Molly Smith opened Mollys Cleaning Services on Jun e 1. During the month of June, the following transactions were completed: June 1 Invested $15,000 cash in the business June 2 Purchased a ute for $10,500 + GST, paying $3 ,500 cash & the balance on account. June 4 Purchased cleaning supplies for $1,320 (incl usive of GST) on account June 8 Paid $1,800 cash on one year insurance polic y effective June 1. (The amount includes GST of $60) June 13 Billed customers $3,520 for cleaning servic es (incl. of GST). Terms 2/10 net 30 June 20 Paid $1,600 cash on amount owed on truck & $550 on amount owed on cleaning supplies. June 21 Paid $1,850 cash for employee salaries. June 23 Collected $1,960 cash from customers billed on June 13. These customers had availed of the sales discount. June 27 Billed Customers $3,080 for cleaning servic es (incl. of GST). Terms 2/10 net 30. June 30 Paid gas & oil for the truck $165 inclusive of GST. June 30 Withdrew $850 for personal use. Note: Mollys Cleaning Services is registered for GST. Required: a) Journalise the June transactions. (Marks: 8) b) Prepare a trial balance on a worksheet (Marks: 5.25) c) Enter the following adjustments on the work shee t & complete the worksheet. 1) Earned but unbilled revenue at June 30 was $950 (excl. GST) 2) Depreciation on the truck for the month was $18 5 3) An inventory count showed $750 of the cleaning supplies were still on hand. 4) Accrued but unpaid employee wages were $550. 5) One months insurance expired.

ACT501 Semester 1, 2016

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(Marks: 11.25)

d) Prepare the income statement for the month of Ju

ne.

(Marks: 2.5)

e) Journalise closing entries & complete the closin

g process.

(Marks: 3.0)

f) Prepare T accounts for Cash, Service Revenue & G

ST Clearing. Include

closing entries wherever appropriate.

(Marks: 7.25)

g) Prepare a post-closing trial balance as at 30 Ju

ne.

(Marks: 2.75)