correct the adjusting entry
(ii) The company purchased an office machine worth $4,500 on 2 May
2006 for the running of business operations. $2,000 of the amount
was paid for by the owner using his personal cash, while the
remaining amount was still outstanding in the company’s name. The
transaction was recorded as a debit of $4,900 to Office Equipment,
and a corresponding credit to Accounts Receivable.
The company adopts the straight line method of depreciation. No
depreciation of the office machine has been recorded for the year
ended 30 June 2006. Assume that the office machine has zero
residual value and a useful life of five years.
iv ) $12,000 out of the $15,000 in the Unearned Service Revenue
account related to legal services provided during the last week of
June 2005.
