QUESTION 4

Given below is the end of year financial information of a company. Ignore GST

On 1 October 2018, Happy Lawn mowers Ltd received a $3,600 advance payment from a customer for Lawn mowing service to be provided over the next 12 months. The $3,600 was initially recorded in the unearned income account. No adjusting entry has been made in relation to the lawn moving income earned for the year ended 30 June 2019.

REQUIRED:

Prepare the required end-of-period adjustment entry (Narrations not required).