Manual Accounting Practice Set for iCandy | Desklib

8/31/2017 Worksheet
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Manual Accounting Practice Set
iCandy, Australasian Edition 3
Feedback: Worksheet
This is a feedback page. Please review this page carefully because later pages in this practice set build on the feedback provided here. After you have reviewed your feedback
page, click Continue at the bottom of this page to move on to the next page of your practice set.
Now that you have completed the end of month posting procedure, you are asked to complete the worksheet for iCandy.
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 journalise
and post adjusting entries to general ledger. You will also use this worksheet to assist you in preparing the financial statements for iCandy in a later section of this practice set.
The details of the end of month adjustments for June are as follows:
Cash Registers owned by the business: original purchase price was $8,000, estimated useful life was 5 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.
Store Fixtures owned by the business: original purchase price was $47,000, estimated useful life was 9 years, and estimated residual value was $3,000 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.
The water usage for the month of June is estimated to be $117.
The estimated electricity payable as at the end of June is $271.
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 25 June to 30 June inclusive) are estimated to have been $300 per day.
Interest expense incurred during the month of June but not yet paid to EastPac Bank for the bank loan is $210.
Office supplies totalling $643 are still on hand at 30 June.
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.
Additionally, a stocktake revealed that the balance of inventory on hand as at 30 June is equal to the closing balance of the 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 unadjusted account balances provided in the general ledger. 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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(Q=820.worksheetQuestion)
iCandy
Worksheet
As at 30/06/2017