Mac, Holmes, Prime Moving, Shoe Wholesaler, Adam and Electrical
Question 1 Mac Ltd. provides legal advice to customers for fees. On 30 June 2020, Mac Ltd. completed its first year of operations. Some of the ledger account balances of the business, before any financial year end (30 June) adjustments, are provided below: $ Fees Revenue 442,500 Rent Expense 21,960 Electricity Expense 8,460 Wages Expense 163,200 Advertising Prepaid 2,700 No adjusting entries have been made to these accounts at any time during the year. An analysis of the business records reveals the following. The total Fees Revenue recorded includes $2,250 that was prepaid by a client as a deposit for legal advice to be provided in July 2020. The balance in Advertising Prepaid represents the amount paid for…
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