Unless told otherwise, assume the entity uses the perpetual inventory, all assets are depreciated using the straight-line method with a zero-residual value. Unless told otherwise, ignore GST.

1)During the year ended 30/6/2020, the company made $150,000 in sales of inventory. At the end of that financial year (30/6/2020), the company decided to increase the warranty provision by $3,000. The opening balance for the warranty provision was $1,200.

Prepare general journal entries for the following events and transactions.

a.Adjust the warranty provision on 30/6/2020

b.During the following year, the company paid $900 to fix inventory that was repaired under warranty.

c.Prepare a T account to show the movements in the warranty provision account, based on the information above.

2)On the 1^st of February 2020 the company lent $10,000 to a director for 3 years. The company charges 5% interest per year. Assume the loan is interest only. Interest payments are made at the end of July and at the end of January. Prepare the journal entry for the following dates.

a.1/2/2020

b.30/6/2020

c.31/7/2020 (assume the company does not use reversing entries)

3)During the year ended 30/6/2020, the company made $150,000 in sales of inventory. At the end of that financial year (30/6/2020), the company decided to increase the provision for doubtful expenses by $7,000. The opening balance for the provision was $6,200. Prepare general journal entries for the following events and transactions.

a.Adjust the provision on 30/6/2020

b.During the following year, the company wrote off $2,500 of accounts receivable.

c.Prepare a T account to show the movements in the provision account, based on the information above.

4)On 30/3/2015 the company paid $220,000 (GST inclusive) to purchase some machinery, which has an expected useful life of 10 years. Prepare journal entries for the following transactions and events. Your responses to this question have to deal with GST.

a.The purchase of the asset on 30/3/2015

b.Depreciation of the asset at the end of the financial year (30/6/2015)

c.Depreciation of the asset for the year ended 30/6/2016

5)A customer paid your business $10,000 cash on 30/3/2020 to do some work in the future. Prepare general journal entries for the following events and transactions.

a.The receipt of cash on 30/3/2020.

b.By the end of the financial year (31/12/2020) the company had completed 80% of the work.

6)On 1/4/2020 your company prepaid 5 month's rent on a building. The landlord normally charged $12,000 per month but was happy to accept $55,000 in total for the 5 months. Prepare general journal entries for the following events and transactions. The opening balance was $0.

a.The payment on 1/4/2020 (assuming the payment was capitalized)

b.The company's financial year ends on the 30^th of June 2020.

c.Prepare T accounts showing the movements in the relevant T accounts.

d.The payment on 1/4/2020 (assuming the payment was expensed)

e.The company's financial year ends on the 30^th of June 2020.