The following events for Analogue Switches Ltd have yet to be recorded:

(a) Cash is returned to investors through a share buy-back. The company buys 50,000 shares from investors, and these shares are cancelled. While the market price is $4.50 per share, the company pays investors $4.75 per share.

(b) The accountant has discovered an error in the previous year’s income statement, as unearned revenue (or revenue received in advance) had not been adjusted on the balance date. $37,000 of unearned revenue had, in fact, been earned and should have been recorded as revenue.

(c) The accountant has also discovered another error in the previous year’s income statement as a supplier's invoice for $14,000 of consulting services was not recorded.

Required:

Prepare journal entries for the above events.

Use the answer template below

Analogue Switches Ltd’s General Journal:

Date

Account Names

Debit

Credit

(a)(To record a share buy-back)

(b)(To record a prior period error in unearned revenue)

(c)(To record a prior period error in accounts payable)