Manual Accounting Practice Set - Tech Head: Adjusting Entries

This document provides a detailed solution for the adjusting entries section of the Tech Head manual accounting practice set for June. It includes the journalizing of adjusting entries related to depreciation of cash registers and store fixtures, water and electricity expenses, office supplies, rent, advertising, insurance, wages, and interest. The solution also demonstrates how to post these entries to the general ledger accounts, updating balances for accounts like Office Supplies, Prepaid Rent, Prepaid Advertising, Prepaid Insurance, Accumulated Depreciation, Wages Payable, Electricity Payable, Water Payable, and Interest Payable. Each ledger account shows the initial balance, adjusting entry, and the final adjusted balance. This comprehensive solution ensures that general ledger account balances accurately reflect income earned and expenses incurred during the accounting period. Students can use Desklib to access this and other solved assignments for effective learning.

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Manual Accounting Practice Set
Tech Head, 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 4 years, and
estimated residual value was $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 $45,000, estimated useful life was 9 years, and
estimated residual value was $6,000 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 $115.
The estimated electricity payable as at the end of June is $287.
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 $1,890 per day.
Interest expense incurred during the month of June but not yet paid to ZNZ Bank for the bank loan is $235.
Office supplies totalling $624 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.

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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
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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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 30 560 156 0
151 0 156
Jun 30 561 361 0
161 0 361
Jun 30 542 115 0
222 0 115
Jun 30 541 217 0
221 0 217
Jun 30 544 102 0
130 0 102
Jun 30 540 4300 0
1)
2)
3)
Show All

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Prepaid Rent
Advertising Expense
Prepaid Advertising
Insurance Expense
Prepaid Insurance
140 0 4300
Jun 30 544 5000 0
141 0 5000
Jun 30 543 930 0
142 0 930
Jun 30
Jun 30
Feedback
GENERAL JOURNAL
Date Explanation Post
Ref. Debit Credit
Jun 20 Sales Returns and Allowances 401 5,976
Jun 20 ARC - Radio Hut 110/110-3 5,976
(sales return)
Jun 20 Inventory 120 3,672
Jun 20 Cost of Sales 500 3,672
(sales return)
Jun 28 APC - Mega Tech 210/210-5 2,832
Jun 28 Inventory 120 2,832
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 156
Jun 30 Accum Depn: Cash Registers 151 156
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 361
Jun 30 Accum Depn: Store Fixtures 161 361
(adjusting entry)

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Jun 30 Water Expense 542 115
Jun 30 Water Payable 222 115
(adjusting entry)
Jun 30 Electricity Expense 541 217
Jun 30 Electricity Payable 221 217
(adjusting entry)
Jun 30 Wages Expense 516 11,340
Jun 30 Wages Payable 220 11,340
(adjusting entry)
Jun 30 Interest Expense 571 235
Jun 30 Interest Payable 225 235
(adjusting entry)
Jun 30 Office Supplies Expense 544 102
Jun 30 Office Supplies 130 102
(adjusting entry)
Jun 30 Rent Expense 540 4,300
Jun 30 Prepaid Rent 140 4,300
(adjusting entry)
Jun 30 Advertising Expense 511 5,000
Jun 30 Prepaid Advertising 141 5,000
(adjusting entry)
Jun 30 Insurance Expense 543 930
Jun 30 Prepaid Insurance 142 930
(adjusting entry)
(Q=870-130.StoreSupplies_adjEntry)
GENERAL LEDGER
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 238 DR
Jun 5 Cash purchase CPJ 488 726 DR
Jun 30 used GJ 0 102 624 DR
Jun 30

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Jun 30
Jun 30 Adjusted Balance 624 DR
Feedback
Account: Office Supplies
Account No. 130
Date Description Ref. Debit Credit Balance
May 31 Balance 238 DR
Jun 5 Cash purchase CPJ 488 726 DR
Jun 30 Supplies used GJ 102 624 DR
Jun 30 Adjusted Balance 624 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 8,600 8,600 DR
Jun 30 used GJ 0 4300 4300 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4300 DR
Feedback
Account: Prepaid Rent
Account No. 140
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 1 Prepaid rent CPJ 8,600 8,600 DR
Jun 30 Rent expired GJ 4,300 4,300 DR
Jun 30 Adjusted Balance 4,300 DR
(Q=870-141.PrepaidAdvertising_adjEntry)
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 15,000 DR
Jun 30 used GJ 0 5000 10000 DR
Jun 30

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Jun 30
Jun 30 Adjusted Balance 10000 DR
Feedback
Account: Prepaid Advertising
Account No. 141
Date Description Ref. Debit Credit Balance
May 31 Balance 15,000 DR
Jun 30 Benefits consumed GJ 5,000 10,000 DR
Jun 30 Adjusted Balance 10,000 DR
(Q=870-142.PrepaidInsurance_adjEntry)
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 4,650 DR
Jun 30 used GJ 0 930 3720 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 3720 DR
Feedback
Account: Prepaid Insurance
Account No. 142
Date Description Ref. Debit Credit Balance
May 31 Balance 4,650 DR
Jun 30 Insurance expired GJ 930 3,720 DR
Jun 30 Adjusted Balance 3,720 DR
(Q=870-151.AccDepnCapitalAsset2_adjEntry)
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 2,344 CR
Jun 30 used GJ 0 156 2500 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 2500 CR

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Feedback
Account: Accum Depn: Cash Registers
Account No. 151
Date Description Ref. Debit Credit Balance
May 31 Balance 2,344 CR
Jun 30 Depreciation - one month GJ 156 2,500 CR
Jun 30 Adjusted Balance 2,500 CR
(Q=870-161.AccDepnCapitalAsset1_adjEntry)
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 13,000 CR
Jun 30 used GJ 0 361 13361 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 13361 CR
Feedback
Account: Accum Depn: Store Fixtures
Account No. 161
Date Description Ref. Debit Credit Balance
May 31 Balance 13,000 CR
Jun 30 Depreciation - one month GJ 361 13,361 CR
Jun 30 Adjusted Balance 13,361 CR
(Q=870-220.WagesPayable_adjEntry)
Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 7,429 CR
Jun 4 Paid staff wages CPJ 7,429 0
Jun 30 due GJ 0 11340 11340 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 11340 CR
Feedback

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Account: Wages Payable
Account No. 220
Date Description Ref. Debit Credit Balance
May 31 Balance 7,429 CR
Jun 4 Paid staff wages CPJ 7,429 0
Jun 30 Accrued wages expense GJ 11,340 11,340 CR
Jun 30 Adjusted Balance 11,340 CR
(Q=870-221.ElectricityPayable_adjEntry)
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 853 CR
Jun 2 Paid electricity bill CPJ 783 70 CR
Jun 30 due GJ 0 217 287 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 287 CR
Feedback
Account: Electricity Payable
Account No. 221
Date Description Ref. Debit Credit Balance
May 31 Balance 853 CR
Jun 2 Paid electricity bill CPJ 783 70 CR
Jun 30 Accrued electricity expense GJ 217 287 CR
Jun 30 Adjusted Balance 287 CR
(Q=870-222.WaterPayable_adjEntry)
Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 122 CR
Jun 30 due GJ 115 0 237 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 237 CR
Feedback

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Account: Water Payable
Account No. 222
Date Description Ref. Debit Credit Balance
May 31 Balance 122 CR
Jun 30 Accrued water expense GJ 115 237 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 235 CR
Jun 30 due GJ 0 235 470 CR
Jun 30
Jun 30
Jun 30 Adjusted Balance 470 CR
Feedback
Account: Interest Payable
Account No. 225
Date Description Ref. Debit Credit Balance
May 31 Balance 235 CR
Jun 30 Accrued interest expense GJ 235 470 CR
Jun 30 Adjusted Balance 470 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 772 772 CR
Jun 30
Jun 30
Jun 30
Jun 30 Adjusted Balance 722 CR
Feedback
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 772 772 CR
Jun 30 Adjusted Balance 772 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 5000 0 5000 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 5000 DR
Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 5,000 5,000 DR
Jun 30 Adjusted Balance 5,000 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 44,685 44,685 DR
Jun 30 for june GJ 11340 0 56025 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 56025 DR
Feedback
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0

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Jun 30 Total from cash payments journal CPJ 44,685 44,685 DR
Jun 30 Accrued wages expense GJ 11,340 56,025 DR
Jun 30 Adjusted Balance 56,025 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 4300 0 4300 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 4300 DR
Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent Expired GJ 4,300 4,300 DR
Jun 30 Adjusted Balance 4,300 DR
(Q=870-541.ElectricityExpense_adjEntry)
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 for june GJ 217 0 217 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 217 DR
Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 217 217 DR
Jun 30 Adjusted Balance 217 DR

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(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 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
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 for june GJ 930 0 930 DR
Jun 30
Jun 30
Jun 30 Adjusted Balance 930 DR
Feedback
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 930 930 DR
Jun 30 Adjusted Balance 930 DR
(Q=870-544.SuppliesExpense_adjEntry)