Adjustments (Adjustments never involve cash or GST):
a. A physical stock-take of office supplies revealed supplies on hand at 30 June totaled $450.
b. Calculate and record the adjusting entry for the Wages Payable that have not yet been paid as at 30 June.
c. The $5,000 balance of Prepaid Insurance as at 1 June is now fully used (expired) and 15 days coverage from the insurance policy paid on 14 June also needs to be expensed.
d. Calculate and record the adjusting entry for rent for the month of June.
e. Sun Radio advertising for the entire month of June was carried out and therefore the amount for one month should now be expensed.
f. Calculate the amount for Provision of Doubtful Debts and make the necessary adjusting journal entry.
g. Calculate the amounts for depreciation expense of each of the three non-current assets and record the necessary adjusting journal entries.
h. Based on the average usage of electricity for the year and the seasonal usage, an amount of $1,145 is estimated for June. The electricity bill for June will be received in early July.
The file on the course Blackboard site (‘ACC106 S2 2017 task 2 (Student template)’) contains a series of templates which you should use for completing each of the requirements below:
1. Record all of the transactions from section 2 above in the relevant special journals and post them to the relevant ledger accounts (general and subsidiary) (excluding balance day adjustments). Refer to the additional instructions below.
2. Prepare an Unadjusted Trial Balance on the Worksheet provided.
3. Record all of the necessary balance day adjustments for June in the General Journal and post to the General Ledger accounts. Adjusting entries are required for each of the items listed under ‘Adjustments’ above and should also be copied into the ‘Adjustments’ columns in the Worksheet. Refer to the additional instructions below.
4. Prepare an Adjusted Trial Balance on the Worksheet provided and complete the remaining columns in the Worksheet for Profit & Loss and Balance Sheet.
5. Record all closing entries in the General Journal, however, do not post them to the relevant general ledger accounts until after you have checked that the Adjusted Trial Balance is correct.
6. Prepare the Income Statement for the year ending 30 June 2017.
7. Prepare the Statement of Changes in Equity for the year ending 30 June 2017.
8. Prepare the classified Balance Sheet as at 30 June 2017.
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