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The following information for Harry's Hair Salon on the 30/06/2020 is provided. Required: For each of the following; (numbered 1 to 5 below), state the
The following information for Harry's Hair Salon on the 30/06/2020 is provided. Required: For each of the following; (numbered 1 to 5 below), state the appropriate accounting element/s and state the effect on each if the adjustments are NOT done. 1. Interest on bank loan remains unrecorded and unpaid. 2. The prepaid advertising is for 12 months, commencing in January. 3. Equipment was purchased on 1 November 2019 with a useful life of 5 years and a scrap value of $2,750. No depreciation is recorded. 4. A stocktake indicated that supplies have been consumed during the year. 5. 15% of unearned revenue has now been earned but not recorded. A- B I Ff jii III ? 1. 2. 3. 4. 5
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