“To Boldly Go” is a retail store that is owned and operated by William Riker and specialises in astronomy books and telescopes. The following trial balance has been prepared for the year ended 30 June 2021.

The following additional information is also provided for the year ended 30 June 2021:

1. A physical stocktake of inventory on 30 June 2021 revealed $146,160 on hand.

2. It is estimated that 2.5% of the 30 June 2021 balance of Accounts Receivable will not be received.

3. $69,600 of the recorded sales represents payments for goods which will not be delivered until August 2021.

4. Both the Photocopier and Book Shelving are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets are as follows:

   	Useful life	Residual Value
   Book Shelving	10 years	$2,000
   Photocopier	4 years	$600

5. The firm’s insurance is paid in advance and initially recorded as Prepaid Insurance.
   The last insurance payment made was for 6 months commencing 1 March 2021.

6. To Boldly Go paid $9,000 on 1January 2021 to the “Daily Astronomer” magazine. This payment was for a full-page advertisement that would appear in each of the 12 monthly editions of the magazine that would be published in 2021 (Jan-Dec). This was recorded as Advertising Expense at the time it was paid.

7. Upon receipt of the business’s bank statement, William realised that the business had earned $224 interest on 30 June 2021. This amount was deposited directly into the business’s bank account by the bank but has not yet been recorded in the businesses accounting records.

8. Bookkeepers’ wages owing but not paid as at balance day equals $10,400.

Based on the information provided above, record any necessary adjusting journal entries.

 

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TO BOLDLY GO TRIAL BALANCE As at 30 JUNE 2021 Debit ($) Credit ($) Cash 107,080 Accounts Receivable 126,920 Inventory (30 June 2021) 155,472 Prepaid Insurance 4,800 Book Shelving 64,000 Accumulated Depreciation Book Shelving 12,800 Photocopier 16,000 Accumulated Depreciation - Photocopier 8,000 Accounts Payable 129,000 W. Riker, Capital (1 July 2020) W. Riker, Drawings 232,000 50,000 Sales 891,200 Sales Returns & Allowances 9,000 Discount Allowed 1,600 Cost of Sales 577,328 Freight Inwards 8,600 Discount Received 3,600 Freight Outwards 4,800 Bookkeepers Wages Expense 94,000 Local Government Rates Expense 5,200 Electricity Expense 8,000 Insurance Expense 6,400 Advertising Expense 9,000 Rent Expense 28,400 1,276,600 1,276,600 TO BOLDLY GO TRIAL BALANCE As at 30 JUNE 2021 Debit ($) Credit ($) Cash 107,080 Accounts Receivable 126,920 Inventory (30 June 2021) 155,472 Prepaid Insurance 4,800 Book Shelving 64,000 Accumulated Depreciation Book Shelving 12,800 Photocopier 16,000 Accumulated Depreciation - Photocopier 8,000 Accounts Payable 129,000 W. Riker, Capital (1 July 2020) W. Riker, Drawings 232,000 50,000 Sales 891,200 Sales Returns & Allowances 9,000 Discount Allowed 1,600 Cost of Sales 577,328 Freight Inwards 8,600 Discount Received 3,600 Freight Outwards 4,800 Bookkeepers Wages Expense 94,000 Local Government Rates Expense 5,200 Electricity Expense 8,000 Insurance Expense 6,400 Advertising Expense 9,000 Rent Expense 28,400 1,276,600 1,276,600