The following information has been extracted from the general ledger of Susan's Caf as at 30 June 2016.

Additional information 

End of period adjustments required are: 

• Inventory on hand $40,050 
• Insurance prepaid $210 
• Interest on loan accrued $1,500 
• Depreciation to be provided on Plant and Equipment $4,222 

 

Required: 

1. Adjusting general journal entries and closing entries 
2. Income Statement 

Transcribed Image Text:

Capital 01/07/15 Drawings Bank Inventory 01/07/15 $ 80,000 31,200 22,628 36,000 Accounts Receivable 25,822 GST Paid 2,600 Allowance for Doubtful Debts 800 Prepaid Expenses 1,230 Plant & Equipment 42,220 Accumulated Depreciation - Plant & Equipment 8,440 Accounts Payable 5,440 GST Collected 3,200 Loan (due 30 June 2019) 30,000 Sales (net) 216,292 Purchases (net) 99,726 Advertising 3,560 Distribution Expenses 16,312 Insurance 2,600 Salaries & Wages 31,820 Telephone & Electricity 4,654 Rent 20,800 Loan Interest expense 3,000 Capital 01/07/15 Drawings Bank Inventory 01/07/15 $ 80,000 31,200 22,628 36,000 Accounts Receivable 25,822 GST Paid 2,600 Allowance for Doubtful Debts 800 Prepaid Expenses 1,230 Plant & Equipment 42,220 Accumulated Depreciation - Plant & Equipment 8,440 Accounts Payable 5,440 GST Collected 3,200 Loan (due 30 June 2019) 30,000 Sales (net) 216,292 Purchases (net) 99,726 Advertising 3,560 Distribution Expenses 16,312 Insurance 2,600 Salaries & Wages 31,820 Telephone & Electricity 4,654 Rent 20,800 Loan Interest expense 3,000

Answer rating: 100% (QA)

Here are the adjusting journal entries and closing entries for Susans Caf for the p... View the full answer