Ewok Ltd began operations on 1 May 2015. The trial balance at 30 June is as follows.

Required:

Required a. Prepare the adjusting entries for the month of June. b. Using T accounts, enter the totals from the trial balance as beginning account balances and then post the adjusting entries to the ledger accounts. C. Prepare an adjusted trial balance as at 30 June 2015. d. Calculate the profit for the month. Discuss the impact on profit for the current period and year and future years if the equipment was depreciated over 2 years not the 5 years and yet the business uses the equipment for the 5 years. e. Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. (LO3,4,5) PS43.1 Ewok Ltd began operations on 1 May 2015. The trial balance at 30 June is as follows. EWOK LTD Trial balance as at 30 June 2015 NO. DEBIT 100 104 112 113 130 200 ACCOUNT NAME CREDIT Cash $ 34 560 Accounts Receivable 26 040 Prepaid Insurance 9 600 Supplies 13 000 Office Equipment 86 400 Accounts Payable $ 19 800 213 Service Revenue Received in Advance 4 800 300 Share Capital 100 000 Service Revenue 76 600 Salaries Expense 23 800 510 Rent Expense 7 200 $201 200 $201200 In addition to those accounts listed on the trial balance, the chart of accounts for Ewok Ltd also contains the following accounts: 131 Accumulated Depreciation-Office Equipment, 218 Electricity Payable, 215 Salaries Payable, 520 Depreciation Expense, 515 Insurance Expense, 530 Electricity Expense, and 505 Supplies Expense. Other data: 400 500 1. Supplies on hand at 30 June total 57200. 2. An electricity bill for $1200 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year, commencing 1 May 2015. 4. Services were performed during the period in relation to $3000 of Revenue Received in Advance. 5. Salaries of $6400 are owed at 30 June. 6. The office equipment has a 5-year life with no resale value and is being depreciated at $1440 per month for 60 months. 7. Invoices representing $8000 of services performed during the month have not been recorded as of 30 June. Required a. Prepare the adjusting entries for the month of June. b. Using T accounts, enter the totals from the trial balance as beginning account balances and then post the adjusting entries to the ledger accounts. c. Prepare an adjusted trial balance as at 30 June 2015. d. Calculate the profit for the month. e Discuss the impact on profit for the current period and year and future years if the equipment was depreciated over 2 years not the 5 years and yet the business uses the equipment for the 5 years