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hariharanharish
Aug 19, 2014, 10:19 AM
a) Wages include a sum of $2000 spent on the erection of a cycle shed for employee
b) Good issued as sample $200
c) Rent paid in advance $250
d) Wages owing $2500
e) Insurance paid in advance $1500
e) Included in debtors in $1000 owing by the proprietor

pready
Sep 1, 2014, 08:29 AM
a. You need to move the amount from wages expense to the appropriate asset account.
b. You need to move the amount from inventory to cost of goods sold or other appropriate inventory loss account.
c. You need to record the amount paid to prepaid rent.
d. You need to record the amount of wages earned as wages payable.
e. You need to record the amount paid to prepaid insurance.
f. You need to move the amount from a liability account to the owner's drawing account.