The trial balance of Chelsea Elliott, marketing services provider, at 30 June 2015 was as follows:

	CHELSEA ELLIOTT, MARKETING SERVICES Unadjusted Trial Balance as at 30 June 2015
	Account		Debit			Credit
	Cash at bank Accounts receivable GST receivable Prepaid rent Prepaid insurance Office supplies Office equipment Accumulated depreciation — office equipment Accounts payable Unearned fees Loan payable — due 2015 GST collections C. Elliott, Capital C. Elliott, Drawings Fees revenue Salaries expense Telephone expense Rent expense		$	7 780 21 700 2 600 2 100 2 730 4 020 12 200 52 000 57 200 6 100    10 200		$	2 470 2 800 1 100 9 200 8 060 16 600 138 400
			$	178 630		$	178 630

Required

A. Using the following information, prepare adjusting entries. Use the accounts shown in the trial balance and these additional accounts: Salaries Payable, Interest Payable, Telephone Account Payable, Depreciation Expense, Office Supplies Expense, Insurance Expense, Interest Expense.

1. Interest expense of $520 has accrued on the loan payable.

2. A physical count of office supplies on 30 June shows $560 of unused supplies on hand.

3. Depreciation of the office equipment this year is estimated to be $1020.

4. Half the amount in the Unearned Fees account had been earned by the end of the year.

5. The amount in the Prepaid Rent account covers this June and the next 2 months.

6. Of prepaid insurance, 80% expired this period.

7. Salaries expense accrued for the last 4 days in June amounts to $1660.

8. The telephone expense for June of $670 has not been recorded or paid. No tax invoice has been issued.

B. Open T accounts for the accounts shown in the trial balance and enter the 30 June balance in each account. Post the adjusting entries to the T accounts.

C. Prepare an adjusted trial balance, an income statement and a statement of financial position.

D. Assuming that adjusting entries 1–8 in requirement A were not made, determine what the profit would have been. What is the difference between this figure and the profit derived in requirement C?