Yarra Stationery Store is in the city center of Sydney. At the end of the business reporting period on 30 June 2013, the following accounts appeared in two of its trial balances. All accounts have normal balances.The ending inventory was determined by a physical stock take count was $47 930.
|
Account
|
Unadjusted
|
Adjusted
|
|
Cash at bank
|
$ 21 900
|
$21 900
|
|
Accounts receivable
|
26 230
|
26 230
|
|
Inventory (1 July 2012)
|
59 170
|
59 170
|
|
Prepaid insurance
|
2 400
|
700
|
|
Store equipment
|
39 060
|
39 060
|
|
Accumulated depreciation - store equipment
|
11 560
|
15 660
|
|
Delivery van
|
9 800
|
9 800
|
|
Accumulated depreciation - vehicle
|
4 100
|
6 130
|
|
Accounts payable
|
12 780
|
12 780
|
|
Loan payable
|
15 000
|
15 000
|
|
Interest payable
|
|
980
|
|
Rent payable
|
|
11 500
|
|
Yarra, Capital
|
78 620
|
78 620
|
|
Yarra, Drawings
|
21 780
|
21 780
|
|
Sales
|
357 960
|
357 960
|
|
Sales returns and allowances
|
14 610
|
14 610
|
|
Discount received
|
1 070
|
1 070
|
|
Purchases
|
199 570
|
199 570
|
|
Purchases returns and allowances
|
12 800
|
12 800
|
|
Freight inwards
|
4 120
|
4 120
|
|
Sales salaries expense
|
43 100
|
43 100
|
|
Freight outwards
|
2 000
|
2 000
|
|
Discount allowed
|
1 800
|
1 800
|
|
Interest expense
|
2 130
|
3 110
|
|
Insurance expense
|
|
1 700
|
|
Depreciation expense - store equipment
|
|
4 100
|
|
Depreciation expense - vehicle
|
|
2 030
|
|
Office salaries expense
|
46 220
|
46 220
|
|
Rent expense
|
|
11 500
|
Required:
1) By comparing the Unadjusted Trial Balance with the Adjusted Trial Balance, journalise the adjusting entries that you can discern were made. Narrations are required.
2) Journalise the closing entries that are necessary. Narrations are required.
3) Prepare an Income Statement for the year ended 30 June 2013.