Assignment Question Proprietor : Ms. Gorgeous Name of Business : Gorgeous & Beautiful Salon Nature of business : Hair and Beauty Salon The business has the following opening balances: Hair Styling Supplies $767 Hair Styling Equipment $18,529 Bank Loan (due December 2022) $28,727 Accounts Payable $9,051 Motor Vehicle $39,695 Accounts Receivable $19,386 Cash at Bank $19,595 Capital ? Transactions in the month of June 2021:

Date	Description	Amount
June 1	Paid general insurance premium	$2,565
June 1	Paid scheduled maintenance service for motor vehicle	$288
June 2	Manicure services on account	$1,296
June 3	Paid rental of business premises	$4,442
June 3	Payment to suppliers - on account	$700
June 4	Paid repair expenses for motor vehicle (Tip: Use the same ledger account for transaction on June 1 on motor vehicle)	$198
June 7	Facial services fees - Cash	$3,273
June 9	Purchase hair styling supplies on account	$890
June 10	Payment to suppliers- on account	$849
June 12	Advertising Expense on account	$1,331

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June 13	Purchase books and magazines - Cash	$151
June 14	Hair styling fees - Cash	$2,241
June 14	Sundry Expenses - Cash	$112
June 15	Facial services fees - Cash	$1,798
June 17	Sundry Expenses - Cash	$157
June 18	Hair styling fees on Account	$1,866
June 20	Cash Withdrawals by Owner	$924
June 21	Advertising Expense - Cash	$648
June 22	Receive payment from customers on account	$1,042
June 24	Manicure services on account	$1,127
June 25	Additional cash contributed by owner	$4,136
June 25	Hair styling fees on account	$1,575
June 26	Receive payment from customers on account	$1,355
June 27	Manicure services - Cash	$1,716
June 30	Paid Staff Wages - Cash	$4,456

Additional Information 1. The business was purchased on May 31, 2021. 2. Show three types of revenue: - Hair styling services, - Manicure services, and - facial services. All revenues received are for the month of June 2021. (Tip: Use an appropriate name for each of the General Ledger T-account). 3. Use one Accounts Receivable for all customers and one Accounts Payable for all suppliers. 3 4. Unless otherwise indicated, all transactions are on a cash basis. (Tip: Use Cash at bank account). 5. Rental and insurance period start on June 1. 6. Insurance expense and hair styling supplies are initially recognized as an asset (Asset Approach). 7. Rental expense is initially recognized as an expense (Expense Approach) 8. Refer to the following information for the balance-day adjustments: a) Closing stock of hair styling supplies on 30/6 ($) $694 b) Hair styling equipment scrap value ($) $4,382 c) Hair styling equipment useful life (years) 3 d) Rent paid for (months) 5 e) Insurance paid for (months) 2 f) Motor vehicle scrap value ($) $3,918 g) Motor vehicle useful life (years) 2 h) Bank loan interest rates (% per year) 11 i) Tip: Use 360 days in a year for interest calculation. j) Electricity expense estimated on 30/6 as supplier invoice is not received yet ($) $318 9. Whenever relevant, specify in the narration which month(s) the expense is related to when record the transactions and balance day adjustments. You can write using your preferred style. For example: Being payment of rental expenses from Jan-April 2021 (4 months) Being payment of rental expenses for 4 months (Jan- April 2021) 10. Use 2 decimal points for all figures. Use a comma as separator for figures more than 1,000, for example, 2,565, 1,296. 11. Closing balance for all revenue and expense accounts - Show the ending balance for all revenue and expense accounts as Closing balance in the General Ledger T-account. No closing entries to income statement is required. - You are NOT required to show the opening balance of the next month for all revenue and expense accounts. Required 1. Prepare journal entries for all the transactions in June 2021. Narrations are required. (28 marks) 2. Prepare journal entries for all balance-day adjustments/ adjusting entries for the month of June 2021 using additional information given. Narrations and workings are required. (Tip: You can show the workings as part of your narrations. For example: Being advertising expenses for June 2021 (12,000x 2/12=$2,000)) (16 marks) 3. Prepare the general ledger T-accounts showing opening balance, transactions, balanceday adjustments, and closing balance for the month of June 2021. Also show the opening balance for the next month for assets, liabilities and equities accounts. (Tip: It is NOT required to show opening balance for the next month for revenue and expenses accounts) (For easy marking, present your T-accounts with this sequence: - Accounts with opening balance; - Newly created assets, liabilities and equities accounts; - revenue accounts; and followed by - expenses accounts.) (25 marks) 4. Prepare the Adjusted Trial Balance for Gorgeous and Beautiful Salon as at June 30, 2021 after including all transactions and balance-day adjustments. (31 marks)