QUESTION 1

Selected accounts of Amandas Rental Service unadjusted trial balance as of 30 June 2020 are given below:

	Debit ($)	Credit ($)
Prepaid Insurance	4,500
Supplies	720
Office equipment (at cost)	24,000
Salaries expenses	32,600
Insurance expenses	2,400
Unearned Rental Fees		4,800
Rental fees revenue		13,200

Additional information:

1. Prepaid insurance represents premiums paid for 1 year commencing 1 March 2020.
2. There was $430 of Supplies on hand on 30 June 2020.
3. Office equipment is to be depreciated at 20% per annum at cost.
4. Unearned Rental Fees represents 4 months rental income in advance from the 1 June 2020 from a number of tenants.
5. Salaries of $2,400 are unpaid and unrecorded at 30 June 2020.

REQUIRED

1. Record the necessary adjusting entries for the year ended on 30 June 2020. (narrations not required).

2. Assume the accountant of Amandas Rental service omitted some of the adjustment entries for the following two additional pieces information provided below:

1. Unearned Rental Fees represents 4 months rent in advance on 1 June 2020 from a number of tenants.
2. Supplies of $430 were on hand on 30 June 2020.

What effects will omission of these adjustment entries have on the income statement and the balance sheet of Amanda Rental service for the year ended 30^th June 2020?