The following trial balance was prepared from the ledger accounts of Taiwan Consultants a

firm of management consultants.

Taiwan Consultants
Unadjusted Trial Balance as at 30 June 2015
Debit Credit
$ $
Bank 41,520
Stock office supplies on hand 11,890
Office equipment 152,000
Accumulated depreciation, office equipment 24,400
Premises 800,000
Accumulated depreciation, premises 64,000
Accounts payable 33,000
GST collections 5,500
GST outlays 3,500
Accounts receivable 46,000
Fees revenue 880,600
Rent revenue 16,000
Advertising expense 25,000
Administrative expenses 30,000
Salaries 390,000
Internet service provider 2,000
Interest expense 19,000
Telephone expense 8,000
Loan (due 1 Sept 2019) 200,000
Capital – L. Lee 345,410
Drawings – L. Lee 40,000
$1,568,910 $1,568,910
Adjustments:
 Salaries are $1500 per day. They are paid weekly in arrears. The next pay day is July 3
which is a Wednesday.
 Depreciation on premises is 2% pa, on a straight-line basis.
 Depreciation of office equipment is 10% of the equipment’s cost.
 On 1 January, 2015. Taiwan Consultants rented part of its premises to T. Light for 12
months and received a cheque for $16,000 representing the whole year’s rental.
 Office supplies of $6,390 had been used during the year. Office supplies of $5,500 were
on hand at the end of the period.
 Advertising of $2,000 was prepaid for an advertising campaign starting in July 2015.
 $6,000 is owing for consulting work completed but not yet billed to the client.
Required:
a) Prepare general journal entries for the balance day adjustments.
b) Prepare an Income Statement for the year ended 30 June 2015.
c) Prepare a classified Balance sheet as at 30 June 2015.
d) Prepare a Statement of Owner’s Equity as at 30 June 2015.
e) Prepare Closing & Reversing entries.
f) Use Worksheet.