Question

Below is a listing of adjusting entries which Marina Corp. must journalize. Marina Corp. is preparing Financial Statements as of July 31, 2013, the end of their fiscal year. This means, their fiscal year is from August 1, 2012 through July 31, 2013, so please consider this as you are preparing your entries.

(1)   On August 1, 2012 (beginning of the fiscal year), Marina Corp had a total amount of supplies inventory of $7.350. During the year, a total of $22,150 worth of acquiree inventory during the year which was added to supplies inventory. A count at the end of the year showed that as of July 31, 2013, there was a total amount on hand of $8,810.

(2)   On April 30, Marina Corp. received a ten-month, 6% note for $20,000 from a customer. Meaning, Marina Corp. lent money to another company, and these are the terms of the borrowing.

(3)   On March 1, Marina Corp. collected $12,000 worth of rent in advance for a full year worth.

Answer 1

Ans.

Journal Entries in the books of Marina Corp

Date	Particulars			Amt	Amt
01-08-12	Trading A/c .....Dr. To Opening Inventory A/c			7,350	7,350
01-03-13	Cash/Bank A/c .....Dr. To Rent in Advance A/c			12,000	12,000
31-07-13	Trading A/c .....Dr. To Purchases A/c			22,150	22,150
31-07-13	Closing Inventory A/c .....Dr. To Trading A/c			8,810	8,810
31-07-13	Accrued Interest A/c .....Dr. To Interest on 6% Bond A/c			300	300
31-07-13	Rent in Advance A/c .....Dr. To Rent A/c			5,000	5,000