The unadjusted trial balance of the general ledger of Antonios Small Appliance Repair Service on 30 June

Question:

The unadjusted trial balance of the general ledger of Antonio’s Small Appliance Repair Service on 30 June 2019 is presented below (ignore GST).

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Additional data for adjustment purposes 1. Supplies on 30 June 2019 were:
i. advertising supplies (originally debited to Advertising Expense), $6900 ii. store supplies (originally debited to Sundry Expenses), $3600.

2. On 1 January 2019, the business rented half of its shop space to Joshua’s Cafe for 12 months and received a cheque for $19 200, representing the entire year’s rental fee.
3. Purchases of electrical repair equipment were as follows.

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4. The Prepaid Insurance account consists of the following.

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5. Wages earned by employees but unpaid as at 30 June 2019 totalled $5040.
6. Interest on the mortgage payable is $3672 per year, paid in half‐yearly instalments on 1 May and 1 November.

Required

(a) Journalise adjustments in the general journal of the entity.

(b) Prepare an income statement and a statement of changes in equity for the year ended 30 June 2019.

(c) Prepare a balance sheet (properly classified in narrative form) as at 30 June 2019.

(d) Present the Interest on Mortgage Expense account showing detailed entries for the year ended 30 June 2019 as it would appear after all adjustments have been made.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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