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Problem 1: For ABC Ltd, you have also identified some items which require adjustments at the end of the month before preparation of financial statements. Prepare to adjust journal entries for the following items: (Note: explanations on adjusting journal entries are NOT required).
(a) Monthly depreciation on machineries, $17,500 (b) Advertising still prepaid was $2,200 at the end of month ($6,400 at start of month) (c) Interest due, but unpaid, on notes payable, $800 (d) Unearned rental revenue was $6,900 at the end of month ($8,900 at start of month) (e) Interest receivable, but not received, on notes receivable, $1,200
Financial Statement Analysis and Preparation
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