Brothers Ltd began operation on 1 March 2021. The trial balance at 30 June is as below.

Brothers Ltd
Partial trial balance
As at 30 June 2021
Account Name	Debit ($)	Credit ($)
Cash	9 480
Account receivables	4 250
Allowance for doubtful debts		500
Prepaid insurance	2 520
Supplies	2 350
Office equipment	22 500
Account payable		1 550
Service revenue received in advance		1 500
Share capital		20 000
Service revenue		25 495
Salaries expense	3 295
Rent expense	5 250

Additional information:

1. Supplies on hand at 30 June total $620.

2. The insurance policy is for a year, commencing 1 March 2021.

3. Services were performed during the period in relation to $900 of revenue received in advance.

4. The office equipment has an 8-year life with no residual value. Brothers Ltd uses straight-line method to record depreciation.

5. Invoices representing $1 500 of service performed during the month have not been recorded as of 30 June.

6. The ageing schedule of Brothers Ltd indicates that $1 100 of accounts receivables will be uncollectable.

Required:

1) Prepare the adjusting entries for the month of June. (8 marks)

2) What is the carrying amount of office equipment after adjustments? (1 mark)

3) In July, a $200 account receivable is written off as uncollectable. Prepare the journal entry to record the write-off. (1 mark)

4) In July, $2 250 cash dividend is paid. Prepare the journal entry to record the dividend payment (1 mark).

5) Discuss the statement A company must have made sufficient profits before it can pay dividends to its shareholders. (2 marks) Word limit: 100

Narrations in the general journals are not required.