Accurate Steel Pty Ltd maintains inventory on a perpetual basis and advises you of the following

the following adjustments are required to be completed for the year ended 30 June 2018

Further bad debt of $2000 plus GST $0 (exempt from GST) to be written off

Allowance (provision) for doubtful debts to be increases to 5% of accounts receivable balance

annual insurance premium of $3,600 (GST exclusive) was paid on February 1 2018 account for the amount that has been prepaid at 30 June 2018

Salaries and wages to be accrued at 30 June 2018 is $9,800

Rental income received in advanced $600

Depreciation for the year (not recorded in the accounts) was

Motor vehicle $15,500

Furniture and fittings $4,500

for the above information and trail balance below

a) prepare the necessary general journal entries for the above balance day adjustments

b) prepare classified income statement for the year ended 30 June 2018

c) prepare classified Balance sheet as at 30 June 2018

Trial Balance

Dr Cr

Inventory 20,000

accounts receivable 13,400

allowance for doubtful debts 340

Bank 10,600

Land and buildings 87,200

Furniture and fixtures 16,800

accumulated depreciation furniture & fix 5,100

Motor vehicle 70,860

accumulated depreciation motor vehicle 28,000

accounts payable 9,020

GST Payable 3,000

Mortgage 21,000

Capital 136,000

Drawings 9,800

Sales 97,000

Rental income 3,600

Interest Income 800

cost of goods sold 36,000

Advertising 2,400

Insurance 5,000

Lease expenses 1,300

Postage 400

Salaries 28,900

Bad Debt 1,200

$303,860 $303,860