Answer to Question #218500 in Accounting for Elizabeth Baron

Question

Prepare the following for Mobi Electronics for the year ended 21 February 2021:

 

3.1      General journal entries to record the adjustments for additional information

 

           Number 1 to 7. Include a brief narration.                                                                        (15)

 

3.2      The statement of profit or loss and other comprehensive income for the year

           ended 28 February 2021. 

Answer 1

3.1

Adjusting journal entries are recorded in the general ledger at the end of an accounting period to comply with the Matching and Revenue Recognition principles. Common adjusting journal entries are for deferrals, accruals, and estimates. In the above question, the adjustment journal entries to be recorded in the general ledger are as follows :

Statement Of Comprehensive Income reports the change in net equity of the business over a time period. It includes Net Income & Other Comprehensive Income. Based on the information provided above and the adjustment journal entries captured in the general ledger, the Statement of Income will be as follows :

3.2