Give the adjusting journal entry for each situations

Assignment Help Accounting Basics
Reference no: EM132527204

Question - The financial year end for Riverwood Ltd is 30 June.

a. Prepaid insurance as at 1 July 2015 was $4000. This represents the cost of a one year insurance policy that expires on 30 June 2016.

b. Commissions to sales personnel for the five day working week ending 2 July 2016, totalling $9600, will be paid on 2 July.

c. Sales revenue for the year included $570 of customer deposits for products that have not yet been shipped to them.

d. A total of $900 worth of stationery was charged to the office supplies expense during the year. On 30 June, about $490 worth of stationery is still considered useful for next year.

e. The company has a bank loan and pays interest annually (in arrears) on 31 December. The estimated total interest cost for the calendar year ended 31 December 2016 is $500.

Required -

1. Show the effect of each of the above on the accounting equation at 30 June 2016.

2. Give the adjusting journal entry for each of the above situations on 30 June 2016.

Reference no: EM132527204

Questions Cloud

What was the shortage in percentage : A costume jewelry department showed the following figures for a year: What was the shortage in percentage? What was the shortage in dollars
Determine the required sales in dollars to breakeven : Determine the required sales in dollars to breakeven. Wesland Corp. has total variable cost of $170,000 total fixed cost of $150,000
What are the risks associated with low client motivation : What are the risks associated with low client motivation? Describe one way to motivate behavioral change in clients and provide an example of how you would.
Find the work done by the tension force on the elevator : A cable exerts a constant upward tension of magnitude 2.34 ? 104 N on a 2.20 ? 103 kg elevator as it rises through a vertical distance of 1.70 m.
Give the adjusting journal entry for each situations : Question - The financial year end for Riverwood Ltd is 30 June. Give the adjusting journal entry for each of the above situations on 30 June 2016
Find breakeven point in unit using mathematical equation : Lehi Company has a unit selling price of $400,Find the breakeven point in unit using the mathematical equation and contribution margin per unit
Technological revolution advances : What other concerns should the public bear in mind as the technological revolution advances?
What test could have been completed to diagnosis disorder : Kate is born with features that do not look quite normal. Her eyes are wide-set and slightly slanted. Her nose is short and flat, and she keeps her mouth.
Boolean algebra : An understanding of Boolean algebra can be helpful when conducting internet searches. Why do you think this might be?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd