ACC201 Financial Accounting: Adjusting Entries - Tech Boutique

This practical assignment focuses on the adjusting entries required for a technology boutique at the end of an accounting period. It involves journalizing and posting these entries to the general ledger after completing the worksheet, a crucial step in manual accounting systems. The adjusting entries cover various aspects, including depreciation of cash registers and store fixtures, accrued water and electricity expenses, wages payable, interest expense and revenue, office supplies, and prepaid rent, advertising, and insurance. The assignment provides detailed feedback on each entry, ensuring a thorough understanding of the adjusting process and its impact on financial statements. Desklib provides a platform to access similar assignments and study resources for students.

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Manual Accounting Practice Set
Technology Boutique, 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 $7,000, 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 $39,000, estimated useful life was 11 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.
The water usage for the month of June is estimated to be $115.
The estimated electricity payable as at the end of June is $408.
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 $1,870 per day.

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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
Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $220.
Interest earned from short-term investments in MRMC Bank for the month of June is $125.
Office supplies totalling $1,780 are still on hand at 30 June.
15 days 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.
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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Enter all answers to the nearest whole dollar.
You are also required to apply the journals and ledgers instructions provided in previous weeks.
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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 76 0
151 0 76
Jun 30 561 254 0
161 0 254
Jun 30 542 115 0
222 0 115
Jun 30 541 353 0
1)
2)
3)
Show All

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Electricity Payable
Wages Expense
Wages Payable
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Office Supplies Expense
Office Supplies
Rent Expense
Prepaid Rent
Advertising Expense
Prepaid Advertising
Insurance Expense
Prepaid Insurance
221 0 353
Jun 30 516 11220 0
220 0 11220
Jun 30 571 220 0
225 0 220
Jun 30 112 125 0
403 0 125
Jun 30 544 364 0
130 0 364
Jun 30 540 2400 0
140 0 2400
Jun 30 511 2000 0
141 0 2000
Jun 30 543 650 0
142 0 650
Feedback
GENERAL JOURNAL
Date Explanation Post
Ref. Debit Credit
Jun 13 Sales Returns and Allowances 401 3,600
Jun 13 GST Collections 240 360
Jun 13 ARC - Hypertronics 110/110-3 3,960
(sales return)
Jun 13 Inventory 120 2,000

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Jun 13 Cost of Sales 500 2,000
(sales return)
Jun 21 APC - Moon Megasystems 210/210-3 4,290
Jun 21 Inventory 120 3,900
Jun 21 GST Outlays 135 390
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 76
Jun 30 Accum Depn: Cash Registers 151 76
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 254
Jun 30 Accum Depn: Store Fixtures 161 254
(adjusting entry)
Jun 30 Water Expense 542 115
Jun 30 Water Payable 222 115
(adjusting entry)
Jun 30 Electricity Expense 541 353
Jun 30 Electricity Payable 221 353
(adjusting entry)
Jun 30 Wages Expense 516 11,220
Jun 30 Wages Payable 220 11,220
(adjusting entry)
Jun 30 Interest Expense 571 220
Jun 30 Interest Payable 225 220
(adjusting entry)
Jun 30 Interest Receivable 112 125
Jun 30 Interest Revenue 403 125
(adjusting entry)
Jun 30 Office Supplies Expense 544 364
Jun 30 Office Supplies 130 364
(adjusting entry)
Jun 30 Rent Expense 540 2,400

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Jun 30 Prepaid Rent 140 2,400
(adjusting entry)
Jun 30 Advertising Expense 511 2,000
Jun 30 Prepaid Advertising 141 2,000
(adjusting entry)
Jun 30 Insurance Expense 543 650
Jun 30 Prepaid Insurance 142 650
(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 Interest Receivable GJ 125 0 125 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 125 DR
Feedback
Account: Interest Receivable
Account No. 112
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest revenue GJ 125 125 DR
Jun 30 Adjusted Balance 125 DR
(Q=870-130.StoreSupplies_adjEntry)
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 2,144 DR
Jun 30 Supplies Expired GJ 0 364 1780 DR

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Jun 30
Jun 30
Jun 30 Adjusted Balance 1780 DR
Feedback
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 2,144 DR
Jun 30 Supplies used GJ 364 1,780 DR
Jun 30 Adjusted Balance 1,780 DR
(Q=870-140.PrepaidRent_adjEntry)
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 1,200 DR
Jun 15 Prepaid rent CPJ 2,400 3,600 DR
Jun 30 Expired rent GJ 0 2400 1200 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1200 DR
Feedback
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 1,200 DR
Jun 15 Prepaid rent CPJ 2,400 3,600 DR
Jun 30 Rent expired GJ 2,400 1,200 DR
Jun 30 Adjusted Balance 1,200 DR
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance

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May 31 Balance 6,000 DR
Jun 30 Prepaid expeneses GJ 0 2000 4000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4000 DR
Feedback
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 6,000 DR
Jun 30 Benefits consumed GJ 2,000 4,000 DR
Jun 30 Adjusted Balance 4,000 DR
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 3,250 DR
Jun 30 Prepaid expenses GJ 0 650 2600 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2600 DR
Feedback
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 3,250 DR
Jun 30 Insurance expired GJ 650 2,600 DR
Jun 30 Adjusted Balance 2,600 DR
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance

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May 31 Balance 1,757 CR
Jun 30 Depreciation GJ 0 76 1833 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 1833 CR
Feedback
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 1,757 CR
Jun 30 Depreciation - one month GJ 76 1,833 CR
Jun 30 Adjusted Balance 1,833 CR
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 11,420 CR
Jun 30 Depreciation GJ 0 254 11674 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 11674 CR
Feedback
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 11,420 CR
Jun 30 Depreciation - one month GJ 254 11,674 CR
Jun 30 Adjusted Balance 11,674 CR
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance

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May 31 Balance 6,500 CR
Jun 4 Paid staff wages CPJ 6,500 0
Jun 30 Wages Expenses GJ 0 11220 11220 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 11220 CR
Feedback
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 6,500 CR
Jun 4 Paid staff wages CPJ 6,500 0
Jun 30 Accrued wages expense GJ 11,220 11,220 CR
Jun 30 Adjusted Balance 11,220 CR
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 1,225 CR
Jun 10 Paid electricity bill CPJ 1,170 55 CR
Jun 30 GJ 0 353 408 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 408 CR
Feedback
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 1,225 CR
Jun 10 Paid electricity bill CPJ 1,170 55 CR
Jun 30 Accrued electricity expense GJ 353 408 CR
Jun 30 Adjusted Balance 408 CR
Exlectricity Expenses

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(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 110 CR
Jun 30 Water Expenses GJ 0 115 225 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 225 CR
Feedback
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 110 CR
Jun 30 Accrued water expense GJ 115 225 CR
Jun 30 Adjusted Balance 225 CR
(Q=870-225.InterestPayable_adjEntry)
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 220 CR
Jun 30 Interest Expenses GJ 0 220 440 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 440 CR
Feedback
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 220 CR
Jun 30 Accrued interest expense GJ 220 440 CR
Jun 30 Adjusted Balance 440 CR

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(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 826 826 CR
Jun 30 Revenue receivable GJ 0 125 951 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 951 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 826 826 CR
Jun 30 Accrued interest revenue GJ 125 951 CR
Jun 30 Adjusted Balance 951 CR
(Q=870-511.AdvertisingExpense_adjEntry)
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 GJ 2000 0 2000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2000 DR
Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 2,000 2,000 DR
Advance expenses ex

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Jun 30 Adjusted Balance 2,000 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 45,134 45,134 DR
Jun 30 wages expenses GJ 11220 0 56354 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 56354 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 45,134 45,134 DR
Jun 30 Accrued wages expense GJ 11,220 56,354 DR
Jun 30 Adjusted Balance 56,354 DR
(Q=870-540.RentExpense_adjEntry)
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses incurred GJ 2400 0 2400 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2400 DR
Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance

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May 31 Balance 0
Jun 30 Rent expired GJ 2,400 2,400 DR
Jun 30 Adjusted Balance 2,400 DR
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses incurred GJ 353 0 353 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 353 DR
Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 353 353 DR
Jun 30 Adjusted Balance 353 DR
(Q=870-542.WaterExpense_adjEntry)
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses incurred GJ 115 0 115 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 115 DR
Feedback
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance

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May 31 Balance 0
Jun 30 Accrued water expense GJ 115 115 DR
Jun 30 Adjusted Balance 115 DR
(Q=870-543.InsuranceExpense_adjEntry)
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses incurred GJ 650 0 650 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 650 DR
Feedback
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 650 650 DR
Jun 30 Adjusted Balance 650 DR
(Q=870-544.SuppliesExpense_adjEntry)
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses incurred GJ 364 0 364 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 364 DR
Feedback
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance

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May 31 Balance 0
Jun 30 Supplies used GJ 364 364 DR
Jun 30 Adjusted Balance 364 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 Expenses GJ 76 0 76 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 76 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 76 76 DR
Jun 30 Adjusted Balance 76 DR
(Q=870-561.DepnExpenseCapitalAsset1_adjEntry)
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses GJ 254 0 254 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 254 DR
Feedback
Account: Depn Expense: Store Fixtures
Account No. 561

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 254 254 DR
Jun 30 Adjusted Balance 254 DR
(Q=870-571.InterestExpense_adjEntry)
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Expenses GJ 220 0 220 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 220 DR
Feedback
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 220 220 DR
Jun 30 Adjusted Balance 220 DR
Manual Accounting Practice Set
Technology Boutique, Australasian Edition 3 (VTA3q)
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