Question

BIG WAVE DAVE BOARD REPAIR SERVICES LTD. Dave Scott opened Big Wave Dave Board Repair Services Ltd. in June 2020. During June the following transactions were completed:

June 1 Dave invested $24,000 cash in the business for 1,000 common shares.

June 1 Purchased used board repair equipment for $26,000, paying $4,000 cash and the balance placed on account (the equipment had a list price of $27,000).

June 1 Paid $500 for the June rent.

June 3 Purchased board repair supplies for $1,800 on account.

June 5 Purchased $2,400 on a 1-year insurance policy, effective June 1st.

June 12 Billed (invoiced) customers $3,800 for repair services done in June.

June 18 Paid $3,000 of the amount owed on equipment, and $400 of the amount owed on repair supplies.

June 20 Paid $1,600 for employee salaries.

June 21 Collected $1,400 from customers billed on June 12.

June 25 Billed customers $3,000 for repair services.

June 30 Received the utilities bill for June, $150, to be paid in July.

June 30 Declared and paid a $500 cash dividend.

- Journalize and post the June transactions in the Big Wave Dave General Journal (Done already)

- Prepare an unadjusted trial balance as at June 30,2020 (Help)

- Journalize and post the following month-end adjustments on General Journal and post into the General Ledger (Help)

1. Earned but unbilled fees at June 30 were $6909.

2. Depreciation on the equipment for the month was $600.

3. One-twelfth of the insurance expired.

4. A physical count showed $400 of repair supplies on hand at June 30.

5. Accrued but unpaid employee salaries were $400.

6. The company signed an agreement to purchase new equipment for $15,000. The equipment will be shipped in July.

Answer 1

Unadjusted Trail Balance BIG WAVE DAVE BOARD REPAIR SERVICES LTD as on June 30

Particulars	Amount
Property, plant and Equipment	26,000
Prepaid Expenses(Insurance)	2,400
Trade Receivable	5,600
Bank A/C	13,000
Shares	(24,000)
Trade Payables	(20,550)
Sales	(7,000)
Rent	500
Purchases	1800
Salaries	1600
Utilities bill	150
Dividend Paid	500
Total	0

Working Notes

Summary of Bank Statement
Particulars	Amount
Share Capital	24,000
Payment To equipment	(4,000)
Rent June	(500)
Equipment	(3,000)
Repair Supplies	(400)
Insurance	(2,400)
Sales Collected	1,400
Salaries	(1,600)
Dividend Paid	(500)
Closing Bank Balance	13,000

Summary of Trade Payables
Particulars	Amount
Equipment	22,000
Purchases	1,800
Equipment	(3,000)
Repair Supplies	(400)
Utilities bill payable	150
Total	20550

Summary of Trade Receivables
Particulars	Amount
Sales Billed	7,000
Sales Collected	(1,400)
Total	5600

Journal Entries for Adjustments
Sl.No	Date	Particulars	Debit	Credit
1	30-Jun	Unbilled Revenue A/C	6909
		To Sales A/c		6909
2	30-Jun	Depriciation A/c	600
		To Accumulated Depriciation A/c		600
3	30-Jun	Insurance Expense A/c	200
		To Prepaid Expenses(Insurance)		200
4	30-Jun	Closing Stock	400
		To Profit and Loss A/c		400
5	30-Jun	Salaries	400
		To Salaries Payable A/C		400
6	30-Jun	No Entry Required because it is an agreent either it ia an event or transaction.

Please let me know for any clarification

Thanks and Regards.