The Problem
Below is an unadjusted Trial Balance prepared by Fiona Donald for her business. Fiona is a Financial Consultant.
Trial Balance of Fiona Donald
for the year ended 30 June, 2018
Account A/c No Debit Credit
Cash at Bank 5 200
Accounts Receivable 9 260
Office Supplies 1 140
Land 60 000
Building 152 000
Accumulated Depreciation Building 64 000
Office Equipment 23 400
Accumulated Depreciation - Office Equipment 6 420
Accounts Payable 7 960
Unearned Consulting Fees 1 560
GST Collected 2 000
GST Paid 920
Mortgage Payable 88 600
F Donald, Capital 71 490
F Donald, Drawings 52 780
Consulting Fees Revenue 156 860
Salaries and Wages Expense 87 940
Telecommunications Expense 1 740
Electricity Expense 760
Insurance Expense 1 660
Interest Expense 2 090
S398 890 $398 890
Catherine’s Chart of Accounts also includes the following additional account titles:
• Prepaid Insurance
• Accrued Expense Payable
• Office Supplies Expense
• Depreciation Expense - Buildings
• Depreciation Expense - Office Equipment
The following information is also available:
1. A physical count of office supplies reveals that supplies totalling $420 arc on hand at 30 June.
2. The balance in the Unearned Consulting Fees account includes $1200 earned for services rendered in the last week of June.
3. Estimated depreciation on the office equipment is $2140. Depreciation on the building is $8760.
4. A 12-month insurance policy was purchased on 1 April for $780.
5. The June monthly mortgage payment of $900 has not been paid or recorded. In each payment, $220 is attributable to interest.
6. The June telecommunications costs for $320 are unrecorded. No tax invoice has been received.
7. Salaries of $980 were owing to employees at 30 June 2020.
Required
A. Prepare necessary adjusting entries and adjusted trial balance at the end of 30 June 2018.
B. Prepare the Statement of Profit or Los for the period ending 30 June 2018.
C. Prepare the Balance Sheet as of 30 June 2018.