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QUESTION 1 Amanda Rental Service has employed you to investigate whether any accrual adjustment entries are needed in the business for the year ended 30th
QUESTION 1 Amanda Rental Service has employed you to investigate whether any accrual adjustment entries are needed in the business for the year ended 30th June 2020. On completion of your investigation, you have discovered that the following items need the attention: 1) Unearned rental services account contains $3,200 that had been earned during the year ended 30th June 2020. 2) Depreciation for the year ended 30th June 2020 of $2,000 has not been recorded. 3) Employee salaries owed but not recorded as at 30th June 2020 is $4,400. 4) interest revenue earned but not recorded or received as at 30th June 2020 is REQUIRED a) Prepare the adjusting entries for items 1 to 4 above for the year ended 30th June 2020. b) Assume the accountant of Amanda's Rental Service omitted some of the adjustment entries for the following two additional pieces information provided below: 1) Employee salaries owed but not recorded as of 30th June 2020 is $4,400 and 2) Interest revenue accrued but not recorded as of 30th June 2020 is $1,600. What effects will omission of these two adjustment entries have on the income statement and the balance sheet of Amanda Rental service for the year ended 30th June 2020
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