1 (10 marks) Prepare the following adjusting journals or correcting journals as at 30 June 2021 for Clarke Limited. Round all numbers to the nearest whole dollar where required. Narrations ARE required. 1. Supplies totalling $7,000 were purchased by Clarke Limited on 1 July 2020 and recorded as an asset. On 30 June 2021 a stock count indicated supplies of $3,100 were still on hand. (2 marks) 2. Clarke Limited prepaid rent of $12,000 for the period 1 January to 31 December 2021. The amount of $12,000 is still recorded as prepaid rent on the unadjusted trial balance. Prepare the adjusting journal entry as at 30 June 2021. (2 marks) 3. A customer agreed to make a payment of $10,000 in advance on 1 May 2021 for services to be provided by Clarke Limited over a 6-month period from 1 May 2021 to 31 October 2021. The cash receipt was recorded to the Revenue Received in Advance general ledger account. As at 30 June 2021, half of the work was completed, no Service Revenue has been recognised to date on the unadjusted trial balance as at 30 June 2021. (2 marks) 4. On 1 April 2021 Clarke Limited received cash from the proceeds of a bank loan of $100,000. The interest of 5% is required to be paid on an annual basis on 31 March each year. No entries have been made in the accounting records since the cash receipt of the proceeds of the loan. (2 marks) 5. Clarke Limited has not received an invoice for utilities for the last quarter April to June 2021. The estimate based on usage of the various utilities (gas, electricity and water) is $4,000. (2 marks) Total 10 marks TEMPLATE FOR ANSWERS (FOR DATA ENTRY ONLY DO NOT COPY AND PASTE FROM QUESTION OR OTHER SOURCES AT THIS MAY CORRUPT THE TEMPLATE-SHOULD YOU NOT WISH TO USE TEMPLATE ENTER YOUR ANSWER AT THE END OF TEMPLATES). 1. Supplies totalling $7,000 were purchased by Clarke Limited on 1 July 2020 and recorded as an asset. On 30 June 2021 a stock count indicated supplies of $3,100 were still on hand. (2 marks) Date Account Debit Credit $ $ 2. Clarke Limited prepaid rent of $12,000 for the period 1 January to 31 December 2021. The amount of $12,000 is still recorded as prepaid rent on the unadjusted trial balance. Prepare the adjusting journal entry as at 30 June 2021. (2 marks) Date Account Debit Credit $ $ 3. A customer agreed to make a payment of $10,000 in advance on 1 May 2021 for services to be provided by Clarke Limited over a 6-month period from 1 May 2021 to 31 October 2021. The cash receipt was recorded to the Revenue Received in Advance general ledger account. As at 30 June 2021, half of the work was completed, no Service Revenue has been recognised to date on the unadjusted trial balance as at 30 June 2021. (2 marks) Date Account Debit $ Credit $ 4. On 1 April 2021 Clarke Limited received cash from the proceeds of a bank loan of $100,000. The interest of 5% is required to be paid on an annual basis on 31 March each year. No entries have been made in the accounting records since the cash receipt of the proceeds of the loan. (2 marks) Date Account Debit Credit $ $ 5. Clarke Limited has not received an invoice for utilities for the last quarter April to June 2021. The estimate based on usage of the various utilities (gas, electricity and water) is $4,000. (2 marks) Date Account Debit Credit