Question
You are the accountant for Tasty Tuesdays Ltd. The following information is made available for the year ended 30 June 2020: 1. Maintenance expenses for
You are the accountant for Tasty Tuesdays Ltd. The following information is made available for the year ended 30 June 2020:
1. Maintenance expenses for a machine that broke done and which was repaired by a service provider on 29 June 2020, has not been recorded or paid yet. The total amount that Tasty Tuesdays will have to pay amounts to $4,600.
2. On 1 May 2020 Tasty Tuesdays Ltd paid an amount of $6,000 for rent for May-July 2020. This payment was allocated (posted) to the Prepaid Rent account on 1 May 2020.
3. On 1 January 2020 Tasty Tuesdays Ltd purchased a vehicle for $10,000. The vehicle will have a useful life of 4 years and an estimated residual value of $2,000. No depreciation has been recorded for this vehicle yet.
4. Tasty Tuesdays Ltd performed services for a client on 28 June 2020 but did not invoice the client before the end of the financial year. The total amount of that Tasty Tuesdays Ltd will charge to the client is $2,600.
Required: Prepare the end-of-period adjusting entries required on 30 June 2020. Show clearly your calculations. Narrations (brief explanations) are required for ALL journal entries.
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