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4.

8 illustration Problem

Question 1
Felixia Beatrice Aristik is a Service Company enganged Landscaping. The book closure
of the company is carried out on every 31 December. Estimates in the company's ledger
on November 30, 2008 show the following balance:

Post Reference Account Titles BALANCE


101 Cash 58,340,000
103 Accounts Receivable 59,200,000
104 Supplies 4,150,000
107 Prepaid Insurance 9,000,000
108 Prepaid Advertising 0
151 Automobile 180,000,000
152 Accumulated Depreciation - Automobile 36,000,000
153 Equipment 70,000,000
154 Accumulated Depreciation - Equipment 14,000,000
201 Accounts Payable 28,000,000
202 Banks Payable 40,000,000
203 Salaries and Wages Payable 0
204 Interest Payable 0
301 Ny. Felixia's Capital 214,000,000
302 Prive - Ny. Felixia 16,300,000
303 Income Statement 0
401 Service Revenue 140,900,000
501 Salaries and Wages Expense 49,000,000
502 Insurance Expense 0
503 Advertising Expense 0
504 Supplies Expense 0
505 Utilities Expense 6,850,000
506 Maintenance and Repair Expense 12,500,000
507 Depreciation Expense - Automobile 0
508 Depreciation Expense - Equipment 0
509 Interest Expense 2,160,000
510 Miscellaneous Expense 5,400,000
transactions that occurred during December 2008 that have not been recorded by the
company as follows:

 December 1 purchased from PT Imora a vehicle and office equipment, each


worth Rp. 36,000,000, - and Rp. 12,000,000. paid in cash Rp. 38,000,000, - while
the rest will be repaid later
 December 4 received cash of Rp.17,500,000, - as payment for the work of
designing and building a park
 December 5 Paid advertising expense in monthly magazine Kartini for 6 times
Rp5.400.000,- (note in reference number 108) advertisement will be placed every
5th starts on this day.
 December 8 Purchased supplies for Rp3.850.000,- cash.
 December 10 Received Rp25.000.000,- repayment from debtor.
 December 12 Paid maintenance and repair expense for Rp6.500.000 cash.
 December 14 Paid honorary workers salaries Rp9.700.000,-.
 December 17 Received withdrawal Rp9.000.000,- for personal use.
 December 20 Paid utilities expense Rp650.000,- for the month December 2008.
 December 22 Completed a garden decorating job in Megah Hotel with total
invoice Rp17.600.000,-. Received cash 12.500.000,-
 December 24 Paid daily employee wages, monthly salaries, and Christmas
allowances Rp18.300.000,-.
 December 28 Paid creditor Rp19.000.000,- cash on balance owed.
 December 31 Paid parking, cleaning, security fees and other contributions for
Rp2.600.000,-

INSTRUCTIONS

a. Journalize the transactions.


b. Post to the ledger accounts.
c. Prepare a trial balance on December 31, 2008.
d. Journalize the adjusting entries, if on December 31, 2008 the adjustment data
consist of
 The value of office equipment that has been used up to December 31,
2008 is Rp 6,000,000.
 Prepaid insurance is an insurance premium payment for a period of 6
months starting from October 1, 2008.
 Advertisements up to December 31, 2008 have only been done once,
namely December 5.
 Annual depreciation of fixed assets is determined at 20% of the acquisition
price. The office and vehicle equipment purchased on December 1, 2008
has also not been depreciated
 Interest on bank loans for 30 days before being paid. Loan interest rate is
18% per year (1 year = 360 days).
 The wages of daily employees are paid once a week on every Saturday
afternoon for 6 working days (Monday to Saturday) of Rp 2,400,000, - on
December 31, 2008 falls on Thursday.
e. Move the data contained in the adjusting journal to the corresponding estimates
in the ledger!
f. Compile trial balance at 31 December 2008 after adjustments!

Answer

GENERAL JOURNAL
Date Account Titles Ref Debit Credit
2008
Dec 1 Automobile 151 36,000,000
Equipment 153 12,000,000
Cash 101 38,000,000
Accounts Payable 201 10,000,000

4 Cash 101 17,500,000


Service Revenue 401 17,500,000
5 Prepaid Advertisement 108 5,400,000
Cash 101 5,400,000

8 Supplies 104 3,850,000


Cash 101 3,850,000

10 Cash 101 25,000,000


Accounts Receivable 103 25,000,000

12 Maintenance and Repair Expense 506 6,500,000


Cash 101 6,500,000

14 Salaries and Wages Expense 501 9,700,000


Cash 101 9,700,000

17 Prive 302 9,000,000


Cash 101 9,000,000

20 Utilities Expense 505 650,000


Cash 101 650,000

22 Cash 101 12,500,000


Accounts Receivable 103 5,100,000
Service Revenue 401 17,600,000

24 Salaries and Wages Expense 501 18,300,000


Cash 101 18,300,000

28 Accounts Payable 201 19,000,000


Cash 101 19,000,000

31 Miscellaneous Expense 510 2,600,000


Cash 101 2,600,000
GENERAL JOURNAL
Date Account Titles Ref Debit Credit
2008 Adjusting Entries
Dec 31 Supplies Expense 504 6,000,000
Supplies 104 6,000,000

31 Insurance Expense 502 3,000,000


Prepaid Insurance 107 3,000,000

31 Advertisement Expense 503 900,000


Prepaid Advertisement 108 900,000

31 Depreciation Expense-Equipment 508 14,200,000


Accumulated Depreciation-Equipment 154 14,200,000

31 Depreciation Expense-Automobile 507 36,600,000


Accumulated Depreciation-Automobile 152 36,600,000

31 Interest Expense 509 600,000


Interest Payable 204 600,000

31 Salaries and Wages Expense 501 1,600,000


Salaries and Wages Payable 203 1,600,000
Mr. Nico started a business management consulting services since June 1, 2008.
Estimated balance sheet at June 30, 2008 are as follows:

NICO CONSULTANT
TRIAL BALANCE
JUNE 30, 2012

Post Reference Account Titles Debit Credit


100 Cash 7,750,000
110 Accounts Receivable 6,000,000
120 Prepaid Insurance 2,400,000
130 Supplies 2,000,000
135 Equipment 15,000,000
200 Accounts Payable 4,500,000
230 Unearned Service Revenue 4,000,000
300 Nico's Capital 21,750,000
400 Service Revenue 7,900,000
510 Salaries and Wages Expense 4,000,000
520 Rent Expense 1,000,000
38,150,000 38,150,000

Additional account codes data :

No. 136 Accumulated Depreciation-Equipment

No. 210 Utilities Payable

No. 220 Salaries and Wages Payable

No. 540 Insurance Expense

No. 550 Utilities Expense

No. 560 Supplies Expense

Additional data for account adjustments :

1. Physical equipment balance on June 30, 2008 is Rp.1.300.000,-


2. Billed Rp.150.000,- for utilities expense, not recorded and paid until next month
3. Paid the insurance for one year one June 2, 2008
4. Rp.2.500.000,- unearned revenue has become an income at the end of June
2008
5. Salaries and Wages Payable at the end of June is Rp.1.500.000
6. Economic age of the equipment is 5 years, without the residual value.
Depreciation on the equipment is Rp.250.000/month for 60 months
7. Billed service on clients worth Rp.300.000,- is not yet recorded

Instructions :

a. Make the adjustment entries needed on June 30, 2018


b. Post the data from the adjustment entries into the ledger
c. Prepare the adjusted trial balance for June 30, 2008

Answers

GENERAL JOURNAL
Date Account Titles Ref Debit Credit
2008 Adjusting Entries
June 30 Supplies Expense 560 700,000
Supplies 130 700,000

30 Utilities Expense 550 150,000


Utilities Payable 210 150,000

30 Insurance Expense 540 200,000


Prepaid Insurance 120 200,000

30 Unearned Service Revenue 230 2,500,000


Service Revenue 400 2,500,000

30 Salaries and Wages Expense 510 1,500,000


Salaries and Wages Payable 220 1,500,000

30 Depreciation Expense 530 250,000


Accumulated Depreciation-Equipment 136 250,000

30 Accounts Receivable 110 3,000,000


Service Revenue 400 3,000,000