Question

The post-closing trial balance at 30 June 2017 of Payneham Professional Services is shown below. Transactions completed during the year ended 30 June 2018 are summarised below: 1. Collections on accounts receivable totalled $98,470. 2. Consulting fees of $105,780 plus GST of 10% were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay. 3. Rent paid in advance was $17,500, plus GST. 4. Office supplies were purchased during the year for $460 plus GST in cash and $500 plus GST on credit. 5. Tat withdrew $30,000 for private use. 6. Salary payments amounted to $38,330, of which $500 was for salaries accrued in the year ended 30 June 2016. 7. Advertising totalling $4,030 plus GST was purchased on credit. 8. Electricity expense of $4,320 plus GST was paid. 9. Accounts payable of $3,460 were paid. 10. GST payable of $10,940 less GST receivable of $2,880 were forwarded in cash during the year to the Australian Taxation Office. The following additional information should be considered for adjusting entries: 11. Unused office supplies on hand at the end of the year totalled $910. 12. Depreciation on the furniture and equipment is $5,520. 13. Salaries earned but not paid amount to $1,420. 14. Rent paid in advance in transaction 3. Rent for 6 months of $8,750 plus GST was paid in advance on 1 August and 1 February. Payneham Professional Services Post-closing trial balance as at 30 June 2017 Account Account no. Debit Credit Cash at bank 1100 $17,760 Accounts receivable 1101 11,330 Prepaid rent 1102 1,460 GST receivable 1105 2,690 Office supplies 1106 1,580 Furniture and equipment 1110 34,460 Accumulated depreciation ― furniture and equipment 1111 $11,660 Accounts payable 2200 6,530 Salaries payable 2201 500 GST payable 2203 6,140 Tat Chiang, capital 3000 44,450 $69,280 $69,280 1.prepare jounal entries from trANSACTION 1 to 14 2.

Prepare the ledger of Payneham Professional Services by opening T accounts for the accounts listed in the post-closing trial balance and for the accounts listed below. Post the 30 June 2017 balances.

3. jounalise and post the adjusting entries

4.prepare 10 column worksheet for the year ended 30 june 2017

5.prepare income statement, change in equity and balance sheet

6.journalise and post the closing entries

7.prepare the post closing trial balance

8.prepare any suitable reversing entries on 1 july 2017

Answer 1

                                                  In the books of Payneham Professional Services

                                                                   Journal Entries

                                                                                                                                                                (In $)

S. NO.	Particulars	Debit	Credit
1.	Cash/Bank A/C                                                                DR.	98,470
	To Accounts Receivables A/C		98,470
	(Being accounts receivable collected)
2.	Consulting fees receivable A/C                                    DR.	116,358
	To GST Payable A/C		10,578
	To Consulting fees revenue A/C		105,780
	(Being Consulting fees receivable during the year)
3.	Prepaid Rent A/C                                                      DR.	17,500
	GST Receivable A/C                                                        DR.	1,750
	To Cash/Bank A/C		19,250
	(Being Rent paid in advance) Assumption: a. Rate of GST as 10% b. GST paid on rent is allowed as credit.
4.	Office Supplies inventory A/C                                     DR.	960
	GST Receivable A/C                                                       DR.	96
	To Cash A/C		506
	To Creditors A/C		550
	(Being Office supplies were purchased during the year for $460 plus GST in cash and $500 plus GST on credit)
5.	Drawings A/C                                                                DR.	30,000
	To Cash/Bank A/C		30,000
	(Being Tat withdrew $30,000 for private use)
6.	Salary A/C                                                                       DR.	500
	Prepaid Salary A/C                                                        DR.	37,830
	To Cash/Bank A/C		38,330
	(Being salary payments made amounted to $38,330, of which $500 was for salaries accrued in the year ended 30 June 2016.)
7.	Advertising Expenses A/C                                            DR.	4,030
	GST Receivable A/C                                                       DR.	403
	To Advertising Agency (Creditors) A/C		4,433
	(Being Advertising totalling $4,030 plus GST was purchased on credit)
8.	Electricity expense A/C                                               DR.	4.320
	GST Receivable A/C                                                       DR.	432
	To Cash/Bank A/C		4,752
	(Being Electricity expense of $4,320 plus GST was paid)
9.	Accounts payable A/C                                                DR.	3,460
	To Cash/Bank A/C		3,460
	(Being Accounts payable paid)
10.	GST Payable A/C                                                             DR.	10,940
	To Cash/Bank A/C		8,060
	To GST receivable A/C		2,880
	(Being GST payable of $10,940 less GST receivable of $2,880 were forwarded
11.	Supplies expenses A/C                                                 DR.	50
	To Office Supplies inventory A/C		50
	( Being office supplies amounting to $50 used during the year leaving office supplies totalled $910 on hand at the end of the year)
12.	Depreciation A/C                                                       DR.	5,520
	To furniture and equipment A/C		5,520
	( Being depreciation on the furniture and equipment charged)
13.	Accrued Salary A/C                                                     DR.	1,420
	To salary income A/C		1,420
	( Being Salaries earned but not paid amount to $1,420)
14.	Rent A/C                                                                        DR.	8,750
	To Prepaid Rent A/C		8,750
	(Being Rent paid in advance adjusted)