Question 4 (9 marks)

Surfers Paradise Motels (SPM) Limited is successfully operating its five motels. The company finalised its accounts on the 30^th day of June 2022, except for the following adjustments.

The company declared a bonus of $38 900 to the managers. However, this amount has not yet been recorded in the books [1 Mark]

A comprehensive one-year insurance policy of $3 600 was taken on the 1^st day of October 2021, and the annual premium was paid on the same day dated the 1^st day of October 2021 [2 Marks]

An amount of $7 000 for the interest of investment is due. However, this amount has not yet been received [1 Mark]

A payment of $6 320 for stationary was erroneously charged to the Marketing and Advertising Expenses [1 Mark]

The company purchased an HP laptop for $5 500. However, this amount was erroneously charged to the office expenses account. According to the chart of accounts, this amount was supposed to be charged to the office equipment account [2 Marks]

The commission of $3 600 was received in advance on the 1st day of May 2022 for the next six months [1 Mark]

The accrued gas charges on the 30^th day of June 2022 were $920 [1 Mark]

Required: Prepare the adjusting entries on the 30^th day of June 2022.