The trial balance shown below has been extracted from the general ledger of R. James Electronics Ltd at 30 June 2022. The following facts came to light after the trial balance was completed:

a Investigation of a credit balance in a debtor’s account in the subsidiary ledger showed that a credit sale of goods in May for $800 had not been recorded.

b The last day of the period, 30 June 2022, was a Wednesday. The staff are paid on Friday for a five-day working week that ends on Friday. Sales salaries are $2035 per week and office salaries are $475 per week.

c Electricity expenses of $350 have been incurred, but not billed and not recognised. Telephone expenses of

$200 have been incurred (in respect of calls) during June, but not recognised.

d Rent expense includes an amount of $600 prepaid for the first two weeks of July 2022.

e Depreciation of $2400 is to be charged on office equipment and depreciation of $2805 is to be charged on demonstration equipment.

f Interest on a loan is at the rate of 12 per cent per annum, payable quarterly in advance on the last day of each quarter. The loan was made on 1 October 2021.

g Bad debts of $700 are to be written off, and the allowance for doubtful debts is to be 2 per cent of debtors.

Debit Credit $ $
Debtors 407 700 Advertising 81 800 Electricity 5 400 Office equipment 24 000 Postage and telephone 9 300 Inventory 145 000 Cost of goods sold 689 900 Loans 160 200 Allowance for doubtful debts 8 800 Rent 16 000 Sales salaries 105 800 Office salaries 24 800 Sales 1 105 800 Accumulated depreciation:
Sales demonstration equipment 3 300 Office equipment 4 800 Sales demonstration equipment 22 000 Share capital 50 000 Retained profits 61 500 Long-term loan 160 000 Interest on loan 19 200 General office expenses 3 500 1 554 400 1 554 400 1 Prepare general journal entries for any period-end adjustments for the above items.
2 Prepare an income statement for the year ended 30 June 2022.
3 Prepare a balance sheet as at 30 June 2022, suitably classified.