Complete the following worksheet for Appliance Repair for theyear ended 30 June 2020.
Additional information to complete the worksheet:
- The equipment of $67,500 was purchased on 1 March 2020. Thestraight-line depreciation method is used with a useful life of 3years and a scrap value of $2,700. No depreciation is everrecorded.
- The $75,000 bank loan was borrowed on 1 May 2020. It is aninterest only loan. The interest rate is 0.8% per month. Nointerest is ever paid or recorded.
- The supplies on hand at 30 June 2020 were $650.
- The prepaid insurance balance represents the annual premiumpaid on 1 April 2020.
- $2,500 of unearned revenue has been earned by 30 June 2020.
| trial balance (unadjusted) | adjustments | trial balance(adjusted) | Incomestatement |
| account title | debit | credit | debit | credit | debit | credit | debit | credit |
| cash at bank | 37,500 | | | | | | | |
| account payable | 127,500 | | | | | | | |
| prepaid insurance | 1,800 | | | | | | | |
| suppliers | 900 | | | | | | | |
| equipment | 67,500 | | | | | | | |
| accumulated depreciation -equipmeny | | | | | | | | |
| accounts payable | | 2,700 | | | | | | |
| unearned revenue | | 3,150 | | | | | | |
| interest payable | | | | | | | | |
| bank loan (due in 2028) | | 75,000 | | | | | | |
| capital | | 49,950 | | | | | | |
| service revenue | | 157,500 | | | | | | |
| wages expense | 52,500 | | | | | | | |
| supplies expense | 600 | | | | | | | |
| depreciation expense - equipment | | | | | | | | |
| insurance expense | | | | | | | | |
| interest expense | | | | | | | | |
| 288,300 | 288,300 | | | | | | |
| | | | | | | | |
