Question 5 Part B. 

Question 5 Part C. 

Assume there were no write-offs of receivables during the year ended 30 June 2025. Using only the information in Table B, prepare the journal entry to recognise bad debt expense for the year ended 30 June 2025. You do not need to include an explanation for your journal entry. (2 marks)

Question 4 [6 marks]. 

Dorami Ltd prepared the following closing entries for the year ended 30 June 2025. Assume the entries below include all revenue and expense accounts for the year.

Required:

The closing entries above are incorrect. For each closing entry, explain what is wrong and correct the mistake by providing the correct journal entry. Please use the response template provided to answer this question.

Question 3 Part B. 

Transaction 2: On 1 February 2025, Maybelulu Ltd paid $6,900 cash for a 12-month insurance policy covering 1 February 2025 to 31 January 2026. (3 marks)

Question 3 Part A. 

Transaction 1: On 1 October 2024, Maybelulu Ltd borrowed $30,000 from the bank. The loan carries interest at 8% per annum. Interest is paid in cash every 6 months on 31 March and 30 September. Assume the company has already recorded the borrowing but no interest has been recorded. (3 marks)

Question 2 Part B. 

Prepare the assets section of the balance sheet as at 30 June 2025. (6 marks)

Question 2 Part A. 

Prepare the income statement for the year ended 30 June 2025. (6 marks)

Question 1 [1 mark]

Consider the following statements:

Statement I. Standard adjusting entries involve the Cash account.

Statement II.

After closing entries are posted, the balance in the Expense

and Revenue accounts should not be zero.

Statement III. Closing entries are prepared before

the

adjusted trial balance because the adjusted trial balance uses only permanent

accounts.

Statement IV.

The main purpose of the post-closing trial balance is

to verify that all adjusting entries have been posted to the ledger.

Choose the most correct answer: