Linkin Sales has an accounting period of 12 months ending June 30 th , 2021. The following transactions occurred during the financial year. Each transaction requires an adjusting entry on June 30 th ....

Linkin Sales


has an accounting period of 12 months ending June 30^th,
2021. The following transactions occurred during the financial year. Each
transaction requires an
adjusting
entry
on June 30^th. Please note that Linkin Sales uses the asset approach
to prepaid expenses.

a)


Stock on Hand at July 1 2020 was $30,000. At June 30 2021 a stock
take revealed Stock on Hand was
$37,500.

b)


Unpaid wages on June 30 were $1200. This figure includes $900 Wages
owing to employees,
and

$300 PAYG Tax
owing to the Australian Taxation Office.

c)


On May 1 2021, Linkin Sales paid $1320 for six month’s rent of
Office Equipment. This payment included 10% GST.

d)


On June 30 the following recording error was found. Instead of a
Debit to Advertising Expense for a cash payment of $550 (Including GST), the
Debit was made to Interest Expense. Assume that the correct Credit entry to
Cash at Bank was made. Show the
correcting

entry
below.