Prepare year-end adjustments for the following transactions of Quay Pty Ltd whose financial year ends on 30 June.

1. Unrecorded interest receivable that has accrued on investment bonds is $2,500.

2. Service revenues of $27,000 were collected in April. By year end, a third was earned.

3. 2 years rent, totalling $14,000, was paid in advance at the beginning of the year.

4. The company has performed services totalling $18,000 but not yet invoiced by the end of the year.

5. During the year, $4,000 of office supplies were purchased. At the end of the year, $2,900 of supplies were left on hand. (Assume that there was no beginning balance of supplies.)

Note:

i. If you believe no journal entry is required, explain the reason(s).

ii. Quay Pty Ltd has two streams of revenue: Sales and service.

iii. Ignore the effect of GST.

iv. Narrations are not required for journal entries.

v. Quay Pty Ltds chart of accounts includes the following accounts - Accounts receivable, Cash, Interest receivable, Inventory, Prepaid Rent, Revenue received in advance, Office supplies, Bank loan, Accounts payable, Sales revenue, Service revenue, Interest revenue; Cost of goods sold (COGS), Rent expense, Salary expense, and Supplies expense.