The unadjusted trial balance for Budget car Rentals for the year ended 30 June 2015 is

shown below:

Unadjusted trial balance

Account Title Debit Credit
.
Cash at bank $ 9,000
Trade debtors 7,500
GST outlays 2,000
Prepaid insurance 6,250
Budget cars 125,000
Accumulated depreciation-Cars 50,000
Office equipment 10,425
Accumulated depreciation-Office equipment 1,250
Accounts payable 7,925
Loan payable 47,500
Unearned rental revenue 2,500
GST Collections 4,250
Jack’s, Capital 52,750
Jack’s, Drawings 12,750
Rental revenue 60,000
Salaries expense 26,500
Rent expense 5,000
Repairs & Maintenance expense 6,250
Supplies expense 12,000
Telephone expense 3,500
Total $226,175 $226,175
Depreciation expense-Office equipment
Depreciation expense-Cars
Telephone expense payable
Repairs & Maintenance expense payable
Interest payable
Interest Expense
Insurance expense
Salaries payable
Total

The following additional information is available at the end of June:

1. Depreciation on the Budget cars fleet for 1 year is $15,000. Depreciation on the office
equipment is $425.
2. Expired insurance amounted to $1,250.
3. The balance in the Unearned Rental revenue account includes $1,500 received for
services rendered on 27th June.
4. Salary earned but not yet paid amounted to $6,500.
5. Accrued interest on the loan payable is $1,750
6. Repairs on one of the Budget’s Car done in June for $750 have not yet paid for or
recorded.
7. The June telephone costs of $500 have not yet been paid for or recorded.

Required:

a) Prepare adjusting journal entries for the additional information provided.

b) Prepare a 10 column worksheet for the year ending 30th June 2015.
c) Provide the Income Statement, Statement of Changes in Owner’s Equity & Balance
Sheet.