"Adjusting entries"

General journal:

Remember that the details of the end of month adjustments for June are as follows:

1) Chocolate making equipment owned by the business: original purchase price was $59,000, estimated useful life was 7 year, and estimated residual value was $8,400 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

2) A number of chocolate making lessons totaling $3,100 were provided during the method of June for Candy Rush but not yet invoiced.

3) The estimated telephone bill payable as the end of June is $90.

4) Instructors work every single day during the week including weekends and are paid on a periodic basis. Wages were last paid up to and including June 14. Wages incurred after that day (from June 15 to June 30 inclusive) are estimated to have been $600 per day.

5) Interest expense incurred during the month of June but not yet paid to EastPac Bank for the bank loan is $990.

6) Provided $2,900 worth of chocolate making lessons during the month of June in relation to the cash received in advance from Mercury Square on June 10.

7) Office supplies totaling $1,254 are still on hand at June 30.

8) $1,200 worth of prepaid insurance expired during the month of June.

GENERAL JOURNAL Date Account and Explanation Post Debit Credit Jun 30 Jun30 Jun30 Jun 30 Jun 30 Jun 30 Jun30 Jun30 Ask me anything