QUESTION 1: Balance Day Adjustments (16 Marks) Below is the unadjusted Trial Balance for Jim's Joinery,...

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QUESTION 1: Balance Day Adjustments (16 Marks) Below is the unadjusted Trial Balance for Jim's Joinery, a cabinetmaker, and some additional information. The business is owned by Jim Smith and the trial balance below is as at 30 June 2023. Jim Smith trading as Jim's Joinery Unadjusted Trial Balance As at 30 June 2023 Account Cash at Bank Debit ($) Credit ($) 28,100 Accounts Receivable Inventory 24,100 16,000 Prepaid Rent 10,000 Stationery Supplies on hand 2,800 Equipment 40,700 Accumulated Depreciation -Equipment 14,000 Delivery vehicles 48,000 Accumulated Depreciation - Delivery vehicles 11,000 Accounts Payable 10,500 Unearned revenue 4,500 Loan Payable 48,000 Capital Jim Smith 65,500 Drawings - Jim Smith 4,000 Sales Revenue 496,500 Sales Returns and Allowances 18,000 Cost of Goods Sold 271,000 Discount received Discount allowed 7,300 Freight inwards 3,400 Salaries and wages expense 120,600 Stationary Expense 0 Freight outwards 3,600 Insurance expense 18,400 Rent Expense Electricity Expense Telephone expense Totals 650,000 17,000 10,600 6,400 650,000 4 Additional Information 1. The Equipment and Delivery vehicles will be used evenly over their useful lives. The expected total useful lives and residual values of these assets are as follows: Equipment Delivery vehicles Estimated Useful life 4 years 5 years Estimated Residual $3,000 2. On 1 January 2023, a client paid $3,800 to Jim's Joinery for cupboards. By June 30, 2023 $2,800 worth of cupboards have already been delivered to the client. 3. On 1 March 2023, Jim's Joinery paid rent for the next 5 months in advance. On this date (1 March 2023) Prepaid Rent was debited and Cash at Bank was credited. 4. A total amount of $700 worth of stationery supplies had been used by 30 June 2023. 5. On 29 June 2023, Jim's Joinery delivered bookcases to a client but the client was only invoiced for them on 2 July, 2023. The total amount charged to the client was $2,800. 6. On 30 June 2023, Jim estimated that 3% of the Account Receivable balance refers to clients that may not be able to pay. 7. On July 10 2023, Jim's Joinery received its electricity bill for June 2023. The total amount owing is $600. This bill has not been recorded or paid yet. REQUIRED: It is now the end of the financial year (30 June 2023) and Jim Smith has asked you to prepare any necessary balance day adjusting journals in the pro-forma provided. Use the General Journal template provided below to record the required journal entries. Note: Journal entries must be correctly formatted and include a date and a narration. 5 Jim's Joinery General Journal Date Details Debit ($) Credit ($) 6 QUESTION 1: Balance Day Adjustments (16 Marks) Below is the unadjusted Trial Balance for Jim's Joinery, a cabinetmaker, and some additional information. The business is owned by Jim Smith and the trial balance below is as at 30 June 2023. Jim Smith trading as Jim's Joinery Unadjusted Trial Balance As at 30 June 2023 Account Cash at Bank Debit ($) Credit ($) 28,100 Accounts Receivable Inventory 24,100 16,000 Prepaid Rent 10,000 Stationery Supplies on hand 2,800 Equipment 40,700 Accumulated Depreciation -Equipment 14,000 Delivery vehicles 48,000 Accumulated Depreciation - Delivery vehicles 11,000 Accounts Payable 10,500 Unearned revenue 4,500 Loan Payable 48,000 Capital Jim Smith 65,500 Drawings - Jim Smith 4,000 Sales Revenue 496,500 Sales Returns and Allowances 18,000 Cost of Goods Sold 271,000 Discount received Discount allowed 7,300 Freight inwards 3,400 Salaries and wages expense 120,600 Stationary Expense 0 Freight outwards 3,600 Insurance expense 18,400 Rent Expense Electricity Expense Telephone expense Totals 650,000 17,000 10,600 6,400 650,000 4 Additional Information 1. The Equipment and Delivery vehicles will be used evenly over their useful lives. The expected total useful lives and residual values of these assets are as follows: Equipment Delivery vehicles Estimated Useful life 4 years 5 years Estimated Residual $3,000 2. On 1 January 2023, a client paid $3,800 to Jim's Joinery for cupboards. By June 30, 2023 $2,800 worth of cupboards have already been delivered to the client. 3. On 1 March 2023, Jim's Joinery paid rent for the next 5 months in advance. On this date (1 March 2023) Prepaid Rent was debited and Cash at Bank was credited. 4. A total amount of $700 worth of stationery supplies had been used by 30 June 2023. 5. On 29 June 2023, Jim's Joinery delivered bookcases to a client but the client was only invoiced for them on 2 July, 2023. The total amount charged to the client was $2,800. 6. On 30 June 2023, Jim estimated that 3% of the Account Receivable balance refers to clients that may not be able to pay. 7. On July 10 2023, Jim's Joinery received its electricity bill for June 2023. The total amount owing is $600. This bill has not been recorded or paid yet. REQUIRED: It is now the end of the financial year (30 June 2023) and Jim Smith has asked you to prepare any necessary balance day adjusting journals in the pro-forma provided. Use the General Journal template provided below to record the required journal entries. Note: Journal entries must be correctly formatted and include a date and a narration. 5 Jim's Joinery General Journal Date Details Debit ($) Credit ($) 6