Assignment Question 1 Mr Novak Murray is the sole owner of Roger & Rafa, a store that offers tennis racquet stringing service (that involves the use of strings and labour). The unadjusted trial balance of Roger & Raga as at 30 June 2018 is shown below. The annual reporting period for the business ends 30 June. Additional information: 1. A cash payment of $540 for rent covering the period 1 May 2018 to 31 July 2018 was made on 30 April 2018 and debited to the Rent Expense account on the day. 2. One customer, Naomi Stosur, purchased a $250 service package by cash on 5 May 2018. The package covers ten times of the use of the stores stringing service. No service was used at purchase. This transaction was credited to service revenue on the day of purchase. Naomi had used the stringing service four times by the end of the reporting period. 3. The unpaid salaries earned by the stores two sale assistants, Alex and Ashleigh, totaled $780 as at 30 June 2018. Ignore depreciation. The use of string supplies in the period has been accounted for. Required (a) Prepare the journal entries required to correct recording errors (if any, leave blank if there are no errors). (5 marks) (b) Prepare adjusting entries (after correction of errors, if any). (8 marks) (c) Prepare the Adjusted Trial Balance for Roger & Rafa. (9 marks) (For parts (a) & (b), provide your answers to the related item number, no narration required.)

Meowster Adjusted Trial Balance as at 30 June 2018 Debit $12 500 4 400 11 500 Credit Account Cash at Bank Pet Bathing Supplies Machines Professional Pet Dryer Accounts Payable Long-Term Bank Loan Kate Morris, Capital Kate Morris, Drawings Bathing Service Revenue Accommodation Service Revenue Pet Bathing Supplies Expense Wages Expense Rent Expense Utility Expense Interest Expense - Bank Loan $ 1000 17 100 10 000 3 000 12 600 7 500 5 200 5 600 4 200 1 700 100 48 200 $48 200