Record general journal entries for balance day adjustments Notes - Australian Based Question periodic inventory system* 10% GST is included in the amountSubscription fee - for monthly newsletterFinancial Year = starts on 1 July and ends the next year on 30 June (example 1 July 2019 - 30 June 2020) Trial Balance (Before Balance Day Adjustments) - As at 30 June 2020Account TitleDebit $Credit $Cash27,736 Accounts Receivable35,650 Provision for Doubtful Debts 950Inventory10,500 Purchases386,000 Sales Revenue 575,000Investments120,000 Interest Expense1,200 Interest Revenue 2,500Loan 20,000Subscriptions Revenue 2,000Insurance Expense7,500 Wages65,666 Advertising Expense5,800 Water7,500 Equipment40,000 Accumulated Depreciation – Office Equipment 4,600Accounts Payable 5,552GST Collected 40,000GST Paid15,500 Capital 1/7/19 95,000Rates3,600 Drawings12,000 Electricity6,950 Total745,602745,602 Additional information as at 30 June 2020* GST is included in the amountPLEASE CHECK THE FOLLOWING ENTRIES ARE CORRECT AND COMPLETE THE MISSING ENTRIES DateParticulars Debit Credit Rates were paid in June 20 amounting to $1050 for June 2020, July 2020 & August 2020.130/06/20Dr Prepayments (A) Cr Rates (E)Prepaid rates for July and August Interest accrued on investment was $1,950230/06/20Dr Accrued revenue (A) Cr Interest Revenue (R)Accrued Interest Income at 30 June Closing Inventory $15,500330/06/20Dr Trading Cr Inventory (Opening)Opening inventory to trading10,500 10,500 430/06/20Dr Inventory (Closing) Cr TradingTake up closing inventory from trading15,500 15,500Depreciation expense on equipment for the year is $4,400.530/06/20Dr Depreciation Expense (E) Cr Accumulated Depreciation - Equip. (-A)Depreciation expense on equipment for the year4,4004,400Subscription Revenue paid in advance was $200630/06/20Dr Subscriptions Revenue (R) Cr Deferred Revenue (L)Subscription Revenue paid in advance 200200Wages of $2,600 are paid every four weeks for the preceding four weeks.At 30 June it has been three weeks since the employees were last paid.730/06/20Dr Wages (E) Cr Accrued Expenses (L)Accrued wages for June due but not paid on bal date. The water bill for the quarter ending March was $2750 (incl 10% GST)*. No bill has been received as yet for the June Quarter830/06/20Dr Water Expense (E) Cr Accrued Expenses (L)Accrued water for June quarter Interest on the loan is 9.15% pa and is payable monthly in arrears930/06/20Dr Interest Expense (E) Cr Accrued Expenses (L)June Interest on the loan at 9.15% pa Prepaid Advertising $2,000 for July 20201030/06/20Dr Prepayments (A) Cr Advertising Expense (E)Prepaid advertising for July2,0002,000Discount on accounts payable, $1,100 (incl 10% GST)*.1130/06/20Dr Accounts Payable (L) Cr Discount Revenue (R) Cr GST paid (A)Discount on accounts payable1,1001,000100 Purchase returns, $660* (incl 10% GST)1230/06/20Dr Accounts Payable (L) Cr Purchase Return (-E) Cr GST paid (A)Record purchase return66060060Garden Artistry Pty Ltd provided plants and garden art to the local council under contract. The contract was worth $5,000 and was 75% complete as at 30 June. The council can only be invoiced on completion of the contract.1330/06/20DrAccrued revenue (A) Cr Sales (R)Accrued revenue from Council contract.3,7503,750$9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020. An invoice from the supplier is not expected until then end of July.1430/06/20Dr Purchases (E) Cr Accrued Expenses (L)Accrued inventoryy purchases for June9,000 9,000It is estimated that $250 of electricity was used in June. However the bill has not been received as yet.1530/06/20Dr Electricty expense (E) Cr Accrued Expenses (L)Accrued electricity expense for June250 250Insurance expenses for the year ending 2020 was $4,000.1630/06/20Dr Prepayments (A) Cr Insurance Expense (E)Prepaid insurance for 2021. One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (incl 10% GST)* which was for the garden supplies purchased during 2019- May $110, June $990 and July $550.1730/06/20Dr Provision for Doubtful Debts (-A)Dr GST Collected (L) Cr Accounts Receivable (A)Write off if May and June 19 bankrupt landscaper amount owing - previous year 1830/06/20Dr Bad Debts (E)Dr GST Collected (L) Cr Accounts Receivable (A) Write off of July bankrupt landscaper amount owing - current year Provision for doubtful debts is to be 2.5% of accounts receivable balance.1930/06/20Dr Doubtful Debts (E) Cr Provision for Doubtful Debts (-A)Provision of Doubtful debts 2.5% of AR balane at YE

Question

Record general journal entries for balance day adjustments Notes - Australian Based Question periodic inventory system* 10% GST is included in the amountSubscription fee - for monthly newsletterFinancial Year = starts on 1 July and ends the next year on 30 June (example 1 July 2019 - 30 June 2020) Trial Balance (Before Balance Day Adjustments) - As at 30 June 2020Account TitleDebit $Credit $Cash27,736 Accounts Receivable35,650 Provision for Doubtful Debts 950Inventory10,500 Purchases386,000 Sales Revenue 575,000Investments120,000 Interest Expense1,200 Interest Revenue 2,500Loan 20,000Subscriptions Revenue 2,000Insurance Expense7,500 Wages65,666 Advertising Expense5,800 Water7,500 Equipment40,000 Accumulated Depreciation – Office Equipment 4,600Accounts Payable 5,552GST Collected 40,000GST Paid15,500 Capital 1/7/19 95,000Rates3,600 Drawings12,000 Electricity6,950 Total745,602745,602 Additional information as at 30 June 2020* GST is included in the amountPLEASE CHECK THE FOLLOWING ENTRIES ARE CORRECT AND COMPLETE THE MISSING ENTRIES   DateParticulars Debit  Credit Rates were paid in June 20 amounting to $1050 for June 2020,  July 2020 & August 2020.130/06/20Dr Prepayments (A)  Cr Rates (E)Prepaid rates for July and August   Interest accrued on investment was $1,950230/06/20Dr Accrued revenue (A)   Cr  Interest Revenue (R)Accrued Interest Income at 30 June  Closing Inventory   $15,500330/06/20Dr Trading   Cr  Inventory (Opening)Opening inventory to trading10,500     10,500 430/06/20Dr Inventory (Closing)   Cr TradingTake up closing inventory from trading15,500   15,500Depreciation expense on equipment for the year is $4,400.530/06/20Dr Depreciation Expense  (E)   Cr Accumulated Depreciation -  Equip. (-A)Depreciation expense on equipment for the year4,4004,400Subscription Revenue paid in advance was $200630/06/20Dr Subscriptions Revenue (R)   Cr Deferred Revenue (L)Subscription Revenue paid in advance 200200Wages of $2,600 are paid every four weeks for the preceding four weeks.At 30 June it has been three weeks since the employees were last paid.730/06/20Dr Wages (E)   Cr  Accrued Expenses (L)Accrued wages for June due but not paid on bal date.   The water bill for the quarter ending March was $2750 (incl 10% GST)*.  No bill has been received as yet for the June Quarter830/06/20Dr Water Expense (E)  Cr  Accrued Expenses (L)Accrued water for June quarter   Interest on the loan is 9.15% pa and is payable monthly in arrears930/06/20Dr Interest Expense (E)  Cr  Accrued Expenses (L)June Interest on the loan at 9.15% pa   Prepaid Advertising $2,000 for July 20201030/06/20Dr Prepayments (A)  Cr Advertising Expense (E)Prepaid advertising for July2,0002,000Discount on accounts payable, $1,100 (incl 10% GST)*.1130/06/20Dr Accounts Payable (L)    Cr Discount Revenue (R)    Cr GST paid (A)Discount on accounts payable1,1001,000100 Purchase returns, $660* (incl 10% GST)1230/06/20Dr Accounts Payable (L)   Cr Purchase Return (-E)   Cr GST paid (A)Record purchase return66060060Garden Artistry Pty Ltd provided plants and garden art to the local council under contract.  The contract was worth $5,000 and was 75% complete as at 30 June.  The council can only be invoiced on completion of the contract.1330/06/20DrAccrued revenue (A)    Cr  Sales (R)Accrued revenue from Council contract.3,7503,750$9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020.  An invoice from the supplier is not expected until then end of July.1430/06/20Dr Purchases (E)   Cr Accrued Expenses (L)Accrued inventoryy purchases for June9,000             9,000It is estimated that $250 of electricity was used in June. However the bill has not been received as yet.1530/06/20Dr Electricty expense (E)   Cr Accrued Expenses (L)Accrued electricity expense for June250                250Insurance expenses for the year ending 2020  was $4,000.1630/06/20Dr Prepayments (A)   Cr Insurance Expense (E)Prepaid insurance for 2021.  One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (incl 10% GST)* which was for the garden supplies purchased during 2019- May $110, June $990 and July $550.1730/06/20Dr Provision for Doubtful Debts (-A)Dr GST Collected (L)    Cr Accounts Receivable (A)Write off if May and June 19 bankrupt landscaper amount owing - previous year   1830/06/20Dr Bad Debts (E)Dr GST Collected (L)    Cr Accounts Receivable (A)                                  Write off of July bankrupt landscaper amount owing - current year  Provision for doubtful debts is to be 2.5% of accounts receivable balance.1930/06/20Dr Doubtful Debts (E)    Cr Provision for Doubtful Debts (-A)Provision of  Doubtful debts 2.5% of AR balane at YE

Accepted Answer

Based on the additional info the journal entries doen are verified as…

Account Title	Debit $	Credit $
Cash	27,736
Accounts Receivable	35,650
Provision for Doubtful Debts		950
Inventory	10,500
Purchases	386,000
Sales Revenue		575,000
Investments	120,000
Interest Expense	1,200
Interest Revenue		2,500
Loan		20,000
Subscriptions Revenue		2,000
Insurance Expense	7,500
Wages	65,666
Advertising Expense	5,800
Water	7,500
Equipment	40,000
Accumulated Depreciation – Office Equipment		4,600
Accounts Payable		5,552
GST Collected		40,000
GST Paid	15,500
Capital 1/7/19		95,000
Rates	3,600
Drawings	12,000
Electricity	6,950
Total	745,602	745,602

		Date	Particulars	Debit	Credit
Rates were paid in June 20 amounting to $1050 for June 2020, July 2020 & August 2020.	1	30/06/20	Dr Prepayments (A) Cr Rates (E) Prepaid rates for July and August
Interest accrued on investment was $1,950	2	30/06/20	Dr Accrued revenue (A) Cr Interest Revenue (R) Accrued Interest Income at 30 June
Closing Inventory $15,500	3	30/06/20	Dr Trading Cr Inventory (Opening) Opening inventory to trading	10,500	10,500
	4	30/06/20	Dr Inventory (Closing) Cr Trading Take up closing inventory from trading	15,500	15,500
Depreciation expense on equipment for the year is $4,400.	5	30/06/20	Dr Depreciation Expense (E) Cr Accumulated Depreciation - Equip. (-A) Depreciation expense on equipment for the year	4,400	4,400
Subscription Revenue paid in advance was $200	6	30/06/20	Dr Subscriptions Revenue (R) Cr Deferred Revenue (L) Subscription Revenue paid in advance	200	200
Wages of $2,600 are paid every four weeks for the preceding four weeks. At 30 June it has been three weeks since the employees were last paid.	7	30/06/20	Dr Wages (E) Cr Accrued Expenses (L) Accrued wages for June due but not paid on bal date.
The water bill for the quarter ending March was $2750 (incl 10% GST)*. No bill has been received as yet for the June Quarter	8	30/06/20	Dr Water Expense (E) Cr Accrued Expenses (L) Accrued water for June quarter
Interest on the loan is 9.15% pa and is payable monthly in arrears	9	30/06/20	Dr Interest Expense (E) Cr Accrued Expenses (L) June Interest on the loan at 9.15% pa
Prepaid Advertising $2,000 for July 2020	10	30/06/20	Dr Prepayments (A) Cr Advertising Expense (E) Prepaid advertising for July	2,000	2,000
Discount on accounts payable, $1,100 (incl 10% GST)*.	11	30/06/20	Dr Accounts Payable (L) Cr Discount Revenue (R) Cr GST paid (A) Discount on accounts payable	1,100	1,000 100
Purchase returns, $660* (incl 10% GST)	12	30/06/20	Dr Accounts Payable (L) Cr Purchase Return (-E) Cr GST paid (A) Record purchase return	660	600 60
Garden Artistry Pty Ltd provided plants and garden art to the local council under contract. The contract was worth $5,000 and was 75% complete as at 30 June. The council can only be invoiced on completion of the contract.	13	30/06/20	DrAccrued revenue (A) Cr Sales (R) Accrued revenue from Council contract.	3,750	3,750
$9,000 Inventory purchases were received by the Garden Artistry Garden Centre on 28 June 2020. An invoice from the supplier is not expected until then end of July.	14	30/06/20	Dr Purchases (E) Cr Accrued Expenses (L) Accrued inventoryy purchases for June	9,000	9,000
It is estimated that $250 of electricity was used in June. However the bill has not been received as yet.	15	30/06/20	Dr Electricty expense (E) Cr Accrued Expenses (L) Accrued electricity expense for June	250	250
Insurance expenses for the year ending 2020 was $4,000.	16	30/06/20	Dr Prepayments (A) Cr Insurance Expense (E) Prepaid insurance for 2021.
One of the customers, a landscaper has been declared bankrupt, he owed $1,650 (incl 10% GST)* which was for the garden supplies purchased during 2019- May $110, June $990 and July $550.	17	30/06/20	Dr Provision for Doubtful Debts (-A) Dr GST Collected (L) Cr Accounts Receivable (A) Write off if May and June 19 bankrupt landscaper amount owing - previous year
	18	30/06/20	Dr Bad Debts (E) Dr GST Collected (L) Cr Accounts Receivable (A) Write off of July bankrupt landscaper amount owing - current year
Provision for doubtful debts is to be 2.5% of accounts receivable balance.	19	30/06/20	Dr Doubtful Debts (E) Cr Provision for Doubtful Debts (-A) Provision of Doubtful debts 2.5% of AR balane at YE