Question

Question 3 Zahra's Gymnastics has been operating the since 2014. Some of the Unadjusted Balances as at 31 March 2020 are shown below: Accounts Debit Credit $ $ 1,650 4.000 550 4,800 65,000 Cash at Bank Debtors Office Supplies (1 Jan 2020) Prepaid Insurance Machine Accumulated Depreciation - Machine Unearned Gymnastics Fees Drawings Gymnastics Fees Salaries Expense 11,200 4,000 2,100 20,900 2,350 Additional information: 1. A physical stock-take has determined Office Supplies on hand at 31 March are $100. 2. The insurance policy was taken out on 1 Jan 2020 for 4 months. 3. Salaries of $700 is owing at 31 March. 4. $500 of the unearned Gymnastics fees remains unearned at the balance date. 5. The Machine is to be depreciated by $400. Required: Prepare the General Journal entries for Zahra's Gymnastics as at 31 March (narrations are not to be included). Note the time period is three months. (12 marks)

Answer 1

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ZAHRA'S GYMNASTICS Adjusting Journal Entries Delits Grelits Account Title 1. Office supplies Expense. -Dr. 450 To office supplies 450 (To record office supplies expense (550-100)] (4800 x 36).or. 3600 2. Insurance Expense Т To Prepait Insurance 13600 (To record insurance expenie) Dr. Too you 3. Salaries Expense To salaries Payable (To record salarjes payable) 4. Unearned Gymoglice Fees egymnatjes (To record gy mantins fees) 5. Depreciation Experte To Acaymulaled Oepreciation (To record depreciation expense pr: Bsoo 1h 3500 Or. 400 400 on machine