Tech Head Worksheet Solution: Manual Accounting Practice Set 3

This document presents a solved worksheet for Tech Head, a manual accounting practice set. It details the end-of-month adjustments for June 2018, including depreciation calculations for cash registers and store fixtures, along with adjustments for water and electricity usage, wages payable, interest expense, office supplies, prepaid rent, advertising, and insurance. The worksheet includes columns for the unadjusted trial balance, adjustments, adjusted trial balance, income statement, and balance sheet. The solution demonstrates how to complete all columns in the worksheet using the unadjusted account balances from the general ledger and calculated end-of-month adjustments, providing a comprehensive guide for preparing financial statements.

6/6/2018 Worksheet
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Manual Accounting Practice Set
Tech Head, 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 Tech Head.
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 Tech Head 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 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.
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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(Q=820.worksheetQuestion)
Tech Head
Worksheet
As at 30/06/2018
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 96953 96953 96953
110 ARC - Accounts Receivable Control 230736 230736 230736

6/6/2018 Worksheet
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120 Inventory 110096 110096 110096
130 Office Supplies 726 102 624 624
140 Prepaid Rent 8600 4300 4300 4300
141 Prepaid Advertising 15000 5000 10000 10000
142 Prepaid Insurance 4650 930 3720 3720
150 Cash Registers 8000 8000 8000
151 Accum Depn: Cash Registers 2344 156 2500 2500
160 Store Fixtures 45000 45000 45000
161 Accum Depn: Store Fixtures 13000 361 13361 13361
210 APC - Accounts Payable Control 81848 81848 81848
220 Wages Payable 11340 11340 11340
221 Electricity Payable 70 217 287 287
222 Water Payable 122 115 237 237
225 Interest Payable 235 235 470 470
250 Bank Loan Payable 47000 47000 47000
300 Share Capital 60000 60000 60000
301 Retained Earnings 239357 239357 239357
400 Sales Revenue 330984 330984 330984
401 Sales Returns and Allowances 5976 5976 5976
402 Discount Received 741 741 741
403 Interest Revenue 772 772 772
500 Cost of Sales 201584 201584 201584
511 Advertising Expense 5000 5000 5000
516 Wages Expense 44685 11340 56025 56025
540 Rent Expense 4300 4300 4300
541 Electricity Expense 217 217 217
542 Water Expense 115 115 115
543 Insurance Expense 930 930 930
544 Office Supplies Expense 102 102 102
545 Salary Expense 4000 4000 4000
560 Depn Expense: Cash Registers 156 156 156
561 Depn Expense: Store Fixtures 361 361 361
571 Interest Expense 235 235 235
572 Bank Charges 8 8 8
573 Discount Allowed 459 459 459
Totals 776473 776473 22756 22756 809921 809921 279468 332497 509429 456400
Profit/loss 53029 53029
Totals 332497 332497 509429 509429
Feedback
Tech Head
Worksheet
As at 30/06/2018
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 96,953 96,953 96,953

6/6/2018 Worksheet
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110 ARC - Accounts Receivable Control 230,736 230,736 230,736
120 Inventory 110,096 110,096 110,096
130 Office Supplies 726 102 624 624
140 Prepaid Rent 8,600 4,300 4,300 4,300
141 Prepaid Advertising 15,000 5,000 10,000 10,000
142 Prepaid Insurance 4,650 930 3,720 3,720
150 Cash Registers 8,000 8,000 8,000
151 Accum Depn: Cash Registers 2,344 156 2,500 2,500
160 Store Fixtures 45,000 45,000 45,000
161 Accum Depn: Store Fixtures 13,000 361 13,361 13,361
210 APC - Accounts Payable Control 81,848 81,848 81,848
220 Wages Payable 11,340 11,340 11,340
221 Electricity Payable 70 217 287 287
222 Water Payable 122 115 237 237
225 Interest Payable 235 235 470 470
250 Bank Loan Payable 47,000 47,000 47,000
300 Share Capital 60,000 60,000 60,000
301 Retained Earnings 239,357 239,357 239,357
400 Sales Revenue 330,984 330,984 330,984
401 Sales Returns and Allowances 5,976 5,976 5,976
402 Discount Received 741 741 741
403 Interest Revenue 772 772 772
500 Cost of Sales 201,584 201,584 201,584
511 Advertising Expense 5,000 5,000 5,000
516 Wages Expense 44,685 11,340 56,025 56,025
540 Rent Expense 4,300 4,300 4,300
541 Electricity Expense 217 217 217
542 Water Expense 115 115 115
543 Insurance Expense 930 930 930
544 Office Supplies Expense 102 102 102
545 Salary Expense 4,000 4,000 4,000
560 Depn Expense: Cash Registers 156 156 156
561 Depn Expense: Store Fixtures 361 361 361
571 Interest Expense 235 235 235
572 Bank Charges 8 8 8
573 Discount Allowed 459 459 459
Totals 776,473 776,473 22,756 22,756 788,897 788,897 279,468 332,497 509,429 456,400
Profit/loss 53,029 53,029
Totals 332,497 332,497 509,429 509,429
Manual Accounting Practice Set
Tech Head, Australasian Edition 3 (VSA3q)
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