Part A

Prepare the adjusting entries for the month ended 30 June 2022. (7.5 marks)

1. Supplies expense at 30 June total $620.

2. The ageing schedule indicates that $2 000 of accounts receivables will be uncollectable. The allowance for doubtful debts has a credit balance of $400.

3. The machine costing $22 500 has a 10-year life with $600 residual value. Use the straight-line method to record depreciation.

4. The insurance policy is for a year, costing $1 200. The policy commenced on 1 March 2022.

5. Invoices representing $3 500 of service performed during the month have not been recorded as of 30 June.

6. Services were performed in June in relation to $900 of revenue received in advance.

Narrations in the general journals are not required.