Question: Prepare the adjustment entry as of 30/06/2012 under the following:
A. On 27 of June 2012, the company paid last week's wage. Wages that are due and not paid:
- 28th of June 1200
- 29th of June 1450
- 0th of June weekend, no wages
B. Rent paid on 1/12/11 for one year $12,000 net of GST, the company accountant recorded all payment as expense on 1/12/11.
C. The company is required to issue a bank guarantee for one year, bank withheld $20,000 on 31/12/2011 from the company bank account with interest of 4.5% that will be calculated monthly and will be paid at the maturity date.
D. On 30/04/12, the company signed a monthly maintenance service contract for $500 each month; the company policy is to receive the 1st six months in advance. The company received $3000 on 30th of April 2012. Company accountant recorded the following entry on the 30th of April:
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Date
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Details
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Dr
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Cr
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30/04/12
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Cash at Bank
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$3000
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|
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Income received in advance
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$3000
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E. According to the balance sheet, the inventory was $223,500. At the end of the financial year stock take, you have been advised that the inventory value is only $210,000.
F. On 30/06/2012, the company aged receivables which have a total of $306,400. The company estimated 2% of 90 days receivable and 10% of over 90 days will not be able to be collected.
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Aged Receivable Summary
30/6/2013
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Total Due
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0-30 days
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31-60 days
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61-90 days
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91-120 days
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$311,400
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$220,000
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$60,000
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$18,000
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$16,400
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