1.     Office Salaries which are payable but not recorded as at 30 June are $785.

 

2.     Both the Furniture & Fittings and the Cleaning Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows:

 

Estimated Useful life

Estimated Residual

Furniture & Fittings

8 years

$1 780

Cleaning Equipment

10 years

$2 100

 

 

3.     A physical stocktake of inventory on 30 June 2018 revealed $139 200 of stock on hand

 

4.     A count of the stationery room revealed that office supplies on hand at 30 June 2018

were $1 737. (Hint: The difference between the supplies on hand and supplies in the unadjusted trial balance should be treated as an expense.)

 

5.     The balance in the Prepaid Insurance account represents a 12-month insurance policy that commenced on 1 March 2018.

 

6.     $2 700 of the recorded Sales Revenue is for specially imported robotic pool cleaner that will not be delivered to the customer until 24 July 2018.

 

7.     As of 30 June 2018, Wade has estimated that 4% of his Accounts Receivable may not be collected.

 

8.     Wade last paid an electricity bill on 31 May 2018, and estimates that his power usage from then until 30 June 2018 was $220

 

 

It is now the end of the financial year and Wade has asked you to prepare necessary balance day adjusting journals.  

Below is the unadjusted Trial Balance for Pool Wave a pool product and maintenanceshop owned and operated by Wade Wilson , as at 30 June 2018Pool WaveUnadjusted Trial BalanceAs at 30 June 2018 +Debit ( $ )Credit ( 8) ofCash at Bank6. 766Accounts Receivable31 875Inventory140 400Prepaid Insurance4 914Office Supplies on hands3 , 276Furniture & Fittings39 . 780Accumulated Depreciation - Furniture & Fittings11 .934 + +Cleaning Equipment46 800Accumulated Depreciation - Cleaning Equipment18 7204Accounts Payable27.027HPLoan Payable117 0004W. Wilson - Capital56 . 222+ +W . Wilson - Drawings28030Sales Revenue691 029 4+Sales Returns and Allowances9 924Cost of Good sold412 , 308Discount received12957Freight inwards9 360Sales Salary Expense58 328Delivery Expense18. 252Advertising Expense26 910Rent Expense28.548Office Salaries Expense33 750Electricity Expenses8 832Discount Allowed5 786Totals94 4 88994 4 889+ +