The following adjusting entries were required to be posted at the end of the financial year for Labrador Ltd:

I Prepaid insurance expires at the rate of $400 per month.

II Interest revenue in arrears comprises 1 month of interest income at $500 per month.

III Supplies on hand were determined to be $1,800

IV Electricity bill received but unpaid at year end $320

Which of these entries would be required to be reversed at the start of the next accounting period?

Select one:

a.

III & IV

b.

II & III

c.

I, II, III & IV

d.

II & IV

e.

I, III & IV

2

Which one of the following expenses is exempt from the payment of GST?

Select one:

a.

Freight inwards

b.

Advertising expense

c.

Electricity expense

d.

Interest expense

e.

Telephone expense