Help me with BDA's =(

[costargh]

This question is shitting me. I'm gonna start chapter 11 and hope someone can help me =(
I feel pathetic =( =(
I don't know what to do with The Loan. Do I credit 500 bank and debit 500 Loan?
The others for b) I think I'm alright with. I can do c). d) I can look back and revise how to do. Or you can remind me =)

[jamesdrv]

The additional information regarding the loan is a bit misleading. You don't need to do any balance day adjustment for the loan, as it isn't a revenue or expense. That information ($6000 per year) is probably there so that you know that you will have a current liability of loan (6000), and a non-current liability of loan (34000).

[costargh]

Oh ok. Yeh thats what I was thinking but then I looked at the workbook and it had space for the loan to go in the General Journal. Arghh! I think you're right. We only deal with BDA's of expenses in Unit 3 so it musn't be a BDA. Thanks James.
Im gonna go do that question now and check the answers tomoz @ school

THANKS SRSLY MAN.

[AppleXY]

for d.) you must clear the account the revenue, expense accounts so that it won't get confused with other reporting periods. You also transfer drawings to the capital account (as it reduces it).

You end up with a "P&L Summary a/c"

To close you do the opposites, basically.

for revenues eg.

DR Sales Rev  $ 30,000,000
CR     P&L Summary $ 30,000,000

expenses eg.

DR P&L Summary $ 10,000,000
CR    Wage Costs    $5,000,000
CR    Admin/Maintaince/Misc Costs  $ 100,000
CR    Consultancy Fees $2,500,000
CR    Interest Expense   $2,000,000
CR    Marketing Costs    $400,000


drawings eg.

DR Capital $10,000
CR drawings $10,000

transferring P&L summary to capital

DR P&L Summary $20,000,000
CR Capital $20,000,000.

and thats how you close stuphs