Adjusting entries (Accounting Worksheet) (10 marks)

The Unadjusted Trial Balance for Zappo Vehicles for the month ended 31 March 2018 is presented in the Worksheet provided.

Additional Information:

1. The vehicle of $75,000 has a useful life of 8 years and a scrap value of $3,000. No depreciation has been recorded since 31 Dec 2017.
2. The supplies on hand at 31 March 2018 is $ 5000
3. Annual insurance premium of $1,500 was paid on 1 January 2018.
4. The business has 3 casual employees each of who earns $300 per day. All three of them worked the last 2 days in March 2018 and have not yet been paid.
5. Service of $6,500 was provided by the business but no entry has been made and no payment has been received as yet.

Zappo Vehicles Worksheet For the year ended 31 March 2018
	Unadjusted Trial Balance		Adjustments
Account title	Debit	Credit	Debit	Credit
Cash at bank	90,000
Accounts receivable	220,000
Supplies	6,500

Prepaid insurance	1,500
Vehicle	75,000
Accumulated depreciation Vehicle		10,000
Accounts payable		3,600
Unearned revenue		2,400
Bank loan		55,000
Capital		235,900
Service revenue		285,000
Rent expense	40,000
Insurance expense	3,500
Supplies expense	2,000
Interest expense	3,400
Wages expense	150,000
TOTAL	591,900	591,900

Required: Use the above information, prepare adjusting entries in the Worksheet in the response template below.

Zappo Vehicles Worksheet For the year ended 31 March 2018
	Unadjusted Trial Balance		Adjustments
Account title	Debit	Credit	Debit	Credit
Cash at bank	90,000
Accounts receivable	220,000
Supplies	6,500
Prepaid insurance	1,500
Vehicle	75,000
Accumulated depreciation Vehicle		10,000
Accounts payable		3,600
Unearned revenue		2,400
Bank loan		55,000
Capital		235,900
Service revenue		285,000
Rent expense	40,000

Insurance expense

3,500

Supplies expense

2,000

Interest expense

3,400

Wages expense

150,000

TOTAL

591,900

591,900