Pete’s Computer Shop is a sole trader run by Pete Narellan. The unadjusted trial balance of Pete’s Computer Shop is shown below.

Required

(a) Prepare a worksheet for Pete’s Computer Shop. Use the following information to make the year‐end adjustments.
i. Prepaid insurance expired during the year, \($1290\).
ii. Depreciation on the store equipment, \($3100\); and on delivery van, \($1540\).
iii. Accrued interest on the loan payable, \($745\).

The ending inventory determined by physical count was \($36\) 430.

(b) Prepare an income statement, a statement of changes in capital and a balance sheet for the year ended 30 June 2020.

(c) Prepare adjusting and closing entries.

(d) Prepare a post‐closing trial balance.

Transcribed Image Text:

PETE'S COMPUTER SHOP Unadjusted Trial Balance for the year ended 30 June 2020 Account Cash at bank Accounts receivable Inventory (1 July 2019) Prepaid insurance Store equipment Accumulated depreciation store equipment Delivery van Accumulated depreciation-delivery van Accounts payable Loan payable Peter Narellan, Capital Drawings Sales Sales returns and allowances Discount received Purchases Purchases returns and allowances Freight inwards Sales salaries expense Freight outwards Discount allowed Interest expense Office salaries expense Debit $ 16640 19930 44 970 1800 29 680 7440 Credit $ 8780 3110 9 700 11400 50 640 16550 282 060 11100 810 152 600 9720 3130 32 760 1520 1360 1620 35 120 $376220 $376220