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ACC1701 Tutorial 2 Solutions 2023

The document provides the adjusting and correcting journal entries for XBird Inc. for Semester 1, 2023/2024, detailing various expenses and revenues. It includes specific amounts for rent, interest, depreciation, salaries, insurance, income tax, and dividends. Additionally, it outlines adjusting entries for interest expense, unearned rent revenue, office supplies expense, and interest receivable.

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44 views2 pages

ACC1701 Tutorial 2 Solutions 2023

The document provides the adjusting and correcting journal entries for XBird Inc. for Semester 1, 2023/2024, detailing various expenses and revenues. It includes specific amounts for rent, interest, depreciation, salaries, insurance, income tax, and dividends. Additionally, it outlines adjusting entries for interest expense, unearned rent revenue, office supplies expense, and interest receivable.

Uploaded by

joykwokll
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

ACC1701: ACCOUNTING FOR DECISION MAKERS

SEMESTER 1 2023 / 2024

TUTORIAL 2 ANSWER SOLUTION


Analytical Cumulative Case – XBird Inc.

(Refer also to excel solution file on Canvas)


Adjusting / Correcting Journal Entries Debit Credit

(a) Rent Expense 9,000


Prepaid Rent 9,000

(b) Interest Expense 1,250


Interest Payable 1,250

(c) Depreciation Expense 11,250


Accumulated Depreciation 11,250

(d) Sales 12,000


Unearned Revenue 12,000

(e) Salaries Expense 1,200


Salaries Payable 1,200

(f) Insurance Expense 160


Prepaid Insurance 800
Cash 960

(g) Income Tax Expense 1,050


Taxes Payable 1,050

(g) Dividends 1,500


Dividends Payable 1,500
38,210 38,210

AY2324 Sem1: ACC1701 Tutorial 2 Answer Solution Page 1 of 2


E 4-8 (LO2) Adjusting Entries

1. Interest Expense............................................................................. 9,000


Interest Payable ....................................................................... 9,000
To record interest expense for six months.
($225,000  0.08  6/12 = $9,000)

2. Unearned Rent Revenue ................................................................. 14,000


Rent Revenue ........................................................................... 14,000
To record rental revenue for four months.
($21,000  4/6 = $14,000)

3. Office Supplies Expense .................................................................. 3,985


Office Supplies.......................................................................... 3,985
To record office supplies expense.
($1,005 + $4,300 – $1,320 = $3,985)

4. Interest Receivable ......................................................................... 5,775


Interest Revenue ...................................................................... 5,775
To record interest revenue for 11 months.
($90,000  0.07  11/12 = $5,775)

~ End of Tutorial Solution ~

AY2324 Sem1: ACC1701 Tutorial 2 Answer Solution Page 2 of 2

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