Beruflich Dokumente
Kultur Dokumente
STU Ltd provides computer training services. STU charges $8,000 per day and allows customers 30
days to pay invoices. The following events occurred for STU Ltd during the month of June 2016:
Use the following chart of accounts to prepare journal entries and adjusting journal entries to record
the transactions above.
Assets Liabilities
A1 Cash L1 Accounts payable
A2 Inventory L2 Unearned revenue
A3 Accounts receivable L3 Wages payable
A4 Prepaid rent L4 Rent payable
A5 Prepaid petrol L5 Interest payable
A6 Equipment L6 Income tax payable
A7 Accumulated depreciation – Equipment L7 Loan
A8 Motor vehicle
A9 Accumulated depreciation – Motor Vehicle
A10 Goodwill Shareholders’ Equity
SE1 Share capital
SE2 Retained profits
Revenues Expenses
R1 Sales revenue E1 Cost of goods sold
R2 Service revenue E2 Petrol expense
R3 Rent revenue E3 Wages expense
R4 Interest revenue E4 Rent expense
E5 Interest expense
E6 Depreciation expense
1
Transaction Account name Debit Credit
number
$ $
a Cash 40,000
c Cash 176,000
Cash 30,000
f Cash 40,000
Cash 80,000
Cash 5,000
2
Bank Reconciliation (6 Marks)
4. A bank charge of $40 for cheques was made to the account during August, as shown on the
bank statement. Although the company was expecting a charge, its amount was not known
until the bank statement arrived.
5. In the process of reviewing the cheques, it was determined that a cheque issued to a
supplier in payment of accounts payable of $361 had been recorded as $631.
6. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,950.
Required:
3
Part B: Prepare any necessary adjusting journal entries. (2 marks)
$ $
Bank charges 40
Cash at Bank 40
Cash at Bank
270