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 debts of $2,000 plus GST $0 except from GST to be written off
• allowance provision for doubtful debts to be increased to 5% of accounts receivable balance
• annual insurance premium of $3,600 (gst exclusive) was paid on feb 1,2018 accounts 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 & fittings $4,500

Required

from the above information and the trial balance below

a) 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

NOTE the perpetual inventory system is used

Trial Balance as at 30 June 2018

DR CR

Inventory 20,000

accounts receivable 13,400

allowance for doubtful debts 340

Bank 10,600

Land and Building 87,200

Furniture and fittings 16,800

accumulated depreciation furniture 5,100

Motor vehicle 70,860

accumulated deprecation 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 good sold 36,000

advertising 2,400

Insurance 5,000

Lease expense 1,300

Postage 400

Salaries 28,900

Bad debts 1,200

303,860 303,860