Balances on accounts as at 30 June 2022, before balance day adjustments, were: equipment $55 000, accumulated depreciation – equipment $21 000, insurance $5100 and wages $35 800.

Balance day adjustments were: depreciation of equipment 15% p.a., insurance prepaid $910 and wages owed to employees $700.

For the year ended June 2022:

• prepare adjusting journals

• prepare closing journals, then

• enter balances and post the journals to the relevant ledger accounts, including profit and loss, and

• prepare an extract income statement and balance sheet.

Prepare relevant reversal journals on 1 July 2022 and post to the ledger accounts.