Adjusting Entries Practice Set: iCandy, Australasian Edition

This document presents a comprehensive solution to an adjusting entries practice set designed for manual accounting systems. The assignment focuses on the iCandy, Australasian Edition, and requires students to journalize and post adjusting entries to the general ledger after completing a worksheet. The practice set covers various adjustments, including depreciation of cash registers and store fixtures, accrued expenses like water, electricity, and wages, prepaid expenses such as rent, advertising, and insurance, and accrued interest expense. The solution provides detailed general journal entries, including debits and credits, and posts these entries to the general ledger accounts, showing the adjusted balances. The document includes the original problem along with the fully worked-out solution, including all calculations and final balances for each ledger account, ensuring that students can understand the process of adjusting entries in a manual accounting environment. The solution emphasizes the importance of accuracy and completeness in the accounting process, providing a valuable resource for students studying financial accounting.

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Manual Accounting Practice Set
iCandy, Australasian Edition 3
Feedback: Adjusting entries
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.
You are now asked to journalise and post the adjusting entries after completing the worksheet. This is because, in the
manual accounting system, the worksheet is not part of the journals and ledgers. Therefore completing the Adjustments
column in the worksheet does not automatically update the appropriate ledger accounts. Since this practice set is a
manual accounting practice set, you are still required to manually journalise the adjusting entries and post them to the
general ledger as a separate step.
The purpose of adjusting entries is to ensure that the general ledger account balances reflect the income earned and
expenses incurred during the accounting period.
Remember that 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.

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Office Supplies Expense
Office Supplies
Rent Expense
Prepaid Rent
Advertising Expense
Prepaid Advertising
Insurance Expense
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 adjusting entries
Use the worksheet to assist you in recording the adjusting entries in the general journal.
Post the adjusting entries from the general journal to the general ledger accounts.
Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even for ledgers
with a balance of zero. Although each ledger already has a running balance, the Adjusted Balance row must still be
filled out in order to receive full points.
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Remember:
Enter all answers to the nearest whole dollar.
You are also required to apply the journals and ledgers instructions provided in previous weeks.
Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant
accounting records have been completed.
Special Journals General Journal Subsidiary Ledgers General Ledger
(Q=861.generalJournalAdjEntries)
GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 30 544 238 0
130 0 238
Jun 30 540 4800 0
140 0 4800
Jun 30 511 4000 0
141 0 4000
Jun 30 543 830 0
1)
2)
3)
Show All

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Prepaid Insurance
Depn Expense: Cash Registers
Accum Depn: Cash Registers
Depn Expense: Store Fixtures
Accum Depn: Store Fixtures
Wages Expense
Wages Payable
Electricity Expense
Electricity Payable
Water Expense
Water Payable
Interest Expense
Interest Payable
142 0 830
Jun 30 560 117 0
151 0 117
Jun 30 561 407 0
161 0 407
Jun 30 516 1800 0
220 0 1800
Jun 30 541 188 0
221 0 188
Jun 30 542 117 0
222 0 117
Jun 30 571 210 0
225 0 210
Feedback
GENERAL JOURNAL
Date Explanation Post
Ref. Debit Credit
Jun 21 Sales Returns and Allowances 401 1,368
Jun 21 ARC - Mercury Square 110/110-3 1,368
(sales return)
Jun 21 Inventory 120 792
Jun 21 Cost of Sales 500 792
(sales return)
Jun 28 APC - Brennan Imports Group 210/210-5 1,200
Jun 28 Inventory 120 1,200

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(purchase return)
Jun 30 Depn Expense: Cash Registers 560 117
Jun 30 Accum Depn: Cash Registers 151 117
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 407
Jun 30 Accum Depn: Store Fixtures 161 407
(adjusting entry)
Jun 30 Water Expense 542 117
Jun 30 Water Payable 222 117
(adjusting entry)
Jun 30 Electricity Expense 541 188
Jun 30 Electricity Payable 221 188
(adjusting entry)
Jun 30 Wages Expense 516 1,800
Jun 30 Wages Payable 220 1,800
(adjusting entry)
Jun 30 Interest Expense 571 210
Jun 30 Interest Payable 225 210
(adjusting entry)
Jun 30 Office Supplies Expense 544 238
Jun 30 Office Supplies 130 238
(adjusting entry)
Jun 30 Rent Expense 540 4,800
Jun 30 Prepaid Rent 140 4,800
(adjusting entry)
Jun 30 Advertising Expense 511 4,000
Jun 30 Prepaid Advertising 141 4,000
(adjusting entry)
Jun 30 Insurance Expense 543 830
Jun 30 Prepaid Insurance 142 830
(adjusting entry)

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(Q=870-130.StoreSupplies_adjEntry)
GENERAL LEDGER
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 375 DR
Jun 2 Cash purchase CPJ 506 881 DR
Jun 30 Office Supplies Consumed GJ 0 238 643 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 643 DR
Feedback
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 375 DR
Jun 2 Cash purchase CPJ 506 881 DR
Jun 30 Supplies used GJ 238 643 DR
Jun 30 Adjusted Balance 643 DR
(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 1 Prepaid rent CPJ 9,600 9,600 DR
Jun 30 Rent Expired GJ 0 4800 4800 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4800 DR
Feedback

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Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 1 Prepaid rent CPJ 9,600 9,600 DR
Jun 30 Rent expired GJ 4,800 4,800 DR
Jun 30 Adjusted Balance 4,800 DR
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 12,000 DR
Jun 30 Benefits Consmed GJ 0 4000 8000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 8000 DR
Feedback
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 12,000 DR
Jun 30 Benefits consumed GJ 4,000 8,000 DR
Jun 30 Adjusted Balance 8,000 DR
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 4,150 DR
Jun 30 Insurance Expired GJ 0 830 3320 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 3320 DR

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Feedback
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 4,150 DR
Jun 30 Insurance expired GJ 830 3,320 DR
Jun 30 Adjusted Balance 3,320 DR
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 1,633 CR
Jun 30 Dep. Charged GJ 0 117 1750 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1750 CR
Feedback
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 1,633 CR
Jun 30 Depreciation - one month GJ 117 1,750 CR
Jun 30 Adjusted Balance 1,750 CR
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 24,444 CR
Jun 30 Dep. Charged GJ 0 407 24851 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 24851 CR

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Feedback
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 24,444 CR
Jun 30 Depreciation - one month GJ 407 24,851 CR
Jun 30 Adjusted Balance 24,851 CR
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 1,143 CR
Jun 4 Paid staff wages CPJ 1,143 0
Jun 30 Wages Due GJ 0 1800 1800 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1800 CR
Feedback
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 1,143 CR
Jun 4 Paid staff wages CPJ 1,143 0
Jun 30 Accrued wages expense GJ 1,800 1,800 CR
Jun 30 Adjusted Balance 1,800 CR
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 838 CR
Jun 6 Paid electricity bill CPJ 755 83 CR
Jun 30 Electricity Bill Due GJ 0 188 271 CR
Jun 30
Jun 30

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Jun 30 Adjusted Balance 271 CR
Feedback
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 838 CR
Jun 6 Paid electricity bill CPJ 755 83 CR
Jun 30 Accrued electricity expense GJ 188 271 CR
Jun 30 Adjusted Balance 271 CR
(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 120 CR
Jun 30 Water Expenses Due GJ 0 117 237 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 237 CR
Feedback
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 120 CR
Jun 30 Accrued water expense GJ 117 237 CR
Jun 30 Adjusted Balance 237 CR
(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 210 CR
Jun 30 Interest Due GJ 0 210 420 CR

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Jun 30
Jun 30
Jun 30 Adjusted Balance 420 CR
Feedback
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 210 CR
Jun 30 Accrued interest expense GJ 210 420 CR
Jun 30 Adjusted Balance 420 CR
(Q=870-403.InterestRevenue_adjEntry)
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 562 562 CR
Jun 30
Jun 30
Jun 30
Jun 30 Adjusted Balance 562 CR
Feedback
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 562 562 CR
Jun 30 Adjusted Balance 562 CR
(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0

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Jun 30 Advertising Expenses GJ 4000 0 4000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4000 DR
Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 4,000 4,000 DR
Jun 30 Adjusted Balance 4,000 DR
(Q=870-516.WagesExpense_adjEntry)
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 6,891 6,891 DR
Jun 30 Total Wages Due GJ 1800 0 8691 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 8691 DR
Feedback
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 6,891 6,891 DR
Jun 30 Accrued wages expense GJ 1,800 8,691 DR
Jun 30 Adjusted Balance 8,691 DR
(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent Expenses GJ 4800 0 4800 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4800 DR
Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent Expired GJ 4,800 4,800 DR
Jun 30 Adjusted Balance 4,800 DR
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Electricity Expenses GJ 188 0 188 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 188 DR
Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 188 188 DR
Jun 30 Adjusted Balance 188 DR
(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Water Expenses GJ 117 0 117 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 117 DR
Feedback
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued water expense GJ 117 117 DR
Jun 30 Adjusted Balance 117 DR
(Q=870-543.InsuranceExpense_adjEntry)
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance Expenses GJ 830 0 830 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 830 DR
Feedback
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 830 830 DR
Jun 30 Adjusted Balance 830 DR
(Q=870-544.SuppliesExpense_adjEntry)
Account: Office Supplies Expense
Account No. 544

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Office Supplies Expenses GJ 238 0 238 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 238 DR
Feedback
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Supplies used GJ 238 238 DR
Jun 30 Adjusted Balance 238 DR
(Q=870-560.DepnExpenseCapitalAsset2_adjEntry)
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Dep. Expenses GJ 117 0 117 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 117 DR
Feedback
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 117 117 DR
Jun 30 Adjusted Balance 117 DR
(Q=870-561.DepnExpenseCapitalAsset1_adjEntry)
Account: Depn Expense: Store Fixtures
Account No. 561

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Dep. Expenses GJ 407 0 407 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 407 DR
Feedback
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 407 407 DR
Jun 30 Adjusted Balance 407 DR
(Q=870-571.InterestExpense_adjEntry)
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest Expenses GJ 210 0 210 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 210 DR
Feedback
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 210 210 DR
Jun 30 Adjusted Balance 210 DR

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Manual Accounting Practice Set
iCandy, Australasian Edition 3 (VSA3q)
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