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Tutorial Chapter 5

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14 views

Tutorial Chapter 5

Uploaded by

thanhthao020606
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1

Exercises
Exercise 5.1
Closing entries

Craig’s Car Detailing Service had the following accounts and account balances in the
adjusted trial balance columns of its worksheet for the year ended 30 June 2020.

Required
(a) Record the required closing entries for Craig’s Car Detailing Service.

Exercise 5.2
Closing entries and equity
The accounts below are taken from the ledger of Bartel Music Consulting on 30 June
2019, the end of the current financial year.

Required
(a) Record the closing entries which affected the accounts.
(b) Prepare a statement of changes in equity as at 30 June.

Exercise 5.5
Closing entries and post-closing trial balance
Michael Rau founded Michael’s Fishing Supplies on 1 July 2019. The adjusted trial
balance at 30 June 2020 (the end of the financial year) is shown below.

© John Wiley & Sons Australia, Ltd 2018


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Required
(a) Prepare closing entries to be made on 30 June 2020.
(b) Prepare a post-closing trial balance as at 30 June 2020.

Exercise 5.6
Closing entries for a company
Paradise Gardens Hire Ltd’s income statement is presented below. During the year,
directors declared and paid a dividend of $16 000.

(a) Prepare the necessary general journal entries to close the accounts of the company.

© John Wiley & Sons Australia, Ltd 2018


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Problems
Problem 5.16
Worksheet, financial statements and closing entries
The unadjusted trial balance of Secretarial Services is as follows:

The following additional information should be taken into account.


1. Office supplies unused at 31 December 2020 amount to $2320.
2. Unexpired insurance at 31 December 2020 is $540.
3. Office equipment is to be depreciated by $7400.
4. Salaries accrued but unrecorded on 31 December, $260.
5. Electricity accrued and unpaid, $830.
6. On 31 December, telephone charges of $425 have accrued but are unrecorded and
unpaid.
7. Interest accrued on bank loan at 31 December was $250.

Required
(a) Prepare adjusting and closing entries
(b) Prepare an income statement for the year ended 31 December 2020 and a balance
sheet as at 31 December 2020. (A worksheet may be prepared to assist but it is not
necessary

© John Wiley & Sons Australia, Ltd 2018


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© John Wiley & Sons Australia, Ltd 2018

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