The following additional information is also provided at the 30th of June 2021: (1) (2) (3) The owner has paid for his personal telephone bill using his own personal cash. The bill was for $280. One customer has paid $1,200 cash in advance to the business for some inventory on the 15th of June 2021. The delivery will occur in two stages. A quarter of the sale was delivered in June 2021 and the 75% will be delivered to the customer in July 2021. It is estimated that 2.6% of the Accounts Receivable Balance is unlikely to be collected from customers. Both the Furniture and Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows: Estimated Useful Estimated life Residual Value Equipment 10 years $5 000 Buildings 30 years $50 000 (4) (7) (5) The owner paid $3,600 cash for 12 months' rent on the 29th of April 2021. The rent is for each month and is for the same amount for the 12 months starting from the 1st of May 2021. (6) The business has paid advertising of $600 per month for 12 months on the 1st of March 2021. The advertising will start from the 1st of April and is for the same amount every month. A bill for the telephone for $200 was received on the 29th of June 2021. The bill for the electricity used was also received on the 28th of June 2021 for $129. The telephone bill was paid on the 30th of June and the electricity bill has not been paid yet. Nothing has been recorded yet during the period for the telephone or the electricity bills. The owner checked how much supplies had been used for the year (that is what has been used so far). The owner checked and found that at the end of June 2021 a total of $240 of supplies had not been used so far. (9) Insurance of $350 per month was paid using cash for 9 months on the 1st of December 2020. The insurance was for the period 1/12/20 - 31/8/21. (10) Sales were made to customers on the 29th of June 2021 worth $360. No cash has been received from the customers yet (the customers will pay the amount owing in July 2021) and nothing has been recorded yet for the sales made to the customer. REQUIRED: Prepare the journal entries to account for all of the items above. (8) QUESTION 1 - Accrual Accounting Peppermint Patties is owned and operated by Pepper Mint. The following trial balance has been prepared at year's end. A BUSINESS TRIAL BALANCE AS AT 30 JUNE 2021 Debit (S) Credit ($) Cash 14 460 Accounts Receivable 41 700 Inventory (1 July 2020) 42 890 Prepaid Rent 3 600 Prepaid Advertising 4 800 Investments 35 000 Prepaid Insurance 3 150 Supplies 480 Buildings 348 000 Accum. Depreciation - Buildings 12 360 Equipment 170 000 Accum. Depreciation - Equipment 8 500 Unearned Income 1 200 Accounts Payable 32 250 Capital (1 July 2020) 467 370 Drawings 12 800 Sales 315 450 Sales Returns & Allowances 2 250 Purchases 130 200 Insurance Expense 3 000 General Expense 160 Freight In Expense 2 180 Freight Out Expense 1 200 Sales Staff Wages Expense 24 600 Local Government Rates Expense 800 Rent Expense 4 200 General Expense 6 600 $727 350 $727 350