Prepare the adjusting entries, post to the ledger, prepare Adjusted Trial Balance and prepare closing entries.

Background and Facts

Paella Williams is the owner of Happy n Healthy Pets a business specializing in pet care services which she started several years ago. Paella operates the business herself and employs one person Trent Lachem to assist her. The business is GST registered. Happy n Healthy specializes in smaller pets mainly dogs and cats and birds. The business provides services such as pet washing and grooming, pet minding and feeding, pet walking and transport for health checks at the vet. Paella has a variety of clients with whom she has built up strong relationships. She offers them terms of 30 days. Paella submits her Business Activity Statements quarterly on an accruals basis and pays GST and PAYG Tax quarterly. The next payment is due on June 30th . The business is operated from a large shed which was built at the back of her house two years ago. To finance this Paella took out a loan over a five year period. Currently the business uses a manual accounting system but plans to move to a Xero accounting system in June.

 

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Accounting Information a. Chart of ACcounts Account Number Account Name Opening Balance 110 Cash at Bank 15129 120 Accounts Receivable 12977 130 Prepaid Insurance 140 Office Supplies 435 150 Pet Care Supplies 1810 160 Office Equipment 161 Accumulated Depreciation Office Equipment 170 Pet Care Equipment 171 Accumulated Depreciation Pet Care Equipment 180 Vehicle 3620 1610 32500 14300 42000 181 Accumulated Depreciation Vehicles 12000 190 Building 191 Accumulated Depreciation Buildings 200 GST Clearing 210 Accounts Payable 220 Unearned Revenue 230 Wages Payable 240 PAYG Payable 250 Bank Loan 300 P. Williams Capital 58000 23000 3628 (CR) 3073 260 40000 68600 310 P. Williams Drawings 350 Profit & Loss Summary 410 Pet Care Services Revenue 510 Pet Care Supplies Expense 515 Office Supplies Expense 520 Phone & Internet Expense 525 Wages Expense 530 Advertising Expense 535 Repairs & Maintenance Expense Bank Charges 545 Interest Expense 550 Depreciation Expense 560 Insurance Expense 540 Accounting Information a. Chart of ACcounts Account Number Account Name Opening Balance 110 Cash at Bank 15129 120 Accounts Receivable 12977 130 Prepaid Insurance 140 Office Supplies 435 150 Pet Care Supplies 1810 160 Office Equipment 161 Accumulated Depreciation Office Equipment 170 Pet Care Equipment 171 Accumulated Depreciation Pet Care Equipment 180 Vehicle 3620 1610 32500 14300 42000 181 Accumulated Depreciation Vehicles 12000 190 Building 191 Accumulated Depreciation Buildings 200 GST Clearing 210 Accounts Payable 220 Unearned Revenue 230 Wages Payable 240 PAYG Payable 250 Bank Loan 300 P. Williams Capital 58000 23000 3628 (CR) 3073 260 40000 68600 310 P. Williams Drawings 350 Profit & Loss Summary 410 Pet Care Services Revenue 510 Pet Care Supplies Expense 515 Office Supplies Expense 520 Phone & Internet Expense 525 Wages Expense 530 Advertising Expense 535 Repairs & Maintenance Expense Bank Charges 545 Interest Expense 550 Depreciation Expense 560 Insurance Expense 540