Question
Consider the information provided for Peak Financial Services Record adjusting entries for the end of June. Include narrations. Construct the T formatted ledger accounts. Prepare
Consider the information provided for Peak Financial Services
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You must use formula to construct the ledger accounts, profit and loss statement, and balance sheet.
PEAK FINANCIAL SERVICES
UNADJUSTED TRIAL BALANCE AS AT 31st 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 | - | 2,13,700 |
GAS EXPENSE | 750 | - |
FUEL EXPENSE | 6,400 | - |
RENT EXPENSE | 30,000 | - |
SALARIES EXPENSE | 32,800 | - |
PHONE AND INTERNET EXPENSE | 3,150 | - |
TOTALS | 3,40,680 | 3,40,680 |
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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
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