Adjusting entries Now that you have completed the unadjusted trial balance, you are ready to record the end of month adjustments for June. The purpose of adjusting entries is to ensure that the general ledger account balances reflect the revenues earned and expenses incurred during the accounting period Remember that the details of the end of month adjustments for June are as follows: Coffee Making Equipment owned by the business: original purchase price was $50,000, estimated useful life was 6 years, and estimated residual value was $9,000 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. A number of coffee making lessons totalling $4,900 were provided during the month of June for Revamp Coffee Carts but not yet invoiced. The estimated telephone bill payable as at the end of June is $120. 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 13. Wages incurred after that day (from June 14 to June 30 inclusive) are estimated to have been $600 per day. Interest expense incurred during the month of June but not yet paid to ZNZ Bank for the bank loan is $810 Provided $1,440 worth of coffee making lessons during the month of June in relation to the cash received in advance from Kavajava on June 11. Office supplies totaling $1,080 are still on hand at June 30. $1,600 worth of prepaid insurance expired during the month of June. Instructions for adjusting entries 1) Record the end of month adjusting entries in the general journal 2) Post the adjusting entries from the general journal to the general ledger accounts. 3) Record the final adjusted balance of each ledger account in the Adjusted Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Adjusted Balance row must still be filled out in order to receive full points Back-On-Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember