iCandy Worksheet Solution: Manual Accounting Practice Set, VSA3q

This document provides a detailed solution to the iCandy worksheet assignment from the Manual Accounting Practice Set, Australasian Edition 3 (VSA3q). It includes the completed worksheet with unadjusted trial balance, adjustments, adjusted trial balance, income statement, and balance sheet columns. The solution covers end-of-month adjustments for depreciation (cash registers and store fixtures), accrued expenses (water, electricity, wages, and interest), office supplies, prepaid expenses (rent, advertising, and insurance), and inventory. The completed worksheet is essential for journalizing adjusting entries and preparing financial statements. Desklib offers this and other solved assignments to assist students with their studies.

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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If you want to print this page, please read and follow the special printing information to ensure you can print the worksheet in full.
(Q=820.worksheetQuestion)
iCandy
Worksheet
As at 30/06/2017

8/31/2017 Worksheet
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Acct.
No.
Account Name Unadjusted Trial
Balance
Adjustments Adjusted Trial
Balance
Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
100 Cash at Bank 97235 97235 97235
110 ARC - Accounts Receivable Control 51401 51401 51401
120 Inventory 50104 50104 50104
130 Office Supplies 881 238 643 643
140 Prepaid Rent 9600 4800 4800 4800
141 Prepaid Advertising 12000 4000 8000 8000
142 Prepaid Insurance 4150 830 3320 3320
150 Cash Registers 8000 8000 8000
151 Accum Depn: Cash Registers 1633 117 1750 1750
160 Store Fixtures 47000 47000 47000
161 Accum Depn: Store Fixtures 24444 407 24851 24851
210 APC - Accounts Payable Control 44084 44084 44084
220 Wages Payable 0 1800 1800 1800
221 Electricity Payable 83 188 271 271
222 Water Payable 120 117 237 237
225 Interest Payable 210 210 420 420
250 Bank Loan Payable 42000 42000 42000
300 Share Capital 60000 60000 60000
301 Retained Earnings 79531 79531 79531
400 Sales Revenue 93920 93920 93920
401 Sales Returns and Allowances 1368 1368 1368
402 Discount Received 66 66 66
403 Interest Revenue 562 562 562
500 Cost of Sales 52408 52408 52408
511 Advertising Expense 0 4000 4000 4000
516 Wages Expense 6891 1800 8691 8691
540 Rent Expense 0 4800 4800 4800
541 Electricity Expense 0 188 188 188
542 Water Expense 0 117 117 117
543 Insurance Expense 0 830 830 830
544 Office Supplies Expense 0 238 238 238
545 Salary Expense 5300 5300 5300
560 Depn Expense: Cash Registers 0 117 117 117
561 Depn Expense: Store Fixtures 0 407 407 407
571 Interest Expense 0 210 210 210
572 Bank Charges 11 11 11
573 Discount Allowed 304 304 304
Totals 346653 346653 12707 12707 349492 349492 78989 94548 270503 254944
Profit/loss 15559 15559
Totals 94548 94548 270503 270503

8/31/2017 Worksheet
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Feedback
iCandy
Worksheet
As at 30/06/2017
Acct. No. Account Name
Unadjusted Trial
Balance Adjustments Adjusted Trial
Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
100 Cash at Bank 97,235 97,235 97,235
110 ARC - Accounts Receivable Control 51,401 51,401 51,401
120 Inventory 50,104 50,104 50,104
130 Office Supplies 881 238 643 643
140 Prepaid Rent 9,600 4,800 4,800 4,800
141 Prepaid Advertising 12,000 4,000 8,000 8,000
142 Prepaid Insurance 4,150 830 3,320 3,320
150 Cash Registers 8,000 8,000 8,000
151 Accum Depn: Cash Registers 1,633 117 1,750 1,750
160 Store Fixtures 47,000 47,000 47,000
161 Accum Depn: Store Fixtures 24,444 407 24,851 24,851
210 APC - Accounts Payable Control 44,084 44,084 44,084
220 Wages Payable 1,800 1,800 1,800
221 Electricity Payable 83 188 271 271
222 Water Payable 120 117 237 237
225 Interest Payable 210 210 420 420
250 Bank Loan Payable 42,000 42,000 42,000
300 Share Capital 60,000 60,000 60,000
301 Retained Earnings 79,531 79,531 79,531
400 Sales Revenue 93,920 93,920 93,920
401 Sales Returns and Allowances 1,368 1,368 1,368
402 Discount Received 66 66 66
403 Interest Revenue 562 562 562
500 Cost of Sales 52,408 52,408 52,408
511 Advertising Expense 4,000 4,000 4,000
516 Wages Expense 6,891 1,800 8,691 8,691
540 Rent Expense 4,800 4,800 4,800
541 Electricity Expense 188 188 188
542 Water Expense 117 117 117
543 Insurance Expense 830 830 830
544 Office Supplies Expense 238 238 238
545 Salary Expense 5,300 5,300 5,300
560 Depn Expense: Cash Registers 117 117 117
561 Depn Expense: Store Fixtures 407 407 407
571 Interest Expense 210 210 210
572 Bank Charges 11 11 11
573 Discount Allowed 304 304 304
Totals 346,653 346,653 12,707 12,707 349,492 349,492 78,989 94,548 270,503 254,944
Profit/loss 15,559 15,559
Totals 94,548 94,548 270,503 270,503
Manual Accounting Practice Set
iCandy, Australasian Edition 3 (VSA3q)
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