Question 4 (21 points) Question 3 The following Trial Balance has been prepared by the bookkeeper of Gladys Green's Garden Shop, a specialised plant nursery and gift shop. CR Gladys Green's Garden Shop Trial Balance as at 30 June 2020 DR Cash at Bank 38,500 Accounts Receivable 23,150 Office Supplies 2,530 Prepaid Insurance 2,460 Bank Term Deposit 55,000 Motor Vehicle 35,750 Accumulated Depreciation - Motor Vehicle Accounts Payable G Green, Capital G Green, Drawings 16,300 Sales Revenue Interest Revenue Cost of Goods Sold 115,562 Advertising Expense 2.750 Telephone Expense 4,150 Electricity Expense 7,268 Insurance Expense 1,640 Rent Expense 11,000 Salaries and Wages Expense 61,200 377,260 12.000 12,000 154,135 197,925 1,200 377,260 Salaries and Wages Expense 61,200 377,260 377,260 On the last day of the month the following adjustments and error corrections need to be made: i. At 30 June, wages of $375 were owing to employees for work completed in the last week of June. This amount will not be paid until the next payday on 6 July. ii. The Prepaid Insurance of S2,460 represents the yearly premium that was paid on October. This amount needs to be adjusted for the amount that has expired by 30 June. ii. It is discovered that an amount of $350 paid to the local newspaper for advertising was accidently recorded as Telephone Expense. The Cash at Bank part of the entry was correct. iv. Interest earned on the bank term deposits, $140 has not yet been received from the bank. V. A stocktake of Office Supplies reveals that $675 worth of supplies is still on hand at 30 June. vi. Gladys has not paid the rent on the shop's premises for the month of June and owes the landlord $1,000 vii. Gladys used cash from the business to pay her home electricity account of $528. The bookkeeper credited Cash as Bank and debited Electricity Expense for the amount. vili. The Sales Revenue includes an amount of S254 paid in advance by a customer to secure an order for an advanced specimen of a special Japanese maple tree. At 30 June the tree has not arrived in the shop and has therefore not been delivered to the customer. ix. The motor vehicle was purchased on 1 July 2013. The estimated life of this vehicle is seven years with a residual value of $6,000. Depreciation for this year has yet to be recorded. Prepare general journal entries to record the transactions using the General Journal table below. You are not required to complete narrations or posting references, however, if a calculation is involved you should show the calculation under the relevant entry. Ignore GST. (21 marks) Format
