Mike’s Computer Shop is a sole trader run by Mike Nolan. The unadjusted trial balance of Mike’s Computer Shop is shown below.

Required

(a) Prepare a worksheet for Mike’s Computer Shop. Use the following information to make the year-end adjustments.
i. Prepaid insurance expired during the year, \($1290.
ii.\) Depreciation on the store equipment, \($3100;\) and on delivery van, \($1540.
iii.\) Accrued interest on the loan payable, \($745.
The\) ending inventory determined by physical count was \($36\) 430.

(b) Prepare an income statement, a statement of changes in capital and a balance sheet for the year ended 30 June 2026.

(c) Prepare adjusting and closing entries.

Transcribed Image Text:

Account Cash at bank Accounts receivable Inventory (1 July 2025) Prepaid insurance Store equipment Accumulated depreciation-store equipment Delivery van Accumulated depreciation-delivery van Accounts payable Loan payable Miker Nolan, Capital MIKE'S COMPUTER SHOP Unadjusted Trial Balance for the year ended 30 June 2026 Debit $ 16 640 19 930 44 970 1 800 29 680 7 440 Debit 8 780 3110 9 700 11 400 50 640