(a) Using the following information, make the necessary adjusting entries for the accounting year ending 30 June. (16 Marks)

The $765 telephone expense is unpaid and unrecorded at 30 June.

The balance in Accumulated Depreciation at the beginning of the financial year was $51300 be $34200.

Rent of office premises of $3 165 for the 3-month period ending 31 July is due to be paid in July.

Bankstown Rental Services borrowed $70 000 from Bank on 15 March. The principal, plus 8% interest, is payable on 15 September. Accrued interest on 30 June has not been recorded.

Bankstown Rental Services purchased a 12-month insurance policy for $2 940 on 1 November. A 24 month policy was purchased on 1 April for $6600. Both purchases were recorded by debiting Prepaid Insurance.

The Supplies account had a $1 500 debit balance on 1 July of the preceding year. Supplies costing $7 100 were purchased during the year, and $1 310 of supplies are on hand as at 30 June.

On 1 June, Bankstown Rental Services received 2 months rent in advance, totalling $4 660. This was recorded by a credit to Unearned Rental Revenue.

The office assistant earns $280 a day. He will be paid in July for the 5 day period ending 2 July.

(b) Based on your adjusting entries prepared in requirement

: i. calculate the increase or decrease in profit (2 marks)

ii. calculate the increase or decrease in total assets (1 mark)

iii. calculate total liabilities and total equity. (2 marks)