wanye
Feb 21, 2007, 09:19 PM
Hi guys, i have been doing an online quiz, but i am not sure whether I am on the right track before I move on to doing the adjusted trial balance. Can you guys tell me whether my journal entries are correct?? Thx in advance!!
========================================
Eng Sing Furnishing Pte Ltd is an interior renovation contractor. The owner employs
temp account assistant to keep the company records for the year. You have been
engaged to finalize the year end income for income tax for the year ended 31 Dec 2006.
The prevailing income tax rate is 20%.
Account Title $
Cash 51,490
Account receivable 10,560
Supplies 1,090
Prepaid insurance 2,600
Furniture & Fittings 21,630
Accumulated depreciation (F&L) 8,220
Account payable 8,040
Long Term Loan 30,000
Note payable, short term 12,000
Unearned revenue 1,840
Paid up capital 250,000
Premise, at cost 190,000
Motor Vehicle, at cost 60,000
Accumulated depreciation (MV) 5,500
Retained earnings 4,610
Revenue 72,890
Depreciation expense 5,500
Utilities expense 3,960
Salary expense 32,660
Rent expense 9,200
Interest expense 880
Medical Expense 750
Transport Expense 1,100
Telephone Expense 980
Sales discount 700
Additional Information
You further discover the following additional information.
(1) On 3 Aug, Eng Sing completed a work amounting to $830 for a customer. The
temp account assistant forgot to record it and bill the customer.
(2) On 6 Oct, $310 worth of supplies was used up by the workers to finish a job. The
foreman did not inform the temp assistant and it was not recorded in the
account.
(3) The fire insurance of $2,400 to cover his premise for one year was bought on 1st
Oct. 2006. The company only recorded the purchase. No other entries have been
made since then.
(4) The accumulated depreciation for the furniture and fitting on 31 Dec would be
$1,140.
(5) On 21st Nov Eng Sing’s supplier sold the company $4,000 worth of goods on
credit.
(6) Wages for overtime of $960 was not provided in the account.
(7) Interest due on short term note payable on 31 Dec 2006 is $480.
(8) Invoices totaling $3,300 relating to Utilities were unpaid as at 31 Dec 2006
(9) On 11 Sept 2006, a customer paid a deposit of $680 for his job. Work will
only start in Jan 2007.
J.E
==========
1)
Dr. Service revenue receivable 830
Cr. Service revenue 830
2)
Dr. Supplies expense 310
Cr. Supplies 310
3)
Dr. Insurance expense 400
Cr. Prepaid Insurance 400
4)
Dr. Depreciation expense 1140
Cr. Accumulated Depreciation 1140
5)
Dr. goods 4000
Cr. goods payable 4000
6)
Dr. Salaries expense 960
Cr. Salaries payable 960
7)
Dr. Interest expense 480
Cr. Interest payable 480
8)
Dr. Utilities expense 3300
Cr. Utilities payable 3300
9)
Dr. unearned revenue 680
Cr. earned revenue 680
========================================
Eng Sing Furnishing Pte Ltd is an interior renovation contractor. The owner employs
temp account assistant to keep the company records for the year. You have been
engaged to finalize the year end income for income tax for the year ended 31 Dec 2006.
The prevailing income tax rate is 20%.
Account Title $
Cash 51,490
Account receivable 10,560
Supplies 1,090
Prepaid insurance 2,600
Furniture & Fittings 21,630
Accumulated depreciation (F&L) 8,220
Account payable 8,040
Long Term Loan 30,000
Note payable, short term 12,000
Unearned revenue 1,840
Paid up capital 250,000
Premise, at cost 190,000
Motor Vehicle, at cost 60,000
Accumulated depreciation (MV) 5,500
Retained earnings 4,610
Revenue 72,890
Depreciation expense 5,500
Utilities expense 3,960
Salary expense 32,660
Rent expense 9,200
Interest expense 880
Medical Expense 750
Transport Expense 1,100
Telephone Expense 980
Sales discount 700
Additional Information
You further discover the following additional information.
(1) On 3 Aug, Eng Sing completed a work amounting to $830 for a customer. The
temp account assistant forgot to record it and bill the customer.
(2) On 6 Oct, $310 worth of supplies was used up by the workers to finish a job. The
foreman did not inform the temp assistant and it was not recorded in the
account.
(3) The fire insurance of $2,400 to cover his premise for one year was bought on 1st
Oct. 2006. The company only recorded the purchase. No other entries have been
made since then.
(4) The accumulated depreciation for the furniture and fitting on 31 Dec would be
$1,140.
(5) On 21st Nov Eng Sing’s supplier sold the company $4,000 worth of goods on
credit.
(6) Wages for overtime of $960 was not provided in the account.
(7) Interest due on short term note payable on 31 Dec 2006 is $480.
(8) Invoices totaling $3,300 relating to Utilities were unpaid as at 31 Dec 2006
(9) On 11 Sept 2006, a customer paid a deposit of $680 for his job. Work will
only start in Jan 2007.
J.E
==========
1)
Dr. Service revenue receivable 830
Cr. Service revenue 830
2)
Dr. Supplies expense 310
Cr. Supplies 310
3)
Dr. Insurance expense 400
Cr. Prepaid Insurance 400
4)
Dr. Depreciation expense 1140
Cr. Accumulated Depreciation 1140
5)
Dr. goods 4000
Cr. goods payable 4000
6)
Dr. Salaries expense 960
Cr. Salaries payable 960
7)
Dr. Interest expense 480
Cr. Interest payable 480
8)
Dr. Utilities expense 3300
Cr. Utilities payable 3300
9)
Dr. unearned revenue 680
Cr. earned revenue 680