Question

Required: a) Record the unadjusted opening balance of each account in the correct T-account before Question 2 (4 marks) recording adjusting entries. You have been provided with the unadjusted and adjusted trial balance for Dental Services Ltd as of 30 June 2019. These reports are after trading for up to the year ended 30 June 2019. Record the adjusting entries in the General Journal using the below format: b) Dental Services Ltd General Journal Credit $ Trial Balance as at 30 June 2019 Post ref Debit $ Account (Narration) Date XXX XXX Unadjusted Dr ($) Adjusted XXX xxx (hold your CTRL and TAB key to indent) No Account Name Cr ($) 75,380 137,055 70,357 28,058 430,868 Cr ($) 75,380 150,253 45,345 19,451 430,868 Dr ($) (Don't forget your narration). 100 Cash 110 Account Receivable 130 Office Supplies 140 Prepaid Insurance 150 Dental Equipment c) Record the adjusting entries in the correct T-accounts. Balance the T-accounts. (Only use one set of T-accounts for parts a, cand d). d) e) Prepare an Income Statement, Statement of Changes in Owners' Equity and a classified Statement of Financial Position (Balance Sheet) as at 30 June 2018. Less Accumulated Depreciation - 151 Dental Equipment Journalise the post-closing entries required to finalise the end of financial year. f) 157,717 207,073 200 Account Payable 220 Interest Payable 41,879 41,879 Briefly explain the purpose of the post-closing entries. g) 2,885 NOTE: to maximise your mark you must include correct titles, narrations, dates etc. This is an 230 Revenue Received in Advance 240 Salaries Payable 133,545 assignment, not under exam conditions, therefore attention to detail is expected. 90,909 3,120 250 Bank Loan (10 years term) 300 Share Capital 310 Retained Earnings 88,544 88,544 180,723 180,723 43,451 43,451 311 Dividends 26,453 26,453 400 Service Revenue 176,684 232,518 500 Salaries Expense 28,451 31,571 505 Insurance Expense 510 Interest Expense 520 Depreciation Expense 530 Office Supplies Expense 540 Rent Expense 8,607 2,334 5,219 49,356 25,012 23,587 23,587 822,543 822,543 891,102 891,102

Answer 1

	ADJUSTING ENTRIES
	DATE	ACCOUNT TITLES AND EXPLANATIONS	DEBIT	CREDIT
	June,30,2018	Accounts Receivable	$13,198		(150253-137055)
		Service Revenue		$13,198
		(To record service revenue)
	June,30,2018	Supplies Expense	$25,012		(70357-45345)
		Office supplies		$25,012
		(To record Supplies expense)
	June,30,2018	Insurance Expense	$8,607		(28058-19451)
		Prepaid Insurance		$8,607
		(To record Insurance Expense)
	June,30,2018	Depreciation Expense-Dental Equip	$49,356		(207073-157717)
		Accumulated Depreciation-Dental Eqp		$49,356
		(To record depreciation expense)
	June,30,2018	Interest expense	$2,885
		Interest Payable		$2,885
		(To record Interest Expenses)
	June,30,2018	Revenue Received in advance	$42,636		(133545-90909)
		Service Revenue		$42,636
		(To Record Service Revenue)
	June,30,2018	Salaries Expense	$3,120
		Salaries Payable		$3,120
		(To Record Unpaid Salaries)
								T-ACCOUNTS CASH DESCRIPTION Opening Balance CREDIT DEBIT $75,380 CREDIT DEBIT $137,055 $13,198 $150,253 CREDIT DEBIT $70,357 $25,012 ACCOUNTS RECEIVABLE DESCRIPTION Opening Balance Service Revenue Closing Balance OFFICE SUPPLIES DESCRIPTION Opening Balance Supplies Expense Closing Balance PREPAID INSURANCE DESCRIPTION Opening Balance Insurance Expense Closing Balance DENTAL EQUIPMENT DESCRIPTION Opening Balance Closing Balance $45,345 CREDIT DEBIT $28,058 $8,607 $19,451 CREDIT DEBIT $430,868 $430,868 DEBIT ACCUMULATED DEPRECIATION DESCRIPTION Opening Balance Depreciation Expense-Dental Equip Closing Balance CREDIT $157,717 $49,356 $207,073 DEBIT ACCOUNT PAYABLE DESCRIPTION Opening Balance Closing Balance CREDIT $41,879 $41,879 CREDIT So $2,885 $2,885 CREDIT $133,545 INTEREST PAYABLE DESCRIPTION DEBIT Opening Balance Interest expense Closing Balance REVENUE RECEIVED IN ADVANCE DESCRIPTION DEBIT Opening Balance Service Revenue $42,636 Closing Balance SALARIES PAYABLE DESCRIPTION DEBIT Opening Balance Salaries Expense Closing Balance BANK LOAN DESCRIPTION DEBIT Opening Balance Closing Balance $90,909 CREDIT SO $3,120 $3,120 CREDIT $88,544 $88,544 SHARE CAPITAL DESCRIPTION Opening Balance Closing Balance DEBIT CREDIT $180,723 $180,723 DEBIT RETAINED EARNINGS DESCRIPTION Opening Balance Closing Balance CREDIT $43,451 $43,451 CREDIT DIVIDENDS DESCRIPTION Opening Balance Closing Balance $26,453 DEBIT $26,453 $26,453 DEBIT SERVICE REVENUE DESCRIPTION Opening Balance Accounts Receivable Revenue Received in advance Closing Balance SALARIES EXPENSE DESCRIPTION Opening Balance Salaries Payable Closing Balance CREDIT $176,684 $13,198 $42,636 $232,518 CREDIT DEBIT $28,451 $3,120 $31,571 DEBIT CREDIT So INSURANCE EXPENSE DESCRIPTION Opening Balance Prepaid Insurance Closing Balance INTEREST EXPENSE DESCRIPTION Opening Balance Interest Payable $8,607 $8,607 CREDIT DEBIT $2,334 $2,885 CREDIT INTEREST EXPENSE DESCRIPTION Opening Balance Interest Payable Closing Balance DEBIT $2,334 $2,885 $5,219 CREDIT DEBIT $o $49,356 $49,356 CREDIT DEPRECIATION EXPENSE DESCRIPTION Opening Balance Accumulated Depreciation Closing Balance OFFICE SUPPLIES EXPENSE DESCRIPTION Opening Balance Office Supplies Closing Balance RENT EXPENSE DESCRIPTION Opening Balance Closing Balance DEBIT $o $25,012 $25,012 CREDIT DEBIT $23,587 $23,587 ADJUSTED TRIAL BALANCE CASH ACCOUNTS RECEIVABLE OFFICE SUPPLIES PREPAID INSURANCE DENTAL EQUIPMENT ACCUMULATED DEPRECIATION ACCOUNT PAYABLE INTEREST PAYABLE REVENUE RECEIVED IN ADVANCE SALARIES PAYABLE BANK LOAN SHARE CAPITAL RETAINED EARNINGS DIVIDENDS SERVICE REVENUE SALARIES EXPENSE INSURANCE EXPENSE INTEREST EXPENSE DEPRECIATION EXPENSE OFFICE SUPPLIES EXPENSE RENT EXPENSE TOTAL $75,380 $150,253 $45,345 $19,451 $430,868 $207,073 $41,879 $2,885 $90,909 $3,120 $88,544 $180,723 $43,451 $26,453 $232,518 $31,571 $8,607 $5,219 $49,356 $25,012 $23,587 $891,102 $891,102 $232,518 INCOME STATEMENT SERVICE REVENUE EXPENSES: SALARIES EXPENSE INSURANCE EXPENSE INTEREST EXPENSE DEPRECIATION EXPENSE OFFICE SUPPLIES EXPENSE RENT EXPENSE TOTAL EXPENSES INCOME $31,571 $8,607 $5,219 $49,356 $25,012 $23,587 $143,352 $89,166 Retained Earning In the Beginning Add: Income of the year Less: Dividends Retained Earning in the End of year $43,451 $89,166 ($26,453) $106,164 $75,380 $150,253 $45,345 $19,451 $430,868 ($207,073) $514,224 BALANCE SHEET ASSETS: CASH ACCOUNTS RECEIVABLE OFFICE SUPPLIES PREPAID INSURANCE DENTAL EQUIPMENT LESS:ACCUMULATED DEPRECIATION TOTAL ASSETS LIABILITIES: ACCOUNT PAYABLE INTEREST PAYABLE REVENUE RECEIVED IN ADVANCE SALARIES PAYABLE BANK LOAN TOTAL LIABILITIES SHAREHOLDERS EQUITY: SHARE CAPITAL RETAINED EARNINGS TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $41,879 $2,885 $90,909 $3,120 $88,544 $227,337 $180,723 $106,164 $286,887 $514,224