Question - Fox Ltd has calculated profit on the 30th June 2015 to be $359700 when the following was discovered (the firm uses accrual accounting).
(i) Income of $1690 for services delivered had been invoiced but not yet received in cash.
(ii) The weekly wages bill for the firm is $41200. The last payment for wages was on Friday 26th June. The next payment will be on Friday 3rd July.
(iii) The firm had received funds of $15000 on 1st April 2015 for work to be completed by end of October 2015. 40% of the work has been completed by June 30th.
(iv) A full year's rent of $33000 was paid for the premises from which the firm operates on 1st March 2015.
(v) The firm has $40000 invested. It earns interest of 7% per annum payable quarterly. Interest was last received on 1st May for the quarter (February, March, April).
(vi) Office Supplies had a balance at the beginning of the year (after adjustments) of $1200. Throughout the year $5000 in office supplies was purchased. At June 30th the value of office supplies was $1600.
(vii) An amount of $10000 paid for new Office Furniture had been incorrectly coded and entered as Office Expenses.
Required: Make the journal entries to adjust the accounts affected where necessary (include narrations to explain the entry and any calculations).