Reference no: EM132582167

You are the accountant for Manic Mondays 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 Manic Mondays will have to pay amounts to $3,800.

2. On 1 June 2020 Manic Mondays Ltd paid an amount of $6,000 for insurance for June-August 2020. This payment was allocated (posted) to the Prepaid Insurance account on 1 June 2020.

3. On 1 March 2020 Manic Mondays Ltd purchased Computer Equipment for $9,000. The Computer Equipment will have a useful life of 3 years and an estimated residual value of $1,000. No depreciation has been recorded for this computer equipment yet.

4. Manic Mondays 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 Manic Mondays Ltd will charge to the client is $3,700.

Required:

Question 1: 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.