Consider the information provided for Peak Financial Services

• Construct the T formatted ledger accounts.
• Prepare the profit and loss statement for the year ended 30 June 2020.
• Prepare the classified narrative formatted balance sheet as at 30 June 2020.

You must use formula to construct the ledger accounts, profit and loss statement, and balance sheet.

PEAK FINANCIAL SERVICES

UNADJUSTED TRIAL BALANCE AS AT 31^st MAY 2020

ACCOUNT DR CR

CASH AT BANK 88,300

ACCOUNTS RECEIVABLE 48,300

GST RECEIVABLE 4,380 -

PREPAID RENT 9,000 -

PREPAID INSURANCE 8,000 -

OFFICE SUPPLIES 4,700 -

OFFICE EQUIPMENT 92,400 -

ACCUMULATED DEPRECIATION OFFICE EQUIPMENT - 25,000

ACCOUNTS PAYABLE 26,800

UNEARNED FEES 12,200

LOAN PAYABLE DUE 31 DECEMBER 2019 25,000

GST PAYABLE 5,980

CAPITAL (A, PEAK) 32,000

DRAWINGS (A, PEAK) 12,500

FEES REVENUE 213,700

GAS EXPENSE 750 -

FUEL EXPENSE 6,400 -

RENT EXPENSE 30,000 -

SLALARIES EXPENSE 32,800 -

PHONE AND INTERNET EXPENSE 3,150 -

TOTALS 3,40,680 3,40,680

June transactions

Date transaction amount

1/06/2020 cash receipts from customers for money owed $19,800

2/06/2020 purchased a work van paying a 20% cash deposits and taking out a 4-year 6% loan to cover the balance $67,100

5/06/2020 purchased office supplies on credit, due 15 July $2,200

9/06/2020 received a cash deposit upfront from a customer for financial advisory work to be completed during July 2020 $4730

12/06/2020 cash receipts from customers for moneys owed $22,185

15/06/2020 paid all outstanding accounts payable from previous month

22/06/2020 received gas bill $330

24/06/2020 paid June salaries to this date $2,400

26/06/2020 received and paid mobile phone and internet bill for month of June $374

28/06/2020 settled previous month GST with ATO

29/06/2020 cash receipts from customers for moneys owed $3,250

30/06/2020 record all June sales on credit $21,340

30/06/2020 received bank interest $230

30/06/2020 one customer was declared bankrupt during June. Their debt is judged to be non-recoverable (a bad debt). $2,310

Additional Information:

• All sales are credit sales (30 days).
• Unless stated all amounts are GST inclusive or GST exempt.
• Interest expense of $227 has accrued in June on the loans payable
• A physical count of office supplies on 30 June shows $2400 of unused supplies on hand
• Depreciation of the office equipment this year is estimated to be $9,400.
• Depreciation of the motor vehicle will be determined using the straight-line method. The business estimates the useful life of the van to be 5 years, and the residual value to be $16,000. Based on these values, the business estimates annual depreciation on the van to be $9,000 per year.
• Prepaid insurance was paid on the 1st of April 2020 and covered a period of 6 months.
• Prepaid rent balance as at 1 July 2020 should be $2,800.
• Of the unearned fees balance as at 31st May, 60% were refunded to a customer as the business was unable to complete the work prior to 30 June as previously agreed, the remainder of the unearned fees were earned during June.
• Salaries expense accrued for the last week in June amounts to $2,800. Ignore PAYG related to salaries.
• The fuel expense for June of approximately $800 has not been recorded or paid.
• At the end of the month A, Peak withdrew $4,500 for his own use