Question - For this assessment start with the unadjusted trial balance figures that you should have had in assessment 1.
1. Make all the following original entries and corresponding adjusting entries to the general journal and then post them to the general ledger
2. Produce an adjusted trial balance from the general ledger.
3. Produce a revenue statement, an owner's equity statement and a balance sheet from the adjusted trial balance.
The organisation is still the ACME Manufacturing Company.
Your accounting period is a calendar year i.e. January 1st- December 31st
1. On July 1st ACME paid 100,000 aed for 12 month's rent in advance for a warehouse facility to P & G Rental Group.
2. On September 1st ACME rented out an office which they already owned to Lucid Technologies. Lucid paid 6 month's rent in advance (50,000 aed).
3. On December 15th ACME paid its usual monthly salaries to its employees of 25,000 aed for all work done to date. Its next salary will be paid on January 15 meaning that there will be a period in December where work will be done but not paid until the next accounting period.
4. On April 1st ACME paid 12000 aed for 12 months insurance cover.
5. On July 1st ACME borrowed 100,000 aed as a one year loan at 10% per annum interest (interest payable after 1 year)
6. On July 1st ACME bought a delivery vehicle for 120,000 aed with a life expectancy of 6 years which it will depreciate at a constant rate (nil scrap value).