• Music Equipment owned by the business: original purchase price was $46,000, estimated useful life was 8 years, and estimated residual value was $8,400 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• A number of music lessons totalling $2,800 were provided during the month of June for D-Funkt Records but not yet invoiced.
• The estimated telephone bill payable as at the end of June is $90.
• Instructors work every single day during the week including weekends and are paid on a periodic basis. Wages were last paid up to and including June 16. Wages incurred after that day (from 17 June to 30 June inclusive) are estimated to have been $580 per day.
• Interest expense incurred during the month of June but not yet paid to MRMC Bank for the bank loan is $990.
• Provided $1,650 worth of music lessons during the month of June in relation to the cash received in advance from Dan Soul on 8 June.
• A stocktake of office supplies at the end of the month shows that the business has $925 of supplies on hand.
• $3,520 of worth prepaid rent expired during the month of June.