Referencing Styles : Harvard Peter Robertson opened a law office on 2 September 2014. During the first month of operations the business completed the following transactions: 2 Peter deposited $39,000 cash in the business bank account Peter Robertson Solicitor. 3 Purchased supplies, $600, and furniture, $2,000, both on credit. 4 Performed legal services for a client and received cash, $1,300. 7 Paid cash to acquire land for a future office site, $26,000. 11 Prepaid legal documents for a client on credit, $700. 15 Paid secretary’s monthly salary, $590. 16 Paid for supplies purchased on 3 September on credit. 18 Received $2,400 cash for work for client relating to a real estate purchase. 19 Prepared defence documentation for a client and billed the client for $800. 29 Received cash on account, $700. 30 Paid secretary’s monthly salary, $590. 30 Paid rental expenses, $670. 30 Withdrew cash of $2400. REQUIRED: a) Open the transactions to T-accounts: Cash; Accounts receivable; Supplies; Furniture; Land; Accounts payable; Peter Robertson, capital; Peter Robertson, drawing; Service revenue; Salary expenses and Rent expenses.(5.5 marks) b) Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required. (6 marks) c) Post the transaction to T-accounts, using transaction dates as posting references in the ledger. Label the balance of each account Balances.(5.5 marks) d) Prepare the trial balance of Peter Robertson Solicitor, at 30 September. (5 marks) QUESTION - 2 13 MRKS The following transactions, relating to the business of Robert Palmer, public accountant, occurred during June 2014. (Ignore GST) 1 purchased office furniture for $7,560. 1 Purchased a 12 – month fire insurance policy for $1,800. 2 Borrowed $10,000 from the State Bank on a short-term loan. The principal, plus annual interest will be repaid in 3 months. Interest of 75% accrued on the loan during June. 11 Purchased supplies for $370. On 30 June, supplies worth $150 remained on hand. 15 Paid $450 for 1 month’s rent for the period 15 June to 15 July. 18 Received a cheque from a client for $1,200 as an advanced payment for services to be performed. Only 10% of the work was completed by 30 June. 28 Received an invoice for $350 for telephone and internet charges for the month. REQUIRED: a) Prepare the journal entries to record each transaction.(7 marks) b) Prepare any adjusting entries as at 30 June, end of the accounting year. (6 marks) Page 3 of 6 QUESTION - 3 25 MARKS The unadjusted trial balance of Everton Removalists is shown below: EVERTON REMOVALISTS Unadjusted Trial Balance as at 30 June 2014 ACCOUNT DEBIT CREDIT Cask at bank $ 8,140 Accounts Receivable 12,860 GST Clearing 1,500 Office supplies 640 Removal vans 93,600 Accumulated Depreciation – removal vans $ 39,400 Office equipment 6,200 Accumulated Depreciation – office equipment 3,500 Accounts Payable 10,800 Unearned removal fees 2,260 GST Clearing 3,240 G. Everton, Capital 76,600 G. Everton, Drawings 20,600 Removal fees revenue 92,700 Insurance expenses 8,180 Wages expenses 54,620 Advertising expenses 3,880 Maintenances expenses 7,600 Fuel and oil expense 10,680 TOTAL 228,500 228,500 Additional information; 1. Depreciation for 1 year on the removal vans is $10,000. Depreciation on the office equipment is $1,200. 2. A physical count showed office supplies totalling $170 were still on hand at 30 June. 3. The balance in the Unearned Removal Fees account includes $2.000 received in May for removal services completed in June. 4. The balance in the Advertising Expense account includes $700 prepayment (net GST) for an advertising campaign beginning in July. 5. Wages earned but not paid amount to $2,850. 6. Fuel purchased on credit for $350 plus GST of 10% and used during the last week in June has not been paid for or recorded. 7. The June insurance premium of $880 plus GST is overdue and has not been recorded. A tax invoice has been received. Page 4 of 6 REQUIRED: a) Prepare a 10-column worksheet for the year ended 30 June 2014. (10 marks) b) Prepare the income statement for the business for the year ended 30 June 2014. (5 marks) c) Prepare a statement of changes in equity for the year ended 30 June 2014. (3 marks) d) Prepare a statement of financial position as at 30 June 2014. (7 marks)