Transactions completed during the year ended 30 June 2013 for Johnson & Co are summarised as follows:

Johnson & Co

Trial Balance

As at 30 June, 2013

Transactions completed during the year ended 30 June 2014 are summarised below (ignore GST):

1. Consulting fees of $55 720 were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay.
2. Rent paid in advance was $9120
3. Office supplies were purchased during the year for 240 in cash & 260 on credit
4. Johnson withdrew $16000 for private use
5. Salary payments amounted to $19 960, of which $260 was for salaries accrued to the end of the year ending 30 June 2011
6. Electricity expense of $2250 was paid
7. Accounts payable of $1800 were paid
8. Collections on accounts receivable totalled $51 820

The following additional information should be considered for adjusting entries:

1. Unused office supplies on hand at the end of the year totalled $400
2. Depreciation on the furniture and equipment is $2000
3. Salaries are not paid and recorded amount to $700
4. Rent paid in advance in transaction 3. Rent for 6 months of $4560 was paid in advance on     1 August and 1 February.
5. Interest earned but not yet received $240.
6. Electricity expense was outstanding $240

Required:

I)        Prepare journal entries to record the transactions (1-8) completed in the year to 30 June, 2014                                                                                                                                                         Marks 4

II)      Post the entries to Accounts                                                                                                              Marks 2

III)    Prepare and post the adjusting entries                                                                                         Marks 3

IV)   Prepare a 10-column worksheet for the year ended 30^th June, 2014                                Marks 5

V)     Prepare an Income Statement, a statement of changes in Owners’ Equity and a balance-

sheet for the year ended 30^th June, 2014                                                                                     Marks 4

VI)   Prepare the closing entries                                                                                                                 Marks 1

VII) Comment on the performance of the business based on their financial statements (600 words).                                                                                                                                                                      Marks 6

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