Part Ii 30 Marks Print The Table Below And Attach To Your Answer Velvet Turtle Company Normally Adjusts Its Books Mo 1 (63.38 KiB) Viewed 12 times
Part Ii 30 Marks Print The Table Below And Attach To Your Answer Velvet Turtle Company Normally Adjusts Its Books Mo 2 (63.38 KiB) Viewed 12 times
Part II (30 marks) (Print the table below and attach to your answer) Velvet Turtle Company normally adjusts its books monthly. The following transactions in January 2021 were already recorded if necessary as mentioned below, but NO adjusting entries were made in the same month. (1) On 31 January 2021, the Company paid and recorded a total monthly salary of $50,000 earned by its staff. But there was an accrued and unrecorded $400 overtime pay. (2) On 1 January 2021, it prepaid a 1-year rent of $ 2,400 by cash and recorded the full amount as rent expense. (3) On 31 January 2021, the owner of Velvet Turtle used her own saving to purchase a computer at $30,000 and used it for her personal hobbies. (4) On 15 January 2021, a customer paid in advance $500 cash for services to be provided by the Company three months later. This amount was recorded as fees earned on the same day. (5) On 1 January, 2021, the Company bought a $100,000 equipment on account and recorded the transaction. Estimated useful life of the machine is 50 months. Required: (1) to (5) above are independent events. If no other adjusting entries were made in January as stated above, indicate their effects on the following elements of Velvet Turtle 's book as at the end of January 2021. Present your answers in tabular format below. State O=overstated (with S amount), U = understated (with S amount) and NE = no effect Example: Velvet Turtle had not accrued nor recorded a $300 revenue earned for January. e.g. (1) (2) (3) (5) Revenue Expenses U$300 NE Profit U$300 Assets U $300 - END OF ASSIGNMENT 1- Page 4 Liabilities NE Equity U$300 (30 marks)
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