Problem 3 2A P118 Accounting Adjustments

Sheet3 Sheet2 Sheet1 Accounting Adjustments P119 Problem 3-2A Year end accounting 31 December 2005 Calculations a) Opening Balance Supplies Purchased in year (DR supplies pp, Cr cash) Closing Inventory 31 dec Therefore Supplies consumed in year b) Insurance Prepaid Policy A Policy B Policy C Opening Bals Monthly Consumption Opening Bals Policy A is 15 months (24 months minus 9 months consumed) 2005 Months Consumed Insurance Closing Bals Months c) 2 days salary unrecorded, Monday Dec 30 and Tuesday Dec 31 Cost per day Salary Accrued d) Building Cost Life Residual Value Annual Depreciation : (Cost-Residual Value)/Life Annual Depreciation: (855000-45000)/30 e) Salaries Payable Depreciation Accrued Revenue 1 Month Revenue Accrued f) Unearned Revenue 2 months Earned Unearned revenue Aqdjustment Journals Ref Description DR CR A1 Supplies Expense Supplies PP A2 Insurance Expense Insurance PP A3 Salary Expense Salary Payable A4 Depreciation Expense Accumulated Depreciation A5 Accounts Receivable Revenue A6 0000.00 00000.00 00000.00 0000.00 00000.00 1/1/2005 12/31/2005 0000.00 00.00 000.00 00000.00 00.00 00.00 0000.00 0000.00 0.00 0.00 000.00 00000.00 00.00 0.00 0000.00 0000.00 00000.00 00.00 0.00 000.00 0000.00 00.00 0.00 0000.00 0000.00 0000.00 0.00 00000.00 0000.00 0000.00 0.00 000000.00 00.00 00000.00 00000.00 000000.00 00000.00 00.00 0000.00 11/1/2005 12/31/2009 12/31/2009 00000.00 0.00 0000.00 0000.00 0000.00 0.00 0000.00 00000.00 00000.00 00000.00 00000.00 0000.00 0000.00 00000.00 00000.00 0000.00 0000.00 0000.00 0000.00