The unadjusted trial balance of the general ledger of Antonio’s Small Appliance Repair Service on 30 June 2016 is presented below:
|
ANTONIO’S SMALL APPLIANCE REPAIR SERVICE Trial Balance as at 30 June 2016 |
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|
Account |
Debit |
Credit |
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|
Cash at bank Investment in marketable securities Accounts receivable GST receivable Prepaid insurance Electrical repair equipment Accumulated depreciation – electrical equipment Accounts payable Mortgage payable (due 31 December 2021) GST payable A. Calabrese, Capital A. Calabrese, Drawings Small appliance repairs revenue Advertising expense Other selling expenses Electricity expense Sundry expenses Rent expense Wages expense Interest on mortgage expense Rent revenue |
$ |
37 770 76 260 198 850 18 860 10 200 360 000 31 540 20 100 30 750 20 100 39 200 19 680 155 800 3 060 |
$ |
122 500 184 500 61 500 27 100 172 770 434 600 19 200 |
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|
$ |
1 022 170 |
$ |
1 022 170 |
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Additional data for adjustment purposes
(a) Supplies on 30 June 2016 were:
(i) advertising supplies (originally debited to Advertising Expense), $6900.
(ii) store supplies (originally debited to Sundry Expenses), $3600.
(b) On 1 January 2016, the business rented half of its shop space to Joshua’s Cafe for 12 months and received a cheque for $19 200 plus GST, representing the entire year’s rental fee.
(c) Purchases of electrical repair equipment were as follows, net of GST:
|
Purchase date 1 January 2012 1 April 2016 |
Cost $280 000 $80 000 |
Useful life 8 years 10 years |
(d) The Prepaid Insurance account consists of the following, net of GST:
|
Policy number FGK 3457 BKL 5702 |
Date of policy 1 July 2015 1 January 2016 |
Life of policy 2 years 1 year |
Total premiums $6200 $4000 |
(e) Wages earned by employees but unpaid as at 30 June 2016 totalled $5040.
(f) 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 2016.
C. Prepare a statement of financial position (properly classified in narrative form) as at 30 June 2016.
D. Present the Interest on Mortgage Expense account showing detailed entries for the year ended 30 June 2016 as it would appear after all adjustments have been made.
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