1. Rental revenue earned but not collected or recorded, $1200.

2. Depreciation on vehicles not recorded, $14 500.

3. Wages earned by employees but not paid at year-end, $5600.

4. The company requires the first-day rental in advance as a deposit for making a reservation. The deposit is either deducted from the total rental charges or is forfeited. During the last week of June, deposits earned were not recorded as revenue, $900.

Required

1. Prepare the necessary adjusting entries in general journal form (narrations are required).
2. Determine the effects of the adjustments on the financial statements by completing the schedule presented in the attachment

(Copy and paste the template to text box when you complete it; please do not attach it to text box; an attachment will not be marked)

in the first column of the attachment (Week 3 Portfolio Question (b) template.docx) is the condensed financial statements for Kelvin Motorvehicle Rentals before adjusting entries were made. The following items were not reflected in the statements: KELVIN MOTORVEHICLE RENTALS