Practice Question 2 On 1 May 2016, ToFuture Education Ltd have the following acc
ID: 2566109 • Letter: P
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Practice Question 2 On 1 May 2016, ToFuture Education Ltd have the following account balances CR DR 8,000 6,000 3,000 12,000 20,000 Cash at Bank Accounts Receivable Office Supplies Prepaid Rent Furniture& Fittings Accumulated Depreciation-Furniture &Fittings; Accounts Payable Service Revenue Received in Advance Wages Payable Share Capital Retained Earnings 2,000 6,000 10,000 1,000 25,000 5,000 Transactions occurred in May May Issued additional share and received cash $100,000 Paid $6,000 wages Received $4,000 cash from customers on account 5 10 Purchased office supplies on account $1,000 13 14 15 Received $45,000 for services rendered in May Paid outstanding creditors 5,000 Paid rent for period 15May to 14June $12,000 16 Invoiced customers for services provided $3,000 19 Paid Wages $6,000 20 Received customers deposits $2,000 for services to be provided in June Additional information Wages owing at the end of May are $5,000 Total deposits received for services to be provided in June are $5,000 Office Supplies on hand are valued at $2,000 Depreciation for Furniture & Fittings for May is $3,000 . Required: General Journals for May transactions Unadjusted Trail Balance as at 31 May 2016 Journalise adjusting entries for May month end General Ledger for Cash at Bank, Revenue Received in Advance and Prepaid Rent Trail Balance as at 31 May 2016Explanation / Answer
General Journal
Debit Credit
May 1 Cash at Bank 100,000
Share Capital 100,000
(Issue of additional Share Capital)
May 5 Wages 6,000
Cash at Bank 6,000
(Paid Wages)
May 9 Cash at Bank 4,000
Accounts Receivable 4,000
(Received from customers on account)
May 10 office supplies 1,000
Cash at Bank 1,000
(Purchased office supplies)
May 13 Cash at Bank 45,000
Revenue 45,000
(Revenue Received for services rendered)
May 14 Accounts Payable 5,000
Cash at Bank 5,000
(Payment made to outstanding creditors)
May 15 Rent 12,000
Cash at Bank 12,000
(Rent Paid)
May 16 Accounts Receivable 3,000
Revenue 3,000
(Invoices raised for services provided)
May 19 Wages 6,000
Cash at Bank 6,000
(Paid Wages)
May 20 Cash at bank 2,000
Services revenue received in advance 2,000
(Received customer deposits for services to be rendered in June )
Unadjusted trial balance as at 31 May 2016
Particulars
DR
CR
Cash at bank
129,000
Accounts Receivable
5,000
Office Supplies
4,000
Prepaid Rent
12,000
Furniture & Fittings
20,000
Wages
12,000
Rent
12,000
Share Capital
125,000
Accounts Payable
1,000
Accumulated Depreciation-Furniture & Fittings
2,000
Service Revenue Received in Advance
12,000
Wages payable
1,000
Revenue
48,000
Retained Earnings
5,000
Total
194,000
194,000
Journalizing adjusting entries for May month end
Debit Credit
Wages 4,000
Wages Payable 4,000
(Wages payable entry 5000-1000)
Cash at bank 3,000
Services revenue received in advance 3,000
(Additional customer deposit received in advance 5000-2000)
Office Supplies Consumed 2,000
Office Supplies 2,000
(Adjustment for office supplies 4000-2000)
Depreciation 3,000
Accumulated depreciation-Furniture & Fittings 3,000
Prepaid Rent 6,000
Rent 6,000
(Entry for rent prepaid for june)
trial balance as at 31 May 2016
Particulars
DR
CR
Cash at bank
132,000
Accounts Receivable
5,000
Office Supplies
2,000
Prepaid Rent
18,000
Furniture & Fittings
20,000
Wages
16,000
Rent
6,000
Office Supplies Consumed
2,000
Depreciation
3,000
Share Capital
125,000
Accounts Payable
1,000
Accumulated Depreciation-Furniture & Fittings
5,000
Service Revenue Received in Advance
15,000
Wages payable
5,000
Revenue
48,000
Retained Earnings
5,000
Total
204,000
204,000
Particulars
DR
CR
Cash at bank
129,000
Accounts Receivable
5,000
Office Supplies
4,000
Prepaid Rent
12,000
Furniture & Fittings
20,000
Wages
12,000
Rent
12,000
Share Capital
125,000
Accounts Payable
1,000
Accumulated Depreciation-Furniture & Fittings
2,000
Service Revenue Received in Advance
12,000
Wages payable
1,000
Revenue
48,000
Retained Earnings
5,000
Total
194,000
194,000
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