Question

Additional Problem 10 (a) Complete the worksheet on the next page for Property Developers Ltd for the MONTH of June 2014 in light of the following adjusting entries: a. Depreciation on the motor vehicles is $3000 per annum; b. $900 of insurance has been consumed during the month; c. Office stationery on hand as at 30 June 2014 was costed at $350 d. Wages of $900 are owed on 30 June 2014; and e. Commission revenue owed to Property Developers Ltd but not recorded on 30 June 2014 was $1100. (b) Journalise the balance day adjustments and closing entries for 30 June 2014. (c) Journalise any required reversing entries for 1 July 2014. Property Developers Ltd- Worksheet as at 30 June 2014 Unadjusted Trial Balance Adjusted Trial Balance Income Statement Adjustments Balance Sheet Account Title Credit Deblt Debit Cradi Credit Deblt Credit Deblt Credit Debit 13.500 1.200 2.000 18.000 Cash at bank Prepaid insurance Vehicle Acc dep of vehicle Land and buildings Creditors Capital Sales Sales returns Commission revenue Suppies expense Wages expense Rates expense Office stationary expense Sales and dist. Expense 4,000 80000 2.000 67.700 26,000 1,000 4,000 45.000 19.000 500 3.700 9.800 213,700 213.700

Answer 1

		JOURNAL ENTRY
	Ref	Account Titles	Debit	Credit
	a	Depreciation expense	$3,000
		Accu. Depreciation-vehicle		$3,000
	b	Insurance expense	$900
		Prepaid Insurance		$900
	c	Office Stationary	$350
		Office Stationary Expense		$350
	d	Wages Expense	$900
		Wages Payable		$900
	e	Debtors	$1,100
		Commission Revenue		$1,100
			Unadjusted Trial Balance		Adjustments		Adjusted Trial Blance		Income Statement		Balance Sheet
			Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
		Cash and Bank	13,500				13,500				13,500
		Prepaid Insurance	1,200			900	300				300
		Debtors	22,000		1100		23,100				23,100
		Vehicle	18,000				18,000				18,000
		Accu,. Depreciation-Vehicle		4,000		3000		7,000				7,000
		Land and Building	80,000				80,000				80,000
		Creditors		12,000				12,000				12,000
		Capital		67,700				67,700				67,700
		Sales		126,000				126,000		126,000
		Sales returns	1,000				1,000		1,000
		Commission Revenue		4,000		1100		5,100		5,100
		Supplie expense	45,000				45,000		45,000
		Wage expense	19,000		900		19,900		19,900
		Rates expense	500				500		500
		Office Stationary expense	3,700			350	3,350		3,350
		Sales and distribution expense	9,800				9,800		9,800
		Insurance expense			900		900		900
		Depreciation expense			3000		3000		3,000
		Office Stationary			350		350				350
		Wages Payable				900		900				900
		Total	213,700	213,700	6,250	6,250	218,700	218,700	83,450	131,100	135,250	87,600
												47,650
											135,250	135,250		Debit Credit CLOSING ENTRIES Sales Sales returns Commission Revenue Income summar 126,000 1,000 5,100 130,100 Income summar Supplie expense Wage expense Rates expense Office Stationary expense Sales and distribution expense Insurance expense Depreciation expense Income Summar Retained earnings Total 82,450 45,000 19,900 500 3,350 9,800 900 3,000 47,650 47,650 261,200 261,200