Question

Question 3: Adjusting entries (9 marks) Wombat Ltd has provided the following information at year end 30 June 2020: 1. Service revenue received in advance now earned, $3,500 2. Three years rent, totalling $36,000, was paid in advance on 1 July 2019 3. Services totalling $1,800 had been performed but not yet invoiced at the end of the year 4. Depreciation on fittings totalled $5,400 for the year 5. There was $900 of supplies on hand, they had purchased $4,400 of supplies during the year 6. Salaries owed to employees at the end of the year total $800 Required Journalise the annual adjusting entries, include narrations. Answer Date Accounts and narration Dr Cr

Answer 1

Adjusting entry

No	General Journal	Debit	Credit
1	Unearned service revenue	3500
	Service revenue		3500
	(To record revenue earned)
2	Rent expense (36000/3)	12000
	Prepaid rent		12000
	(To record rent expense)
3	Account receivable	1800
	Service revenue		1800
	(To record service revenue)
4	Depreciation expense	5400
	Accumulated depreciation		5400
	(To record depreciation)
5	Supplies expense (4400-900)	3500
	Supplies		3500
	(To record supplies expense)
6	Salaries expense	800
	Salaries payable		800
	(To record accrued salaries expense)