Week 6 Balance Day Adjustments The following trial balance of Mr Rance has been prepared as at 30 June 2018 25,000 16,000 Cash Accounts Receivable Allowance for Doubtful Debts Invento Prepaid Insurance Motor Vehicle Accumulated Depreciation - MV Accounts Payable Loan (5 years) 300 3,630 1,000 21,000 ry 7,560 s) 2. 19.100 12,000 27.500 Capital Drawings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Advertising 1.800 358,270 250,000 27.000 61,100 1,100 7.100 Moto Vehicle Expenses Total 424.730 424,730 Additional information 1. 2. 3. 4. Mr Rance realised that cash sales of $500 (cost $200) was received on 30 June 2018 but was not recorded when the trial balapce was prepared. An amount owing by Mr Abbey of $600 was written off in January 2018. This was subsequently received on 30 June 2018 The balance of the allowance for doubtful debts should be equal to 10% of the adjusted closing receivables balance. A physical stocktake at 30 June 2018 revealed inventory on hand of $12,600. The insurance premium is paid on a policy that runs from 1 September 2017 to 30 August 2018 The 5 year loan was obtained on 1 January 2013 and has an interest rate of 10% pa. The interest is due on 1 July each year Depreciation is charged on 20% using the reducing balance method. 5. 6. 7. 7 6,to Required Prepare the necessary general journal entries for year ended 30 June 2018 required to take into account the appropriate additional information. Show all relevant workings