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Question 2 (13 marks) Joe Surfer of Hawai Surfboards prepares monthly financial statements selected accounts and their balances on the 30 June trial balance before any adjustments nave been made for the month of June. financial statements. Below are listed some Hawaii Surfboards Trial Balance (Selected Accounts) 30 June 2016 Surfing Supplies Prepaid Insurance Surfing Equipment Accumulated Depreciation-Surfing Equipment Unearned Surfing Revenue Credit $ 2,700 4.725 16,200 S 900 1,200 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances). An analysis of the account balances by the company's accountant provided the following additional information 1. A physical count of surfing supplies revealed $1,200 on hand on 30 June. 2. A two-year life insurance policy was purchased on 1 June for $5,400 3. Surfing equipment depreciates $3,000 per year 4. The amount of surfing revenue received in advance that remains unearned at 30 June is $500 Required: a) Using the above additional information, prepare the entries (in general journal) that should be made by Hawai Surfboards on 30 June Include narrations. (10 marks) b) Show how the surfing equipment will be reflected on Hawaii Surfboards balance sheet on (3marks) 30 June

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