According to Scooba Dive Inc. which is question 1, answer question 3

QUESTION 1: Balance Day Adjustments (20 marks) Anne Chovi is the sole proprietor of Scooba Dive Inc located in a popular beachside location referred to as 'The Cove'. Anne has been successfully operating her environmentally friendly Scuba Diving gear business for the last ten years. The business primarily stocks goggles and facemasks, wetsuits, scuba tanks and other assorted diving gear. Anne also runs diving courses to promote the beauty of the reef and the continued need to look after the marine environment. Anne is so busy with the management of the business and running the diving courses that she was unable to attend to the bookkeeping, so she hired Jones & Co Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Jones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the year-end Balance Day Adjustment journals for Scooba Dive Inc. Scooba Dive Inc. Unadjusted Trial Balance As at 30 June 2020 Debit ($) Credit ($) Cash 4,800 Accounts Receivable 28,800 Inventory (1 July 2019) 34,400 Prepaid Rent 1.440 Scuba tanks 12,800 Accumulated Depreciation - Scuba tanks 2,580 Office & Shop Equipment 3,200 Accumulated Depreciation - Office and Shop Equipment 1,580 Accounts Payable 25,800 A Chovi, Capital (1 July 2019) 46,400 A Chovi, Drawings 10,000 Sales 166,240 Sales Returns & Allowances 1,800 Discount Allowed 820 Purchases 112,160 Interest Revenue 720 Electricity Expense 1,720 Water Expense 960 Sales Staff Wages 16,000 Local Government Rates Expense 540 Insurance Expense 4,800 Advertising Expense 3,000 Rent Expense 6,480 Totals 243,320 243,320 On the following page is additional information that Anne has provided to you in relation to the year ended 30 June 2020.i) A physical stockta ke of inventory at 30th June 2020 revealed $44,320 on hand. ii) $5,200 of the recorded sales represents receipts for scuba tanks which will not be delivered until 7th July 2020. iii) The prepaid rent was paid on 1 June 2020 and was Shoploffice rent for two months ending 31 July 2020. iv] Upon receipt of the business's bank statement, Anne realised that the business bank account had earned $12 interest on 30 June 2020 which had been directly paid into the bank account by the bank on that day. The accounting records need to be updated for this transaction- v} it is estimated that 2% of the 30 June 2020 balance of Accounts Receivable is unlikely to be received. vi] Anne had relied on word of mouth to promote her business to date however Anne decided to advertise her business and products in a popular lifestyle magazine. Anne paid $3,000 at the end of February for the advertising campaign to commence on the 1\" of March 2020 for a six-month period. vii) Sales staff wages owing but not paid as at balance day equal $1,334. viii) Both the Scuba tanks and Ofce 8!. Shop Equipment are expected to be used evenly over their useful lives- The expected total useful lives and residual values of both assets are as follows: \" REQUIRED: It is now the end of the financial year, and based on the information she has provided above, Kat has asked you to prepare any necessary balance day adjusting journals- Use the General Journal document provided on the following page to record anyjournal entries required All journals must be correctly formatted and include a narration [explanation] for each entry. QUESTION 2: Financial Statement (11 marks) Mr Dinkley owns 'A Page A Day', a well-known and well-stocked bookshop specialising in mystery novels and comic books. He is also a very good friend of Anne Chovi and often refers customers who are holidaying in the Cove to Anne's diving tours. The following Trial Balance for A Page A Day bookshop has been prepared at year end by Mr Dinkley, who likes to keep a hand in the bookkeeping side of the business. A PAGE A DAY TRIAL BALANCE AS AT 30 JUNE 2020 Debit ($) Credit ($) Cash at Bank 15,121 Accrued Rent 400 Allowance for Doubtful Debts 204 Shop Shelving 22,456 Office Operating Expense 17,200 Interest Expense 1,065 Depreciation Exp - Motor vehicle 400 Inventory (1 July 2019) 10,480 Prepaid Insurance 1,518 Freight Inwards Expense 755 Accumulated Depreciation - Shop Shelving 5,800 Discount Received 400 Rent Expense 17,800 Office Furniture and Fittings 6,400 Delivery Expense 360 Accounts Receivable 16,341 Insurance Expense - Office 240 Wages Expense 52,600 Accumulated Depreciation - Motor vehicle 400 Motor Vehicle 8,000 Accounts Payable 3,620 Doubtful Debts Expense 204 Loan (repayable 1 Oct 2027) 9.200 Sales 154,581 Accumulated Depreciation - Office Furniture & Fittings 1,900 Mr Dinkley, Capital (1 July 2019 43,910 Depreciation Exp - Office Furniture & Fittings 640 Mr Dinkley, Drawings 7,200 Advertising Expense 1,815 Sales Returns & Allowances 190 Depreciation Exp - Shop Shelving 1,000 Discount Allowed 230 Purchases 38,400 Totals 220,415 220,415 Mr Dinkley has provided the following additional information to assist you with your statement preparation: The stocktake performed at 30 June 2020 recorded an ending inventory balance of $11,000. The Wages account balance is comprised of $28,930 for Selling & Distribution and $23,670 for Administration. The Rent expense is split 50% for the office premises and 50% for the shop premises. REQUIRED: Using the template provided on the following page, prepare a fully classified Income Statement for the year ending 30 June 2020.QUESTION 3: Acoountigg Conce [15 marks! You are a graduate accountant working for Jones 8: Co Accounting Specialists Pty Ltd. One of their new clients is Miss Anne Chovi, who owns and operates Scooba Dive Inc. Scooba Dive inc sells goggles, facemasks, wetsuits, scuba tanks and other assorted diving gear. Anne also runs diving courses to promote the beauty of the reef and the continued need to look after the marine environment. Anne provides all the diving equipment to each of the participants in the courses- Miss Chovi has had a meeting with the Managing Partner of Jones 8: Co today, and you were invited to attend the meeting. After the meeting, the Managing Partner tells you she is extremely busy with several clients at the moment and asks you to prepare a letter to Miss Chovi which covers the points listed below. Miss Chovi is confused by the fact that the Scuba tanks she uses in the diving courses are listed separately in the Trial Balance to those scuba tanks she has in the shop for sale (which are included in the inventory balance). Using the appropriate element\"t denition, apply the facts provided and explain to Miss Chovi what element' both inventory and the separate account Scuba tanks are recorded as- *(element = Asset, Liability, Equity, income or Expense) (12 marks) The explanation in [our letter must be sEcic to Scooba Dive Inc. Generic answers will not be awarded more than half marks for this Question. The remaining 3 marks will be awarded for following the formatting requirements below. 0 Date your letter the 1.9"I July 2020 0 Address your letter to Miss Chovi, 3 The Cove, South Australia 5458. I Any formal business letter format is acceptable. Please note that a template has n_ot been provided - students are expected to research business letter formats themselves. I Set out your letter with subheadings to separate each part of your letter as you address the criteria required. 0 Use of on appropriate professional way to begin and end your letter. You must consider the context of the letter who are you writing it to, and how would you communicate with them? 0 The use of appropriate language, accounting terminology and reference in your letter to the specic information presented in the question. 0 No specic word count is prescribed. However; given the nature of the questions, it would be expected that the entire letter (including address and sign-off) should require no more than one A4 page