Question

Eastsouth technology Ltd faced the following situations.

· When the business collected $10,000 in advance three months ago, the accountant debited Cash and credited Unearned Revenue. The client was paying for two test machines, one delivered in December, the other to be delivered in May 2020.

· Salary expense is $310 per day to you (please add your name as memo to the entry when you do it. Deduct 5 marks without name)– Monday through Friday – and the business pays employees each Friday. For example, purposes, assume that this year, December 31 falls on a Tuesday.

· The unadjusted balance of the Supplies account is $900. The total cost of supplies on hand is $800.

· Equipment was purchased at the beginning of this year at a cost of $18,000. The equipment’s useful life is six years and no residual value. Record the depreciation for this year using straight line method

Answer 1

Journal entries
Particulars	Dr	Cr
Unearned revenue	5000
To revenue		5000
(Being half of the services provided)
Salaries expenses	620
To Salaries payable		620
(being 2 days salaries payable to Jake)

Salary Memo	Day	Pay	Attendance
Jake	Monday	310	Present
Jake	Tuesday	310	Present

Supplies expense	100
To Supplies		100
Depreciation expense, equipment	3000
To accumulated depreciation-equipment		3000

Year-end balances
Unearned revenue		5000
Salaries payable		620
Supplies	800
Equipment	18000
Accumulated depreciation-equipment		3000