You are a bookkeeper at Azure Beach Accounting and Financial Services (ABAFS) which specializes in providing bookkeeping, accounting, and taxation services, as well ad-hoc special projects. Your manager has asked you to assist him in preparing the balance day adjustments for Johnstone’s Tree Services.

Task 1: Balance Day Adjustments

You have been provided with the following information and requested to prepare the general journal entries for the required balance day adjustments for the year ended 30/6/20x3:

There are salaries and wages owing of $13,750.

A business insurance policy was paid on 30/4/20x3 for $18,000 plus GST. The policy is related to the period 1/5/20x3 to 30/4/20x4.

Johnstone’s Tree Services was owed interest on an investment of $2,790.

The provision for Annual Leave has a balance of $23,750 but the payroll system is showing the total value of the annual leave entitlement for employees as being $33,500.

The allowance for Doubtful debts should be 5% of the balance of Accounts Receivable. The accounts receivable balance at 30/6/20x3 is $76,320 and the balance of the Allowance for Doubtful Debts was $3,050.

A stocktake of the inventory on hand was completed on 30/6/20x3. The value of the stocktake was $17,870. The inventory asset account as at 30/6/20x3 before adjustments was $18,460.

Fill out a completed General Journal for the year ended 30/6/20x3.

General Journal				Folio :
Date	Details	Account number	Debit $	Credit $