Siamak's Shoe Repairs is run by Siamak Rubaiyat in the local shopping arcade. The business prepared the following unadjusted and adjusted trial balances at 30 June 2025.

Required Prepare the adjusting entries that account for the differences between the two trial balances and explain the nature of each entry. The only account affected by more than one adjustment is Shoe Repair Revenue. Ignore GST.

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SIAMAK'S SHOE REPAIRS Trial balances as at 30 June 2025 Trial balance Account Debit Adjusted trial balance Credit Debit Credit Cash $11 610 $11 610 Accounts receivable 35 940 38 620 Supplies 3 510 2 510 Prepaid insurance 7 080 4 280 Shop equipment 69 640 69 640 Accumulated depreciation Accounts payable Salaries and wages payable Interest payable $26 470 $33 810 20 330 20 330 3 090 1 130 Loan payable 38 640 38 640 Unearned services revenue 4 630 3.090