The following financial information has been extracted from the accounting records of August Moon Trading. Sam August has requested your assistance as he noticed that at the end of May the total of debit column of the trial balance did not equal the total of the credit column. He realised that some of the adjustments made at the end of the accounting period by the new accounts clerk must be wrong and has sought your assistance to determine what the error, if any were and what the correct adjusting entries should be.

August Trading accounts are prepared using the accrual basis of accounting and uses the perpetual system for accounting for inventory. August Moon Trading is registered for GST.

A copy of the trial balance and adjustments for June 2021 is below.

Adjustments Adjusted Trial Balance Account Debit ($) Credit ($) Debit ($) Credit ($) Sales 50,000(F) 834,500 Sales returns 10,000 Advertising expense 1,000(E) 1,000 Cost of sales 640,000 Depreciation expense 12,500 Rent expense 14,000(C) 14,000 6,000(B) 6,000 Supplies expense Wages expense Warranty expense 11,000(A) 69,000 3,350 Bank 11,000(A) 350(D) 43,650 Accounts receivable 55,000(F) 305,000 5,070 6,000(B) 14,000 GST receivable/paid Inventory Supplies Prepaid rent 10,000 14,000(C) 28,000 Equipment 530,000 197,500 197,500 Accum. depreciation Accounts payable 110,770 110,770 GST payable/collected 3,330 5,000(F) 8,330 Provision for warranty 8,300 350(D) 7,950 1,000(E) 1,000 Accrued expenses Wages payable 11,000 11,000 525,000 525,000 Capital Drawings Total 4,830 4,830 1,640,400 1,640,400 88,350 86,350 1,653,750 1,738,700 The accounts clerk provided the following information of the adjustments made in June 2021. A Paid wages of $11,000 accrued to employees for overtime work in May 2021. B A physical count supplies on hand at 30 June 2021 was $4,000. C Adjusted prepaid rent that was prepaid for 1 June 2021 to 31 August 2021. D Received claim for warranty for repairs of $350 from a customer on 28 June 2021. (GST is not applicable) E Estimated unpaid advertising for June as $1,000. A tax invoice has not been received. F Invoiced a customer for $55,000 (GST inclusive) for goods sold on 30 June 2021. The cost of the goods sold was $10,000 (GST exclusive). Required: Identify which, if any, of the adjusting entries (A-F) has/have been journalised correctly and prepare the correct general journal entries for the transaction/s that have been recorded incorrectly. Narrations are not required. (12 marks) Unadjusted Trial Balance Debit ($) Credit ($) 784,500 10,000 640,000 12,500 80,000 3,000 33,000 250,000 5,070 20,000 10,000 42,000 530,000