Part A

The following information relates to Hunter Ltd, a courier service business. At the end of the financial year on 30 June 2020, the following items require adjustment in the general journal at 30 June 2020:

a. Hunter Ltd rents surplus office space to an accounting firm. The accounting firm paid $96,000 on 1 September 2019 which covers their rent to the end

of August 2020. Hunter Ltd uses the liability approach to record rent revenue.

b. Hunter Ltd negotiated a loan of $500,000 from the Monash Bank. The funds were made available as from 1 May 2020. Simple interest (as yet unpaid)

is charged at the rate of 12 per cent per annum.

c. Equipment was purchased on 1 July 2018 at a cost of $560,000. The equipment had a useful life of 6 years and a $100,000 residual value. Hunter Ltd

uses the reducing balance method of depreciation at 25% per annum

d. Hunter Ltd staff work 7 days a week. Wages are paid fortnightly and the last wages paid was for $70,000. The last fortnightly wages paid in June was

to Monday 29 June 2020.

Part B

For the above items, prepare the required reversing general journals on 1 July 2020