Reference no: EM132549955

Question 1: Prepare the following adjusting entries for company ABC at reporting date: (December 31, 2001).

1. Salaries earned by the employees Rs.1900 for the month of December. 1/4th of the amount is yet outstanding.

2. On 1st July 2001 stationary purchased by the company Rs.140, 000. Stationary on hand at reporting date December 31, 2001 was Rs.15, 000. (The stationary is recorded as an asset at the time of purchase)

3. On 1st January 2001, the company obtain loan of 140,000 at 6% interest rate. On reporting date December 31, 2001 no separate entry for accrued interest is yet passed in the books of account.

4. On 1st September 2001, the company received advance amount of Rs.50, 000 from a customer. On reporting date December 31, 2001 all the services have been provided to the customer.

5. The company made an advance payment of rent Rs.50, 000 for five month on 1st September 2001. The adjusting entry for expired amount of rent is yet to me made on reporting date.

6. The company received a bill of Rs.12000 from WAPDA for electricity used in the month of December, 2001.

7. The company purchased building at cost of 120,000 on 1st July 2001. The company utilized the building for 6 months during the year 2001; the life of the building was estimated of 50 years. The half year adjustment of depreciation is yet to be made on reporting date.

8. The company made an advance payment to plumber Rs.1000 for repair and maintenance on 1st December, 2001. He has provided the services but adjustment is yet to be made.