Question

The trial balance for Mario's Pizza Palace at 30 June 20XX is presented below: Mario's Pizza Palace Trial balance as at 30 June 20xx Credit Account number 100 110 120 130 Debit 42,350 450 679 1,366 995 586 2,127 19,290 140 150 160 170 171 180 181 200 210 12,137 32,750 11,360 14,767 1,356 17,735 60,275 280 41,127 300 310 400 410 420 183,203 48 522 430 Account Cash Cash float Accounts receivable Inventory - food Inventory - packaging Prepaid advertising Prepaid insurance Motor vehicles (cost) Accumulated depreciation - motor vehicles Store equipment (cost) Accumulated depreciation - store equipment Accounts payable PAYG withholding payable Bank loan Owner's capital Owner's drawings Sales income Sales returns and allowances Discounts received Delivery income Food purchases Purchase returns and allowances Packaging costs Discount given Freight inwards Accountancy fees Advertising expense Bank charges Electricity and gas expense Insurance expense Interest expense Motor vehicles expense Printing, postage and stationery expense Rent expense Repairs and maintenance expense Sundry expenses Superannuation expense Telephone expense Wages expense 500 55,560 14,926 288 510 520 530 540 600 605 610 620 625 630 635 1,138 3,730 871 2,970 1,827 640 645 650 655 932 4,927 495 26,480 690 304 3,414 3,773 37,595 301,765 660 665 670 301,765

Answer 1

Adjusting Journal Entries:-

Description    Dr Cr

(1) Wages Expense    $1238

To Wages Payable $1238

(2) Insurance Expense $709

To Prepaid Insurance $709

(3) Advertising Expense $293

To Prepaid Advertising $293

(4) Superannuation Expense $243

To Superannuation Payable $243

(5) on motor vehicle

Depreciation Expense $3858

To Accumulated Depreciation $3858

on store equipment

Depreciation Expense $3275

To Accumulated Depreciation $3275

(6) Interest Expense $87

To Interest payable $87

(7) Inventory - food $409

Inventory- packaging $2830

To Inventory Adjustments $3239