Pavle James owner of Wollongong Dance Studio, employed you to prepare yearly financial statements for the year ended 30 June 2021. At year end, the unadjusted account balances of Wollongong Dance Studio are as follows: Wollongong Dance Studio Trial Balance as at 30 June 2021

	Debit $	credit $
Cash at Bank	100000
Accounts recievable	75000
Prepaid Advertising	30000
Supplies	14000
Training Equipment	250000
Mortgage Payable		$105,000
Unearned Revenue		20,000
Loan Payable		50,000
Salaries Expense	70,000
Service Revenue		268,000
P. James, Capital		96000
TOTAL	539000	539000

Additional information: Prepaid advertising represents a one-year premium paid on 1 March 2021.

Supplies on hand at the end of the year amounted to 3,800.

Training Equipment is expected to last 7 years and with no residual value. It was purchased on 1 May 2021. Accrued salaries at 30 June were $10,000.

The amount of revenue received in advance that remains unearned at 30 June is $3,800.

Credit Cash at Bank $100,000 Account Receivable 75,000 Prepaid Advertising 30,000 Supplies 14,000 Training Equipment 250,000 Mortgage Payable $105,000 Unearned Revenue 20,000 Loan Payable 50,000 Salaries Expense 70,000 Service Revenue 268,000 P. James, Capital 96,000

a) Record the necessary adjusting entries in the general journal. Include narrations.

b) Discuss the amount Wollongong Dance Studio needs to record on their Statement of Financial Position for the following accounts as at 31 June 2021:

i. Prepaid Advertising

ii. Salaries Expense

iii. Accumulated Depreciation