record the balance day adjustments as at 30^thJune 2018 and post to the General Ledger. (Create relevant ledger accounts when required)

b)Prepare General Journal entries to close the relevant ledgers on 30^thJune 2018 and post to the General Ledger. (Create relevant ledger accounts when required)

c)prepare post-closing Trial Balance as at 30^thJune 2018

John Franklin

Trial Balance as at 30^thJune 2018

Account Name

Debit

Credit

$

$

Accumulated Depreciation - equipment

2,160

Accumulated depreciation - motor vehicle

7,000

Advertising

3,000

Allowance for doubtful debts

100

Sales

130,695

Capital - John Franklin

31,600

Cash at bank

8,400

Accounts Payable Control

4,500

Accounts Receivable Control

9,000

Drawings - John Franklin

5,400

Equipment at cost

32,200

GST Collected

3,560

GST Paid

2,165

Residential Rent Received

11,500

Loan to Martha Stewart

10,000

Motor Vehicle - at cost

22,000

Provision for Annual Leave

500

Purchases of inventory

54,000

Insurance

2,600

Repairs and maintenance - equipment

1,450

Stock of inventory (1 July 2017)

5,000

Office expenses

6,400

Wages

30,000

191,615

191,615

Accumulated depreciation - motor vehicle

7,000

Advertising

3,000

Allowance for doubtful debts

100

Sales

130,695

Capital - John Franklin

31,600

Cash at bank

8,400

Accounts Payable Control

4,500

Accounts Receivable Control

9,000

Drawings - John Franklin

5,400

Equipment at cost

32,200

GST Collected

3,560

GST Paid

2,165

Residential Rent Received

11,500

Loan to Martha Stewart

10,000

Motor Vehicle - at cost

22,000

Provision for Annual Leave

500

Purchases of inventory

54,000

Insurance

2,600

Repairs and maintenance - equipment

1,450

Stock of inventory (1 July 2017)

5,000

Office expenses

6,400

Wages

30,000

191,615

191,615

Additional Information at 30 June 2018:

Balance Day Adjustments

1.John has engaged an advertising firm at a cost of $3,300 (including GST) per annum. The amount for a twelve month contract was paid on 1^stMarch 2018.

2.Wages owing: $2000.

3.Increase the Provision for Annual Leave to be 5% of the final wages expense for the period.

4.Depreciate Equipment at 20% p.a. using the diminishing value method.

5.Depreciate Motor vehicles at 12.5% using the straight line method.

6.Rent was received for a property John Franklin owns on 1^stApril 2018 and was for 12 months.

7.Lawyers from ABC Ltd have sent through a notice to say that their client has been declared bankrupt and no amounts can be recovered from them. ABC Ltd still owed you an amount of $990 at Balance Day.

8.The Allowance for doubtful debts is to be 2% of the final debtors figure.

Additional Information required for Closing Entries only (no Balance day Adjustment needed for this)

Stock of inventory 30^thJune 2018: $5,750