Question

TRIAL BALANCE

Particullars	Dr. Amount	Cr. Amount
Cash	27,522
Capital		10,000
Bank Loan		5000
Office equipment (Desk and Chair)	448
Service revenue		15,820
Rent expense	600
Electricity expense	300
Advertisement Expense	600
Maintenance expense	250
Insurance expense	100
Office supplies	200
Shop product	1000
Revenue received advance		500
Salaries expense	1000
Account Payable		700
Total	32020	32020

Question 6 : (1.5 mark) Assuming it is end of August, below are  5 adjusting entries. Record the adjusting entries in the general journal and post them to the ledger accounts and include narrations and dates.

1 The equipment depreciates $100 per month.

2. Telephone bill of $50 was omitted

3. Interest of $200 is accrued on the bank loan

4. Supplies on hand total $100.

5. Salaries of $300 are owed at 30 Augest.

Answer 1

Journal Entries
S/r No.	Particulars	Debit $	Credit $
1.	Depreciation expense (100 * 8)	800
	To Accumulated depreciation - Equipment		800
	[Being To Record the depreciation]
2.	Telephone Exp.	50
	To Cash		50
	[Being Telephone bill of $50 was omitted is paid ]
3.	Interest expense	200
	To Interest payable		200
	[Being  Interest of $200 is accrued on the bank loan]
4.	Supplies expense (1000 - 100)	900
	To Supplies		900
	[Being Supplies on hand total $100.]
5.	Salary Exp. (1000- 300)	700
	To Account Payable		700
	[Being to record of salary)