Record the adjusting entries and closing entries

Reference no: EM133681861

Case Study 1

Ellen and her sisters opened Accounting and Consulting Pty Ltd on 1 March 2024. During the first month of operations, the following transactions occurred. The business is not registered for GST. Ellen and her sisters opened Accounting and Consulting Pty Ltd on 1 March 2024. During the first month of operations, the following transactions occurred. The business is not registered for GST.

March 01 The owners invested $300,000 cash to commence the business.
02 Paid $10,400 (including GST) for an insurance policy covering 12 months.
02 Hired an assistant accountant with a salary of $24,000 annually.
03 Purchased equipment for $100,000, paying $80,000 in cash and the balance on the account.
04 Received $5,000 from the customer for the services to be completed September 2024.
10 Received an invoice of $1000 from a Local newsagent for advertising the business opening.
15 Received cash of $80,000 for services performed.
17 Purchased supplies on an account worth $20,000 to be consumed in the same month.
18 Performed services worth $10,000, and customers agreed to pay in 45 days.
19 Received $10,000 from customers for services performed in August and September 2024.
24 Performed services worth $20,000, and customers paid immediately.
28 Received $2,000 from customers invoiced on 18 March 2024.
30 Purchased a smartphone for her personal use and paid $1099 from a business bank account.
31 Paid for Salaries of $3,000 and utilities of $2000.

Required

A. Journalise the March transactions ignoring GST.

B. Prepare a trial balance on 31March 2024.

Case Study 2

Analysis reveals the following additional data about these accounts:

1. 100% of the Unearned fee revenue is earned during the year.
2. Prepaid insurance was paid on 1 June 2023 to cover 24 months.
3. The long-term bank loan was borrowed on 1 April 2023 at @6% p.a
4. The stocktake at the end of the year revealed that Supplies on hand are $9400.
5. Fee revenue earned but still needs to be received is $30,000 as of 30 June 2023.
6. Depreciation forthe year: bowling equipment depreciated at 7% and building at 3%.
7. Accrued wages and salaries expense, $35,000.

Required

A. Record the adjusting entries and closing entries in the general journal

B. Prepare a 10-column worksheet and complete all the sections ( Hint: complete the income statement and balance sheet section on the worksheet).

Reference no: EM133681861

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