QUESTION 1: Balance Day Adjustments (18 marks) REQUIRED: Below is the unadjusted Trial Balance as at 30 June 2021 for "The Great Outdoors", a retail business specialising in camping and outdoor equipment. It is owned and operated by Anna Conder. Anna is the sole proprietor and does a lot of the business bookkeeping during the year, however she sends Information through to Crase & Stone Accounting Services at the end of the financial year for the necessary balance day adjustments to be completed. You are a Graduate Accountant at Crase & Stone Accounting Services. It is now the end of the financial year and based on the information she has provided below by Anna, you have been asked you to prepare any necessary balance day adjusting journals. Use the General Journal document provided to record the correctly formatted journal entries required and include a narration (explanation) for each entry. The Great Outdoors Unadjusted Trial Balance For the year ended 30 June 2021 1. Office Salaries which are payable but have not yet been recorded as at 30 June 2021 are $7,850. Credit ($) 2. Anna conducted a count of her stationery room on 30 June 2021. This count revealed that office supplies still on hand at that time were $7,500. Debit ($) 178,440 212,500 928,176 32,760 21,840 265,200 3. Both the Furniture & Fittings and the Delivery Vans are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows: Furniture & Fittings Delivery Vans Estimated Useful life 10 years Estimated Residual $5,000 $80,000 8 years 79,560 312,000 124,800 4. During the year, Anna also purchased a new computer and printer package for the office. The package cost $7,824 and was purchased on 1 February 2021. Anna has estimated that the package will have a useful life of 4 years, after which she expects to be able to sell it for $1,200 7,824 180.180 780,000 441,480 5. On 30 June 2021, Anna reviewed her outstanding Accounts Receivable balance. Based on her previous experience, she has estimated that 3% of this balance is unlikely to be collected. Cash at Bank Accounts Receivable Inventory Prepaid Insurance Office Supplies on hand Furniture & Fittings Accumulated Depreciation - Furniture & Fittings Delivery Vans Accumulated Depreciation - Delivery Vans Computer/Printer package Accounts Payable Loan Payable A Conder-Capital (1 July 2020) A. Conder-Drawings Sales Revenue Sales Returns and Allowances Cost of Sales Discount received Freight inwards Sales Salary Expense Delivery Expense Advertising Expense Rent Expense Office Salarles Expense Telephone/Internet Expense Discount Allowed Totals 187,200 4,606,860 66,160 2,748,720 6. A custom made, specially imported "Glampine" tent costing $13,720 was ordered and paid for by a customer on 25 June 2021. At the time of the sale, Anna recorded this amount as Sales Revenue. Anna has confirmed with the manufacturer that the tent will not be delivered and available for the customer until at least 25 August 2021. 86,380 7. On 1 November 2020, Anna took out a 2-year insurance policy for her inventory, contents and vehicles and cost $32,760. This policy was paid for from the business bank account on the same day and was recorded as Prepaid Insurance. 62,400 455,520 121,680 179,400 190,320 225,000 58,880 45,240 6,299,260 8. Anna's last telephone bill for the business was for the month ending 31 May 2021, and this account was paid in early June. She has not yet received the June account but has estimated that the cost of her telephone and internet usage up until 30 June 2021 was $1,500. 6,299,260 On the following page is additional information that Anna has provided to you in relation to the year ended 30 June 2021
