The following Trial Balance has been extracted from the accounts of Fred Mitch, a Sole trader, for the year ending 30 June 2010.

You are required to:

1. Post the required Balance Day Adjusting entries in the General journal
2. Closing entries in the General Journal
3. Prepare adjustment Trial Balance
4. Prepare Income statement and Balance sheet.

Account Balances of Fred Mitch as at 30/6/2010

Particulars	Debit $	Credit $
Bank	1894
Petty cash	100
Accounts Receivable Control	2574
Inventory	6518
GST Receivable	845
Freehold Premises	47500
Motor vehicles	10000
Accum DepMotor vehicles		7200
Plant & Machinery	27000
Accum DepP & M		17000
Investment in Shares	2000
Accounts Payable Control		4488
GST Payable		1980
Mortgage from Bank		10000
Capital		49593
Drawings	1740
Sales		79246
Discount recd		246
COGS	25795
Freight Onwards	972
Advertising	2744
Salaries-Sales	21490
Salaries-Office	12580
Rates	470
Stationery	1600
Electricity	250
Insurance	2400
Discount allowed	156
Interest on Mortgage	1125
Total	169753	169753

Balance day adjustments not already incorporated in above trial balance as on 30/6/2010;

• Inventory is overstated by $250; $275($250+$25)
• Salaries accrued for sales $560
• Office salaries accrued $370
• Insurance prepaid $500
• Depreciate motor vehicles at 15% p.a.
• Depreciation plant & machinery at 10% p.a.
• Write off bad debts $198 ($180 + $18GST)
• Provide for doubtful debts at 4% of accounts receivable
• Accrue two months mortgage interest at 13.5%p.a.