acc- cash journal question answer

| June 12, 2016

Question
Now that you have completed the June bank reconciliation process, you are asked to complete the worksheet for The Adrenaline Hut.

The worksheet is an internal document that exists outside the journals and ledgers. It is often used in the manual accounting system to help record adjusting entries and prepare financial statements. After you have prepared the worksheet, in the next section of the practice set you will be asked to use the completed worksheet to help journalize and post adjusting entries to general ledger. You will also use this worksheet to assist you in preparing the financial statements for The Adrenaline Hut in a later section of this practice set.

The details of the end of month adjustments for June are as follows:

§ Office Furniture owned by the business: original purchase price was $7,000, estimated useful life was 4 years, and estimated residual value was $1,000 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

§ Office Equipment owned by the business: original purchase price was $46,000, estimated useful life was 11 years, and estimated residual value was $3,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

§ The water usage for the month of June is estimated to be $116.

§ The estimated electricity payable as at the end of June is $268.

§ Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from June 25 to June 30 inclusive) are estimated to have been $310 per day.

§ Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is $220.

§ Office supplies totaling $2,251 are still on hand at June 30.

§ One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two month’s worth of rent in advance.

§ 3 months of advertising remained pre-paid at the start of June.

§ 5 months of insurance remained pre-paid at the start of June.

When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month.

After taking a physical count of inventory at the end of the month, the balance of inventory on hand as at June 30 is found to be equal to the closing balance of the Merchandise Inventory account. This means there is no adjusting entry required for inventory shrinkage.

Instructions for worksheet

Complete all columns in the worksheet. To do this, you need to use the account balances provided in the.perdisco.com/resources/html/scenario/accPS3popup2ab.html”>general ledger to fill out the Unadjusted Trial Balance columns. You are also required to calculate the end of month adjustments for June and enter them into the worksheet before completing the remaining columns. Note that not all boxes in each column of the worksheet will need to be filled.

Remember to enter all answers to the nearest whole dollar.

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If you want to print this page, please read and follow the.perdisco.com/resources/html/scenario/accPS3popup19.html”>special printing information to ensure you can print the worksheet in full.

Information from previous pages

§ .perdisco.com/resources/html/scenario/accPS3popup1.html”>General instructions

§ .perdisco.com/resources/html/scenario/accPS3popup3.html”>Policies and procedures

§ .perdisco.com/resources/html/scenario/accPS3popup5.html”>All transactions

§ .perdisco.com/resources/html/scenario/accPS3popup6.html”>Adjusting entries information

§ .perdisco.com/resources/html/scenario/accPS3popup8.html”>Trial balance – May

§ .perdisco.com/resources/html/scenario/accPS3popup9.html”>Schedules of accounts – May

§ .perdisco.com/resources/html/scenario/accPS3popup11.html”>Inventory cards – May

§ .perdisco.com/resources/html/scenario/accPS3popup12.html”>Bank reconciliation – May

§ .perdisco.com/resources/html/scenario/accPS3popup13.html”>Bank statement – June

§ .perdisco.com/resources/html/scenario/accPS3popup20.html”>Journals and ledgers instructions

§ .perdisco.com/resources/html/scenario/accPS3popup23.html”>Inventory cards instructions

§ .perdisco.com/resources/html/scenario/accPS3popup24.html”>Inventory cards – June

§ .perdisco.com/resources/html/scenario/accPS3popup19.html”>Special printing information

§ .perdisco.com/resources/html/scenario/accPS3popup16.html”>Cash journals

§ .perdisco.com/resources/html/scenario/accPS3popup2ab.html”>General ledger pre adjusting

§ .perdisco.com/resources/html/scenario/accPS3popup14.html”>Subsidiary ledgers pre adjusting

(Q=831.worksheetQuestion)

The Adrenaline Hut

Worksheet

For the month ended June 30, 2015

Acct. No.

Account Name

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

100

Cash

110

ARC – Accounts Receivable Control

120

Merchandise Inventory

130

Office Supplies

140

Prepaid Rent

141

Prepaid Advertising

142

Prepaid Insurance

150

Office Furniture

151

Accum Depn: Office Furniture

160

Office Equipment

161

Accum Depn: Office Equipment

210

APC – Accounts Payable Control

220

Wages Payable

221

Electricity Payable

222

Water Payable

225

Interest Payable

250

Bank Loan Payable

300

Common Stock

301

Retained Earnings

400

Sales Revenue

401

Sales Returns and Allowances

402

Sales Discounts

403

Interest Revenue

500

Cost of Goods Sold

511

Advertising Expense

516

Wages Expense

540

Rent Expense

541

Electricity Expense

542

Water Expense

543

Insurance Expense

544

Office Supplies Expense

545

Salary Expense

560

Depn Expense: Office Furniture

561

Depn Expense: Office Equipment

571

Interest Expense

572

Admin. Expense – Bank Charges

Totals

Net income or loss

Totals

GENERAL LEDGER PRE ADJUSTING

Account: Cash
Account No. 100

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

71,346 DR

Jun

30

Total from cash receipts journal

CRJ

119,159

190,505 DR

Jun

30

Total from cash payments journal

CPJ

42,907

147,598 DR

Jun

30

Interest received from the bank

GJ

600

148,198 DR

Jun

30

Not-Sufficient-Funds (NSF) check

GJ

1,700

146,498 DR

Jun

30

Bank service charge

GJ

10

146,488 DR

Jun

30

Balance

146,488 DR

Account: ARC – Accounts Receivable Control
Account No. 110

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

32,321 DR

Jun

20

Sales return from Croquet and Cricket

GJ

656

31,665 DR

Jun

30

Total from sales journal

SJ

68,576

100,241 DR

Jun

30

Total from cash receipts journal

CRJ

30,144

70,097 DR

Jun

30

Not-Sufficient-Funds (NSF) check

GJ

1,700

71,797 DR

Jun

30

Balance

71,797 DR

Account: Merchandise Inventory
Account No. 120

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

71,224 DR

Jun

20

Sales return from Croquet and Cricket

GJ

368

71,592 DR

Jun

28

Purchase return to Sports ‘R Us

GJ

1,600

69,992 DR

Jun

30

Total from sales journal

SJ

37,760

32,232 DR

Jun

30

Total from purchases journal

PJ

21,720

53,952 DR

Jun

30

Total from cash receipts journal

CRJ

23,384

30,568 DR

Jun

30

Total from cash payments journal

CPJ

1,440

32,008 DR

Jun

30

Balance

32,008 DR

Account: Office Supplies
Account No. 130

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

2,515 DR

Jun

1

Cash purchase

CPJ

334

2,849 DR

Jun

30

Balance

2,849 DR

Account: Prepaid Rent
Account No. 140

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

1

Prepaid rent

CPJ

8,300

8,300 DR

Jun

30

Balance

8,300 DR

Account: Prepaid Advertising
Account No. 141

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

9,000 DR

Jun

30

Balance

9,000 DR

Account: Prepaid Insurance
Account No. 142

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

5,000 DR

Jun

30

Balance

5,000 DR

Account: Office Furniture
Account No. 150

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

7,000 DR

Jun

30

Balance

7,000 DR

Account: Accum Depn: Office Furniture
Account No. 151

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

1,875 CR

Jun

30

Balance

1,875 CR

Account: Office Equipment
Account No. 160

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

46,000 DR

Jun

30

Balance

46,000 DR

Account: Accum Depn: Office Equipment
Account No. 161

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

16,420 CR

Jun

30

Balance

16,420 CR

Account: APC – Accounts Payable Control
Account No. 210

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

47,634 CR

Jun

28

Purchase return to Sports ‘R Us

GJ

1,600

46,034 CR

Jun

30

Total from purchases journal

PJ

21,720

67,754 CR

Jun

30

Total from cash payments journal

CPJ

18,991

48,763 CR

Jun

30

Balance

48,763 CR

Account: Wages Payable
Account No. 220

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

1,110 CR

Jun

4

Paid staff wages

CPJ

1,110

0

Jun

30

Balance

0

Account: Electricity Payable
Account No. 221

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

805 CR

Jun

3

Paid electricity bill

CPJ

743

62 CR

Jun

30

Balance

62 CR

Account: Water Payable
Account No. 222

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

117 CR

Jun

30

Balance

117 CR

Account: Interest Payable
Account No. 225

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Bank Loan Payable
Account No. 250

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

1

Loan from MRMC Bank

CRJ

44,000

44,000 CR

Jun

30

Balance

44,000 CR

Account: Common Stock
Account No. 300

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

45,000 CR

Jun

30

Balance

45,000 CR

Account: Retained Earnings
Account No. 301

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

131,445 CR

Jun

30

Balance

131,445 CR

Account: Income Summary
Account No. 310

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Sales Revenue
Account No. 400

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Total from sales journal

SJ

68,576

68,576 CR

Jun

30

Total from cash receipts journal

CRJ

45,280

113,856 CR

Jun

30

Balance

113,856 CR

Account: Sales Returns and Allowances
Account No. 401

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

20

Sales return from Croquet and Cricket

GJ

656

656 DR

Jun

30

Balance

656 DR

Account: Sales Discounts
Account No. 402

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Total from cash receipts journal

CRJ

265

265 DR

Jun

30

Balance

265 DR

Account: Interest Revenue
Account No. 403

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Interest received from the bank

GJ

600

600 CR

Jun

30

Balance

600 CR

Account: Cost of Goods Sold
Account No. 500

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

20

Sales return from Croquet and Cricket

GJ

368

368 CR

Jun

30

Total from sales journal

SJ

37,760

37,392 DR

Jun

30

Total from cash receipts journal

CRJ

23,384

60,776 DR

Jun

30

Balance

60,776 DR

Account: Advertising Expense
Account No. 511

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Wages Expense
Account No. 516

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Total from cash payments journal

CPJ

7,089

7,089 DR

Jun

30

Balance

7,089 DR

Account: Rent Expense
Account No. 540

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Electricity Expense
Account No. 541

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Water Expense
Account No. 542

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Insurance Expense
Account No. 543

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Office Supplies Expense
Account No. 544

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Salary Expense
Account No. 545

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Owner salary

CPJ

4,900

4,900 DR

Jun

30

Balance

4,900 DR

Account: Depn Expense: Office Furniture
Account No. 560

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Depn Expense: Office Equipment
Account No. 561

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Interest Expense
Account No. 571

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Balance

0

Account: Admin. Expense – Bank Charges
Account No. 572

Date

Description

Ref.

Debit

Credit

Balance

May

31

Balance

0

Jun

30

Bank service charge

GJ

10

10 DR

Jun

30

Balance

10 DR

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