1. An invoice of $16,415 for energy expenses has not been received at year end.
2. 10% Loan note ($455,000 ) has not been paid for the year.
3. Income tax has been calculated as $168,000 for the year.
4. No dividends have been paid or declared.
5. The audit fee accrual is estimated to be $10,000.
6. A bonus issue of one for ten shares was made to ordinary shareholders. This has not been entered into the books. the share premium account was used for this purpose. (The company has 350,000 $1 ordinary shares.)
Suggested solutions:
| DEBIT | CREDIT | AMOUNT | |
| 1. | Energy expenses | Accrual | 16,415 |
| 2. | Loan note interest | Interest payables | 45,500 |
| 3. | Income Tax expenses | Income Tax payable | 168,000 |
| 4. | NO ADJUSTMNET | nO ADJUSTMENT | |
| 5. | Audit fee expenses | Accrual | 10,000 |
| 6. | Share Premium | Ordinary Shares | 35,000 |