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I would like to get the answer for this please! Rebecca Smith operates a small retail store. The unadjusted trial balance of Rebecca's Retail Store
I would like to get the answer for this please!
Rebecca Smith operates a small retail store. The unadjusted trial balance of Rebecca's Retail Store is shown below. Rebecca's Retail Store Unadjusted Trial Balance As at 30th June 2020 Debit ($) 39,000 Credit ($) Account Cash at Bank Accounts Receivable 10,000 Inventory 19,600 Office Supplies 3,200 Prepaid Insurance 2,280 Motor Vehicle 20,000 Accumulated Depreciation - Motor Vehicle 6,000 Accounts Payable 1,050 Unearned Rent Revenue 6,600 Bank Loan 45,000 Rebecca Smith, Capital 31,780 Rebecca Smith, Drawings 6,000 Sales Revenue 60,950 Sales Returns and Allowances 2,900 Purchases 24,500 Purchases Returns and Allowances 2,500 Salaries Expenses 18,600 Rent expense 6,000 Interest Expense 1,800 Total 153,880 153,880 The following additional information was not considered while preparing unadjusted trial balance: 1. The Sales Revenue account includes $1,300 for the services to be provided in July 2020. 2. Interest on Bank Loan @ 6% per annum is payable half-yearly on 1st March and 1st September every year. The last interest payment made by the business was on 1st March 2020. 3. The unused office supplies on hand totalled $1,280. 4. Estimated depreciation on the motor vehicle is $2,000. 5. Prepaid insurance is 1-year policy starting from 1st May 2020. 6. Half of the unearned revenue has been earned. Required Prepare adjusted trial balance using the template provided over the page. Note: In addition to those accounts listed in unadjusted trial balance, the chart of accounts of Rebecca's Retail Store contains the following accounts: Interest Payable, Unearned Sales Revenue, Rent Revenue, Office Supplies Expense, Depreciation Expense, Insurance Expense. Adjusted Trial Balance Dr Cr Cr Account Name Cash at Bank Accounts Receivable Inventory Office Supplies Prepaid Insurance Motor Vehicle Accumulated Depreciation - Motor Vehicle Accounts Payable Unearned Rent Revenue Bank Loan Rebecca Smith, Capital Rebecca, Drawings Sales Revenue Sales Returns and Allowances Purchases Purchase Returns and Allowances Salaries Expense Rent Expense Interest Expense Rebecca's Retail Store Worksheet as at 30 June 2020 Unadjusted Trial Balance Adjustments Dr Cr Dr 39,000 10,000 19,600 3,200 2.280 20.000 6,000 1,050 6,600 45,000 31,780 6,000 60,950 2,900 24,500 2,500 18,600 6,000 1,800 Total $153,880 $153,880Step by Step Solution
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