Manual Accounting Adjusting Entries for Ball-Mart - June Adjustments

This assignment solution provides a detailed walkthrough of adjusting entries for Ball-Mart's Australasian Edition manual accounting practice set. It covers the journalizing and posting of various adjustments, including depreciation of cash registers and store fixtures, accrued electricity and water expenses, wages payable, interest expense, interest revenue, office supplies, prepaid rent, prepaid advertising, and prepaid insurance. Each adjusting entry is explained with corresponding general journal entries and general ledger account updates, ensuring that the final adjusted balances reflect the accurate financial position of the company at the end of June. The solution emphasizes the importance of manually updating the general ledger accounts after completing the worksheet in a manual accounting system.

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Manual Accounting Practice Set
Ball-Mart, 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 6 years, and
estimated residual value was $1,500 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.
Store Fixtures owned by the business: original purchase price was $50,000, estimated useful life was 10 years,
and estimated residual value was $5,500 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.
Electricity expense for the month of June is estimated to be $837.
The water usage for the month of June is estimated to be $249.
Sales staff work every single day during the week including weekends and are not paid until the end of each two
weeks. Wages were last paid up to and including 28 June. Wages incurred after that day (from 29 June to 30 June
inclusive) are estimated to have been $660 per day.
Interest expense incurred during the month of June but not yet paid to EastPac Bank for the bank loan is $250.
Interest earned from short-term investments in BitiBank for the month of June is $105.
Office supplies totalling $2,994 are still on hand at 30 June.
2 months of rent remained pre-paid at the start of June.
3 months of advertising remained pre-paid at the start of June.
5 months of insurance remained pre-paid at the start of June.

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Depn Expense: Cash Registers
Accum Depn: Cash Registers
Depn Expense: Store Fixtures
Accum Depn: Store Fixtures
Water Expense
Water Payable
Electricity Expense
Electricity Payable
Office Supplies Expense
Office Supplies
Rent Expense
Prepaid Rent
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.
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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Special Journals General Journal Subsidiary Ledgers General Ledger
(Q=861.generalJournalAdjEntries)
GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 30 560 90 0
151 0 90
Jun 30 561 370 0
161 0 370
Jun 30 542 249 0
222 0 249
Jun 30 541 837 0
221 0 837
Jun 30 544 3811 0
130 0 3811
Jun 30 540 2000 0
140 0 2000
1)
2)
3)
Show All

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Advertising Expense
Prepaid Advertising
Insurance Expense
Prepaid Advertising
Interest Receivable
Interest Revenue
Jun 30 511 3000 0
141 0 3000
Jun 30 543 550 0
141 0 550
Jun 30 112 105 0
403 0 105
Jun 30
Jun 30
Feedback
GENERAL JOURNAL
Date Explanation Post
Ref. Debit Credit
Jun 13 Sales Returns and Allowances 401 2,173
Jun 13 ARC - Mick's Sporting Goods 110/110-3 2,173
(sales return)
Jun 16 APC - J. J. Spud 210/210-3 2,375
Jun 16 Purchase Returns and Allowances 501 2,375
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 90
Jun 30 Accum Depn: Cash Registers 151 90
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 371
Jun 30 Accum Depn: Store Fixtures 161 371
(adjusting entry)
Jun 30 Electricity Expense 541 837
Jun 30 Electricity Payable 221 837
(adjusting entry)

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Jun 30 Water Expense 542 249
Jun 30 Water Payable 222 249
(adjusting entry)
Jun 30 Wages Expense 516 1,320
Jun 30 Wages Payable 220 1,320
(adjusting entry)
Jun 30 Interest Expense 571 250
Jun 30 Interest Payable 225 250
(adjusting entry)
Jun 30 Interest Receivable 112 105
Jun 30 Interest Revenue 403 105
(adjusting entry)
Jun 30 Office Supplies Expense 544 3,811
Jun 30 Office Supplies 130 3,811
(adjusting entry)
Jun 30 Rent Expense 540 2,000
Jun 30 Prepaid Rent 140 2,000
(adjusting entry)
Jun 30 Advertising Expense 511 3,000
Jun 30 Prepaid Advertising 141 3,000
(adjusting entry)
Jun 30 Insurance Expense 543 550
Jun 30 Prepaid Insurance 142 550
(adjusting entry)
(Q=870-112.InterestReceivable_adjEntry)
GENERAL LEDGER
Account: Interest Receivable
Account No. 112
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 105 0 105 DR
Jun 30

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Jun 30
Jun 30 Adjusted Balance 105 DR
Feedback
Account: Interest Receivable
Account No. 112
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest revenue GJ 105 105 DR
Jun 30 Adjusted Balance 105 DR
(Q=870-130.StoreSupplies_adjEntry)
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 6,805 DR
Jun 30 for june GJ 0 3811 2994 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2994 DR
Feedback
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 6,805 DR
Jun 30 Supplies used GJ 3,811 2,994 DR
Jun 30 Adjusted Balance 2,994 DR
(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 4,000 DR
Jun 30 for june GJ 0 2000 2000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2000 DR

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Feedback
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 4,000 DR
Jun 30 Rent expired GJ 2,000 2,000 DR
Jun 30 Adjusted Balance 2,000 DR
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 9,000 DR
Jun 30 for june GJ 0 3000 6000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 6000 DR
Feedback
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 9,000 DR
Jun 30 Benefits consumed GJ 3,000 6,000 DR
Jun 30 Adjusted Balance 6,000 DR
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 2,750 DR
Jun 30 for june GJ 0 550 2200 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2200 DR
Feedback
Account: Prepaid Insurance
Account No. 142

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Date Description Ref. Debit Credit Balance
May 31 Balance 2,750 DR
Jun 30 Insurance expired GJ 550 2,200 DR
Jun 30 Adjusted Balance 2,200 DR
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 1,264 CR
Jun 30 for june GJ 0 90 1354 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1354 CR
Feedback
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 1,264 CR
Jun 30 Depreciation - one month GJ 90 1,354 CR
Jun 30 Adjusted Balance 1,354 CR
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 14,092 CR
Jun 30 for june GJ 0 370 14462 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 14462 CR
Feedback
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 14,092 CR
Jun 30 Depreciation - one month GJ 371 14,463 CR

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Jun 30 Adjusted Balance 14,463 CR
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 0 1320 1320 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1320 CR
Feedback
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued wages expense GJ 1,320 1,320 CR
Jun 30 Adjusted Balance 1,320 CR
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 0 837 837 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 837 CR
Feedback
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 837 837 CR
Jun 30 Adjusted Balance 837 CR

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(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 0 249 249 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 249 CR
Feedback
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued water expense GJ 249 249 CR
Jun 30 Adjusted Balance 249 CR
(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 0 250 250 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 250 CR
Feedback
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 250 250 CR
Jun 30 Adjusted Balance 250 CR
(Q=870-403.InterestRevenue_adjEntry)
Account: Interest Revenue
Account No. 403

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 250 250 CR
Jun 30 for june GJ 0 105 355 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 355 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 250 250 CR
Jun 30 Accrued interest revenue GJ 105 355 CR
Jun 30 Adjusted Balance 355 CR
(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 3000 0 3000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 3000 DR
Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 3,000 3,000 DR
Jun 30 Adjusted Balance 3,000 DR
(Q=870-516.WagesExpense_adjEntry)
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance

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May 31 Balance 0
Jun 15 Paid staff wages CPJ 5,432 5,432 DR
Jun 29 Paid staff wages CPJ 5,867 11,299 DR
Jun 30 for june GJ 1320 0 12619 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 12619 DR
Feedback
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 15 Paid staff wages CPJ 5,432 5,432 DR
Jun 29 Paid staff wages CPJ 5,867 11,299 DR
Jun 30 Accrued wages expense GJ 1,320 12,619 DR
Jun 30 Adjusted Balance 12,619 DR
(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 2000 0 2000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2000 DR
Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent expired GJ 2,000 2,000 DR
Jun 30 Adjusted Balance 2,000 DR
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 837 0 837 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 837 DR
Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 837 837 DR
Jun 30 Adjusted Balance 837 DR
(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 249 0 249 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 249 DR
Feedback
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued water expense GJ 249 249 DR
Jun 30 Adjusted Balance 249 DR
(Q=870-543.InsuranceExpense_adjEntry)
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 550 0 550 DR