The first audit of the books of Anka Company was made for th

The first audit of the books of Anka Company was made for the year ended December 31, 20times3. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last three years. These items are provided below. The company\'s tax rate is 30%. REQUIRED: Prepare the general journal entries, in proper form, to record the effects of the above items, assuming that the books have not been closed for the current year. Omit explanations. Use the letter of the transaction as the transaction date.

Solution

A Machine A/c Dr.       35,000 To Depriciation       35,000 B Sales Salaries A/C dr.       54,000 To Outstanding Salaries       54,000 C Taxes A/c Dr.       80,000 To P&L A/c       80,000 D P&L A/C dr. 75000 To Reatined Earning A/C 75000 E Rent A/C Dr. 15000 To Rent Advance Received 15000 F Assets A/c Dr. 14400 To Depriciation 14400