Gavin’s Gardening Equipment Hire’s unadjusted trial balance of the business appears as shown below.

	GAVIN’S GARDENING EQUIPMENT HIRE Unadjusted Trial Balance as at 30 June 2016
	Account		Debit			Credit
	Cash at bank Accounts receivable GST receivable Prepaid insurance Gardening equipment Accumulated depreciation – party equipment Accounts payable GST payable G. Greene, Capital G. Greene, Drawings Hire fees revenue Salaries expense Rent expense Maintenance expense Electricity expense		$	5 200 2 400 3 300 1 200 78 700 18 310 26 500 5 700 3 100    1 400		$	40 600 6 800 5 000 18 710 74 700
			$	145 810		$	145 810

Additional information

(a) Expired insurance amounts to $750.

(b) June electricity costs of $330 have not been paid or recorded. No tax invoice has been received.

(c) Depreciation on the gardening equipment is $16 250.

(d) Hire fees of $1320 (plus GST of $132) were received in advance and were not considered to be revenue at balance date.

(e) The Rent Expense account contains $1440 paid for July 2016 rent.

(f)  A hire fee of $418 received in cash (including $38 GST) was recorded by debiting Accounts Receivable.

(g) Salaries earned amounting to $530 will be paid in July and have not been recorded.

Required

A. Set up T accounts for the accounts listed in the trial balance.

1.   Enter the account balances from the trial balance to the T accounts.

2.   Post the adjusting information directly to the T accounts.

B. Prepare an adjusted trial balance.

C. Prepare an income statement and a statement of changes in equity for the year ended 30 June 2016.

D. Prepare a balance sheet as at 30 June 2016.