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QUESTION 1: Balance Day Adjustments (20 marks) Anne Chovi is the sole proprietor of Scooba Dive Inc located in a popular beachside location referred to

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QUESTION 1: Balance Day Adjustments (20 marks) Anne Chovi is the sole proprietor of Scooba Dive Inc located in a popular beachside location referred to as 'The Cove'. Anne has been successfully operating her environmentally friendly Scuba Diving gear business for the last ten years. The business primarily stocks goggles and facemasks, wetsuits, scuba tanks and other assorted diving gear. Anne also runs diving courses to promote the beauty of the reef and the continued need to look after the marine environment. Anne is so busy with the management of the business and running the diving courses that she was unable to attend to the bookkeeping, so she hired Jones & Co Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Jones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the year-end Balance Day Adjustment journals for Scooba Dive Inc. Scooba Dive Inc. Unadjusted Trial Balance As at 30 June 2020 Debit ($) Credit ($) Cash 4.800 Accounts Receivable 28,800 Inventory (1 July 2019) 400 Prepaid Rent 1,440 Scuba tanks 12,800 Accumulated Depreciation - Scuba tanks 2,580 Office & Shop Equipment 3,200 Accumulated Depreciation - Office and Shop Equipment 1,580 Accounts Payable 25,800 A Chovi, Capital (1 July 2019) 16,400 A Chovi, Drawings 10,000 Sales 166,240 Sales Returns & Allowances 1,800 Discount Allowed 320 Purchase 112,160 Interest Revenue 720 Electricity Expense 1,720 Water Expense 360 Sales Staff Wages 16,000 Local Government Rates Expense 640 Insurance Expense 4,800 Advertising Expense 3,000 Rent Expense 6,480 Totals 243,320 243,320 On the following page is additional information that Anne has provided to you in relation to the year ended 30 June 2020

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