Gym Kidz is a retail shop which sells gymnastic clothing for kids. It is owned and operated by Simone Beam. At year end, Simone has prepared the following trial balance:

GYM KIDZ

TRIAL BALANCE AS AT 30 JUNE 2021

	Debit ($)		Credit ($)
Cash at Bank	18,750
Accounts Receivable	24,000
Inventory (30 June 2021)	48,750
Prepaid Shop Rent	36,000
Shop Shelving	180,000
Accum. Depreciation Shop Shelving			60,000
Bank Overdraft			9,000
Accounts Payable			13,950
S. Beam, Capital (1 July 2020)			212,550
S. Beam, Drawings	18,750
Sales			385,200
Sales Returns & Allowances	1,800
Discount Received			2,700
Cost of Sales	192,000
Sales Staff Salaries Expense	63,000
Advertising Expense	2,700
Discount Allowed	360
Freight Outwards	540
Interest Expense	2,100
Council Rates Expense	1,950
Administrative Salaries Expense	42,000
Rent Expense	48,000
Telephone Expense	2,700
	683,400		683,400

(continued over page)

The following additional information is also provided for the year ended 30 June 2021:

1. A physical stocktake as at 30 June 2021 revealed $46,125 of inventory on hand.

2. Simone has estimated that 3% of the 30 June 2021 balance owing from customers will never be collected.

3. Sales staff salaries of $3,450 are still owed and have not been paid as at balance date.

4. Tracksuits with a sale price of $1,030 were delivered to a customer on 28 June 2021. The sale of these tracksuits has not yet been recorded and the customer is expected to pay on 7 July 2021.

5. The Shop Shelving is expected to have a useful life of 10 years and will then be sold for an estimated amount of $20,000.

6. The Prepaid shop rent was paid 12 months in advance and covers the rent until 30September 2021.

7. $2,000 of the recorded sales represents cash received in advance from a customer on 16 June 2021 for a custom designed club leotards. The leotards will not be delivered to the customer until 10 August 2021.

8. The telephone bill for $230 was received in the mail on 29 June 2021. The bill has not yet been recorded or paid.

REQUIRED:

Question 1 part (a)

Based on the information provided above, record any necessary adjusting journal entries.

To assist you, journal entry templates have been provided on the following two pages (please note - you do not have to use all of them).

Each journal entry must be correctly formatted and should also include a brief narration (explanation) for the entry.

Question 1 part (b)

Complete the Accumulated Depreciation Shop Shelving ledger provided below only.

The ledger should Include the opening balance, any posting as a result of the Balance Day adjusting entries required in part (a), and the closing balance.

Note: No other ledger accounts are required to be added or completed.

Accumulated Depreciation Shop Shelving

Date	Details	$	Date	Details	$