Andy Harris owns Piano Tuning Service. The post‐closing trial balance at 30 June 2019 is shown below. Ignore GST.

Transactions completed during the year ended 30 June 2020 are summarised below.

1. Tuning fees of $78 000 were receivable during the year; $42 700 of this total was received in cash. The remainder consisted of transactions on credit.

2. Revenue from piano repairs was $48 700. Cash received totalled $33 500, and accounts receivable increased by $15 200.

3. Supplies costing $820 were purchased during the year on credit.

4. On 1 January 2020, Andy Harris paid $6000 off the bank loan plus interest of $1800. The interest payment consisted of $880 accrued up to 1 July 2019 and a further $920 which accrued for the period to 31 December 2019.

5. Fuel for the vehicle cost $5200 in cash.

6. Insurance on the vehicle, paid in advance, was $1260.

7. Telephone expense of $1480 was paid.

8. Accounts receivable of $47 800 were collected, and $4000 was paid on accounts payable.

9. Andy Harris withdrew $48 000 cash from the business.
The following information relating to adjusting entries is available at the end of June 2020.

10. A physical count showed supplies costing $400 on hand at 30 June 2020.

11. Accrued interest on the bank loan is $420.

12. Insurance costing $1200 expired during the year.

13. Depreciation on the vehicle is $8700.

14. The June telephone account for $264 has not been paid or recorded.

Required

(a) Open T accounts for the accounts listed in the post‐closing trial balance and the accounts below. Insert beginning balances in the accounts as shown in the post‐closing trial balance.

(b) Prepare journal entries to record the transactions (numbers 1–9) completed in the year to 30 June 2020.

(c) Post the entries to T accounts.

(d) Prepare a 10‐column worksheet.

(e) Prepare and post the adjusting entries.

(f) Prepare an income statement, a statement of changes in equity and a balance sheet.

(g) Prepare and post the closing entries.

(h) Prepare a post‐closing trial balance.

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Account Cash at bank Accounts receivable Prepaid insurance Supplies Motor vehicle Accumulated depreciation Accounts payable Interest payable Bank loan A. Harris, Capital motor vehicle Account number 1100 1200 1300 1400 1500 1510 2000 2100 2200 3000 Debit $ 4200 3520 460 680 42 800 $51 660 Credit $16050 6880 880 14000 13850 $51 660