Question

m m MODULE 8-AccouNTING CYCLE : END OF PERIOO ADUSTMENTS AND CLOSING ENTRIES TUTORIAL QUESTIONS nons trom ube fthek Chpr Q. And Q av Case Stady-P.Oodle Veterisary Sargen DAre The lndger ofP Ole Fery Surgn o nd a l m ow be on 30 June 206 a16)29 1/6129 Onernet Rates eus ug 20 Account Cash at Sank Debi S 12 600 11 800 1800 180 200 196 000 Credit Accounts Receivable Propaid Insurance Land জ Building Accumlatod Deprieciation-Building Equipment Accumulated Depreciation-Equipment s6 900-436 8 32 300 ss00-4 6O0 Accounts Payable Mortgage Payable P. Oodle, Capital P.Oodle, Drawings Fees Eamed Rent Revenue Salaries Expemse Telephone Expense Interest Expense 16 400 64 000 236 950 Coo 86 500 262 430 14 400 2340 124 600 4 520 3 080 36480 5689 880 2CO Insurance Expense Rots x de হ The following accosnt tles are alro inchaded in the chart of accounts Interest Payable Salaries Payale Rates Payale Unearned Fees Depreciation Expense- Building Depreciation Expense- Equipment Rates Expense The following information has not yer been reconded exponse Rates owing at 30 June, $4820 AcCrurd I. Depreciation on the eqwipmenst is $3680 Depreciation on the building is $9600 2 An advance fee payment of $600 for minor surgery to be performad in Jaly 2016 was credited 3. to Fees Earned- unamd Reunte The mortgage contract provides for a monthly payment of $1000 plus accrued interest. The June payment was not made. Interest of $260 is accraed on the mortgage Prepaid insurance of $1340 has expired Salaries earned but not pald amownt to 52360 4. 5 6 Required: Prepare the adjusting and closing entries for P.Oodle Veterinary Surgeon Page 1 of 2 Cash t Sing

Answer 1

P.Oodle Veterinary surgeon Adjusting Enteries Debit in $ Credit in $ Trans. Particulars Rates Expense a/c 1 Dr. 4820 To Rates Payable 4820 |(Rates expense accrued) Depreciation Expense a/c Dr. To Accum. Depre Equip. To Accum. Depre Build. (To record depreciation) 13280 3680 9600 Fees earned a/c 3 Dr. 600 To Unearned Revenue 600 (Correction entry) Interest Expense a/c 4. Dr. 260 To Interest Payable 260 (Interest expense accrued) Insurance Expense a/c 5 Dr. 1340 To Prepaid Insurance 1340 |(Insurance expensed) Salaries Expense a/c 6 Dr. 2360 To Salary Payable |(Salary accrued) 2360 Closing Enteries Debit in $ Credit in $ Date Particulars 30.6.2016 Income Summary a/c Dr. 190740 To Salaries Expense 126960 To Telephone Expense 4520 To Interest Expense 3340 To Insurance Expense 37820 To Rates Expense 4820 To Depreciation Expense 13280 (Expense accounts closed) 30.6.2016 Fees Earned a/c Dr. 261830 Rent Revenue a/c Dr. 14400 To Income Summary 276230 |(Revenue accounts closed) 30.6.2016 Income Summary a/c Dr. 85490 To P.Oodle, Capital 85490 (Profits Transferred to Capital) 30.6.2016 P.Oodle, Capital a/c To P.Oodle, Drawings Dr. 86500 86500 (Drawings charged to Capital)

Worksheet For the period ending 30.6.2016 Adjustments Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 12600 12600 Accounts Receivable 11800 11800 Prepaid Insurance 1340 1800 460 Land 180200 180200 Building 196000 196000 Accum. Depre Build. 86900 9600 96500 32300 Equipment Accum. Depre Equip. Accounts Payable 32300 8800 3680 12480 16400 16400 Interest Payable 260 260 Salary Payable Rates Payable 2360 2360 4820 4820 Unearned Revenue 600 600 Mortgage Payable P.Oodle, Capital 64000 64000 236950 236950 P.Oodle, Drawings 86500 86500 Fees Earned 262430 600 261830 14400 Rent Revenue 14400 Salaries Expense Telephone Expense 2360 124600 126960 4520 4520 3080 Interest Expense 260 3340 Insurance Expense 36480 1340 37820 Rates Expense 4820 4820 Depreciation Expense 13280 13280 Totals 22660 689880 689880 22660 710600 710600