ADJUSTING ENTRIES

1. The Showroom Fittings were installed on 1 July, 2022. They have a useful life of 9 years and no salvage value.

The Straight-Line method is used to depreciate the Showroom Fittings.

2. The Equipment was installed on 1 July, 2017. They have a useful life of 10 years and estimated salvage value of $28,350. The Straight-Line method is used to depreciate the Equipment.

3. Twelve months of Rent was prepaid on 1 March, 2023. Of the original prepaid amount, $2,218,860 worth of Rent has now expired.

4. A count of Stationery Supplies indicates that $768,285 still remain on hand at year end.

5. A one-year Insurance policy was purchased on 1 November 2022 for $102,060.

6. Interest on the National Australia Bank Mortgage Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense should be rounded up to the nearest dollar). The National Australia Bank Mortgage Loan was originally taken out on the 1 August, 2022.

7. The company has been informed that Rosehill Tyres & Wheels has been declared bankrupt and Western Suburbs Car Products Pty Ltd has agreed to write off the amount owing as a Bad Debt. The company uses the direct write-off method to account for any Bad Debts in the books.

8. A telephone bill for $57,834 for June was received on 5 July, 2023. The amount has not yet been recorded. The company records them as a Utilities Expense.

9. Office Staff are paid once per month, $661,122. The Office Staff were last paid on the 15 June, 2023. Exactly half of one month Office Staff wages are still owing.

10. Sales Staff are paid fortnightly and work 7 days per week. The sales staff were last paid on the 29 June, 2023. One day of the wages bill amount to $40,089 is still owed to the Sales Staff.

11. The Accountant of the company has estimated that Tax Payable following the inclusion of certain tax adjustments, for the year ended 30 June, 2023 will only be $777,609. This amount is to be paid on 31 October, 2023. Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevant ledger accounts. Now enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance. Prepare the unadjusted Trial Balance as at 30 June 2023 on the Worksheet provided.Prepare the adjusting entries shown on page 10 in the General Journal and post to the relevant ledger accounts. Now enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance. A Stocktake on 30 June 2023 indicates that the balance of Closing Inventory is $12,748,428. Use this information to complete the remaining columns of the worksheet.

Credit (5) 765,450 1,382,346 UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS As at 31 May 2023 Acc. Account Debit (S) 100 Cash at Bank 5,531,652 101 Accounts Receivable Control 2,143,260 102 Stationery Supplies 1,359,099 103 Inventory 7,030,800 104 Prepaid Reut (paid 1 March 2023) 6,656,580 105 Prepaid Insurance (paid 1 Nov.2022) 102,060 150 Showroom Fittings 4,592,700 151 Accumulated Depreciation - Showroom Fittings 160 Equipment 1,559,250 161 Accumulated Depreciation - Equipment 200 Accounts Payable Control 201 Interest Payable 202 Utilities Payable 203 Wages Payable 204 Salaries Payable 205 Tax Payable 206 Dividend Payable 250 Mortgage Loan (due 31 July 2038) 300 Share Capital 301 Retained Profits (1 July 2022) 302 Dividends Declared 3033 Profit and L. Summary 400 Sales Revenue 401 Sales Discounts (Discount Allowed) 279,531 402 Sales Returns and Allowances 78,813 500 Purchases 17,341,695 501 Purchase Discounts (Discount Received) 502 Purchase Returns and Allowances 600 Freight-Out 26,082 601 Wages Expense - Sales Staff 8,713,089 002 Depreciation Expense - Showroom Fittings Depreciation Expense - Equipment 604 Stationery Expense 605 Rent Expense 606 Insurance Expense 607 Advertising Expense 394,632 608 Interest Expense 609 Utilities expense 526,176 610 Tax Expense 611 Sundry Expenses 27,216 612 Salaries Expense Office Staff 6.845.958 613 Bad Debts Expense 5,462,478 10,206,000 8,671,698 36,411.606 217,728 91,287 13.208.592 3.208.593 SUBSIDIARY LEDGERS Schedule of Accounts Receivable As a 31 May 2023 Note: Western Suburbs Car Products Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Acc. No. Account Invoice date Amount ($) 101-1 30 May 857,304 101-2 Granville Alarms & Locks Lidcombe Oils & Tools Macquarie Covers & Seats Rosehill Tyres & Wheels 101-3 101-4 20 May 28 April 14 May 433,188 586,278 266,490 2,143,260 Schedule of Accounts Payable As a 31 May 2023 Acc. No. Account Credit terms Invoice date Amount (S) 200-1 2/10, n/60 391,230 Cherrybrook Car Accessories Pennant Hills Car Accessories 30 May 27 May 200-2 1/10, n/45 991,116 $1,382,346 TRANSACTIONS For June 2023 Date Transaction Week 1 June 1 Granville Alarms & Locks paid the balance of its account and were given a discount of $17,136 hy us. Delivered goods to Lidoombe Oils & Tools for $614,628 and issued invoice 1981. Issued cheque #530 to pay 568,040 for delivery costs of inventory to their premises June 4 Paid the amount owing to Cherrybrook Car Accessories and Cheque #531 was sent to the creditor June 7 Total Cash Sales for the week were $173,502. Week 2 June 9 Macquarie Covers & Seats paid $246,078 toward the amount it owes us. June 10 Made a purchase from Pennant Hills Car Accessories for S527,310 for inventory: Terms are 1/10, n'45 and date of invoice was 10 June The firm issued cheque #532 for the purchase of Stationery Supplies amounting to $49,896. June 11 Granville Alarms & Locks purchased inventory of $619,164. Invoice #982 was issued. June 12 Some of the car products purchased on 10 June from Pennant Hills Car Accessories were the incorrect celow. We retumed the inventory in exchange for a Credit Note of $170,100. June 14 Total Cash Sales for the week were 5237,006 Week 3 June 15 Paid office staff salaries of $661,122. Cheque NS33 was issued for payment. Cheque #534 was issued to pay sales staff wages, $561,330, June 16 Purchased inventory from Cherrybrook Car Accessories for $867.510. The invoice was dated 16 June. Credit terms are 210, 21. June 18 Sold inventory to Macquarie Covers & Seats for $1,119,258 on invoice 1983. Issued choque #535 to pay for delivery costs of $85,050. June 19 The company issued cheque #536 to pay the amount still owing to Pennant Hills Car Accessories June 21 Tatal Cash Sales for the week were $225,099. WORKSHEET-30 June 2023 Bale Used Trial Debit Credit Adjust Ile Credit Adjusted Trial Bal. Debit Credit Aan The her Char Debit Credit Account Receive Streery Sapplies w her Id 1 MMC Prepaid in Pad Now Sauna Acumulad Daten Sem Fings Equip Acumulated Die Access Pyale Control Interest Payable Uslits Payable Wagai Pyhk So Wres Pyhie Tax Payable Didend Payable Martgage Luanda 31 J12031) Shes Capital Retail di Jaly 2002) Dividends Declared Sales Memes Sales De Sales Resort AD Purchases Credit (5) 765,450 1,382,346 UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS As at 31 May 2023 Acc. Account Debit (S) 100 Cash at Bank 5,531,652 101 Accounts Receivable Control 2,143,260 102 Stationery Supplies 1,359,099 103 Inventory 7,030,800 104 Prepaid Reut (paid 1 March 2023) 6,656,580 105 Prepaid Insurance (paid 1 Nov.2022) 102,060 150 Showroom Fittings 4,592,700 151 Accumulated Depreciation - Showroom Fittings 160 Equipment 1,559,250 161 Accumulated Depreciation - Equipment 200 Accounts Payable Control 201 Interest Payable 202 Utilities Payable 203 Wages Payable 204 Salaries Payable 205 Tax Payable 206 Dividend Payable 250 Mortgage Loan (due 31 July 2038) 300 Share Capital 301 Retained Profits (1 July 2022) 302 Dividends Declared 3033 Profit and L. Summary 400 Sales Revenue 401 Sales Discounts (Discount Allowed) 279,531 402 Sales Returns and Allowances 78,813 500 Purchases 17,341,695 501 Purchase Discounts (Discount Received) 502 Purchase Returns and Allowances 600 Freight-Out 26,082 601 Wages Expense - Sales Staff 8,713,089 002 Depreciation Expense - Showroom Fittings Depreciation Expense - Equipment 604 Stationery Expense 605 Rent Expense 606 Insurance Expense 607 Advertising Expense 394,632 608 Interest Expense 609 Utilities expense 526,176 610 Tax Expense 611 Sundry Expenses 27,216 612 Salaries Expense Office Staff 6.845.958 613 Bad Debts Expense 5,462,478 10,206,000 8,671,698 36,411.606 217,728 91,287 13.208.592 3.208.593 SUBSIDIARY LEDGERS Schedule of Accounts Receivable As a 31 May 2023 Note: Western Suburbs Car Products Pty Ltd offers all customers Credit Terms 2/10, n/30, unless otherwise stated Acc. No. Account Invoice date Amount ($) 101-1 30 May 857,304 101-2 Granville Alarms & Locks Lidcombe Oils & Tools Macquarie Covers & Seats Rosehill Tyres & Wheels 101-3 101-4 20 May 28 April 14 May 433,188 586,278 266,490 2,143,260 Schedule of Accounts Payable As a 31 May 2023 Acc. No. Account Credit terms Invoice date Amount (S) 200-1 2/10, n/60 391,230 Cherrybrook Car Accessories Pennant Hills Car Accessories 30 May 27 May 200-2 1/10, n/45 991,116 $1,382,346 TRANSACTIONS For June 2023 Date Transaction Week 1 June 1 Granville Alarms & Locks paid the balance of its account and were given a discount of $17,136 hy us. Delivered goods to Lidoombe Oils & Tools for $614,628 and issued invoice 1981. Issued cheque #530 to pay 568,040 for delivery costs of inventory to their premises June 4 Paid the amount owing to Cherrybrook Car Accessories and Cheque #531 was sent to the creditor June 7 Total Cash Sales for the week were $173,502. Week 2 June 9 Macquarie Covers & Seats paid $246,078 toward the amount it owes us. June 10 Made a purchase from Pennant Hills Car Accessories for S527,310 for inventory: Terms are 1/10, n'45 and date of invoice was 10 June The firm issued cheque #532 for the purchase of Stationery Supplies amounting to $49,896. June 11 Granville Alarms & Locks purchased inventory of $619,164. Invoice #982 was issued. June 12 Some of the car products purchased on 10 June from Pennant Hills Car Accessories were the incorrect celow. We retumed the inventory in exchange for a Credit Note of $170,100. June 14 Total Cash Sales for the week were 5237,006 Week 3 June 15 Paid office staff salaries of $661,122. Cheque NS33 was issued for payment. Cheque #534 was issued to pay sales staff wages, $561,330, June 16 Purchased inventory from Cherrybrook Car Accessories for $867.510. The invoice was dated 16 June. Credit terms are 210, 21. June 18 Sold inventory to Macquarie Covers & Seats for $1,119,258 on invoice 1983. Issued choque #535 to pay for delivery costs of $85,050. June 19 The company issued cheque #536 to pay the amount still owing to Pennant Hills Car Accessories June 21 Tatal Cash Sales for the week were $225,099. WORKSHEET-30 June 2023 Bale Used Trial Debit Credit Adjust Ile Credit Adjusted Trial Bal. Debit Credit Aan The her Char Debit Credit Account Receive Streery Sapplies w her Id 1 MMC Prepaid in Pad Now Sauna Acumulad Daten Sem Fings Equip Acumulated Die Access Pyale Control Interest Payable Uslits Payable Wagai Pyhk So Wres Pyhie Tax Payable Didend Payable Martgage Luanda 31 J12031) Shes Capital Retail di Jaly 2002) Dividends Declared Sales Memes Sales De Sales Resort AD Purchases