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PSA3.2 Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. L03, 4, 5 The unadjusted trial balance at 30 June 2020 for

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PSA3.2 Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. L03, 4, 5 The unadjusted trial balance at 30 June 2020 for Maxi Services Ltd is as follows MAXI SERVICES LTD Trial balance as at 30 June 2020 No. Account name Debit Credit 100 Cash 104 Accounts receivable 112 Prepaid insurance 113 Supplies 130 Office equipment 131 Accumulated depreciation 200 Accounts payable 213 Service revenue received in advance 300 Share capital 310 Retained earnings 400 Service revenue 500 Salaries expense 510 Rent expense 515 Insurance expense 530 Electricity expense 54800 15000 3200 1500 30000 $ 20000 7 400 4 000 60000 7 500 3400046 800 2000 1200 4000 $145700$145 700 The chart of accounts for Maxi Services Ltd contains the following accounts in addition to those listed on the trial balance: 218 Electricity payable, 215 Salaries payable, 520 Depreciation expense, and 505 Supplies expense. Other data: 1. Supplies on hand at 30 June total $1000 2. An electricity bill for $300 for June has not been recorded and will not be paid until next month. 3. The balance of the prepaid insurance account is the annual premium for insurance com- mencing 1 January 2020. 4. Services were performed during the current period in relation to $3000 of revenue received in advance. 5. Salaries of $4600 are owed at 30 June. 6. Depreciation expense for the year is $4000. 7. Invoices representing $4400 of services performed during the month have not been recorded as of 30 June 2020. Required (a) Prepare the adjusting entries from the information provided. (b) Using T accounts, enter the totals from the trial balance as beginning account balances and then post the adjusting entries to the ledger accounts (c) Prepare an adjusted trial balance as at 30 June 2020. (d) Calculate profit or loss for the year ended 30 June 2020. (e) If the business wanted to report a higher profit, which of the adjusting entries above would be avoided? Which stakeholders would be affected by the misreported profit

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