Preparation of accounting records - using spreadsheets Bella Groove and Frankie Jay commenced a new business on 1 January 2020. The business will operate a hip-hop dance studio, called 'Groovy Dancing! Bella and Frankie will operate the business as a partnership. The dance studio will offer dance classes to children and adults. People will sign-up for classes for a period of 3 months at a time (with people attending one class each week), and sessions will run from February - April, May-July, August - October each year. The classes cost $50 per month (with $150 payable for each 3-month session), and people can pay as follows: $150 paid upfront for 3-months of dance classes, or $50 per month, payable on the last day of each month (for each of the 3 months of dance classes). During the first six months of operations, the following events and transactions occurred. Note: all payments made by Groovy Dancing were made from the business bank account. Date Detail 3 Jan Bella Groove and Frankie Jay each contributed $10,000 of personal funds into the business bank account. 5 Jan Groovy Dancing rented a studio for the business, for a period of 12 months (starting on 1 February 2020 - 31 January 2021). Rent is to be paid 3-monthly in advance. Groovy Dancing paid $3,000 to the landlord for rent for February - April 2020. 10 Jan Groovy Dancing contracted Choice Flooring to supply and install a floating dance floor at the studio. The dance floor was installed, and Groovy Dancing received an invoice for $5,000. The due date for payment of the invoice is 8 February 2020. 22 Jan Groovy Dancing purchased and paid for a computer and sound system for the business. The computer cost $2,600 and the sound system cost $1,200. 25 Jan Groovy Dancing purchased and paid for advertising materials (flyers, balloons, fridge magnets) from Swift Promotions Ltd for $900. 26 Jan At the Australia Day celebrations that were held in town, Groovy Dancing held two free outdoor community hip-hop dance classes with the aim of: promoting the new business, and to advertise the new hip-hop dance classes that were going to commence at their studio on 1 February 2020. Bella and Frankie handed out all of the advertising materials on the day. They received lots of positive interest from community members about their new business. 27 Jan Groovy Dancing received a number of telephone calls from people interested in signing up for the new hip-hop dance classes. 32 people signed up for classes for February - April 2020, and each of these people paid the $150 fee for these classes (via direct deposit into Groovy Dancing's bank account). 28 Jan Groovy Dancing received more telephone calls from people interested in signing up for the new hip-hop dance classes. Another 40 people signed up for classes for February - April 2020, 30 of these people paid the $150 fee for these classes (via direct deposit into Groovy Dancing's bank account), and the other 10 people agreed to pay $50 on 28 February, 31 March, and 30 April. 31 Jan Groovy Dancing received more telephone calls from people interested in signing up for the new hip-hop dance classes. Another 25 people signed up for classes for February - April 2020, and each of these people paid the $150 fee for these classes (via direct deposit into Groovy Dancing's bank account). 1 Feb Groovy Dancing paid $2,400 for business insurance, for the period 1 February 2020 - 31 January 2021. 1 Feb Groovy Dancing paid the local radio station $580 for radio advertising (for advertising provided on 1 February, promoting the grand opening of the dance studio) 5 Feb Groovy Dancing paid the $5,000 owing to Choice Flooring (owing in relation to the floating dance floor supplied and installed in January). 28 Feb Groovy Dancing received $500 from the 10 customers that agreed to pay $50 per month in February, March and April) for their dance classes. 28 Feb Bella Groove withdrew $1,000 from the bank account for personal expenses, and Frankie Jay withdrew $2,000 from the bank account for personal expenses. 31-Mar Groovy Dancing received $500 from the 10 customers that agreed to pay $50 per month (in February, March and April) for their dance classes. 1 Apr Groovy Dancing received an invoice from Telstra, for telephone and internet used by the business. The amount payable on the invoice is $300, and payment is due by 28 April 2020. 27 Apr Groovy Dancing paid Telstra the $300 that was owing. 28 Apr 60 people signed up for classes for May-July 2020, and each of these people paid the $150 fee for these classes (via direct deposit into Groovy Dancing's bank account). 29 Apr Another 50 people signed up for classes for May - July 2020.30 of these people paid the $150 fee for these classes (via direct deposit into Groovy Dancing's bank account), and the other 20 people agreed to pay $50 on 31 May, 30 June, and 31 July 30 Apr Groovy Dancing received $500 from the 10 customers that agreed to pay $50 per month (in February, March and April) for their dance classes. 30 Apr Groovy Dance paid $3,000 to the landlord for rent for May-July 2020. 10 May Groovy Dancing received an invoice from Origin Energy, for electricity used at the dance studio. The amount payable on the invoice is $750, and payment is due by 4 June 2020. 31 May Groovy Dancing received $1,000 from the 20 customers that agreed to pay $50 per month (in May, June and July) for their dance classes. 2 Jun Groovy Dancing paid Origin Energy the $750 that was owing. 30 Jun Groovy Dancing received $1,000 from the 20 customers that agreed to pay $50 per month (in May, June and July) for their dance classes. 30 Jun Groovy Dancing received an invoice from Telstra (for telephone and internet used by the business), with an amount payable of $380. The due date for payment is 28 July 2020. 30 Jun Groovy Dancing needs to recognise an accrued expense for electricity, amounting to $420, Additional information as at 30 June 2020: Depreciation to be recognised in the financial statements up to 30 June 2020 is: $100 for the floating dance floor, $200 for the computer and; $160 for the sound system. Ignore any GST Required: 1. Prepare journal entries for January - June 2020 transactions listed above (including any adjusting entries). In relation to adjusting entries for prepaid expenses, depreciation and unearned revenue, prepare these entries as at 30 June 2020 (rather than at the end of each month). Include dates, references and narrations. (7.5 marks)