4.5%*2/12)
		Interest payable	247.5
		Cash		11330
		(payment of borrowings with interest)