accounting for accruals (prepayments and expenses)

Question

for the following independent transactions, what would be the transaction effect in the worksheet:

1) In October, Paid $1,200 yearly subscription to trade magazines. As at June 30, 3 months prepaid subscription remained. (Assuming no opening balance for prepaid expenses for Magazines)



2) Paid wages during the year $16,500. Wages still owing at end of year $1,750. (Assuming opening balance for Accrued Wages is $1,250)

Answer 1

(1) It's $100 per month, so 3 x 100 = 300

 

(2)   1250 was paid by the 16500 during the year  

 

       16500 - 1250 + x = 1750

 

        15250 + x = 1750

 

          x = 1750 - 15250 

 

              =  -13500