You are a Graduate Accountant at Warwick & Clarke Chartered Accountants and you have been asked to prepare the Balance Day Adjustment journals for Avocado Smash Caf.

Pietra has provided you with transaction details (below) and she has specifically asked you to include a narration (explanation) for each Balance Day Adjustment journal entry.

The General Journal is provided on the following page.

1. The Office Supplies on hand at 30 June 2021 was $3 890.

2. On 30 June, Pietra estimated 2.5% of Accounts Receivable will not be collected as this amount has been outstanding for 90 days.

3. The bank has approved an overdraft facility for $15 500 for Avocado Smash Cafe.

4. The deep fryer was purchased on 1 February 2021 and will be depreciated at 15% per annum and will have no residual value (calculate and record the depreciation expense for the year).

5. The 4 month Insurance policy (policy #675) of $7 680 was paid on April 1 2021.

6. The Refrigeration Equipment is expected to have a useful life of five years and have a $9 658 scrap value (calculate and record the depreciation expense for the year).

7. The Chefs wages payable but not recorded as at 30 June are $2 876.

8. Rent was paid on 1 August 2020 for a two year period ending 31 July 2022.

9. $4 289 of Unearned Sales represent receipts for catering at the Heart Healthy Food Fair which was catered for on the 2nd June 2021.

Calculations required

Pietra is the sole proprietor of Avocado Smash Caf. Pietra does a lot of the business bookkeeping during the year but she sends information through to Warwick & Clarke Chartered Accountants at the end of the financial year for the Balance Day Adjustments to be completed. Debit ($) Credit ($) Avocado Smash Cafe Trial Balance 30 June 2021 69 162 78 000 118 698 71 726 80 058 76 458 550 568 Water Expense Delivery Van Cash at Bank Gas Expense Interest Expense Electricity Expense Pietra, Capital Accounts Receivable Inventory (1 July 2020) Prepaid Rent Chef's Wages Expens Insurance Expense Purchases Advertising Expense Office Cleaning Expense Office Supplies Pietra, Drawings Cooking Oil Disposal Expense Repairs and Maintenance Payable Accumulated Depreciation - Refrigeration Equipment Refrigeration Equipment Discount Allowed Prepaid Insurance Shop Cleaning Expense Shop Furniture Discount Received Loan Shop Staff Wages Expense Accounts Payable Sales Deep Fryer Unearned Sales Totals 34 960 139 558 105 600 104 576 21 658 527 658 71 058 61 658 26 358 137 788 47 024 43 158 86 908 149 658 24 258 7680 138 458 81 658 26 818 733 428 119 838 46 664 825 264 58 400 39 140 2 375 726 2 375 726