A
Give the general journal entry required at balance sheet day to record wages owing of $5,400.
Dr Wages 5,400 Cr Accrued Expenses 5,400
What is the term for cost less accumulated depreciation?
Carrying value
Which financial report shows how well the business has performed?
Income Statement
What is the income earned through the ownership of shares?
Dividends (received)
Name 3 current liabilities.
Any 3 of: Bank overdraft, accounts payable, GST payable, accrued expenses, income in advance, short term loan etc.
Give the general journal entry required at balance sheet day to increase the allowance for doubtful debts by $1,200.
Dr Doubtful debts 1,200 Cr Allowance for doubtful debts 1,200
Name 5 current assets.
Any 5 of: Petty cash, inventory, supplies on hand, bank, accounts receivable, prepayments, accrued income, GST receivable etc.
Give the general journal entry required at balance sheet day to record fees $5,980 (GST incl) received in advance
Dr Fees 5,200 Cr Income in advance 5,200
Name 3 kinds of ‘other income’ for a trading business.
Any 3 of: Interest received, dividends received, rent received, commission received, gain on sale of PPE item etc.
Give the general journal entry required at balance sheet day to write off additional bad debts $276.
Dr Bad debts 240 Dr GST 36 Cr Accounts Receivable 276
A building costing $500,000 (GST excl) is depreciated 1% straight line method. Give the general journal entry required at balance sheet day to record this.
Dr Depreciation building 5,000 Cr Accumulated depreciation building 5,000
What does EFTPOS stand for?
Electronic funds transfer at point of sale
Give the general journal entry required at balance sheet day to record the invoice received on 30 March which has not yet been recorded for petrol $276.
Answer: Dr Fuel (Vehicle expenses) 240 Dr GST 36 Cr Accounts Payable 276
Which depreciation method allocates the same amount of expense each year?
Straight line
What is the GST exclusive cost of an item purchased for $138.92?
$120.80
Give the general journal entry required at balance sheet day in Year 2 of the asset’s life to record depreciation on the van, calculated at 20% diminishing value method. Cost of van $9,000 (GST excl) .
Dr Depreciation van 1440 Cr Accumulated depreciation van 1440
Calculate the carrying amount of a building costing $450,000 which is depreciated 5% straight line after 5 years.
Answer: $337,500
The annual van insurance premium was paid on 1 Jan $1,656 (GST incl). Balance sheet day is 31 March. Give the general journal entry required.
Dr Prepayments 1,080 Cr Insurance 1,080
What is the allocation of the cost of an asset over its useful life called?
Depreciation
The annual insurance premium of $600 (GST excl) was paid on 1 January 2024 when a new van was purchased. Calculate the prepayment at 31 March 2024.
$450
Give the general journal entry required at balance sheet day to record the depreciation on a machine which cost $27,000 (GST excl); has a residual value of $9,000 (GST excl); was used for 20,000 hours and has an expected useful life of 400,000 hours.
Dr Depreciation machine 900 Cr Accumulated depreciation 000
Record the adjustment to the allowance for doubtful debts to 2% of accounts receivable if Accounts Receivable is $22,640 before a bad debt of $1,840 has been written off. The allowance has a balance of $350.
Dr Allowance for doubtful debts 66 Cr Doubtful debts 66
What is the carrying amount of a vehicle costing $46,000 (GST incl) after 2 years if it depreciated 20% DV method?
$25,600
Give the general journal entry required at balance sheet day to record the interest owing on the $20,000 term deposit which has been invested for 3 months at an interest rate of 2.5%pa.
Answer: Dr Accrued Income 125 Cr Interest Received 125
A business has a $70,000 mortgage at 12% for the financial year. Interest expense has a debit balance of $6,300. Give the account and amount that will be shown in the Statement of Financial Position.
Accrued Expenses $2,100