Reference no: EM132558408

Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019.

a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used.

b) Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future.

c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable.

d) Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August 2019.

e) Received the electricity bill for AUD 24,200, which will be paid in early July.

f) On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019.

g) Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 2019.

Required:

Question 1) Prepare the journal entries for each of these transactions. 

Question 2) Prepare adjusting entries required on 30 June 2019.