Below is the unadjusted Trial Balance for 'Brick-and-Bragg', a business that sells homeware. The business is owned by Beulah Bragg and the trial balance below is as at 30 June 2020.

Brick-and-Bragg

Unadjusted Trial Balance

As at 30 June 2020

Cash at Bank 35,200

Accounts Receivable 12,800

Inventory 34,000

Prepaid Rent 6,000

Stationery Supplies on hand 5,400

Furniture and Fittings 40,000

Accumulated Depreciation - Furniture and Fittings 14,400

Delivery vehicles 45,000

Accumulated Depreciation - Delivery vehicles 8,000

Accounts Payable 18,000

Unearned revenue 3,000

Loan Payable 40,000

Capital - Beulah Bragg 50,000

Drawings - Beulah Bragg 3,000

Sales Revenue 419,500

Sales Returns and Allowances 15,000

Cost of Goods Sold 200,000

Discount received 4,200

Discount allowed 1,800

Freight inwards 12,000

Salaries and wages expense 101,000

Freight outwards 3,600

Insurance expense 12,000

Rent Expense 15,000

Electricity Expense 11,500

Telephone expense 3,800

Totals 557,100

1. The Furniture and Fittings as well as the Delivery vehicles will be used evenly over their useful lives. The expected total useful lives and residual values of these assets are as follows:

Furniture and Fittings

• Estimated Useful life - 4 years & Estimated Residual- $1,000

Delivery vehicles

• Estimated Useful life - 5 years & Estimated Residual -$2,000

2. On January,1 2020 Beulah Bragg paid the rent for 'Brick-and-Bragg' in advance for the next 6 months. When Beulah made the payment of $6 000 on January, 1 she debited the Prepaid Rent Account and credited the Cash at Bank Account.

3. On May, 1 2020 a client paid $3,000 to Brick-and-Bragg for homeware that would have to be imported from Italy. By June, 30 2020 $2,000 of these goods have already been delivered to the client. On May, 1 Beulah Debited Cash at Bank and Credited Unearned Revenue.

4. A physical count of the Stationery supplies on hand showed that there are $800 worth of stationery on hand at the end of the financial year.

5. On June, 30 'Brick-and-Bragg' made a delivery to a client. However, Beulah has not had a chance yet to invoice this client. The total amount that Beulah will invoice to the client is $3,200.

6. On June, 30 Beulah estimated that 5% of the Account Receivable balance refers to clients that may not be able to pay 'Brick-and-Bragg'.

7. On July, 3 2020 'Brick-and-Bragg received their telephone bill for June 2020. The total amount owing is $450. This bill has not been recorded or paid yet.

REQUIRED:

It is now the end of the financial year (30 June 2020) and Betty Brown has asked you to prepare necessary balance day adjusting journals in the pro-forma provided in the student submission file.

Use the General Journal document provided to record the correctly formatted journal entries required. IMPORTANT* Journals must be correctly formatted and must include a date and a narration (explanation) for each entry. Marks will be deducted if this instruction is not followed.