The worksheet is an internal document that exists outside the journals and ledgers. It is often used in the manual accounting system to help record adjusting entries and prepare financial statements. After you have prepared the worksheet, in the next section of the practice set you will be asked to use the completed worksheet to help journalise and post adjusting entries to general ledger. You will also use this worksheet to assist you in preparing the financial statements for iCandy in a later section of this practice set.

The details of the end of month adjustments for June are as follows.

• Cash Registers owned by the business: original purchase price was $8,000, estimated useful life was 5 years, and estimated residual value was $2,000 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• Store Fixtures owned by the business: original purchase price was $50,000, estimated useful life was 10 years, and estimated residual value was $5,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• The water usage for the month of June is estimated to be $111.
• The estimated electricity payable as at the end of June is $286.
• Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from 25 June to 30 June inclusive) are estimated to have been $310 per day.
• Interest expense incurred during the month of June but not yet paid to Earth Bank for the bank loan is $235.
• Office supplies totalling $445 are still on hand at 30 June.
• One month of prepaid rent expired during June. Remember that at the beginning of June, the business paid two month's worth of rent in advance.
• 3 months of advertising remained pre-paid at the start of June.
• 5 months of insurance remained pre-paid at the start of June.

When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month.

Additionally, a stocktake revealed that the balance of inventory on hand as at 30 June is equal to the closing balance of the Inventory account. This means there is no adjusting entry required for inventory shrinkage.