Mr Accm

CLASS EXERCISE: WORKSHEET AND CLOSING ENTRIES VERONICA’S VIOLIN SCHOOL

Adjusting entries at balance date (30 June) are required for:

1) rent expense 2) insurance expense 3) depreciation expense for equipment. The amount of depreciation for June is $20 4) electricity expense, estimated at $120 for June 5) group music lesson fees earned
REQUIRED:

a. b. c.

Record the adjusting entries in the worksheet Complete the worksheet. Use the worksheet to prepare the closing entries.

ACCM4000 Accounting Principles Topic 4 T1 2013

1

VERONICA’S VIOLIN SCHOOL - GENERAL JOURNAL page 3 Date June 30 Rent Expense Prepaid Rent
To record rent expense for June (3,000/6)

Details

Ref

DR

CR

640 132

500.00 500.00

30

Insurance Expense Prepaid Insurance
To record insurance expense for June (726/12)

630 131

60.50 60.50

30

Depreciation Expense Accumulated Depreciation
To record depreciation equipment for June expense for

620 151

20.00 20.00

30

Utilities Expense Utilities Payable
To accrue for electricity expense for June

660 215

120.00 120.00

30

Unearned Revenue Revenue
To record revenue earned on 28 June from group lessons paid in advance

220 420

120.00 120.00

ACCM4000 Accounting Principles Topic 4 T1 2013

2

VERONICA’S VIOLIN SCHOOL WORKSHEET for month ended 30 June
ACCOUNT TITLE UNADJUSTED TB DEBIT CREDIT $ $ 3,734.50 2,475.00 726.00 3,000.00 513.00 1,200.00 480.00 373.00 75.50 8,500.00 250.00 3,250.00 100.00 180.00 500.00 12,678.50 12,678.50 ADJUSTMENTS DEBIT CREDIT $ $ ADJUSTED TB DEBIT CREDIT $ $ PROFIT & LOSS DEBIT CREDIT $ $ BALANCE SHEET DEBIT CREDIT $ $

Cash Accounts Receivable Prepaid Insurance Prepaid Rent GST Paid Equipment Unearned Revenue GST Collected PAYG Withholding Payable Capital, Veronica Drawings, Veronica Revenue Advertising Expense Repairs Expense Wages Expense

ACCM4000 Accounting Principles Topic 4 T1 2013

3

(a) and (b) VERONICA’S VIOLIN SCHOOL WORKSHEET