[danerjnbaptiste]

P. Yearwood operates a clothing wholesale business. The trial balance for the business is given below: Yearwood’s
Unadjusted Trial Balance
as on December 31, 20X8
Name of Account Dr ($) Cr ($)
Capital 104,000
Drawings 12,000
Land 100,000
Buildings 70,000
Prov. For Depreciation – Buildings @ 01/01/X8 33,600
Motor Vehicles 40,000
Prov. For Depreciation – Motor Vehicles @ 01/01/X8 10,840
Accounts Payable 15,500
Accounts Receivable 20,300
Inventory @ 01/01/X8 9,700
Bank 21,300
Cash 560
Purchases 58,200
Sales 116,400
Purchases Return 8,730
Sales Return 10,180
Short-term Loans 15,000
Long-term Loans 90,000
Rental Income 65,000
Discounts Received 2,200
Discounts Allowed 3,400
Bad Debts Recovered 7,000
Prov. For Bad Debts 1,190
Utilities 17,900
Insurance 49,600
Carriage Inwards 2,200
Carriage Outwards 1,800
Wages 88,520
Miscellaneous Expenses 6,400 ________
$490,760 $490,760

Additional information at December 31, 20X8:
i. Inventory at December 31, 20X8 was $8,400.

ii. Rental income received in advance amounted to $9,000.

iii. Wages in arrears at December 31, 20X8 were $11, 480.

iv. The insurance paid represents fixed monthly premiums for the period January 1, 20X8 to April 30, 20X9.

v. Bad debts of $2,500 are to be written off.

vi. The provision for bad debts is maintained to reflect 5% of accounts receivable at the financial year end of the business.

vii. Buildings are to be depreciated using the straight-line method at a rate of 8% per annum.

viii. The reducing balance method is used to depreciate motor vehicles at a rate of 10% per annum.

ix. Thirty Thousand dollars ($30,000) of long-term loans must be repaid by March 31, 20X9.

Required:
1. Journalise the adjusting entries to be made in the books of Yearwood for the above
adjustments. (10 marks)
2. Prepare the adjusted trial balance for Yearwood at December 31, 20X8 (10 marks)
3. Journalise the closing entries to be made in the books of Yearwood. (10 marks)
4. Prepare a post-closing trial balance for Yearwood at December 31, 20X8. (10 marks)

nEED PART C OF THIS ASSIGNMENT CHECKKED FOR ME IVE ALREADY GOTTEN A RESPONS FOR PART 1& 2 ILL POST IT AS WELL


Close all revenues to income summary
Revenue
Carriage inwards 2200
Rental Income 56000
Discount Received 2200
Unearned Rent Income 9000
Prepaid Isurance 12400
Total 81800
Revenues DR CR
Service Revenue 81800
Income Summary 81800

DR CR
Income Summary 81800
Expenses
Carriage out 1800
Wages 100000
Dis. Allowed 3400
Provision for Bad Debts 890
Acc. Provisions for Depreciation 52956
Insurance 3700
Utilities 17900
Wages 100000
Accured Wages 11480
Miscell. Expenses 6400
Bad debts 4800
Depreciation Expense 8516
Total 311842 Net Loss - $ 230042


THIS IS FOR PART 3


This is the help i got for the adjusted tb PS Attachment

[morgaine300]

$490,760 $490,760

There's an issue right from the start of these unadjusted trial balance totals. There's nothing here that adds up to 490,760. When I did it, I didn't balance and never figured out why. Something is wrong with the original information.

As to already having your adjusting entries checked, I disagree with a couple of things. It would help if I could see where some of these amounts are coming from.

Close all revenues to income summary

Actually, it looks like you're trying to close out all credit accounts together. Either that, or you don't know the normal balances, I'm not sure which.

Carriage inwards 2200

This is a debit balance.

Unearned Rent Income 9000

This is a bit of a misnomer. It's either unearned or it's income. It can't be both. At any rate, unearned rent is a liability not a revenue. UNEARNED means you haven't earned it, so it can't be a revenue. You already have a correct account for the rent that was earned.

Prepaid Isurance 12400

Asset

Total 81800
Revenues DR CR
Service Revenue 81800
Income Summary 81800

Why are you debiting service revenue? There is no service revenue account. The debits are all the accounts you've listed, and then credit into income summary. Journal entries do not contain a line called "total." You debit all the credit-balance accounts and credit the total into income summary.

Just as a note, columns don't come out when you post. I'm making assumptions about what is actually debit and credit. They all added up to 81,800 so I assume they were all debited in your entry.

DR CR
Income Summary 81800

Why are you repeating this account? It's already in the above entry.

Wages 100000

You've listed this twice.

Provision for Bad Debts 890
Acc. Provisions for Depreciation 52956

These are contra assets, not expenses. (They're also credit balances.)

Insurance 3700

I don't know where you got that balance. You've got the prepaid insurance amount correct, so what's left in the expense account should also be correct.

Bad debts 4800

You also completely left out sales, sales returns, purchases and purchase returns.

And I don't know what bad debts recovered is supposed to be. In the U.S. this would not be a separate account, but would be added back into both receivables and the allowance for bad debt. I figured out the bad debt expense both with and without that 7000 in there and did not come up with your 4800 number.

You need to do some studying up on what kind of accounts each of these are. Only revenues and expenses close out, but you have to know which ones those are. You need to know how to classify all accounts.

When figuring up net income, you also have to account for the 1300 difference in inventory. That, combined with all the purchase accounts, will create COGS.