Question

CHA

Answer 1

answer
	Journal Entry - adjusting entries on 31st december							working notes (WN)
		particulars	debit amount	credit amount			1	salary expense for 5 days = 8000
		salary a/c dr                           (WN-1)	4800					salary expense per day = 8000/5			1600
		to salary payable a/c		4800
								therefore, salary expense for 3 working days
		insurance a/c dr                   (WN-2)	4000						=1600*3	4800
		to prepaid insurance a/c		4000
		supplies expense a/c dr   (WN-3)	8400				2	insurance policy of 8000 that covers 2 years
		to office supplies a/c		8400				therefore, insurance expense per year = 8000/2
											4000
		unearned service revenue a/c dr (WN-4)	2600
		to service revenue a/c		2600			3	supplies expense
								opening balance		4300
		accounts recievables a/c dr	3000					add: purchase		5600
		to service revenue a/c		3000				less: closing balance		-1500
										8400
		depreciation A/c dr (equipment)	3000
		to accumulated depreciation a/c		3000
							4	revenue earned for landscape design (40%)
		depreciation A/c dr (truck)	2200						=unearned*40%
		to accumulated depreciation a/c		2200					=6500*40%
									2600
		interest a/c dr	250
		to interest payable a/c		250