The accounting records and other data for Prime Premises Painters was analysed. The following information is available for the year ended 30 June 2025.

1. Salaries and wages owing to employees at the end of the financial year amounted to $12 460.

2. Included in the Rent expense account is an amount of $2 050 paid in June for the month of July 2025. The Rent expense account has a debit balance of $26 650.

3. All equipment had been acquired when the business was established on 1 July 2022. The Equipment account has a debit balance of $207 600. The equipment has a useful life of 10 years and an estimated residual value of $8770.

4. The Motor vehicle account has a debit balance of $116 960. The vehicle was purchased on 1 January 2025 and has an estimated useful life of 5 years and an estimated residual value of $14 600.

5. The Prepaid insurance account has a debit balance of $5 170. It consists of the following policies purchased during the financial year ending 30 June 2025.

6. A physical count of office supplies on hand at 30 June gives a total of $1100. The Office supplies account has a debit balance of $4270.
7. Included in the Prepaid advertising account balance of $12 280 is the amount of $2 890 paid to an internet search engine, Garble, for July 2025. The remainder of the balance is used up by 30 June 2025.
8. At the end of the year, the business had an outstanding long-term loan of $60 000 from one of the owner's friends. Interest of 7% p.a. is payable half-yearly on this loan, every 1 March and 1 September. The last interest payment made by the business was on 1 March 2025.
9. The Painting revenue account has a credit balance of $180 700. Included in this amount is $3 220 for painting to be done in July 2025.
10. Accrued council rates at 30 June 2025 were $6 430.
Required

(a) Prepare the end-of-period adjusting entries required on 30 June 2025. Show clearly your calculations.

(b) Provide reasons for your answers to items 2, 4 and 8 above.

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Policy number Date of policy Life of policy Premium paid KLP 7483 1 September 2024 1 year $1 284 RSH 2960 1 January 2025 2 years 3 080 BVS 6932 1 April 2025 6 months 810