Reference no: EM132657741

Problem 1: Record adjusting entries in the general journal for 30 June 2022.

• The Warehouse Fittings were installed on 1 July, 2021. They have a useful life of 9 years and no salvage value.
• The Straight-Line method is used to depreciate the Warehouse Fittings.
• The Office Equipment was installed on 1 July, 2016. They have a useful life of 10 years and estimated salvage value of $12,150. The Straight-Line method is used to depreciate the Office Equipment.
• Twelve months of Showroom Rent was prepaid on 1 March, 2022. Of the original prepaid amount, $950,940 worth of showroom rent has now expired.
• A count of Stationery Supplies indicates that $329,265 still remain on hand at year end.
• A one-year insurance policy was purchased on 1 November 2021 for $43,740.
• Interest on the ANZ Bank Mortgage Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense should be rounded up to the nearest dollar). The ANZ Bank Mortgage Loan was originally taken out on the 1 August, 2021.
• The company has been informed that unfortunately, Mittagong Electric Ovens has been officially declared bankrupt and Premier Ovens Pty Ltd has agreed to write off the amount owing as a bad debt. The company uses the direct write-off method to account for any bad debts in their books.
• A telephone bill for $24,786 for June was received on 3 July, 2022. The amount has not yet been recorded. The company records telephone costs as a utilities expense.
• Office Staff are paid once per month, $283,338. The Office Staff were last paid on the 15 June, 2022. Exactly half of one month Office Staff wages are still owing.
• Sales Staff are paid fortnightly and work 7 days per week. The sales staff were last paid on the 29 June, 2022. One day of the wages bill is still owed to the Sales Staff.
• The estimated Tax Payable for the year ended 30 June, 2022 is $333,261. This amount is to be paid on 30 October, 2022.