Reference no: EM132459316

Away From It All Unadjusted Trial Balance As at 30 June 2019
	Debit ($)	Credit ($)
Cash at Bank	71,376
Accounts Receivable	85,000
Inventory	374,400
Prepaid Insurance	13,104
Office Supplies on hand	8,736
Furniture & Fittings	106,080
Accumulated Depreciation - Furniture & Fittings		31,824
Delivery Van	124,800
Accumulated Depreciation - Delivery Van		49,920
Accounts Payable		72,072
Loan Payable		312,000
K. Mandoo - Capital (1 July 2018)		176,592
K. Mandoo - Drawings	74,880
Sales Revenue		1,842,744
Sales Returns and Allowances	26,464
Cost of Sales	1,099,488
Discount received		34,552
Freight inwards	24,960
Sales Salary Expense	182,208
Delivery Expense	48,672
Advertising Expense	71,760
Rent Expense	76,128
Office Salaries Expense	90,000
Telephone/Internet Expense	23,552
Discount Allowed	18,096
Totals	2,519,704	2,519,704

Point 1. Office Salaries which are payable but have not yet been recorded as at 30 June are $3,140.

Point 2. Both the Furniture & Fittings and the Delivery Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows:
Estimated Useful life Estimated Residual Furniture & Fittings 8 years $2,000 Delivery Van 6 years $4,200

Point 3. To assist with her business cash flow management, Kat applied to her bank on 23 February 2019 for a bank overdraft facility of $20,000 on her business bank account. The bank approved the overdraft facility on the account on 15 March 2019.

Point 4. Kat conducted a count of her stationery room on 30 June 2019. This count revealed that office supplies still on hand at that time were $3,000.

Point 5. On 1 January 2019, Kat took out a 2-year insurance policy for her inventory, contents and vehicles. This policy was paid for in full on the day it commenced and was recorded as Prepaid Insurance at that time.

Point 6. A custom made, specially imported "Glamping" tent costing $5,487 was ordered and paid for by a customer on 25 June 2019. At the time of the sale, Kat recorded this amount as Sales Revenue. Kat has confirmed with the manufacturer that the tent will not be delivered and available for the customer until at least 25 August 2019.

Point 7. On 30 June 2019, Kat reviewed her outstanding Accounts Receivable balance. Based on her previous experience, she has estimated that 2.5% of this balance is unlikely to be collected.

Point 8. Kat last received and paid a bill from her telecommunications provider for the business for the month ending 31 May 2019, and this account was paid in early June. She has not yet received the June account, but has estimated that the cost of her telephone and internet usage up until 30 June 2019 was 5600.

Problem 1: It is now the end of the financial year, and based on the information she has provided above, Kat has asked On the following page is additional information that Kat has provided to you in relation to the year you to prepare any necessary balance day adjusting journals. ended 30 June 2019

Problem 2: Use the General Journal document provided to record the correctly formatted journal entries required and include a narration (explanation) for each entry.