Characters Ltd adjusted and unadjusted trial balances as of 30 June 2017 are as follows.

Required

(a) Journalise the annual adjusting entries that were made.

(b) Prepare a statement of profit or loss and a calculation of retained earnings for the year ended 30 June 2017 and prepare a statement of financial position as at 30 June 2017.

(c) Identify which accounts should be closed on 30 June.

(d) If the bank loan was taken out 6 months ago, what is the annual interest rate on the loan?

(e) If the entity paid $13 400 in salaries in 2017, what was the balance in Salaries Payable on 30 June 2016?

(f) What is the effect on profit as a result of these adjusting entries?

(g) The statement of profit or loss presents the performance of the business over the past year. What other information concerning the profitability of the business would be useful for the financial statement users?

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No. 100 110 130 140 150 151 200 220 230 240 250 300 310 311 400 500 505 510 520 530 540 Account name Cash Accounts Receivable Supplies Prepaid Insurance Printing Equipment Accumulated Depreciation Accounts Payable Interest Payable Revenue Received in Advance Salaries Payable Bank Loan (long term) Share Capital Retained Earnings Dividends Revenue Salaries Expense Insurance Expense Interest Expense CHARACTERS LTD Trial balances as at 30 June 2017 Depreciation Expense Supplies Expense Rent Expense Unadjusted Dr $ 24520 22 400 9 400 3750 67 200 13 440 11 200 600 4480 $156990 Cr $ 31 360 5600 7840 18000 22 400 6 160 65630 $156990 Adjusted Dr $ 24520 24 080 5600 2800 67 200 13440 12 600 950 720 7840 3 800 4 480 $168 030 Cr $ 39 200 5600 120 6270 1400 18 000 22 400 6160 68 880 $168 030