Question 3 – This question has 1 part (5 marks)     5 marks

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Question 3 – This question has 1 part (5 marks)
 

5 marks
 

On 1 July 2021, Dylan started a private tutoring business where he gives private music lessons to elementary students. Students are required to pay their fees one month in advance for 12 lessons per month.  Each student needs to pay the full amount of $550 in advance, and they are non-refundable.

The following transactions occurred during the month of July 2021:   
 

NOTE:  The business is NOT registered for GST. Ignore GST.

July 1The business received one-month fees in advance from 15 new students; totaling $8,250.
1The business sold 15 music books to the new students; totaling $165. The cost price of the goods sold was $75. Payments were received immediately, and the students received the book right away. 
17The business purchased multiple music equipment (Account: Equipment) for $1,550 on credit, net 15.
18Two students decided to withdraw after five (5) music lessons.The agreement says the fees are non-refundable even if students withdraw in the middle of the program.
25The business paid the outstanding balance for music equipment purchased earlier in the month.
31Recorded all music lessons provided for the remaining students who were accepted earlier in the month and completed the whole 12 lessons.

Required: 
 

Post those relevant transaction(s) from Part a) to the ‘Deferred/Unearned Revenue’ ledger and calculate the closing balance/opening balance for the next accounting period. (5 marks)

Opening balance for the ‘Unearned Revenue’ at 1/7/2021 is $0 (CR)

Screen Shot 2023-05-19 at 3.42.53 pm.png
Chart of accounts
Account NoAccount Name

101  Cash at bank

102  Accounts receivable

103  Inventory

104  Office supplies

105  Prepaid insurance

110  Interest receivable

111  GST paid

151  Furniture

152  Accumulated depreciation – Furniture

155  Computer equipment

156  Accumulated depreciation – Computer

158  Vehicle

159  Accumulated depreciation – Vehicle

200 Accounts payable
205 Utilities payable
210 Deferred/Unearned revenue 215 Interest payable
218 Salaries payable
220 Wages payable

222  GST collected

223  PAYG Withheld

250 Bank loan

301  Capital

302  Drawings

401 Sales revenue
403 Interest revenue 501 Cost of goods sold 602 Salaries expense

604  Wages expense

605  Advertising expense

606  Rent Expense

607  Interest expense

608  Insurance expense

609  Utilities expense

610  Office supplies expense

611  Depreciation expense – Furniture

612  Depreciation expense – Computer

613  Depreciation expense – Vehicle

614  Miscellaneous expense

It’s that simple.Pay only when you are satisfied.

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