Question A

Required: Prepare adjusting entries to reflect the following transactions for Element Fire Door Services as at 30 June 2023 Narrations not required.

ACommission due to the sales manager totalling $2,000 for the financial year has not yet been recorded.BOn 1 October 2022 a twelve-month insurance policy covering two work vans was taken out. The annual premium of $3,400 was paid on 1 October 2022.CInterest on a bank loan of $900 is due but has not yet paid.DIn June 2023, fire door maintenance services amounting to $5,000 had been performed but not yet invoiced to the customer.EAccrued wages were $5,000

Question B

Building Services Ltd prepared the following adjusted and post-closing entries balances Trial Balance for the year ended at 30th June 2023.

Required: From the Trial Balance prepare a Statement of Profit or Loss AND a Classified Balance Sheet

Adjusted Post-closing entries trial balance Trial Balance. Account namesDr $Cr $Dr $Cr $Accounts Payable 1260 1260Accounts Receivable7500 7500 Accumulated Depreciation 3594 3594Cash1434 1434 Depreciation Expense1500 Dividends3000 Office equipment24000 24000 Rent Expense5000 Retained earnings 5400 10150Salaries Expense6000 Salaries Payable 1000 1000Service Revenue 25000 Service revenue received in advance 850 850Share Capital 18000 18000Supplies1920 1920 Supplies Expense750 Tax expense4000 Totals 55,104551043485434854