Reference no: EM132599578

Answer each of the following five parts assuming a balance date of 30 June 2016. Journal narrations are not required.

Question (a) Rance Ltd entered into a loan of $10,000 on 1 February 2016 and was being charged interest at 6% simple per annum.

required general journal adjusting entry for the financial year assuming no payment of interest has been made.

Question (b) Cotchin Ltd had accounts receivable at 30 June 2016 totaling $76,100 Dr. The doubtful debts allowance at the same time was $2,310 Cr (before any bad debts written-off), but it was decided by the accountant to increase the allowance for doubtful debts to 2% of adjusted accounts receivable after writing off $3,100 in uncollectable accounts.

Prepare the necessary general journal entries to record the above events.

Question (c) Vickery Ltd, a small Australian service company, has 10 employees. The current annual payroll for these employees is $375,000. The employees are entitled to four weeks of annual leave and a leave loading of 17.5%.

Calculate the annual cost of the leave and provide a general journal entry to record the weekly accrual of annual leave.