Prepare:

1. The 10-Column Worksheet

2. A brief analysis of the difference between accrual and cash profit of the business

5,715 The business has the following opening balances: Cash At Bank Account Receivable Motor Vehicle Account Payable Bank Loan (due 2023) Gym Equipment Stationery Supplies Capital $17,199 $19.023 $35.160 $7.783 $22.102 $21,813 $497 Additional Information: Bank loan interest rates % per year) Motor vehicle useful life (years) Motor vehicle scrap value (S) Insurance paid for (months) Rent paid for (months) Gym equipment useful life (years) Gym equipment scrap value ($). Closing stock of stationery supplies on 30/6 ($) Staff work a 14 day fortnight and are paid on the 15th day. 4,870 594 2 Amount $1,289 $3,728 $660 Transactions: Date Description 1-Jun Paid General Insurance 3-Jun Gym fees - Cash 4-Jun Receive Payment from Account Customers 5-Jun Gym fees - Account 8-Jun Sundry Expenses 13-Jun Advertising Expense - Cash 15-Jun Staff Wages 20-Jun Payment to Account Payable 22-Jun Membership fees - Cash 26-Jun Gym fees - Cash 26-Jun Squash fees - Cash 26-Jun Equipment hiring expense - Account 27-Jun Advertising Expense - Account 29-Jun Staff Wages Amount $2.860 $1,616 $1,029 $1,160 $211 $776 $2.221 $1,458 $2.774 $1,682 $2,385 $524 $1,108 $2,221 Date Description 2-Jun Squash fees - Account 3-Jun Rent of Business Premises 4-Jun Purchase stationery Supplies 7-Jun Membership fees - Cash 12-Jun Cash Withdrawals by Owner 13-Jun Receive Payment from Account Customers 17-Jun Equipment hiring expense - Cash 21-Jun Gym fees - Account 24-Jun Payment to Account Payable 26-Jun Squash fees - Account 26-Jun Additional cash contributed by owner 27-Jun Motor Vehicle Expenses 29-Jun Squash fees - Cash $2,112 $839 $1,792 $482 $980 $949 $1,154 $4,468 $330 $1,670 Comments: - Assume that this assignment involves an existing business that was purchased by the new owner on 1 June 2020. - Note the list of transactions is in date order, left to right, line by line. - Use three separate ledger accounts for revenue, namely gym fees, squash fees and membership fees. All revenues relate to the month of June - Transactions involve cash unless specified as 'Account'. - Record payments for rent and insurance in prepaid accounts initially. - Information relevant to complete adjusting entries can be found in the top right section of this page. - The periods to which the rent and insurance apply commence on 1 June. Round your calculations to the nearest dollar. Account Unadjusted T/B DR CR 10 Column Worksheet Adjustments DR CR Adjusted T/B DR CR Income Statement DR CR Balance Sheet DR CR Subtotal Profit (Loss) Total