journal entries with narration

Scooba Dive Inc. Unadjusted Trial Balance As at 30 June 2020 Credit (S) Debit (5) 4,800 28,800 34,400 1,440 12,800 2,580 3,200 1,580 25,800 46,400 10,000 Cash Accounts Receivable Inventory (1 July 2019) Prepaid Rent Scuba tanks Accumulated Depreciation - Scuba tanks Office & Shop Equipment Accumulated Depreciation - Office and Shop Equipment Accounts Payable A Chovi, Capital (1 July 2019) A Chovi, Drawings Sales Sales Returns & Allowances Discount Allowed Purchases Interest Revenue Electricity Expense Water Expense Sales Staff Wages Local Government Rates Expense Insurance Expense Advertising Expense Rent Expense 166,240 1,800 320 112,160 1,720 960 16.000 640 4,800 3,000 6,480 Totals 243,320 243,320 On the following page is additional information that Anne has provided to you in relation to the year ended 30 June 2020. 1) A physical stocktake of inventory at 30th June 2020 revealed $44,320 on hand. $5,200 of the recorded sales represents receipts for scuba tanks which will not be delivered until 7th July 2020 iii) The prepaid rent was paid on 1 June 2020 and was Shop/Office rent for two months ending 31 July 2020. iv) Upon receipt of the business's bank statement, Anne realised that the business bank account had earned $12 interest on 30 June 2020 which had been directly paid into the bank account by the bank on that day. The accounting records need to be updated for this transaction. It is estimated that 2% of the 30 June 2020 balance of Accounts Receivable is unlikely to be received Anne had relied on word of mouth to promote her business to date however Anne decided to advertise her business and products in a popular lifestyle magazine, Anne paid $3,000 at the end of February for the advertising campaign to commence on the 1" of March 2020 for a six-month period. vii) Sales staff wages owing but not paid as at balance day equal $1,334. viii) Both the Scuba tanks and Office & Shop Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets are as follows: Useful life Residual Value Scuba tanks Office & Shop Equipment 10 years 2 years $40