The management consulting firm of the Zimbardi Sisters supplied the following information as at 30 June 2016, the end of the financial year.
1. Interest earned but not received totals $2600.
2. The June electricity account for $1142 has not been paid or recorded.
3. Consulting fees owing to the business and unrecorded as at 30 June 2016 amounted to $8620.
4. The Zimbardi sisters received $6300 in rent revenue on 1 May for the 3-month period beginning on that date. The transaction was recorded by a credit to Unearned Rent Revenue.
5. Prepaid Insurance was debited for $5040 on 25 March to record the cost of a 12-month policy beginning on 1 April.
Required
A. Prepare an adjusting entry for each item as at 30 June 2016.
B. Prepare reversing entries where appropriate. Justify why you have/have not prepared reversing entries for each adjustment.
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